§1What this business is
Logs are debarked, peeled into veneer and chopped into sticks; the sticks are dipped in chemicals, dried and filled into boxes made from printed card, and the striking surface is coated on. The report plans 6,000 boxes a day (1 box = 10 packets). Matches sell in volume through wholesalers and kirana shops, so a strong distribution network matters.
Capacity: 6,000 boxes a day, 18,00,000 boxes a year at full capacity (1 box = 10 packets); year 1 at 50%.
§2Is it right for you?
Who it is for
Someone with a wholesale or FMCG distribution network in their region.
Who it is not for
Someone who cannot manage fire safety or chase payments from many small dealers.
Advantages
- Everyday product used in every kitchen
- The report says India makes four crore matchboxes a day
- Raw material (wood, card, chemicals) is easy to buy
- Simple machine line with a 5–6 month start-up
Drawbacks
- Very low price per box; profit depends on volume
- Chemicals used are flammable — fire risk
- Strong competition from established match makers
- Needs a wide dealer network to sell the volume
Skills you need
- Machine operation and maintenance
- Handling chemicals and fire safety
- Bulk buying of wood and card
- Dealer and wholesale sales
Why difficulty 3/5: The process is simple, but fire safety and selling large volumes are demanding.
§3Market
Who buys
- Households
- Kirana and general stores
- Hotels, eateries and religious places
How it sells
- Wholesalers and distributors
- Direct supply to retail shops
Good to know
- The report says every third matchbox used in the world is Indian.
- It says success depends on a strong channel network and branding.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Chain saw | 1 | — |
| Log debarker | 1 | — |
| Veneer peeling machine | 1 | — |
| Veneer chopping machine | 1 | — |
| Rotating drum dryer | 1 | — |
| Vat, feed hopper and perforated belt conveyor | 1 set | — |
| Open chemical tanks | 1 set | — |
| Matchbox making machine with coating unit | 1 | — |
| Matchstick filling machine | 1 | — |
| Counting and packaging machine | 1 | — |
From: PMEGP sample project report — Matchbox Project (prepared by Udyami/Samadhan)
- Wood2,00,000 kg a year at full capacity, ₹22 per kg
- Cardboard50,000 kg a year, ₹45 per kg
- Chemicals and consumables (red phosphorus etc.)₹2.50 lakh a year (lump sum)
- Paper and packing material₹3.00 lakh a year (lump sum)
From: PMEGP sample project report — Matchbox Project (prepared by Udyami/Samadhan)
Suppliers in Building Business Bazaar
Saftey Match Industries Cluster · Gudiyatham →Saftey Match Industries Cluster · Kalugumalai →Saftey Match Industries Cluster · Kovilpatti →Saftey Match Industries Cluster · Sattur →Saftey Match Industries Cluster · Srivilliputhur →Saftey Match Industries Cluster · Virudhunagar →Safety Matches, O. Mettupatti, Sattur Virudhunagar · Sattur Virudhunagar →
In our raw material database
§5Licences & registration
- Licence for match manufacture under the Explosives Rules (PESO)
- Fire NOC
- Udyam registration
- GST registration
- State pollution control board consent
- Trademark for your brand (optional)
§6Schemes & subsidies
- PMEGPCentralActive15–35% subsidy
- CGTMSECentralActiveNo collateral, up to ₹10 crore
- Stand-Up IndiaCentralClosed₹10 lakh – ₹1 crore loan
PMEGP (the report is a PMEGP sample), CGTMSE for loans without collateral, and Stand-Up India for SC/ST and women founders.
§7Money
How the investment is worked out: Report: plant & machinery ₹16.28 lakh, furniture ₹1.00 lakh, working capital ₹7.33 lakh = ₹24.61 lakh. Land and 1,500 sq ft shed own or rented (not costed).
Working capital: Working capital ₹7.33 lakh, of which bank finance ₹6.60 lakh; 14 days of raw material and 10 days of finished stock.
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
- Confirm the 8-digit ITC(HS) line with DGFT or your customs broker.
- You need an Import Export Code (IEC) from DGFT before the first shipment.
§9Risks — where people fail
- Fire in the factory or store
- Wood price and supply
- Price war with big brands
- Slow-paying 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 matchbox 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 (Licence for match manufacture under the Explosives Rules (PESO), Fire NOC), 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 Matchbox 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.