How to Start Electrical Component Manufacturing Business?

India is one of the largest manufacturer hub of brass electrical component in Asia and exports them to different countries. If you plan to start electrical component manufacturing business, then this project can be very profitable business. In this article, we will discuss all the basic factors like investment, profit margin, process, raw materials, etc for starting electrical component manufacturing business in India.

Brass, Aluminium and copper are some of the metals which are used in manufacturing industrial due to its better properties like conductivity, durability, etc. Some of the metals are used to make electrical components which are used in electronics, electrical, mechanical, construction, pumping, automobile, automotive and many other sectors.


Now let’s know the process, first you have to melt the brass scrap using the induction furnace then whatever process from which the component is made or making the raw material for the component like brass billets are made using the casting process.

If you want to make integrate parts like earthing equipment (Earthing accessories), then you make them directly using the sand casting process. In sand casting, you can make the desired product according to the shape and size requirement using the casting patterns.

Using this patterns, sand moulds are made and then brass is feed to this moulds. It is then cooled in the mould and removed the sand to remove the product. If you want to make brass cubic structure, then brass billets are heated at the desire temperature and using extrusion and drawing process the desired product is made.

The products are then go through the machining like cutting, dirtying, facing and drilling. Curling operation are done after knowing the product dimension and specification requirement using the CNC machines or skilled operators. Some products are forged to give the desire shape using the forging press.

The quality of the product is done according to the final dimension and specification of the products. The component name and the brand name, specification, etc are printed on all the products by using laser marking. To improve the life of the surface of the products, electroplating is done on the products. Now the brass component is ready to sell in the market after packaging an branding.


To run the full setup and process of electric component manufacturing business, the machines and equipment are:

  • Continuous Casting Machine
  • Brass Extrusion Machine
  • Brass Drawing Machine
  • Cut-off Machine
  • CNC Lathe
  • CNC Drilling Machine
  • Progressive Close Die Forging Press
  • Power Press
  • Laser Marking Machine
  • Electroplating Plant
  • Universal Testing Machine
  • Hardness Testing Machine

Some of the basic equipment are

  • Dies
  • Casting Mould Parts (Cope, Drag, Core)
  • Casting Patterns
  • Racks
  • Trays
  • Induction Furnace
  • Hand Tools
  • Precision Measuring Devices like Vernier Caliper, Screw Gauge, etc,.

Area Requirement

If you want to start electrical component manufacturing business, then you will require 4000 to 5000 Sq.ft of area. For large scale project setup, you will need 20,000 to 25,000 Sq.ft of land.


Investment depends upon the capacity of the products you want for the plants. If you want the production of 10 to 15 ton of finished products, then the machineries and other expenses of equipment will cost you approx. 60 to 70 Lakhs Rupees. Add the working capital and you will need approx. 1 crore to 1.5 crore rupees of total investment.

Power Requirements

For complete setup of the plant on a small scale, you will need approx. 100 kW of electricity load. If you want to setup a large scale electrical component manufacturing business plant, then you will need approx. 350 kW of electric load. Please remember, the number can vary according to the project size and type of machineries like fully automatic or semi automatic.


If you add all the worker like skilled, unskilled, operator, sales managers, admins, etc, then you can start this business with 18 to 20 employees.

Profit Margins

Profits can vary according to your plant capacity, size and manpower. In general, the profit which are seen in this business is 8% to 10%. The profit margin may seems low but when you calculate the margin with the actual sales, then you can find a handsome income from this business.

Licenses Requirement

  • GST
  • Factory License
  • NOC from Fire Safety Management Plan and Pollution Control Board
  • Environment Protection Safety Plan
  • ISO Certification

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  • Standup India


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