§1What this business is
A heavy fabrication and machining shop that cuts, bends and welds steel plate and sections, machines wheels and drums, fits gearboxes and motors, and tests the finished cranes, conveyors and lifting gear. Most orders are complete systems for food, pharma, agri-processing, chemical units and warehouses.
Capacity: 1,000 units a year — overhead cranes, conveyors, jib cranes, manual lift trucks — at ₹30,000 to ₹15,00,000 each.
§2Is it right for you?
Who it is for
An experienced mechanical or structural engineer with industrial contacts.
Who it is not for
A small first venture — this is a ₹2 crore heavy engineering plant.
Advantages
- Every new factory and warehouse needs handling equipment
- Custom systems earn better margins
- Service and spares bring repeat income
- Low break-even in the profile
Drawbacks
- Very high investment (₹2.21 crore)
- Safety-critical products — failures are serious
- Long sales cycles and tenders
- Steel prices change quotes quickly
Skills you need
- Structural design and load calculations
- Welding and NDT (ultrasonic, X-ray) testing
- Project quoting and site erection
- Industrial sales
Why difficulty 5/5: Large capital, safety-critical engineering and project selling.
§3Market
Who buys
- Food, pharma, agri-processing and chemical factories
- Warehouses and logistics firms
- Construction and infrastructure projects
How it sells
- Direct sales to factories
- Tenders
- Through plant contractors and consultants
Good to know
- The profile links demand to growth in manufacturing, warehouses, transport and shipping.
- Usually a complete system or solution is supplied, not single items.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Heavy duty lathe, 3.5 m bed | 3 | ₹15,00,000 |
| Radial drill machine | 2 | ₹9,00,000 |
| Laser / plasma plate cutting machine | 1 | ₹8,00,000 |
| Hydraulic press 800 T | 1 | ₹8,00,000 |
| Vertical lathe | 1 | ₹8,00,000 |
| TIG / MIG / SAW welding machine | 3 | ₹7,50,000 |
| Jib cranes / hoists | 3 | ₹6,00,000 |
| 3-roller plate bending machine | 2 | ₹5,00,000 |
| Motor, rope and load test facility | 1 set | ₹5,00,000 |
| Shot blasting machine | 1 | ₹4,50,000 |
| X-ray test system | 1 | ₹4,50,000 |
| EOT crane | 1 | ₹4,50,000 |
| Heavy duty saw machine | 2 | ₹4,00,000 |
| Ultrasonic / magnetic test systems | 1 | ₹3,50,000 |
| All main machines | total | ₹99,40,000 |
From: SIDBI Stand-Up Mitra project profile — Manufacturing of Material Handling Equipments (2018) — private guide — confirm locally
- MS sections, beams, flats and carbon alloy steelthe profile prices them at ₹35 to ₹90 a kg
- Gearboxes, electric drives, hydraulic and pneumatic systemsbought out to the system rating
- Wire ropes, wheels, welding consumables and paint
From: SIDBI Stand-Up Mitra project profile — Manufacturing of Material Handling Equipments (2018) — private guide — confirm locally
§5Licences & registration
- Udyam registration
- GST registration
- Factory licence and factory plan approval
- ESI and PF registration
- State pollution board consent if your state lists fabrication with painting or shot blasting
- IEC code for exports
§6Schemes & subsidies
- CGTMSECentralActiveNo collateral, up to ₹10 crore
- Stand-Up IndiaCentralClosed₹10 lakh – ₹1 crore loan
Too large for PMEGP; a bank term loan with CGTMSE cover (up to its limit) fits; Stand-Up India for eligible founders.
§7Money
How the investment is worked out: Land ₹25.00 L + building ₹35.00 L + plant and machinery ₹103.90 L + fixtures and electricals ₹5.30 L + preliminary ₹2.50 L + working-capital margin ₹49.54 L = ₹221.24 L.
Working capital: Gross working capital ₹113.47 L (stock ₹45.94 L, receivables ₹24.24 L); margin ₹49.54 L, bank ₹63.93 L.
Prices from 2018 — machinery, material and salary figures will be higher now.
§8Export potential
Confirm the HS code in the DGFT ITC(HS) lookup before you export
Export council / board: EEPC India (Engineering Export Promotion Council)
- The profile mentions IEC code for export.
§9Risks — where people fail
- Steel price rise after a fixed-price order
- Accidents from equipment failure
- Payment delays on projects
- Large debt
§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 material handling equipment manufacturing 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 Material Handling Equipment Manufacturing?
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.