§1What this business is
Hardwood and softwood are cut on circular and band saws, planed, shaped with a router and lathe, and joined with glue and nails into wooden frames. The report's product is wooden frames; sheesham is the wood most used in Indian craft.
Capacity: 200 frames a day on a 10-hour shift; year 1 planned at 40%.
§2Is it right for you?
Who it is for
A carpenter or craft family wanting a small registered workshop.
Who it is not for
Someone expecting large profits from a small workshop.
Advantages
- Very low machinery cost (₹2.60 L)
- Low power need (6 HP)
- Same tools can make trays, boxes and other small woodwork
Drawbacks
- Mostly manual work — output depends on workers
- Competition from cheap plastic and MDF frames
- Thin margin in early years
Skills you need
- Sawing, joinery and lathe work
- Finishing and polishing
- Selling to shops and online
Why difficulty 2/5: Small, simple workshop; selling steadily is the main task.
§3Market
Who buys
- Households and offices
- Photo studios and gift shops
How it sells
- Gift and decor shops
- Online marketplaces
- Craft fairs
Good to know
- The report cites the Indian wood panel industry at about ₹28,000 crore, growing 10–12% a year.
- It also notes online buying is pushing demand for home-decor woodwork.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Circular saws | 1 | ₹4,500 |
| Bandsaw | 1 | ₹38,000 |
| Frame saw | 1 | ₹1,000 |
| Hand saw | 1 | ₹800 |
| Planes | 1 | ₹700 |
| Router | 1 | ₹15,000 |
| Lathe machine | 1 | ₹2,00,000 |
From: PMEGP sample project report — Wood Crafting Unit (prepared by Udyami/Samadhan)
- Hardwood and softwoodsheesham, teak, mango and similar woods
- Gluefor joints
- Nailsfor joints
From: PMEGP sample project report — Wood Crafting Unit (prepared by Udyami/Samadhan)
In our raw material database
Industrial timber (roundwood from farms and trees outside forests) →
§5Licences & registration
- Udyam registration
- GST registration
- Buy timber only from licensed depots with a transit pass where state forest rules require it
- Artisan identity card (Pehchan) from the Development Commissioner (Handicrafts) — useful for craft schemes and fairs
- Trade licence from the local body
§6Schemes & subsidies
- PMEGPCentralActive15–35% subsidy
- MudraCentralActiveLoan up to ₹20 lakh, no collateral
- CGTMSECentralActiveNo collateral, up to ₹10 crore
- Stand-Up IndiaCentralClosed₹10 lakh – ₹1 crore loan
PMEGP fits (₹10.64 L); MUDRA covers the full cost; CGTMSE for a loan without collateral; Stand-Up India for SC/ST and women founders.
§7Money
How the investment is worked out: Civil work ₹5.00 L + plant & machinery ₹2.60 L + furniture & fixtures ₹0.50 L + working capital ₹2.54 L = ₹10.64 L. Land own or rented.
Working capital: Working capital ₹2.54 L, of which bank finance ₹2.28 L; 10 days of stock, 15 days' credit to buyers.
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: EPCH (Export Promotion Council for Handicrafts)
- Confirm the 8-digit ITC(HS) line with DGFT or your customs broker before shipping.
- You need an Import Export Code (IEC) from DGFT before the first shipment.
§9Risks — where people fail
- Timber price rises
- Warping and cracks from poor seasoning
- Slow-moving designs
§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 wood crafting unit (wooden frames) 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 Wood Crafting Unit (Wooden Frames)?
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.