How Much Profit Does a Laundry Business Potentially Make in India?

“Laundry business”

“Laundry business” when we hear these two words, the first thing that comes to our mind is the local “dhobi” who picks our dirty linens from our homes and returns them in pristine condition. But times are changing now. Most of the unorganized sector is gradually making a shift to organised one; labor intensive work is becoming dependent on machinery.

For the laundry sector as well, startups are emerging across the country. In the metropolitan cities, they have already carved a niche for themselves, rounding up many loyal customers. In smaller cities as well, they are progressively changing the way people looked at “laundries”.

A new age for laundries?

The days when laundry was considered to be “unorganized” have been put in the past. Nowadays, India sees rapid growth in the organised laundry sector in various parts. Since the lifestyle of people is changing, they are looking for options other than their local dhobis for their clothes. Previously, dry cleaning was restricted to only to the people belonging to the upper echelon of the society. But now a days even the average middle-class family also needs dry cleaning and machine wash services for their garments.

How much profit can a laundry potentially generate?

Since in India, laundry in the unorganized sector has a larger demand, it is estimated to have a 30 billion dollars market. But in the recent years, the organised sector too has churned out so many laundries that it is already estimated to be a billion-dollar industry, with scope for humongous growth.

It is not difficult to figure out that starting a new laundry can be hugely profitable in the coming years if we take a look at the figures. So let’s have a comprehensive look at how much a new laundry will cost you, and how much you can profit from it.

Opening a new laundry with all the proper equipment and facilities will set you back by a minimum of 28 lacs. With the initial investment and subsequent revenue generation, you will reach the break-even point after one and a half years. Since the laundry business in India is so much in demand, you can expect to have a profit percentage of 40%-100% after reaching the break-even point. Hence, this is one sector where a minimal investment can give you the maximum benefits in the shortest amount of time.

How can you make your laundry business a profitable one?

Since opening a laundry business in India does not take much training or prior experience in the field, venturing into it is not a difficult task. However, with so many new laundries making their way into the market, the important thing is to uphold your position in the business. Even though customers are easily available and the market is a lucrative one, even a single mistake can cost you your customer to the competition.

Also one of the potential areas of problem for your laundry can be covering delivery charges. Often due to a large distance, delivering the laundered clothes to the customers can become a liability and eat into your profit margin. So it is best to make smart choices while investing in the laundry business.

Having a target clientele can make it much easier for you to determine the area you want to expand your business to. Hiring a mode of transport for delivering the clothes can cut back on your expenditure by quite a margin. And most importantly, leaving no stone unturned in delivering top-notch service is the key to keep your laundry’s name in everyone’s radar.

So if you are considering investing in the laundry sector, this is the perfect time for it. With a great return on investment and a promising profit percentage, this is the market to look out for in the future!