§1What this business is
Switch bodies and plates are moulded from plastic on an injection moulding machine, metal contact parts are fitted, and each switch is assembled, polished, tested and packed. The report plans 2,000 switches a day. Buyers are electrical shops, wholesalers, electricians, builders and panel makers.
Capacity: 2,000 switches a day on a 10-hour shift; 45% in year 1.
§2Is it right for you?
Who it is for
An electrical trader or electrician-entrepreneur who can get BIS certification and dealer reach.
Who it is not for
Someone who wants to sell uncertified switches — that is illegal where the QCO applies and unsafe.
Advantages
- Every building needs switches
- Replacement demand continues for years
- One moulding machine makes many designs with new moulds
- Builders and electricians buy in bulk
Drawbacks
- BIS certification and testing are needed
- Strong competition from established brands
- Plastic and brass/copper prices swing
- Moulds for new designs are costly
Skills you need
- Injection moulding
- Electrical safety testing
- BIS compliance
- Dealer and electrician network
Why difficulty 3/5: Moulding is routine; BIS certification and brand competition are the hurdles.
§3Market
Who buys
- Electrical shops and wholesalers
- Electricians and contractors
- Builders
- Panel and appliance makers
How it sells
- Electrical distributors
- Direct supply to builders
- Online marketplaces
Good to know
- The report says traditional switches were over 80% of the market in 2016 and smart switches were growing.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Injection moulding machine | 1 | ₹12,50,000 (rate column shows ₹12,00,000) |
| Polishing or buffing machine | 1 | ₹50,000 |
| Moulds | 1 set | ₹50,000 |
| Testing equipment and other tools | 1 lot | ₹50,000 |
From: PMEGP sample project report — Switch Manufacturing (prepared by Udyami/Samadhan)
- Plastic moulding granulesfor switch bodies and plates
- Metal parts (contacts, springs, terminals)
From: PMEGP sample project report — Switch Manufacturing (prepared by Udyami/Samadhan)
Suppliers in Building Business Bazaar
MSME-Testing Centre (NR), New Delhi · New Delhi →MSME-Testing Centre (WR), Mumbai · Mumbai →MSME-Testing Centre (SR), Chennai · Chennai →MSME-Testing Centre (ER), Kolkata · Kolkata →MSME-Testing Centre, Ahmedabad · Ahmedabad →MSME-Testing Centre, Patna · Patna →MSME-Testing Centre, Dimapur · Dimapur →MSME-Testing Station, Hyderabad · Hyderabad →MSME-Testing Station, Bengaluru · Bengaluru →MSME-Testing Station, Ettumanur (Changanacherry) · Ettumanur →MSME-Testing Station, Bhopal · Bhopal →MSME-Testing Station, Kolhapur · Kolhapur →
§5Licences & registration
- Udyam
- GST
- BIS licence — household switches (IS 3854) are under compulsory certification; confirm the current Quality Control Order
- Trade licence
- Trademark for your brand
§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
PMEGP (the report was made for it), MUDRA up to ₹20 L, CGTMSE for a collateral-free loan, Stand-Up India for SC/ST or women founders.
§7Money
How the investment is worked out: PMEGP sample report: plant & machinery ₹14.00 L, furniture ₹1.00 L, working capital ₹6.20 L = ₹21.20 L. Premises own or rented.
Working capital: Working capital ₹6.20 L (bank CC ₹5.58 L): 15 days of raw material and finished stock, 14 days' credit to buyers.
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
Export council / board: EEPC India
- Confirm the 8-digit ITC(HS) line with DGFT or your customs broker.
§9Risks — where people fail
- BIS non-compliance
- Raw material price rise
- Brand competition
- Product failures causing shocks or fires
§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 switch manufacturing unit 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), 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 Switch Manufacturing Unit?
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.
