§1What this business is
Logs are cut on a vertical saw, sized on a circular saw and planed, and the planks are assembled into wooden crates. Crates carry glass bottles, PET bottles and cold-drink bottles, and protect heavy machinery in transport. The KVIC profile is filed as 'Wooden Crafts' but describes wooden crates.
Capacity: 48,000 crates a year; cost of production ₹61.44 L and projected sales ₹70.00 L at full capacity.
§2Is it right for you?
Who it is for
Someone near a timber market with buyers among bottlers, exporters or machinery makers.
Who it is not for
Someone who cannot fund ₹14 L of timber stock.
Advantages
- Very low machinery cost (₹1.80 L)
- Repeat orders from bottlers and machinery makers
- Better surplus than many KVIC profiles — ₹8.38 L on ₹70.00 L sales
Drawbacks
- Needs large working capital for timber
- Plastic crates have replaced wood for many bottlers
- Timber supply needs forest permits
Skills you need
- Timber buying and grading
- Sawing and assembly
- Selling to industrial buyers
Why difficulty 2/5: Simple carpentry; working capital and timber supply are the hard parts.
§3Market
Who buys
- Bottlers of glass, PET and cold-drink bottles
- Machinery makers shipping heavy equipment
- Exporters needing packing cases
How it sells
- Direct supply contracts
- Packaging traders
Good to know
- The profile names bottle packing and machinery transport as the main uses.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| 24-inch vertical saw mill with 5 HP motor and electricals | 1 | — |
| 12-inch circular saw with 1 HP motor | 1 | — |
| Planer 12 × 16 inch with electricals | 1 | — |
| Saw blade brazing machine | 1 | — |
| All equipment together, incl. hand tools, electrical installation and office equipment | 1 lot | ₹1,80,000 |
From: KVIC Project Profile — Wooden Crafts (Wooden Crates) (PMEGP)
- Timber (the profile gives only the total)raw material ₹51,60,000 a year at full capacity
- Labels and packing material₹50,000 a year
From: KVIC Project Profile — Wooden Crafts (Wooden Crates) (PMEGP)
In our raw material database
Industrial timber (roundwood from farms and trees outside forests) →Rubberwood →Eucalyptus wood →Poplar wood →
§5Licences & registration
- Udyam registration
- GST registration
- Trade licence from the local body
- Buy timber only from licensed depots with a transit pass where state forest rules require it
- ISPM-15 heat treatment and marking if the crates are used for export shipments
§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 (KVIC model profile); MUDRA covers the full ₹15.80 L; CGTMSE for a loan without collateral; Stand-Up India for SC/ST and women founders.
§7Money
How the investment is worked out: Equipment ₹1.80 L + working capital ₹14.00 L = ₹15.80 L. Land own; work shed not costed. Both catalogue links for this topic open the same Wooden Crates profile (the catalogue lists one at ₹9.25 L, but the PDF prints ₹15.80 L).
Working capital: Working capital ₹14.00 L — most of the project; need per cycle ₹15,36,050. Raw material ₹51.60 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: FIEO (Federation of Indian Export Organisations)
- Crates are mostly sold to domestic users; export packing must meet ISPM-15.
- Confirm the 8-digit ITC(HS) line with DGFT or your customs broker before shipping.
§9Risks — where people fail
- Timber price rises
- Loss of buyers to plastic crates
- Late payment from industrial buyers
§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 wooden crate 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 Wooden Crate Making?
DPR, loan file or registration — ask us on WhatsApp.
¶Sources
- KVIC Project Profile — Wooden Crafts (Wooden Crates) (PMEGP)
- KVIC Project Profile — Wooden Crafts (Wooden Crates), second catalogue link (PMEGP)
Data review: 6 October 2026. Spotted a mistake? Report it. For information only — not legal or financial advice.