§1What this business is
A neon sign uses a cold-cathode glass tube: a high-voltage transformer makes the gas inside glow. Colour comes from the gas filled in or from a fluorescent coating inside the tube. You bend the tubes into letters, evacuate and fill them, and fix them on a metal frame for shops, showrooms and buildings.
Capacity: Signs worth ₹11.78 lakh (cost of production) a year at full capacity; projected sales ₹14.00 lakh.
§2Is it right for you?
Who it is for
A trained glass-tube bender or electrician who already gets sign work from shops in a town.
Who it is not for
Someone without electrical training, or anyone who expects mass demand — buyers now mostly ask for LED.
Advantages
- Small investment for a skilled trade
- Every shop, hotel and showroom needs a sign board
- Work is made to order, so little finished stock
- Repair and refilling of old signs gives extra income
Drawbacks
- LED signs have taken most of this market
- Glass bending needs long practice
- Works at very high voltage — accidents are serious
- Glass tubes break in transport and fitting
Skills you need
- Glass tube bending and splicing
- Vacuum pumping and gas filling
- High-voltage wiring and safety
- Sheet-metal frame work and welding
Why difficulty 4/5: Cheap to start, but the craft is hard and LED has cut demand.
§3Market
Who buys
- Shops, showrooms, hotels and restaurants
- Industrial and commercial firms advertising their products
- Advertising agencies
How it sells
- Direct orders from businesses
- Sub-contract work from advertising and flex-printing agencies
Good to know
- The profile says neon signs suit busy places in big towns and cities, mounted high on buildings.
- Today most new shop signs are LED; neon is now a niche, decorative product.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Bombarding transformer 7.5 kVA, 230/25,000 V | 1 | — |
| Agency transformer 15,000 V, 60 mA | 1 | — |
| Vacuum pump (1 micron) | 1 | — |
| Gas filling unit | 1 | — |
| Gas plant | 1 | — |
| High-frequency vacuum tester | 1 | — |
| Tipping torches, splicing torches, ribbon burners | 1 set | — |
| Hand shearing machine | 1 | — |
| Hand-operated sheet machine | 1 | — |
| Arc welding transformer 12 kVA | 1 | — |
| Spot welding machine 2 kVA | 1 | — |
| Bench drilling machine 13 mm and bench grinder | 1 each | — |
| All equipment above, with installation and pre-operative costs | 1 set | ₹2,17,000 |
From: KVIC Project Profile — Neon Sign Boards (PMEGP)
- Glass tubes (plain or coated with fluorescent powder)colour comes from the gas or the coating; raw material ₹5.70 lakh a year in the profile
- Neon and other filling gasesfilled after vacuum pumping
- Electrodes, high-voltage transformers and wireeach sign needs its own transformer
- Metal sheet and sections for framescut and welded in the unit
From: KVIC Project Profile — Neon Sign Boards (PMEGP)
Suppliers in Building Business Bazaar
Ashok Rubber Industries · Kolkata →Benay Electrical · Kolkata →Central Scientific Co. Ramaspeth · Nagpur →Electrical and Glass Products · Mumbai →Ganson Ltd · Mumbai →Hind Vacuum Co. (P) Ltd · Bengaluru →Key Engg. Works · Delhi →Leuchtaftwerk (India) (P) Ltd · Mumbai →Malik Electrical (P) Ltd · Mumbai →National Neon Light · Chennai →Philips India Ltd · Mumbai →Rallis India Ltd · Chennai →
§5Licences & registration
- Udyam registration
- GST registration
- Trade licence from the local body
- Client needs municipal permission for outdoor signs
§6Schemes & subsidies
- PMEGPCentralActive15–35% subsidy
- MudraCentralActiveLoan up to ₹20 lakh, no collateral
- CGTMSECentralActiveNo collateral, up to ₹10 crore
PMEGP fits this small unit; MUDRA (Kishore/Tarun) and CGTMSE cover a loan of this size.
§7Money
How the investment is worked out: KVIC profile: equipment ₹2.17 lakh (incl. installation and pre-operative costs) + working capital ₹1.90 lakh = ₹4.07 lakh. Land own; a 75 sq ft workshed is listed with no cost.
Working capital: Working capital ₹1.90 lakh in the project cost (₹1,96,347 per cycle). Raw material ₹5.70 lakh a year.
Year not printed on the KVIC profile — check current machinery prices.
§8Export potential
Confirm the HS code in the DGFT ITC(HS) lookup before you export
Export council / board: EEPC India
- HS codes are from the WCO HS 2022 list; 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
- Demand shifting to LED signs
- Electric shock and fire
- Breakage losses
- Late payment by shop owners
§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 neon sign board making 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 Neon Sign Board Making?
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.