§1What this business is
Customers bring in household electrical appliances. For servicing, the appliance is taken apart, worn parts such as ball bearings and bushes are replaced, it is oiled, put back together and tested. For repairs, the fault is found and the defective part replaced; burnt armatures of motor-driven appliances are rewound. The profile asks for in-house leakage-current and shock-protection testing under the IS 302 safety standard.
Capacity: 5,000 appliances repaired or serviced a year at an average ₹550 — ₹27.50 lakh.
§2Is it right for you?
Who it is for
An ITI electrician or a trained youth who wants to run a local repair shop.
Who it is not for
Someone without hands-on electrical training — unsafe repairs can cause shocks and fires.
Advantages
- Every home has fans, irons, mixers and geysers that wear out
- Small rented workshop and modest tools
- Motor rewinding adds higher-value work
- Authorised service is thin in semi-urban and rural areas (profile)
Drawbacks
- Many local electricians compete on price
- Cheap new appliances make some customers replace rather than repair
- Income depends on steady walk-in work
- Work is seasonal for coolers, fans and geysers
Skills you need
- Fault finding in motors, heaters and wiring
- Armature and coil rewinding
- Safety testing with megger and leakage-current tester
- Dealing fairly with customers on price
Why difficulty 2/5: Small investment; success rests on electrical skill and a good name in the area.
§3Market
Who buys
- Households
- Shops, offices and small hotels with fans, geysers and heaters
- Families in semi-urban and rural areas
How it sells
- Walk-in workshop
- Tie-ups with appliance dealers for out-of-warranty work
Good to know
- The profile names mixer-grinders, geysers, water heaters, fans and electric irons as the main appliances.
- It notes that authorised service centres exist but do not meet the need in semi-urban and rural areas.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Motorised winding machine | 1 | ₹50,000 |
| Manual winding machine | 2 | ₹45,000 (₹22,500 each) |
| Bench drilling machine, ½ inch | 1 | ₹4,500 |
| Portable drilling machine | 1 | ₹3,500 |
| Bench grinder, 200 mm | 1 | ₹5,000 |
| Soldering machine | 2 | ₹2,000 |
| High-voltage tester, 2.5 kV | 1 | ₹13,000 |
| Testing panel board | 1 | ₹9,000 |
| Clamp meter, 3½ digit | 1 | ₹3,000 |
| Megger, 500 V DC | 1 | ₹14,000 |
| Multimeter | 1 | ₹3,000 |
| Leakage current tester | 1 | ₹6,000 |
| Auto transformer, 10 A | 1 | ₹4,000 |
| Other instruments and meters | lump sum | ₹2,000 |
From: DC-MSME project profile — Repair & Servicing of Electrical Appliances (MSME-DI New Delhi) (2021)
- Super enamelled copper wire30 kg a month at ₹550 a kg
- Ball bearings50 a month at ₹235 each
- Heating elements for electric irons40 a month at ₹120 each
- Immersion heaters for geysers40 a month at ₹150 each
- Shafts, bushes, capacitors, field coils, armatures, carbon brushes₹8,000 a month
- Cables, insulation paper, hardware and accessories₹14,000 a month
From: DC-MSME project profile — Repair & Servicing of Electrical Appliances (MSME-DI New Delhi) (2021)
Suppliers in Building Business Bazaar
Acme Scientific International · Delhi →Choudhary Trading Co · Delhi →Instrument International · Delhi →Mangal Instrumentation · Delhi →
§5Licences & registration
- Udyam
- GST (if turnover crosses the limit)
- Shop and establishment registration
- Trade licence from the local body
- Pollution board NOC (the profile advises taking one)
§6Schemes & subsidies
PMEGP covers service units, and the ₹7.89 L project fits within MUDRA Tarun.
§7Money
How the investment is worked out: Fixed capital ₹2.75 L (servicing machines ₹1.10 L; testing equipment ₹54,000; power connection and installation ₹16,400; jigs, fixtures and tooling ₹15,000; office equipment ₹50,000; pre-operative ₹30,000) + working capital for 2 months ₹5.14 L = ₹7.89 L. Workshop rented.
Working capital: Parts and materials about ₹61,050 a month (enamelled copper wire, ball bearings, iron elements, immersion heaters, capacitors, armatures); salaries ₹74,750 a month. The profile holds 2 months of running cost.
Prepared in 2020-21 with Delhi rates — check current wages, rent and part prices.
§8Export potential
A local repair service; there are no goods to export.
§9Risks — where people fail
- Electric shock or fire from a badly repaired appliance
- Price competition from roadside electricians
- Customers not collecting repaired items
- Spare parts for some brands hard to get
§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 electrical appliance repair and servicing unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
- Days 31–60: Udyam and the licences you need (Udyam, GST (if 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 Electrical Appliance Repair and Servicing?
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.