§1What this business is
A distribution board takes one incoming supply and splits it into branch circuits, protecting each against short circuit, overload and earth leakage. The unit designs the circuit, cuts, bends, welds and drills the sheet-metal enclosure, fixes clips and battens, wires it to the diagram, fits bought-out MCBs, fuse units, relays, meters and terminals, and tests it to IS 8623 and IS 2675. Buyers are builders, electrical contractors, factories and institutions.
Capacity: 600 distribution boards of different sizes a year, worth ₹75 L at an average ₹12,500 each.
§2Is it right for you?
Who it is for
An electrician or electrical contractor who already has builders and contractors as customers.
Who it is not for
Someone without electrical knowledge; a faulty board is a fire and shock risk.
Advantages
- Every building, shop and factory needs distribution boards
- Small machines; mostly fabrication and wiring
- Made to order, so little finished stock
- Can grow into larger control panels
Drawbacks
- Branded modular DBs dominate house wiring
- Margin depends on prices of bought-out switchgear
- Contractors pay late
- Needs trained electricians for wiring and testing
Skills you need
- Circuit design and wiring
- Sheet-metal fabrication and welding
- Testing to IS standards
- Quoting and selling to contractors
Why difficulty 2/5: Fabrication and wiring are well-known trades; selling against brands is the hard part.
§3Market
Who buys
- Builders and electrical contractors
- Factories and workshops
- Offices, shops and institutions
How it sells
- Direct orders from contractors
- Electrical trade shops
- Tenders
Good to know
- The profile ties demand to growth in power generation, transmission and distribution.
- In houses, the meter, fuse and link board are installed by the electricity board (profile).
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Sheet bending machine | 2 | ₹36,000 |
| Guillotine shearing machine, 1200 mm | 2 | ₹30,000 |
| Vice | 3 | ₹18,000 |
| Arc welding transformer with accessories | 1 | ₹12,000 |
| Air compressor with spray-paint equipment | 1 | ₹12,000 |
| Bench drill, portable grinder, gun drill, gas welding set, 2 bench grinders, hand shear, fly press, hand coil winder | 1 lot | ₹39,500 |
| Hand tools and measuring instruments | 1 lot | ₹10,000 |
| Testing: HV tester 5 kV, megger, multimeters, voltmeter, ammeter, loading rheostats, LCR bridge | 1 lot | ₹27,500 |
From: DC-MSME project profile — Distribution Board (2003)
- Instruments and accessories50 sets a month at ₹5,000 = ₹2.50 L
- MS sheet3.5 t a month at ₹20,000/t = ₹70,000
- MS angles, flats, channels1.5 t a month = ₹22,363
- Terminal strips, bus-bar strips, fuse units, MCBs, cut-outs, relays₹50,000 a month
- Hardware, welding rods, paint, wiring and insulating material₹30,000 a month
From: DC-MSME project profile — Distribution Board (2003)
Suppliers in Building Business Bazaar
Automatic Electric Co. Ltd · Mumbai →Batliboi and Co · Kolkata →HMT Ltd · Kolkata →Associated Engineers and Co · Ajmer →Atlas Works Pvt. Ltd · Kolkata →Automatic Pvt. Ltd · Chennai →B.B. Engineering Works · Kolkata →Bluestar Ltd · Kolkata →BPL Pvt. Ltd · Chennai →Engg. and Industrial Foundry Company · Coimbatore →Indian Oxygen Limited · Chennai →Larsen and Toubro Ltd · Kolkata →
In our raw material database
§5Licences & registration
- Udyam registration
- GST
- Trade licence from the local body
- State Pollution Control Board consent (welding and painting)
§6Schemes & subsidies
- PMEGPCentralActive15–35% subsidy
- MudraCentralActiveLoan up to ₹20 lakh, no collateral
- CGTMSECentralActiveNo collateral, up to ₹10 crore
- Stand-Up IndiaCentralClosed₹10 lakh – ₹1 crore loan
The ₹17.30 L project fits PMEGP, MUDRA (Tarun, up to ₹20 L), CGTMSE and Stand-Up India.
§7Money
How the investment is worked out: DC-MSME profile: machinery ₹1.58 L (2 sheet-bending machines ₹36,000, 2 guillotine shears ₹30,000, 3 vices ₹18,000, arc welding set ₹12,000, air compressor with spray paint ₹12,000, drill, grinders, fly press and tools) + testing equipment ₹27,500 + furniture ₹24,000 + electrification ₹15,750 + pre-operative ₹5,000 = fixed capital ₹2.30 L; working capital for 3 months ₹15.00 L; total ₹17.30 L. Premises rented.
Working capital: Working capital for 3 months ₹15.00 L; monthly spend about ₹5.00 L, of which instruments and accessories ₹2.50 L (₹5,000 a set) and MS sheet and angles ₹92,363.
Prices from 2002–03 — machinery, material and wage costs will be much higher now.
§8Export potential
Confirm the HS code in the DGFT ITC(HS) lookup before you export
Export council / board: EEPC India
- Confirm the 8-digit ITC(HS) line with DGFT or your customs broker before shipping.
- You need an Import Export Code (IEC) from DGFT before the first shipment.
§9Risks — where people fail
- Competition from branded modular boards
- Switchgear price rise
- Slow payments from builders
- Liability for faulty boards
§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 distribution boards (lt) 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), 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 Distribution Boards (LT)?
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.