Industry Overview
Broom making is an essential cottage industry, focusing on manufacturing brooms and cleaning tools made from
natural fibers such as
sisal,
coconut husk, and
bamboo. These eco-friendly brooms are widely used in households, industries, and commercial spaces. With the global shift towards
green products, there is increasing demand for natural fiber brooms as alternatives to
plastic-based cleaning products.
Key Points:
- Broom making involves the selection and processing of natural fibers into high-quality cleaning tools.
- Increasing awareness about plastic pollution has heightened the demand for eco-friendly cleaning products.
- A growing market for commercial cleaning tools provides added opportunities for broom manufacturers.
Scale and Profitability of Industry
The
broom manufacturing industry can be scaled from small-scale production to
industrial-scale units. With the right equipment and marketing, broom manufacturers can generate
high profit margins by targeting both
local and
export markets.
Subsidy Opportunities
- PMEGP: Financial support for small businesses in the cottage industry and eco-friendly product manufacturing.
- Micro, Small, and Medium Enterprises (MSME) Schemes: Support for units looking to upgrade machinery and increase production.
Eligibility Criteria
- MSME registration.
- Investment in equipment for cutting, bundling, and binding natural fibers into broom products.
- A robust business plan that includes market research and sustainability considerations.
Project Cost and Subsidy
The
project cost for a broom manufacturing business can range from
₹3 Lakhs to
₹15 Lakhs. Subsidies can cover
30%-40% of the project cost, depending on the location and scheme.
To apply for the Food Processing Scheme, the following mandatory documents are required for new enterprises (Individuals/Firms) as outlined in the manual
1. PAN Card of concerned/all promoters.
2.Aadhaar Copy & Photo of all promoters/guarantors.
3. Address Proof: Any of the Officially Valid Documents (OVD) such as:
o Utility bill (not more than two months old) from any service provider (Electricity, telephone, post-paid mobile phone, piped gas, water bill).
o Property or Municipal tax paid receipt.
o Ration Card (Individual).
o Driving Licence
o Aadhaar Card.
o Voter ID Card.
4. Details of the site where the unit is to be established, including whether it is owned/rented/leased, along with proof (Lease/rent agreement should be for more than the loan repayment period).
5. Photocopy of Bank
6. Estimates and Quotation of all capital expenditure and machinery and equipment to be purchased. Statement/Bank Passbook for the last 6 months.
For existing enterprises with a turnover of less than 1 crore, similar documents are required, including PAN Card, Aadhaar, address proof, and site details.
If you need more specific information or additional documents, please let me know!
