Small business idea:

   22/04/2025  Posted in blog

Table of Contents

Candle Making Business :

Here’s a comprehensive guide on starting a Candle Making Business – covering all important aspects from types of candles to legal requirements and income potential:

What is a Candle Making Business?

It involves manufacturing and selling candles in various shapes, colors, fragrances, and purposes – from basic utility to decorative, religious, aromatherapy, and gifting.

Types of Candles:

  • Standard/Utility Candles – Used for lighting during power cuts.
  • Decorative Candles – For home décor and events.
  • Scented/Aromatic Candles – Infused with essential oils for relaxation.
  • Religious Candles – Used in temples, churches, etc.
  • Gel Candles – Made from gel wax, often decorative.
  • Floating Candles – Small, water-floating candles.
  • Birthday & Party Candles – Small and colorful for celebrations.
  • Soy/Beeswax Candles – Eco-friendly, chemical-free options.

Infrastructure Required:

  • Small Room or Workshop – For melting, pouring, and setting candles.
  • Molds & Tools – For shaping candles.
  • Wax Melter/Double Boiler
  • Thermometer, Weighing Scale
  • Tables & Storage Racks
  • Ventilation & Lighting

Raw Materials Needed:

  • Paraffin wax, soy wax, or beeswax
  • Wicks
  • Fragrances & essential oils
  • Dyes/Colors
  • Molds (various shapes)
  • Containers (for jar candles)
  • Packaging materials

Investment Required:

  • Home-based setup: ₹20,000–₹50,000
  • Small-scale unit: ₹1–3 lakhs
  • Medium-scale: ₹5–10 lakhs
  • Cost includes wax, molds, tools, fragrance oils, packaging, branding, marketing, and setup.

Market Potential:

  • High demand in festivals, weddings, hotels, spas, and gifting.
  • E-commerce is a booming platform for scented/decorative candles.
  • Export opportunities (especially for handmade and eco-friendly candles).
  • Demand from religious institutions and households.

Business Opportunities:

  • Sell online (Amazon, Etsy, Meesho, own website).
  • Supply to gift shops, boutiques, hotels, salons, and spas.
  • Corporate gifting and event decor.
  • Franchise or wholesale distribution model.
  • Collaborate with interior designers or wedding planners.

Scope of Business:

  • Growing wellness and home decor industry.
  • Rising interest in handmade and organic candles.
  • Great startup idea for small towns and cities.
  • Seasonal boosts during Diwali, Christmas, Valentine’s Day, etc.

Income Potential:

  • Profit margin: 30% to 60%
  • Home business: ₹20,000–₹50,000/month
  • Small-scale business: ₹50,000–₹2 lakhs/month
  • Large-scale or brand: ₹5 lakhs/month and more

Legal Requirements & Government Licenses:

  • Firm Registration – Proprietorship, Partnership, or Pvt Ltd.
  • GST Registration
  • Trade License – From local municipal authority.
  • MSME/Udyam Registration – For government benefits.
  • FSSAI License – Not needed unless you make edible candles (rare).
  • Trademark – For brand protection (optional but recommended).
  • Fire Safety Compliance – If large scale or industrial unit.

Government Support:

  • MSME schemes – Subsidies, credit support, training programs.
  • PMEGP (Prime Minister’s Employment Generation Programme) – Loan + subsidy for small business setup.
  • Skill India programs – Provide training in candle-making and marketing.
Author: adsetu