§1What this business is
An insulation tester, commonly called a megger, applies a high DC voltage and measures the insulation resistance of wiring, motors, cables and transformers. The transistorised type runs on a battery instead of a hand-cranked generator. The unit buys resistors, capacitors, diodes, transistors, ICs, a small transformer, a rotary switch, a meter or display and a ready case, solders the parts on a printed circuit board with a wave-soldering machine and soldering stations, and then tests and calibrates each piece against a standard resistance box. The report budgets for 250 pieces a month at ₹6,500 each, with parts costing ₹4,000 a piece.
Capacity: 250 insulation testers a month, 3,000 a year.
§2Is it right for you?
Who it is for
An electronics engineer or instrument trader who understands test and measuring instruments and can offer calibration service.
Who it is not for
Someone with no electronics design or calibration ability who plans only to resell imported kits.
Advantages
- Machinery and instruments cost under ₹6 L
- Every electrician, contractor and electrical maintenance team needs one
- The report counts no large-scale Indian maker of this item
- Rising construction and electrical work keep demand growing
Drawbacks
- Working capital of ₹40.8 L is almost five times the fixed capital
- Established instrument brands and imports hold the trust of buyers
- Each piece must be calibrated, so quality control is slow work
- A staff of 14 is heavy for 250 pieces a month
Skills you need
- PCB assembly and soldering
- Circuit testing with an oscilloscope and LCR meter
- Calibration against standard resistances
- Selling to electrical dealers and contractors
Why difficulty 3/5: Light on machinery, but it needs real electronics and calibration skill and a trusted name.
§3Market
Who buys
- Electrical contractors and electricians
- Makers and repairers of motors, cables and transformers
- Power utilities and factory maintenance departments
- Electrical instrument dealers
How it sells
- Electrical and instrument dealers
- Direct sales to contractors and industry through sales executives
- Tenders of utilities and government departments
Good to know
- The report prices the basic model at ₹6,500 a piece.
- It names Ambala, Nashik, Mumbai and Ahmedabad as places where these instruments are made.
- The standard it cites for the electronic type is IS 10656:1983.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Wave soldering machine | 1 | ₹2,80,000 |
| Computers with printer | 3 | ₹1,20,000 |
| Digital storage oscilloscope (100 MHz) | 1 | ₹48,000 |
| Soldering iron stations | 4 | ₹28,000 |
| LCR meter | 1 | ₹24,000 |
| Regulated DC source | 1 | ₹20,000 |
| Digital multimeters | 2 | ₹9,000 |
| Standard resistance box | 1 | ₹7,500 |
| De-soldering pumps | 4 | ₹4,800 |
| Magnifying glass with light | 1 | ₹3,000 |
From: DC-MSME import-substitution DPR — Insulation Tester (Transistorised)
- Parts for the basic model including PCB and outer case₹4,000 a piece for 250 pieces a month = ₹10,00,000
- Resistors, capacitors, diodes, zener diodes, transistors and ICslisted in the report; cost is inside the ₹4,000 a piece
- Transformer, battery, rotary switch, preset, case and analog meter displaylisted in the report; cost is inside the ₹4,000 a piece
From: DC-MSME import-substitution DPR — Insulation Tester (Transistorised)
§5Licences & registration
- Udyam registration
- GST registration
- Trade licence or shop and establishment registration
- Calibration certificates traceable to an accredited laboratory
- BIS certification to IS 10656 where the buyer asks for it
Start it in your state
Pick your state: today’s cost, central + state subsidy, raw material, land and help, on one page.
§6Schemes & subsidies
At ₹49.56 lakh the project sits just inside PMEGP's ₹50 lakh ceiling for manufacturing. CGTMSE can cover the working-capital loan without collateral.
§7Money
How the investment is worked out: Fixed capital ₹8,73,730 (machinery and test instruments ₹5,44,300, 10% electrification and installation ₹54,430, office furniture and work tables ₹2,50,000, pre-operative ₹25,000) + working capital for 3 months ₹40,82,550 = ₹49,56,280. The premises are rented at ₹20,000 a month.
Working capital: Recurring cost is ₹13,60,850 a month, of which parts are ₹10,00,000; the report provides ₹40,82,550, which is 3 months.
Year not printed on the report; its import figures end at 2019-20 — check current instrument and component prices.
§8Export potential
Confirm the HS code in the DGFT ITC(HS) lookup before you export
- The report says insulation testers fall mainly under HS 90303390 and 90303900.
- Its tables show imports falling and exports rising between 2017-18 and 2019-20.
§9Risks — where people fail
- An instrument that reads wrong can lead to an electrical accident
- Imported testers sold at lower prices
- Stocks of electronic parts going obsolete
- Credit demanded by dealers
§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 insulation tester (megger) assembly 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
§12Watch
There is no episode on this business yet. Shows are coming soon on the Podcast page.
Want to start Insulation Tester (Megger) Assembly?
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.