Candle Making Business
मोमबत्ती बनाने का व्यवसाय · मेणबत्ती उद्योग
Melt paraffin wax, mould plain and decorative candles on a simple machine and sell to shops, churches, decorators and gift buyers.
Investment
₹3 lakh
Profit a month*
₹22,000
- Space
- 300 sq ft
- Staff
- 1 + you
*Operating profit before the loan instalment in year 2, at the assumed sales level. Change the assumptions in the calculator below.
A candle unit melts paraffin wax, pours it into the moulds of a hand-operated or semi-automatic machine with wicks in place, cools it with water and pushes out finished candles. The machinery is cheap, runs without much power and fits in one room, so it is a common home business. Plain white candles sell on price by the kilo; birthday, decorative and scented candles earn much more per kilo but need design and selling effort. Earnings are modest unless you build the decorative side. The hard parts are a very seasonal market that peaks at Diwali and Christmas, wax prices that follow crude oil, and low-priced competition.
Skills needed: No formal qualification. Wax handling is learnt in days. Decorative and scented candles need practice with colours, moulds and fragrances.
Profit calculator
Change the numbers to match your town40 kg/day: Plain and coloured candles, packed
Total investment
₹2.98 lakh
Your own money
₹29,750
Subsidy
—
Bank loan
₹2.68 lakh
Mudra Kishore
A typical month in year 2
| Sales | ₹1,70,000 |
| Raw material & packing | −₹1,27,000 |
| Electricity | −₹975 |
| Salaries | −₹9,450 |
| Rent | −₹5,250 |
| Other running costs | −₹5,775 |
| Operating profit | ₹21,550 |
| Loan instalment (EMI) | −₹6,243 |
| You keep each month | ₹15,307 |
After the loan is repaid, the EMI becomes your income too. Your own salary is not counted as a cost: the profit is your income.
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Turn these numbers into a full project report: cost of project, means of finance, 5-year profit and loss, balance sheet, repayment schedule, DSCR and break-even.
Make my project reportInvestment breakdown
| Machinery & equipment | Price |
|---|---|
| Semi-automatic candle making machine × 2Water-cooled moulds; one for household sizes, one for thin or birthday candles | ₹1,00,000₹34,000–₹95,000 |
| Wax melting tank with burner | ₹20,000 |
| Decorative and jar-candle moulds | ₹15,000 |
| Weighing scales | ₹9,000₹6,000–₹15,000 |
| Work tables and storage racks | ₹15,000 |
| Tealight candle machineadd-on | ₹1,80,000 |
| Machinery & equipment (without add-ons) | ₹1,59,000 |
| Udyam and other registrations | ₹2,000 |
| Box design and first printing | ₹10,000 |
| Water and electrical fittings | ₹5,000 |
| Trial production | ₹5,000 |
| Working capital 15 days of raw material, 10 days of credit to buyers, 1 month of expenses | ₹1,16,503 |
| Total project cost | ₹2,97,503 |
Typical market prices as of October 2026, from supplier listings. Prices vary by brand, capacity and city; always get 2–3 quotes.
Cost and margin per unit
| Plain and coloured candles, packed (per kg) | ₹ |
|---|---|
| Paraffin wax (1.03 kg at ₹110/kg) | 113.00 |
| Wick, stearic acid and colour | 6.00 |
| Boxes and wrappers | 8.00 |
| Material cost | 127.00 |
| Selling price | 170.00 |
| Margin before running costs | 43.00 (25%) |
Wholesale rate for ordinary candles; check your market. Decorative, jar and scented candles sell for several times this per kilo.
Space, power and staff
300 sq ft
At home · rent ≈ ₹5,000/month
A spare room or small rented room in a small town. Finished candles must be stored cool; they bend and stick in summer heat.
1 kW, single-phase
Bill ≈ ₹1,500/month at full capacity
1 staff + you
- 1 × Moulding and packing helper (the owner runs the second machine): ₹9,000
Licences and registrations
Udyam registration
recommendedWhen: Before applying for a loan · Cost: Free
Apply only on udyamregistration.gov.in.
GST registration
if applicableWhen: When turnover crosses the registration limit, or for marketplace selling · Cost: Free
Confirm the current GST rate for candles (HSN 3406) with a CA; rates were revised in 2025.
Shop and Establishment registration
if applicableWhen: When you rent premises or hire staff · Cost: Small fee; varies by state
Trade licence and fire safety
if applicableWhen: If you store wax in quantity · Cost: Varies by municipality
Wax is combustible. Ask your local body what applies to your stock level.
Legal Metrology packer registration
if applicableWhen: Before selling pre-packed boxes with MRP · Cost: Varies by state
How it works
- Melt wax in the tank; add stearic acid and colour.
- Thread wicks through the moulds.
- Pour the wax and run cooling water around the moulds.
- Top up as the wax shrinks; when set, push out the candles and trim wicks.
- Polish or decorate, then count and pack.
Loan route
Mudra loan (Kishore)
Own money ₹29,750 · Loan ₹2.68 lakh · EMI ≈ ₹6,243
No collateral, no subsidy.
How Mudra worksPMEGP (new units)
Subsidy ₹44,626 (general, urban) to ₹1.04 lakh (special category, rural). EMI ≈ ₹5,202–₹4,162.
Own money 5–10%. Subsidy is held as a 3-year deposit, then adjusted against the loan.
How PMEGP worksAssumes 10.5% interest, 5 years including a 6-month moratorium. PMEGP was approved up to FY 2025-26. Check on the KVIC PMEGP portal that applications are open before you plan around the subsidy.
No collateral and no third-party guarantee (covered by the Credit Guarantee Fund for Micro Units).
Who buys and how to sell
Buyers
- Kirana and general stores
- Churches and religious-goods shops
- Decorators, hotels and event planners
- Gift shops and online buyers
- Bakeries (birthday candles)
Ways to sell
- Wholesalers before Diwali and Christmas
- Shop-to-shop sales
- Exhibitions and online marketplaces for decorative candles
- Bulk orders from event planners
Season: Highly seasonal. Most sales come before Diwali and Christmas; build stock in the months before. Demand for plain household candles has fallen as power cuts became rarer.
Competition: Many home units and cheap bulk candles. Design, fragrance and packaging are where small makers earn.
Risks and how to handle them
Most of the year's sales depend on two festival seasons
Make birthday, church and decorative candles for year-round income, and do not over-borrow for festival stock.
Wax prices rise with crude oil
Buy wax ahead of the season when rates are favourable, and quote prices valid for a short period.
Candles bend, stick or discolour in summer storage
Store in a cool room, in boxes, away from sunlight.
Burns and fire from hot wax
Never heat wax unattended or beyond the needed temperature; keep sand or an extinguisher nearby, not water.
Tips from the trade
- Plain candles pay the bills only at volume; put real effort into decorative and scented ranges.
- Take festival orders early and collect an advance.
- Good photographs sell decorative candles online more than anything else.
Questions people ask
Can I make candles without a machine?+
Yes. Decorative, jar and scented candles are made with simple moulds and a melting pot. A machine is only needed for volume in standard sizes.
Is candle making profitable all year?+
Plain candles sell mainly around Diwali and Christmas. Year-round income needs birthday, religious, decorative or scented candles and buyers such as decorators and gift shops.
How much investment is needed to start a candle making business?+
About ₹2.98 lakh for a small unit: ₹1.59 lakh for machinery and equipment, ₹22,000 for set-up costs and ₹1.17 lakh as working capital (stock, credit to buyers and one month of expenses). Prices as of October 2026.
How much profit can a candle making business make per month?+
At 50% of capacity, sales are about ₹1.7 lakh a month and operating profit about ₹21,550 before the loan instalment. After an EMI of about ₹6,243, the owner keeps about ₹15,307 a month until the loan is repaid. These are estimates; your prices, rent and sales decide the real figure.
Which machines are needed for candle making?+
Semi-automatic candle making machine (₹34,000–₹95,000).
Can I get a Mudra loan or PMEGP subsidy for candle making?+
With a project cost of about ₹2.98 lakh, the bank loan of about ₹2.68 lakh falls under Mudra Kishore. Mudra has no subsidy. As a new unit you may instead apply under PMEGP, where the subsidy is 15–35% of the project cost (up to about ₹1.04 lakh here for a special-category applicant in a rural area). PMEGP was approved up to FY 2025-26. Check on the KVIC PMEGP portal that applications are open before you plan around the subsidy.
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Sources
- IndiaMART: candle making machine prices
- Aajjo: manual candle making machine listing
- IndiaMART: paraffin wax prices
- TradeIndia: paraffin wax listings
- Udyam Registration
Prices as of October 2026. Prices here come from online listings and published guides and have not yet been confirmed with local suppliers. Profit figures are estimates from the assumptions above, not a promise of income.
Spotted an outdated price? Tell us. Data for this page: HowIndiaEarns.