§1What this business is
Cotton or cotton-polyester fabric is cut, stitched into covers, filled to a set weight on an automatic filling machine, closed and packed. The same set-up can make cushions, decorative pillows and travel pillows. Buyers are homes, hotels, hospitals and furnishing shops.
Capacity: 450 pillows a day on a 10-hour shift; year 1 at 60%.
§2Is it right for you?
Who it is for
Someone with a tailoring background and links to furnishing shops, hotels or hospitals.
Who it is not for
Someone expecting high margins from a commodity product.
Advantages
- Every home, hotel and hospital buys pillows
- Simple cut–stitch–fill process
- Automatic filling keeps the weight even
- Can add cushions and travel pillows
Drawbacks
- Thin net margin (about 3–8%)
- Mattress brands and cheap local makers compete
- Bulky product — storage and freight cost
- Fabric prices move
Skills you need
- Industrial stitching
- Cutting and filling
- Weight and quality checks
- Selling to furnishing dealers and hotels
Why difficulty 2/5: Simple process; the challenge is a thin margin and finding steady buyers.
§3Market
Who buys
- Households
- Hotels and guest houses
- Hospitals and wellness centres
- Travellers (neck pillows)
How it sells
- Furnishing and mattress shops
- Online marketplaces
- Bulk orders from hotels and hospitals
Good to know
- The report notes demand from homes and from the healthcare and wellness sector, plus neck pillows for flight passengers.
- The report lists fabrics and packing but does not name the filling fibre or its cost.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Single-needle lockstitch machine with edge trimmer | 1 | ₹85,000 |
| Double-needle four-thread overlock machine | 1 | ₹72,000 |
| Pillow and cushion automatic weighing and filling machine | 1 | ₹3,63,000 |
| Pillow packing machine | 1 | ₹1,30,000 |
From: PMEGP sample project report — Pillow Making (prepared by Udyami/Samadhan)
- Cotton-polyester fabricfor covers
- Cotton fabricfor covers
- Packing materiallisted as a major raw material
- Thread and consumables (scissors etc.)listed as consumables
From: PMEGP sample project report — Pillow Making (prepared by Udyami/Samadhan)
§5Licences & registration
- Udyam
- GST
- Trade licence from the local body
- Fire safety NOC (fibre storage)
§6Schemes & subsidies
- PMEGPCentralActive15–35% subsidy
- MudraCentralActiveLoan up to ₹20 lakh, no collateral
- CGTMSECentralActiveNo collateral, up to ₹10 crore
PMEGP (report is a PMEGP sample); MUDRA up to ₹20 L covers the ₹11.11 L cost; CGTMSE for collateral-free credit.
§7Money
How the investment is worked out: Samadhan report: plant & machinery ₹6.50 L, furniture ₹1.50 L, working capital ₹3.11 L = ₹11.11 L. Land own or rented.
Working capital: ₹3.11 L, bank finance ₹2.80 L; 10 days of stock and credit.
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
- 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
- Low margin
- Unsold stock
- Fire risk from fibre
- Dealer credit
§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 pillow 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, 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 Pillow 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.