manufacturing

How to Start Carpet making business in 2021

Overview

This article is about that product which is the prerequisite in the make up of every typical Indian household, it’s the main reason we’re asked to leave our shoes outside and not roam around with dirty feet so that we don’t ruin the Carpet

Did you know? The Indian carpets manufactured in India are sold at a price 5 times higher in USA than in India? Exactly, That’s how much it’s labor intensive, precision and artisanal work is valued abroad.

Carpets are the monopoly for India. India is the world’s largest producer and exporter of carpets in terms of volume and value. Around 75%-85% of carpets manufactured in India are sold in over 70 countries of the world.

This Carpet making business which has been and ancient tradition and has become a flourishing industry since the 16^th century with all the competitive edge to you in terms of labor, Indian handicrafts, raw material has bought to you this business opportunity.

It’s time you take this legacy forward and here’s how

Market potential and uses

Carpets are textile floor coverings which are typically made of a thick woven fabric. These could be classified on the basis of

Handmade carpets
Manufactured carpets

The market potential for carpets is vast contributing to its domestic as well as foreign demand. Infact exports of carpets from India stood at $1.37 billion in 2020.

Further the market for carpets is rising because of the handcraft and artisanal and labour intensive, precision work involved in it which attracts a huge foreign demand and domestic demand because of unique regional artwork involved in carpet making specially in Agra, Jaipur etc

The market potential for this business can be further be elaborated and dug into on the following basis

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On the basis of carpet fabric used

Nylon
Triexta
Polyester
Wool
Olefin

On the basis of carpet piles and face weight

Low pile carpet
Medium pile carpet
High pile carpet

On the basis of indoor carpet style and construction

Texture carpet : in rooms and bedrooms
Berber carpet. : in stairs, hallways and basement
Pattern carpet : in commercial offices

On the basis of knots involved in carpet

Symmetrical knot
Persian knot
Tibetan knot
Jufti knot

On the basis of uses of carpets

Insulating a person’s feet from cold floor or tiles
Used for performing holy prayers
Used to make a space or room comfortable
Used to decorate the interiors
Used emit sound while walking
Used for meditation
Process of manufacturing carpets

Woollen yarn spinning
Yarn dying
Raw washing
Weaving
Designing
Yarn opening
Shearing
Embossing
Binding
Seinging
Final clipping
Stretching
Drying
Final washing
Packaging

Licenses required

The licenses required to run this business are

GST registration
MSME registration
Factory license
Trade license by CEPC
NOC by the state pollution control board

Investment required

The investment required to set this business is ₹5 lakh – ₹ 10 lakhs

Profits made

The profits from this carpet making business is ₹50000-₹100000 per month

Target consumers

The target consumers for your carpet making business are

Households: These require carpets to make their living room and bedrooms look more decorative of for the purpose of maintain a safe environment or flooring for children to play
Hotels and restaurants: These require carpets for decorative purposes to give the place an appeal usually for the entrances and sometimes to embed flooring with carpets to give an afghani or Mughal vibe
Meditational centres: Carpets are also used in certain meditation centres which requires the people to perform floor meditational exercises and practices to give them an authentic experience
Commercial offices: The huge modern and contemporary offices spaces make use of carpets for the purpose of adding an organised and aesthetic element to give the place more of an appeal usually in cabins, conference rooms, corridors etc
Theatre halls: The cinema halls, multiplexes and theatre halls etc also require carpets of high pile material to give them an appeal while making it comfortable for the audience to enjoy their experience while they are at it
Exhibitions: The handicraft exhibitions, artisanal shows, etc could also be your potential target customers to attract the foreign demand from tourists, domestic travellers etc

Area required

The area required to set this carpet making business is 1000sqft-1500 sq ft

Raw materials required

The raw materials required to set this carpet making business are

Wool cotton
Synthetic yarn
Dyes
Chemicals
Packing material

Machinery required

The machinery required to set up this business is

Tufting machine
Shearing and trimming machine
Wool extraction machine
Stitching machine
Dying machine
Digital printing/printing machine
Yarn heatsetting machine
Back coating machine

Manpower required

The manpower required to set up this carpet making business is

3-skilled workers
5-unskilled workers

Moreover, ample training in terms of the following must also be provided with

Machine usage
Equipment handling
Safety and precautions

Business model and growth

The business model of a carpet making business can be defined using these four variants

Value proposition: The value which this business is likely to provide to you is

Largely available raw materials and labour
Huge demand from domestic and international tourists
Large government assistance

Target consumers: The target consumers for this business are as follows

Interior designers and contractors
Cinema halls
Households
Commercial offices
Religious places
Hotels and restaurants
Meditational centres

Competitor review: The competitors to your business in this carpet making industry are

Karpets by KRS
Maharaja carpets
Saif carpets pvt ltd

Marketing strategy:

The marketing strategy that can be implemented by your carpet making business is

Tie ups with interior designers and contractors
Participation in trade shows and exhibition fairs
Bulk and cash discounts to routine customers

Growth

The carpet making business has the potential and has witnessed the following growth prospects

The Indian handmade carpet exports has grown by a CAGR of 4.3% between 2013-2017
Because of the growing “Make in India” initiatives the local demand for these carpets have been increasing within India as well as globally among 70 other countries

Profit margin

The profit margin which this business is likely to yield to you is

Suggestions

Don’t slip this opportunity under the carpet and here’s why

Firstly, the Indian carpet manufacturing involves traditional handwork, pure fabric and local designs and patterns which attracts a major foreign demand
Secondly, the raw material and labour availability in abundance gives you the advantage of minimal investment and cost of production
Lastly, it opens gates to establish business with global companies and designers in the interior designing industry