§1What this business is
The tandoor body is cut, rolled and fabricated from sheet, the heating element, thermostat and switch are fitted, the body is painted, wired and tested. Electric tandoors replace wood-fired clay tandoors in homes, hotels and restaurants.
Capacity: Sample report: 30 tandoors a day, 9,000 a year; first year at 50% (4,500) at ₹1,000 each, sales ₹42.75 lakh. KVIC: projected sales ₹19.00 lakh a year at full capacity.
§2Is it right for you?
Who it is for
A sheet-metal or electrical fabricator who wants his own product.
Who it is not for
Someone looking for a high-margin product from day one.
Advantages
- Tandoori food is popular in homes, dhabas and hotels
- Simple sheet-metal work with common machines
- No smoke or wood, so cities and hotels prefer it
- Small start possible with the KVIC model
Drawbacks
- Thin margin in the first years (3.3% in year 1)
- High break-even point (56%)
- Thermostats are the costliest part and come from outside suppliers
- Sales depend on dealers and word of mouth
Skills you need
- Sheet cutting, rolling and welding
- Heating element and thermostat wiring
- Insulation and earthing tests
- Selling to hotel suppliers and dealers
Why difficulty 2/5: Basic fabrication and wiring; the hard part is selling enough to pass 56% break-even.
§3Market
Who buys
- Households
- Hotels, restaurants and dhabas
How it sells
- Electrical appliance dealers
- Hotel and kitchen equipment suppliers
Good to know
- The report says demand for domestic electric tandoors is rising as electricity replaces other fuels at home.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Double bench grinder | 1 | ₹7,500 |
| Sheet rolling machine | 1 | ₹2,00,000 |
| Drill machine | 1 | ₹14,000 |
| Shearing machine | 1 | ₹2,25,000 |
| Power hacksaw | 1 | ₹45,000 |
| Air compressor with painting gun | 1 | ₹25,000 |
| Hand press No. 8 | 1 | ₹15,000 |
| Power press | 1 | ₹95,000 |
| Tools, dies and fixtures | 1 lot | ₹25,000 |
| Testing set (megger, high-voltage tester, digital multimeter, test panel, leakage and earthing testers, variable transformer) | 1 set | — |
From: PMEGP sample project report — Electric Tandoor (prepared by Udyami/Samadhan) · KVIC Project Profile — Electric Tandoor (PMEGP)
- CRC sheet8,000 kg a year at ₹38 per kg
- Nichrome resistance wire50 kg a year at ₹1,800 per kg
- Ceramic roofs9,000 pieces at ₹15
- Bakelite handles9,000 pieces at ₹50
- Thermostats9,000 pieces at ₹140 — the biggest raw-material cost
From: PMEGP sample project report — Electric Tandoor (prepared by Udyami/Samadhan)
Suppliers in Building Business Bazaar
Prem Engg. Works · Delhi →Applied Electronics Ltd · Delhi →Rajdhani Tele Elect. Product Pvt. Ltd · Guwahati →
§5Licences & registration
- Udyam registration
- GST registration
- Pollution Control Board NOC (listed in the sample report)
- BIS certification if a Quality Control Order covers the product (check the BIS list)
- Trademark for your brand name (optional)
§6Schemes & subsidies
- PMEGPCentralActive15–35% subsidy
- MudraCentralActiveLoan up to ₹20 lakh, no collateral
- CGTMSECentralActiveNo collateral, up to ₹10 crore
PMEGP fits (the report was made for it); MUDRA gives loans up to ₹20 lakh; CGTMSE lets the bank lend without collateral.
§7Money
How the investment is worked out: KVIC profile ₹7.87 lakh (work-shed 1,750 sq ft ₹3.50 lakh, equipment ₹1.67 lakh, working capital ₹2.70 lakh); sample report ₹14.80 lakh (plant & machinery ₹8.00 lakh, furniture & electrical fittings ₹1.25 lakh, working capital ₹5.55 lakh).
Working capital: KVIC ₹2.70 lakh; sample report ₹5.55 lakh with a ₹5.00 lakh bank limit.
Neither report prints a year — check current machinery prices.
§8Export potential
The project report gives no HS code — find the right 8-digit ITC(HS) code on the DGFT website before you export.
§9Risks — where people fail
- Electric shock or fire complaints
- Steel and thermostat price rises
- Seasonal demand around weddings and hotel openings
- Unpaid dealer credit
§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 electric tandoor manufacturing 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 registration), 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 Electric Tandoor Manufacturing?
DPR, loan file or registration — ask us on WhatsApp.
¶Sources
- KVIC Project Profile — Electric Tandoor (PMEGP)
- PMEGP sample project report — Electric Tandoor (prepared by Udyami/Samadhan)
Data review: 6 October 2026. Spotted a mistake? Report it. For information only — not legal or financial advice.