§1What this business is
A small machine turns cotton into round wicks and long wicks — about 3 kg a day of each in a 7–8 hour shift. The wicks are packed and sold for diyas and pooja, with peaks at festivals.
Capacity: Round wicks 3 kg a day and long wicks 3 kg a day per machine (7–8 hour shift).
§2Is it right for you?
Who it is for
A homemaker, self-help group or small trader near temples and markets.
Who it is not for
Someone looking for a large business.
Advantages
- Smallest possible start — ₹1 L
- Can run from home; suits self-help groups
- Steady demand from homes and temples, with festival peaks
Drawbacks
- Small output and income
- Many home makers compete
- Needs good packing to fetch a better price
Skills you need
- Running the wick machine
- Packing and labelling
- Selling to pooja and grocery shops
Why difficulty 1/5: ₹1 L, one machine and a simple skill.
§3Market
Who buys
- Households for daily pooja
- Temples
- Pooja-item and grocery shops
How it sells
- Pooja-item wholesalers
- Grocery shops
- Festival fairs
Good to know
- The selling price varies with quality and packing (report).
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Cotton wick making machine (round and long wicks) | 1 | ₹1,00,000 |
From: PMEGP sample project report — Cotton Wicks (prepared by Udyami/Samadhan)
- CottonAbout ₹300 a kg; 3 kg a day per machine
- Packing material
From: PMEGP sample project report — Cotton Wicks (prepared by Udyami/Samadhan)
In our raw material database
§5Licences & registration
- Udyam registration
- GST once turnover crosses the limit
- Legal Metrology registration if you sell in packs
§6Schemes & subsidies
MUDRA Shishu or Kishor loans suit this size; PMEGP also funds small units.
§7Money
How the investment is worked out: Plant & machinery ₹1.00 L is the whole project cost; no building or working capital is costed, and the report funds it fully from own money.
Working capital: No working capital is costed. Cotton costs about ₹300 a kg (₹900 for a day's 3 kg).
Year not printed on the report — check current machinery prices.
§8Export potential
Confirm the HS code in the DGFT ITC(HS) lookup before you export
- Exports are rare for a unit this size; the market is mostly local.
- Confirm the 8-digit ITC(HS) line with DGFT or your customs broker.
§9Risks — where people fail
- Cotton price rise
- Price undercutting
- Seasonal sales
§1030 / 60 / 90-day plan
A general plan that applies to any business. A plan for this business will be added after research.
- Days 1–30: Visit a working cotton wicks (diya batti) unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
- Days 31–60: Udyam and the licences you need (Udyam registration, GST once turnover crosses the limit), a project report (DPR), and the scheme or loan file.
- Days 61–90: Space and machines, trial production, and first deliveries to 10 customers.
§11Who to connect with
Associations, clusters and training institutes — the directory is being built. Connect
§12Watch
There is no episode on this business yet. Shows are coming soon on the Podcast page.
Want to start Cotton Wicks (Diya Batti)?
DPR, loan file or registration — ask us on WhatsApp.
¶Sources
Data review: 6 October 2026. Spotted a mistake? Report it. For information only — not legal or financial advice.