Electronic Choke and LED Light Assembly

§1What this business is

You buy diodes, power transistors, resistors, capacitors, ferrite cores, copper winding wire and printed circuit boards, solder them onto the board as per the layout, wind the coils, fit the board in its casing, test it and pack it. An electronic choke starts and runs a fluorescent tube and, by the profile's account, saves 35–40% energy over the old coil choke; the same bench work makes the rectifier boards inside LED lights. Buyers are lighting brands, electrical wholesalers and shops.

Capacity: Not printed in pieces; sales of ₹25.00 L a year at full capacity, starting at 60% (₹15.00 L).

§2Is it right for you?

Skills you need

• Reading PCB layouts and soldering
• Coil winding
• Testing with oscilloscope, LCR meter and multimeter
• Buying components at good prices

Why difficulty 2/5: Cheap and simple to set up, but selling against big brands is hard.

§3Market

§4Raw material & machinery

From: SIDBI Stand-Up Mitra project profile — Energy Saving Choke / LED Lights (2018) — private guide — confirm locally

• Diodes (1N4007, 1N4148) and high-voltage switching power transistorsbought from electronic component dealers
• Resistors, capacitors and printed circuit boardsas per the bill of materials
• Ferrite cores and copper winding wirefor the choke coil
• Enclosures, screws, connectors and flexible wirefor housing and wiring

From: SIDBI Stand-Up Mitra project profile — Energy Saving Choke / LED Lights (2018) — private guide — confirm locally

§5Licences & registration

1. Udyam registration
2. GST registration
3. BIS registration under the Compulsory Registration Scheme for LED lamps and luminaires if you sell finished LED lights
4. Extended Producer Responsibility registration under the E-Waste (Management) Rules if you sell lighting products under your own brand
5. Trade licence from the local body

We can do this registration for you

§6Schemes & subsidies

• PMEGPCentralActive15–35% subsidy
• MudraCentralActiveLoan up to ₹20 lakh, no collateral
• CGTMSECentralActiveNo collateral, up to ₹10 crore

PMEGP fits a ₹7.37 L manufacturing project; MUDRA (Kishore/Tarun) covers the whole cost; CGTMSE for a loan without collateral.

§7Money

How the investment is worked out: Plant and machinery (test instruments, coil winder) ₹2.00 L + furniture and electrical installations ₹1.00 L + preliminary expenses ₹0.20 L + working capital ₹4.17 L = ₹7.37 L. Premises rented; no land or building.

Working capital: Working capital ₹4.17 L (stocks ₹2.08 L, receivables ₹1.04 L, overheads ₹1.04 L); margin ₹1.82 L, bank ₹2.34 L. Finance: owner ₹1.84 L, bank ₹5.53 L.

SIDBI Stand-Up Mitra profile, uploaded in 2018 (no year printed on it) — prices will be higher now; check current costs.

How to prepare a loan file

§8Export potential

§9Risks — where people fail

• Falling demand for tube-light chokes
• Price swings in imported components
• Product returns from early failures
• Dependence on a few brand buyers

§1030 / 60 / 90-day plan

A general plan that applies to any business. A plan for this business will be added after research.

1. Days 1–30: Visit a working electronic choke and led light assembly unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
2. Days 31–60: Udyam and the licences you need (Udyam registration, GST registration), a project report (DPR), and the scheme or loan file.
3. Days 61–90: Space and machines, trial production, and first deliveries to 10 customers.

§11Who to connect with

§12Watch

There is no episode on this business yet. Shows are coming soon on the Podcast page.

¶Sources

1. SIDBI Stand-Up Mitra project profile — Energy Saving Choke / LED Lights (2018)

Data review: 6 October 2026. Spotted a mistake? Report it. For information only — not legal or financial advice.