Start a gold jewellery manufacturing business

[anshul2k]

What is the minimum capital required to start a gold jewellery manufacturing business? And what are the overhead cost assoc with it?

 

[Tejo]

What is the minimum capital required to start a gold jewellery manufacturing business? And what are the overhead cost assoc with it?

Minimum Capital Required​

Starting a gold jewellery designing business in India requires substantial capital investment. A rough estimate suggests a minimum of INR 1 crore to set up a small-scale operation. This amount covers:

• Machinery and Equipment: Goldsmithing tools, melting furnaces, casting machines, polishing equipment, etc.
• Raw Material (Gold): Initial inventory of gold for ornaments making unit .
• Workspace: Renting or purchasing a suitable space for the unit.
• Legal and Regulatory Compliance: Obtaining licenses, permits, and certifications.
• Working Capital: For day-to-day operations and to manage cash flow.
• Marketing and Promotion: Initial expenses for building brand awareness.

Overhead Costs​

Overhead costs are ongoing expenses incurred to run the business

• Rent: For the ornaments making unit.
• Salaries: Wages for goldsmiths, other staff, and management.
• Utilities: Electricity, water, and other utilities.
• Raw Material Costs: Continuous purchase of gold and other materials.
• Marketing and Advertising: Ongoing promotional activities.
• Insurance: For property, equipment, and liability.
• Legal and Professional Fees: For compliance and advisory services.
• Transportation: For raw material procurement and finished product delivery.
• Wastage: Loss of gold during the ornaments making process.