How to Start Furniture making business


How to Start Furniture making business 


Jumping straight to the the point! Would you take this business opportunity if we told you that it was as solid as a wood? Because it is, literally

The furniture making business in India is defined by its supply chain management, cost minimisation, customisation and brand management. The Indian furniture industry is expected to account for $61 billion by then end of 2023.

With the growing needs of improved infrastructure, improved standard of living and rise in tourism and hospitality industry the need for furniture of different types, styles and for different spaces like commercial offices, houses, hotels, resorts etc have also been growing

Moreover, because of the changing consumer demographics in terms of westernisation, constant need for establishing a social status and the boom in the real estate business are all the reasons you should set you foot in this manufacturing business

And here’s how

Market potential and uses

The furniture making business involves manufacturing various or specific types of furniture for residential or commercial needs of consumers for the purpose of maintaining a décor and ensuring organisation in these spaces while giving them an appeal.

The market potential for this furniture making business is huge because it makes up for 0.5% of India’s GDP and the major contribution to its by the 85% unorganised sector of this industry.

Moreover with the increase in the real estate business and growing housing needs of the housing population specifically among the millennials and baby boomers who require aesthetic furniture

 Along with the increasing need of furniture in offices, restaurants and cafés to drive in  the foreign demand from tourists through a minimal yet exquisite appeal has increased the need for furniture in this era.

Further the potential can be defined and elaborated on the following basis

On the basis of type of wood for furniture

  • Solid wood.             : Mahogany, maple, oky, teak and walnut
  • Hardwood               : broad leave trees
  • Veneer wood          : cedar, Douglas, fir, juniper, pine, redwood, spruce
  • Engineered wood.  : cedar, Douglas, fir, juniper, pine, redwood, spruce

On the basis of style of furniture

  • Mid century Modern
  • Modern
  • Contemporary
  • Transitional
  • Traditional

On the basis of type of furniture and uses

  • Living room furniture.     : coffee tables, bookcases, slags, ottomans
  • Dining room furniture.   : tables, arm chairs, side chairs, side boards
  • Bedroom furniture.         : headboards, nightstand, dressers, mattresses
  • Office furniture.               : desks, storage cabinets and bookcases


Process of furniture making

  • Cutting
  • Bending
  • Moulding
  • Laminating
  • Assembling
  • Packaging


Licenses required

The licenses required to run this furniture making business is as follows

  • GST registration
  • MSME registration
  • Trade license
  • NOC by state pollution control board


Investment required

The investment required to set up this furniture making business is around ₹10 lakh – ₹ 15 lakhs

Profits made

The profit one can make from this business is ₹ 75000-₹100000 per month

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

Commercial offices: The commercial offices which require an appeal to their spaces through modern and contemporary furniture to referent the nature of their work through tables, desks, chairs etc could your target customers

Houses: The upper class and middle class consumers aiming towards a high end lifestyle style and would like to experiment with the types of furniture they use in the form of dressers, cabinets, kitchen room furniture, fireplaces etc

Restaurants: The restaurants are another major target consumers for your business because of their need to have customised chair and tables reflect the nature of the ambiance they would like to proved to their customers

Cafés: The upend vintage and rustic vibes of a café are carried forward with the precise furniture setting of benches, tables and cabinets

Educational institutions: The educational institutions like schools, colleges and universities require furniture in the form of benches and desk tables

Shopping malls: These require furniture of various types and styles to be sold at the home décor section of the shopping malls to meet the needs of the outlet furniture shopping consumers

Retail houses: These require furniture in specific colours, woods, styles, patterns and of various purposes to capture the need of various consumers.


Area required

The area required to set up this furniture making business is 1000-1500 sq ft

Also read :


Raw materials required

The raw materials required to run this business are

  • Woods from the above variety
  • Fasteners
  • Metal, steels, alloys
  • Plastic and vinyl
  • Packing material


Machinery required

The machinery required to run this furniture making business is as follows

Stationary machines: bandsaw, timber sizer, wood lathe, drill press, wood shaper, reminding machine, thickness planer

Double end tenoner: rolling chain system, slide chain system

Panel edge processing equipment: high speed, heavy duty, light duty edgebander

Panel automatic packing machine


Manpower required

The manpower required to run this business on a medium scale would be

  • 10-unskilled workers
  • 5-semi skilled workers
  • 5-skilled workers

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

  • Machinery usage
  • Equipment handling
  • Safety precautions


Business model and growth

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

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

  • Large target consumer base
  • Easy availability of raw materials and labour
  • Minimal investment and high returns

Target consumers: The target consumers which your furniture making business is likely to get to you is

  • Restaurants
  • Cafés
  • Schools
  • Universities
  • Houses
  • Commercial offices

Competitor review: The competitors in the furniture making industry are as follows

  • Godrej and Boyce manufacturing co. ltd
  • Featherlite
  • Style spa
  • Millennium lifestyle
  • Durian
  • Nilkamal

Marketing strategy: The marketing strategy that can be implemented by your business is

  • Advertising: Through tv commercials using brand ambassadors, ties up with home décor shows
  • PR: tie-ups with interior designers and contractors,
  • Print media: By appearing in blogs, articles etc



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

  • The Indian furniture industry is expected to grow at a CAGR of 11.32%
  • Of which the Indian residential furniture sector is expected to grow at a CAGR of 14.16% and the Indian commercial furniture sector at a CAGR of 11.9%
  • Moreover with an increase in customisations of spaces through furniture and interior designing have also contributed to the growth of the Indian furniture industry


Profit margin

The profit margin which this business is likely to yield to you is 40%



Just like the life span of furniture, this business is likely to provide you wide opportunities for expansion simultaneously

  • Firstly, with the variety in furniture styles, types, purposes, types of wood, colour, texture this business is likely to cater to a large domestic as well as international consumer segments
  • Secondly, this business opportunity can help you widen your business opportunities in terms of retail, wholesale and even online selling through amazon and tie ups up furniture apps like pepperfry
  • Lastly, the investment in this business is minimal and the profit margins are of high in percentage

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