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Start a gold jewellery manufacturing business

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anshul2k

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