The Government of India’s Make in India campaign and growing economy have opened up entrepreneurial opportunities for mechanical engineers. Today, there are several mechanical engineering startup ideas that you can bank upon for a high return on investment.
Gone are the days when the only option for mechanical engineers was to get employed in engineering firms. The growth of the Indian economy has opened up entrepreneurial opportunities for mechanical engineers, further fuelled by the Make in India campaign. Read on to know four most profitable mechanical engineering startup ideas that have the potential to generate a high return on investment:
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Warehouse automation
The Indian warehouse automation market is one of the fastest growing in the world and is expected to reach USD 3.49 billion by 2020, India is one of the fastest growing warehouse automation markets in the world. Warehouse automation encompassing new-generation robots are filling up warehouses of different sectors including manufacturing, e-commerce and retail among others.
The demand for warehouse automation is primarily coming from manufacturing, e-commerce and retail sectors. As supply chain are becoming more flexible due to GST, the warehouse automation market will reach newer heights in the coming days. Embracing warehouse automation enhances operational efficiency and brings down chances of human errors.
Embracing warehouse automation not only enhances efficiency and quality of work, but also reduces the chances of human errors to a great extent. Also, with supply chains all set to become leaner and more flexible, thanks to GST, experts anticipate the warehouse automation market to grow by leaps and bounds in the coming days. Thus, venturing into warehouse automation is a profitable business proposition for mechanical engineers in the future.
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Automobile components
Getting into auto component manufacturing is also one of the most profitable business ideas since the sector is poised for robust growth in the coming days. The Indian auto component industry is expected to register a turnover of USD 100 billion by 2020 and vehicle sales in India is expected to triple by 2026 as per estimates of the Automotive Component Manufacturers Association of India (ACMA), the Indian auto component market is expected to register robust growth in the future with global automakers looking to source parts locally.
Also, with global automakers sourcing components locally, the same will fillip the industry in the coming days.
Valued at USD 51.2 billion in FY 2017-18, the Indian automobile component market accounts for 2.3% of India’s GDP. What paints a bright future for the domestic auto component industry is the fact that India is already at the forefront globally on many segments including two-wheelers and tractors. With the passenger vehicle market expected to triple by 2026, the same acts as the tailwind for the country’s auto component industry, venturing into which is a smart move.
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LED light manufacturing
Projected to grow at a CAGR of 24.66% the Indian LED market is expected to reach USD 3,758.74 million by 2022. With growing awareness about energy conservation and government initiatives to boost LED adoption, venturing into LED light manufacturing can be a profitable bet in the long run.
So it can be easily know that one of the most profitable mechanical engineering startup ideas for is that of LED light manufacturing. Also, with a large chunk of the Indian population refusing to withstand long power cuts, the inverter market is growing at a rapid pace. The Indian inverter market is expected to surpass USD 694 million by 2023 and the industry will also gain from the government’s efforts to improve electrification rate in the country.
Over the past few years, prices of LED lights have come down with local authorities undertaking LED installation projects in various parts of the country. Industry players believe that the growing preference to use LED lights among consumers will propel the growth of the sector along with those associated with it. In the future, demand is anticipated to pick up from Tier II and Tier III markets.
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Inverter manufacturing
Riding high on increasing demand for power back-up solutions from residential and commercial sectors, the Indian inverter market is expected to surpass USD 694 million by 2025. The industry is also set to gain from the government’s efforts to improve electrification rate in India along with technological developments.
It’s widely believed that the need for an uninterrupted power to run an establishment will propel the demand for inverters in the coming days. Also, with a vast section of the Indian population not willing to withstand long power cuts, inverters have become an essential household item.
Besides the above discussed, there are numbers of other business are also available that mechanical engineers can go for, like lean manufacturing, scrap metal, nuts and bolt manufacturing, solar polar manufacturing etc.
To run these businesses successfully, you need substantial funds. A finance for Engineers gives you the needed liquidity to take your venture to the next level. The Government of India also has launched many schemes like stand up India, startup India, Mudra yojana and other to support entrepreneurship. Under which business persons can avail finance at lowest interest hassle free.
We hope, this four ideas to start your business in mechanical engineering sector will help you to find a best way to get growth. If you want to start business in 2023 learn our tips for starting new business.