§1What this business is
Clay is shaped on a potter's wheel or in wooden moulds and fired in an updraught kiln. The KVIC profile covers fancy pieces for homes, offices and hotel entrances, and utility ware such as sheetal pots, water filters, cooking and serving pots, garden pots and kulhars, with demand in both villages and towns.
Capacity: Production worth ₹6.68 L a year at full capacity.
§2Is it right for you?
Who it is for
A potter family or artisan group that wants to add décor designs and reach town buyers.
Who it is not for
Someone with no pottery skill looking for a quick machine-made product.
Advantages
- Very low investment (₹3.83 L)
- Clay is available locally
- Two markets — décor pieces and everyday utility ware
- Builds on a traditional village skill
Drawbacks
- Wages are the biggest cost (₹4.00 L of ₹6.68 L)
- Breakage in firing and transport
- Small surplus — ₹1.05 L at full capacity
- Kiln smoke and fuel need care
Skills you need
- Wheel throwing and moulding
- Kiln firing
- Design and finishing
- Selling at fairs and to shops
Why difficulty 2/5: Low capital, but needs pottery skill and careful firing.
§3Market
Who buys
- Homes, offices and hotels that buy décor pieces
- Households in villages and towns buying pots, filters and garden pots
- Tea stalls and sweet shops using kulhars
How it sells
- Craft fairs and exhibitions
- Local shops and weekly markets
- Direct orders from hotels and offices
Good to know
- The profile notes a new trend of decorating homes, hotels and offices with terracotta.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Wooden moulds | 1 set | — |
| Updraught kiln with shed | 1 | — |
| Shailla wheel | 1 | — |
| Potter's wheel | 1 | — |
| Tools | 1 lot | — |
From: KVIC Project Profile — Fancy Terracotta & Utility Articles (PMEGP)
- Clayraw material ₹1.20 L a year in the profile
- Labels and packing material₹500 a year
From: KVIC Project Profile — Fancy Terracotta & Utility Articles (PMEGP)
Suppliers in Building Business Bazaar
Bamboo And Pottery Mini Cluster · Hoshangabad →Bhadrwati Terracotta Cluster · Chandrapur →Bosa Kumar Gaon Pottery Cluster · Golaghat →Chapar Terracota Cluster · Dhubri →Cuddalore Sarvodaya Sangh Pottery Cluster · Villupuram →Kallandur Pottery Cluster · Kolar →Kashi Pottery Cluster · Varanasi →Mau Pottery Village Industry Mini Cluster · Mau →Mini Pottery Cluster · Azamgarh →Nand Nagar Terracotta Pottery Cluster, Nandan Nagar, Agartala, West Tripura · West Tripura →Nashik Pottery Cluster · Nashik →Pottery And Terracotta Cluster Hapur · Hapur →
§5Licences & registration
- Udyam registration
- GST registration once turnover crosses the limit
- Trade licence from the local body
§6Schemes & subsidies
- PMEGPCentralActive15–35% subsidy
- MudraCentralActiveLoan up to ₹20 lakh, no collateral
- CM YUVAUPActiveUp to ₹5 lakh, interest-free
- CGTMSECentralActiveNo collateral, up to ₹10 crore
A KVIC Gramodyog Rojgar Yojana profile; at ₹3.83 L it fits PMEGP, MUDRA (Shishu/Kishore), CM-YUVA in UP (up to ₹5 L) and CGTMSE.
§7Money
How the investment is worked out: Kachcha workshed ₹50,000 + equipment ₹2.50 L (wooden moulds, updraught kiln with shed, shailla wheel, potter's wheel, tools) = ₹3.00 L, + working capital ₹83,000 = ₹3.83 L. Own land.
Working capital: Working capital ₹83,000; clay and raw material ₹1.20 L and wages ₹4.00 L 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: Export Promotion Council for Handicrafts (EPCH)
- 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
- Breakage losses
- Rain and damp delaying drying
- Low prices from middlemen
- Cheap plastic and steel substitutes
§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 terracotta décor & utility ware 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 once turnover crosses the limit), 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 Terracotta Décor & Utility Ware?
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.