§1What this business is
A motor starter has a contactor that connects the motor and an overload relay that cuts it off if it draws too much current. The unit makes or buys the cabinet, fits bought-out parts (contactor, relay, MCB, terminals, indicators), wires them to the circuit diagram, tests and packs. Buyers are pump-set dealers, farmers, factories and electrical contractors.
Capacity: 25 starter panels a day; the report starts at 40% capacity in year 1 and sells each at ₹4,500.
§2Is it right for you?
Who it is for
An electrician or electrical engineer with contacts among pump dealers and contractors.
Who it is not for
Someone without electrical training.
Advantages
- Steady demand from farm pumps and industry
- Assembly of bought-out parts — no heavy process
- Higher value per piece (₹4,500)
- Can add repair and service income
Drawbacks
- Thin margin over the cost of parts
- Branded starters are trusted more by buyers
- Wrong wiring can burn motors and bring claims
- Big working capital for parts
Skills you need
- Reading circuit diagrams
- Wiring and testing
- Buying parts at good prices
- Dealer sales in farm areas
Why difficulty 3/5: Needs electrical skill and trust from dealers; working capital is high.
§3Market
Who buys
- Farmers with pump sets
- Factories and workshops
- Building and electrical contractors
How it sells
- Pump-set and electrical dealers
- Direct supply to contractors and industry
Good to know
- The report links demand to industrial growth and heavy use of farm pumping sets.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Soldering machine | 1 | ₹2,50,000 |
| Pick and place machine | 1 | ₹8,00,000 |
| Crimping machine | 1 | ₹2,00,000 |
| Wire cutting machine | 1 | ₹1,50,000 |
| Testing equipment and hand tools | 1 lot | ₹1,00,000 |
From: PMEGP sample project report — Motor Starter Panel (prepared by Udyami/Samadhan)
- Cabinet₹800 per unit
- Contactor₹1,000 per unit
- Control relay₹800 per unit
- Terminal₹150 per unit
- MCB₹650 per unit
- Indicators₹50 per unit
- Tools and dies₹100 per unit; average parts cost about ₹3,550 per panel
From: PMEGP sample project report — Motor Starter Panel (prepared by Udyami/Samadhan)
Suppliers in Building Business Bazaar
Beekay Hardware · Sikkim →Bengal Trading Co · Siliguri →Cherry. Pvt. Ltd · Gangtok →Ganesh Chandra Avenue · Kolkata →Geekay Electricals · Coimbatore →Globe Machine Tools · Coimbatore →Goliya Instrument Pvt. Ltd · Mumbai →Grinder Engineering Co · Coimbatore →H.K. Agarwal and Co · Siliguri →Nandy and Co · Howrah →Pathak Machine Tools Pvt. Ltd · Howarh →R. R. Steels and Alloys · Coimbatore →
§5Licences & registration
- Udyam
- GST
- Trademark for your brand
- BIS: check whether a Quality Control Order covers your starter type or its parts
§6Schemes & subsidies
PMEGP (this is a PMEGP sample report) and CGTMSE fit. Bank finance ₹26.80 L is above the MUDRA ₹20 L limit.
§7Money
How the investment is worked out: PMEGP sample report: total ₹29.78 L = building/shed (1,000 sq ft) ₹5.00 L + equipment & tools ₹15.00 L + furniture ₹2.00 L + working capital ₹7.78 L.
Working capital: Working capital ₹7.78 L (bank ₹7.00 L); parts cost about ₹3,550 per panel, so stock and dealer credit lock up cash.
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
Export council / board: EEPC India
- Buyers abroad usually ask for IEC-standard test reports.
§9Risks — where people fail
- Component price rises
- Warranty claims
- Competition from branded starters
- Late payments from 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 motor starter panel 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, GST), 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 Motor Starter Panel 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.