§1What this business is

Wood pieces are cut on a band saw and jig saw, carved by hand, joined with adhesive where needed, sanded, and polished or painted. Cheap white wood is used for toys and better wood for decorative pieces. The profile says Indian toys of sandal, teak and rose wood have wide markets abroad.

Capacity: The cost table shows cost of production ₹9.08 L and projected sales ₹12.00 L a year at full capacity (the introduction separately mentions goods worth ₹2,98,000).

§2Is it right for you?

Who it is for

A carver or craft family wanting to start small, from home or a small shed.

Who it is not for

Someone without carving skill or a way to reach buyers.

Advantages

  • Very small start-up cost (₹2.12 L)
  • Machines are available locally
  • Good surplus for the size — ₹2.86 L on ₹12.00 L sales

Drawbacks

  • Depends on the carving skill of one or two people
  • Selling small volumes takes time and travel
  • Toy safety rules apply to toys sold in India

Skills you need

  • Hand carving
  • Painting and polishing
  • Selling at fairs and online

Why difficulty 2/5: Cheap to start; carving skill and buyers matter most.

§3Market

Who buys

  • Gift and decor buyers
  • Parents buying toys
  • Handicraft exporters

How it sells

  • Craft fairs and exhibitions
  • Gift shops and emporiums
  • Online marketplaces

Good to know

  • The profile says Indian toys made of sandal, teak and rose wood have wide markets globally.

§4Raw material & machinery

ItemQtyCost
Band saw machine1—
Jig saw machine1—
Bench grinder1—
12 mm drilling machine1—
Sanding machine1—
All equipment together1 lot₹62,000

From: KVIC Project Profile — Wooden Toys and Decorative Pieces (PMEGP)

  • Wood piecescheap white wood for toys, better wood for decorative pieces
  • Adhesive (fevicol), paint and sandpaperraw material in all ₹5,00,000 a year at full capacity

From: KVIC Project Profile — Wooden Toys and Decorative Pieces (PMEGP)

§5Licences & registration

  1. Udyam registration
  2. GST registration
  3. Artisan identity card (Pehchan) from the Development Commissioner (Handicrafts) — useful for craft schemes and fairs
  4. BIS licence under the Toys (Quality Control) Order for toys sold in India; artisans registered with the Development Commissioner (Handicrafts) selling their own handmade toys are exempt — check the current order

We can do this registration for you

§6Schemes & subsidies

PMEGP fits (KVIC model profile); in UP, CM-YUVA covers projects up to ₹5 L; MUDRA Shishu/Kishor for the ₹2.12 L; CGTMSE for a loan without collateral.

§7Money

How the investment is worked out: Equipment ₹0.62 L + working capital ₹1.50 L = ₹2.12 L. Land own; work shed not costed.

Working capital: Working capital ₹1.50 L; need per cycle ₹1,51,197. Raw material ₹5.00 L a year.

Year not printed on the KVIC profile — check current machinery prices.

How to prepare a loan file

§8Export potential

Confirm the HS code in the DGFT ITC(HS) lookup before you export

9503.00Tricycles, scooters, dolls, other toys, puzzles and models4420.19Statuettes and other ornaments of wood (other than tropical wood)

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

  • Low or uneven sales
  • Wood cracking from poor seasoning
  • Paint safety on toys

§1030 / 60 / 90-day plan

A general plan that applies to any business. A plan for this business will be added after research.

  1. Days 1–30: Visit a working wooden toys and decorative pieces unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
  2. Days 31–60: Udyam and the licences you need (Udyam registration, GST registration), a project report (DPR), and the scheme or loan file.
  3. Days 61–90: Space and machines, trial production, and first deliveries to 10 customers.

§11Who to connect with

Not verified yet

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 Toys and Decorative Pieces?

DPR, loan file or registration — ask us on WhatsApp.

Get a DPR / loan file made

Sources

  1. KVIC Project Profile — Wooden Toys and Decorative Pieces (PMEGP)

Data review: 6 October 2026. Spotted a mistake? Report it. For information only — not legal or financial advice.