§1What this business is
Wood is seasoned, cut on band and circular saws, planed, turned and drilled, then joined with glue and nails, carved where needed, sanded and finished with stains, basecoat and enamel. Products include almirahs, wardrobes, tables, chairs, stools, beds and cots in many designs. Two reports: a KVIC profile and a Samadhan report.
Capacity: Samadhan: 20 furniture sets a day, year 1 at 30%. KVIC: cost of production ₹68.76 L and projected sales ₹80.00 L a year at full capacity.
§2Is it right for you?
Who it is for
A skilled carpenter or furniture trader with a showroom or builder contacts.
Who it is not for
Someone who cannot manage carpenters or quality on custom orders.
Advantages
- Furniture is needed in every home, office and shop
- Modest machinery cost
- Custom orders allow better prices
Drawbacks
- Thin net margin in the Samadhan report (3.1–5.7%)
- Competition from branded and imported furniture
- Timber price and legal supply
Skills you need
- Joinery and finishing
- Design and costing
- Showroom and builder sales
Why difficulty 2/5: Familiar trade; margins depend on design and finishing.
§3Market
Who buys
- Households
- Offices, shops and commercial buildings
- Hotels, schools and hospitals
How it sells
- Own showroom or workshop orders
- Furniture retailers
- Builders and interior contractors
Good to know
- The Samadhan report says demand for wooden goods at home is rising, and engineered-wood furniture is growing in metro cities.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Band saw | 1 | ₹2,85,500 |
| Drill machine | 1 | ₹44,000 |
| Planing tools | 1 | ₹29,500 |
| Wood seasoning plant | 1 | ₹1,00,000 |
| Planer machine | 1 | ₹80,000 |
| Belt sander | 1 | ₹9,500 |
| Buffer machine | 1 | ₹20,000 |
| Round cutter | 1 | ₹5,500 |
| Wood lathe machine | 1 | ₹45,000 |
| Chip carving knives | 10 | ₹1,000 |
| Carpenter chisels | 10 | ₹2,000 |
| U-gouges | 10 | ₹1,500 |
| V-gouges | 10 | ₹1,500 |
| Spoon gouges | 10 | ₹2,500 |
| Palm tools | 10 | ₹1,000 |
| Carpentry saw | 1 | ₹9,500 |
| KVIC set: vertical saw, thickness planer, planer, circular saw, disc sander, bench drill, blade grinder, wood lathe, bench grinder, vices, jigs and electrification | 1 lot | ₹4,25,000 |
From: PMEGP sample project report — Wooden Furniture (prepared by Udyami/Samadhan) · KVIC Project Profile — Wooden Furniture (PMEGP)
- WoodKVIC puts raw material at ₹60,00,000 a year at full capacity
- Adhesives and nailsfor joints
- Finishing material: stains, basecoat, glazes and enamelsfor the final finish
From: KVIC Project Profile — Wooden Furniture (PMEGP) · PMEGP sample project report — Wooden Furniture (prepared by Udyami/Samadhan)
Suppliers in Building Business Bazaar
Annatdev Woodcraft Producer Company Limited · Bokaro →Bidar Wood Carving Mini Cluster · Bidar →Cane & Bamboo Furniture & Utility Product Cluster · Tamenglong →Cane & Bamboo Processing And Furniture Making Cluster · Zunheboto →Cane And Bamboo Furniture Making And Cane Processing Cluster · Imphal East →Deep Hast Ship Wooden Toys Cluster · Udaipur →Embroidery With Furniture & Stitching Cluster · Sonipat →Hoshiarpur Wood And Lacquer Cluster · Hoshiarpur →Kantilo Bell Metal And Wood Cluster · Nayagarh →Kondapalli Wooden Toy Cluster · Krishna →Kumbkonam Steel & Wooden Furniture Cluster · Thanjavur →Sagara Woodcrafts Cluster · Shivamogga →
§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
- Factory licence if your worker count crosses the Factories Act limit
- BIS: the Furniture Quality Control Order covers some items such as beds, tables, chairs and storage units — check if it applies and its relaxations for micro units
§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 both reports; 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: Samadhan report ₹13.66 L (plant & machinery ₹6.38 L + furniture & fixtures ₹1.50 L + working capital ₹5.78 L); KVIC profile ₹15.25 L (equipment ₹4.25 L + working capital ₹11.00 L, own land).
Working capital: KVIC: working capital ₹11.00 L (need per cycle ₹11,45,917), raw material ₹60.00 L a year. Samadhan: ₹5.78 L, of which bank ₹5.20 L; 10 days of stock, 15 days' credit.
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: 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 swings
- Termite and moisture damage
- Late payment on large orders
§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 furniture 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 Furniture Making?
DPR, loan file or registration — ask us on WhatsApp.
¶Sources
- KVIC Project Profile — Wooden Furniture (PMEGP)
- PMEGP sample project report — Wooden Furniture (prepared by Udyami/Samadhan)
Data review: 6 October 2026. Spotted a mistake? Report it. For information only — not legal or financial advice.