The construction business in India is one of the most profitable sectors. It has grown exponentially in the past decade and is expected to continue this growth trend in the coming years.
In fact, the construction business in India is largely driven by private players, who are responsible for more than 95% of the total output.
The construction industry is one of the most capital-intensive industries in India, and it requires a substantial investment for setting up.
The construction industry is not only about making buildings and roads, but it also includes maintenance, repair and renovation of existing structures.
The investment required for Construction Business in India varies from Rs. 10 lakhs to Rs. 500 crores depending on the size and complexity of the project.
A construction company has to invest in land and buildings, machinery, tools, equipment and inventory.
Also, when starting a construction company, you should invest in skilled labour for the company to be successful.
For investment purposes, there are various sources for construction businesses in India. However, you will first require to have a company registration online certificate to gain the trust of investors.
Some of these include:
The minimum area required to set up a construction business in India is a minimum of 800 sq ft. - 1000 sq ft.
You will need this space for your personal cabin, seating space for employees, meeting room etc.
Apart from that, you will also need space for storing raw materials, construction equipment and tools, parking vehicles etc.
Here are a few cities you can consider for starting a construction business in India:
The location is one of the most expensive real estate markets in the country. So, it is not an ideal choice for people who are looking for a low-cost option to start their business.
However, Mumbai still has some advantages, like its proximity to other Indian cities and ports and its high population density. As a result, it is a good place to find more customers for your business.
It is also an expensive but attractive location for construction businesses.
The city has seen a large number of developments and construction projects in the last few years, so it is a great place to start your business.
The location has a lot of appeal for construction businesses due to the high demand for new buildings which are still affordable.
There are also some advantages like access to highways and airports as well as decent infrastructure for residents.
It has a lot of appeal for both construction businesses and businesses that need to import or export goods.
The location has a huge amount of underutilized land which allows for more room for development and the city also has plenty of ports and airports.
A construction company needs to have a team of skilled professionals who can carry out all kinds of tasks.
Also, they require daily wage laborers on a project basis as well.
For this purpose, you will have to be in touch with labor contractors and build a good relationship with them.
They will provide you with workers on a contract basis.
Accordingly, the fixed expense on salary for permanent 5-6 employees will be around Rs. 3 Lacs - Rs. 4 Lacs per month.
For the daily wage laborers, it will differ from location to location and project to project. Hence, it is difficult to give an estimate in this case.
Construction is one of the most important sectors of the Indian economy.
The factors that determine the profit for Construction businesses in India are:
The construction Industry in India is expected to reach $1.4 Trillion by 2025