§1What this business is
Primary and secondary coils of enamelled copper wire are wound on a former, terminals are soldered, silicon-steel laminations are stacked and clamped, and the transformer is baked and impregnated. The report makes 48,000 pieces a year at ₹75 each, tested as per IS 6297.
Capacity: 48,000 transformers a year (160 a day); 75% in year 1.
§2Is it right for you?
Who it is for
An electrician or electronics technician who knows coil winding.
Who it is not for
Someone with no electrical background.
Advantages
- Very low machinery cost (₹1.36 L)
- Gross margin above 40% in the report
- Steady demand from repair shops and small appliance makers
- No pollution clearance needed, per the report
Drawbacks
- Switch-mode (SMPS) chargers are replacing iron-core transformers in many products
- Copper price swings hit cost
- Many small competitors
- Needs testing discipline (high-voltage, insulation, temperature-rise tests)
Skills you need
- Coil winding and turns calculation
- Soldering, baking and varnish impregnation
- Testing as per IS 6297
- Selling to repair shops and manufacturers
Why difficulty 2/5: Cheap to start and simple to learn; the risk is shrinking demand.
§3Market
Who buys
- Electronics repair shops
- Makers of adaptors, inverters and small appliances
- Electrical and electronics wholesalers
How it sells
- Direct supply to local manufacturers
- Electronics wholesale markets
Good to know
- Selling price ₹75 a piece in year 1, rising 2% a year in the report.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Coil winding machine | 2 | ₹10,000 (₹5,000 each) |
| Power press, 20 tonne | 1 | ₹50,000 |
| Treadle shearing machine, 1,200 mm | 1 | ₹15,000 |
| Hand-operated plastic injection moulding machine, 25 g | 1 | ₹6,000 |
| Dies | LS | ₹5,500 |
| Baking equipment | 1 | ₹6,000 |
| Power analyser | 1 | ₹3,000 |
| Multimeter | 2 | ₹3,000 (₹1,500 each) |
| Variac, 2 A (0–300 V) | 1 | ₹2,500 |
| Electrification and installation | LS | ₹10,000 |
| Tools, jigs and fixtures | LS | ₹5,000 |
| Office equipment and working tables | LS | ₹20,000 |
- Super enamelled copper wire, 18–46 SWG2,220 kg a year at ₹300 a kg = ₹6.66 L (full capacity)
- Lamination (high silicon steel)8,400 kg a year at ₹30 a kg = ₹2.52 L
- HDPE plastic granules120 kg a year at ₹50 a kg
- Insulating material, clamps and hardware, packing₹24,000 + ₹30,000 + ₹30,000 a year
Suppliers in Building Business Bazaar
Choudhary Trading Co · Delhi →AdhityaTrading Co · Bengaluru →Dytran ( India) Ltd · Kolkata →Genius Electrical and Electronics Pvt. Ltd · Delhi →Mica Manufacturing Co. Pvt Ltd · Kolkata →Narula Engineering Co · Delhi →North East Chemicals Corporation · Guwahati →Yam Industries · Bengaluru →
§5Licences & registration
- Udyam registration
- GST registration
- Trade licence from the local body
§6Schemes & subsidies
- PMEGPCentralActive15–35% subsidy
- MudraCentralActiveLoan up to ₹20 lakh, no collateral
- CGTMSECentralActiveNo collateral, up to ₹10 crore
PMEGP (the report is a PMEGP sample), MUDRA (₹9.68 L is within ₹20 lakh) and CGTMSE.
§7Money
How the investment is worked out: Samadhan report: building & civil work (3,000 sq ft) ₹3.50 L, plant & machinery ₹1.36 L, furniture ₹0.50 L, pre-operative ₹0.30 L, working capital ₹4.02 L = ₹9.68 L (term loan ₹5.09 L, working capital loan ₹3.62 L, own money ₹0.97 L).
Working capital: Working capital ₹4.02 L (bank ₹3.62 L); 30 days of raw material and 15 days of finished stock.
Year not printed on the report — check current machinery and material prices.
§8Export potential
Confirm the HS code in the DGFT ITC(HS) lookup before you export
Export council / board: EEPC India
- Get an Import Export Code (IEC) from DGFT before exporting.
§9Risks — where people fail
- Copper wire price rises
- Demand shifting to SMPS
- Failures from poor insulation
- Slow payments from manufacturers
§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 small transformer for electronics 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 Small Transformer for Electronics?
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.