§1What this business is
A central industrial laundry for the hospitality trade. Vans collect soiled linen from hotels, homestays, camps, hospitals and hostels; it is sorted, washed in large washer-extractors, dried, run through a flatwork ironer, folded, packed and delivered back. Extra services include dry cleaning, linen rental, curtain and carpet cleaning and RFID/barcode tracking of each client's linen.
Capacity: 2 tonnes of linen a day in year 1 rising to 8 tonnes a day in year 5, 330 working days; 30 hotel contracts at start, 100+ after 5 years.
§2Is it right for you?
Who it is for
An experienced operator with hotel-industry contacts and access to large funding.
Who it is not for
A first-time founder — start with a small laundry before a ₹8.5 crore plant.
Advantages
- Hotels prefer to outsource laundry
- Annual contracts give steady volume
- Linen rental and tracking add income
- Few large, well-run laundries in hill districts
Drawbacks
- Very high investment (₹8.5 crore)
- Heavy water, power and steam use
- Tourist seasons make volume swing
- Monsoon and snow disrupt pick-ups
Skills you need
- Industrial laundry process and chemicals
- Boiler and effluent plant management
- Logistics and route planning
- B2B contract sales
Why difficulty 5/5: Very large plant, heavy utilities and seasonal demand.
§3Market
Who buys
- Hotels, resorts and boutique hotels
- Homestays, camps and guest houses
- Hospitals, wellness centres and hostels
- Restaurants and institutions
How it sells
- Annual service contracts
- Direct B2B sales to hotels
- Booking app for pick-ups
Good to know
- The profile prices services per kg or per piece, with annual contracts, AMC for linen inventory and premium rates for express work.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Industrial washer extractor (50 kg) | 2 | ₹40.00 lakh |
| Flatwork ironer | 1 | ₹35.00 lakh |
| Industrial washer extractor (100 kg) | 1 | ₹30.00 lakh |
| Tumble dryer (50 kg) | 2 | ₹24.00 lakh |
| Pickup vehicles | 2 | ₹22.00 lakh |
| Steam boiler | 1 | ₹20.00 lakh |
| Automatic folding machine | 1 | ₹18.00 lakh |
| Effluent treatment plant | 1 | ₹18.00 lakh |
| Hydro extractor | 1 | ₹12.00 lakh |
| Generator set | 1 | ₹12.00 lakh |
| Water softening plant | 1 | ₹10.00 lakh |
| Barcode / RFID tracking system | 1 | ₹10.00 lakh |
| Steam press stations | 4 | ₹8.00 lakh |
| All laundry machinery | total | ₹280.00 lakh |
From: Uttarakhand DUY project profile — Commercial Hospitality Laundry & Linen Management Unit
- Laundry chemicals — detergents, softeners, stain removers₹15 L for 3 months
- Boiler fuel and electricity₹30 L for 3 months with power
- Water₹6 L for 3 months
- Packaging materials₹8 L for 3 months
From: Uttarakhand DUY project profile — Commercial Hospitality Laundry & Linen Management Unit
§5Licences & registration
- Udyam registration
- GST registration
- Pollution control board consent to establish and to operate
- Water discharge permission and ETP
- Factory licence
- Fire NOC
- Boiler inspection certificate
- ESIC and EPFO registration
§6Schemes & subsidies
- CGTMSECentralActiveNo collateral, up to ₹10 crore
- Stand-Up IndiaCentralClosed₹10 lakh – ₹1 crore loan
CGTMSE can cover part of the loan; Stand-Up India for eligible founders; the profile mentions PMEGP only for small-scale versions.
§7Money
How the investment is worked out: Fixed capital ₹700 L (building 12,000 sq ft ₹180 L, laundry machinery ₹280 L, boiler and steam system ₹35 L, ETP ₹25 L, water softening ₹15 L, land development ₹20 L, vehicles ₹24 L, contingencies ₹30 L and others) + working capital ₹150 L = ₹850 L.
Working capital: ₹150 L for 3 months — salaries ₹45 L, electricity and fuel ₹30 L, chemicals ₹15 L, vehicle running ₹12 L and other costs.
Year not printed on the DUY profile. The figures are the profile's own indicative estimates — check current costs before you plan.
§8Export potential
A local service business; it has no goods to export.
§9Risks — where people fail
- Low occupancy seasons
- Linen damage and loss claims
- Utility cost rise
- Environmental compliance
§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 commercial hotel laundry and linen management 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 Commercial Hotel Laundry and Linen Management?
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.
