How to Start Furniture Making Business ?

Furniture Entrepreneurship: An Overview of the Furniture Making Industry

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 minimization, customization 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 westernization, 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.

Read More: How To Start Nuts And Bolts Making Business ?

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 organization 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% unorganized 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.

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Furniture business ideas

In today’s world there are many different brand new furniture business ideas like Custom Furniture Design, Upcycled and Recycled Furniture, Outdoor Furniture, Rental Furniture, Children’s Furniture, Restoration and Repair Furniture, Online Furniture and many more. All these furniture business ideas make the furniture industry successful.

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

Nowadays furniture woodworking is quite famous as various woodworking techniques help in creating pleasing furniture items. People who are skilled and pay attention to details are engaged with furniture woodworking.  The craftsmen use specific wood for furniture making like Oak, Maple, Cherry, Walnut, Ash, Birch, Pine etc. All these types have their own characteristics and are used as per the furniture type. 

  • 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
  • Mid century Modern
  • Modern
  • Contemporary
  • Transitional
  • Traditional
  • 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.
  • Cutting
  • Bending
  • Moulding
  • Laminating
  • Assembling
  • Packaging
  • GST registration
  • MSME registration
  • Trade license
  • NOC by state pollution control board

Furniture making machines are designed to enhance the furniture pieces and perform specific tasks according to the demand. There are many different types of furniture making machines but at present the furniture business mostly prefers automatic furniture making machines as it is not in need of extensive human intervention. With the help of automatic furniture machines the furniture production process takes less time and a person who makes furniture need not to worry about its entire process from start to finish.

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 customized 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 colors, woods, styles, patterns and of various purposes to capture the need of various consumers.

Read More: How to Start Interior designing business ?

Area required

The area required to set up this furniture making business is 1000-1500 sq ft. A furniture business has both economic and operational benefits after setting up a furniture plant. With the help of a furniture plant one can have control over quality, can enjoy cost-effective production, have flexibility in adapting changes, can generate better profile margin and can develop products according to the demand. Factory made furniture is different from the rest of its types, as its furniture manufacturing process is based on modern and standardised techniques hence making the quality furniture products.

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

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

  • Large target consumer base
  • Easy availability of raw materials and labour
  • Minimal investment and high returns
  • Restaurants
  • Cafés
  • Schools
  • Universities
  • Houses
  • Commercial offices
  • Godrej and Boyce manufacturing co. ltd
  • Featherlite
  • Style spa
  • Millennium lifestyle
  • Durian
  • Nilkamal

Read More: Top Successful Business Ideas With Low Investment In India

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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