The inverter is an electrical device that is used to convert DC source electricity into AC electricity. Usually, our home appliances are used an AC power supply to run the devices. If our source of power is DC like a solar panel or battery then we have to convert this DC power into AC power with the help of an inverter to run our devices. The Inverters are also used in industrial machines and commercial devices as well.
Some common applications where inverter circuits are used are UPSs and adjustable speed motor drives. The demand capacity of power inverters is much expected to increase in the future because most industrial machines and commercial devices are driven by inverter circuits. That’s why the future of the inverter manufacturing business is very much bright because its demand increasing every day.
Here In this article, you will learn step by step complete guide about how to start an inverter manufacturing business.
Market Opportunity for Inverter
Our country’s electrical power production is far less than its demand. The government is attempting to bridge the demand-supply gap by inviting private sector participation. However, the situation is expected to worsen as demand grows at a much faster rate.
The inverter and UPS market in India has expanded in recent years due to rising demand. The global inverter market is expected to grow at a CAGR of 15.6 % between 2020 and 2025, from USD 12.8 billion in 2020 to USD 26.5 billion by 2025. According to a report, the Indian inverter market will reach $ 720 million by 2023.
Rising demand from tier 2 and tier 3 cities is expected to drive growth in India’s inverter market over the next five years. As a result, inverter manufacturing represents a profitable and viable investment opportunity for small business owners.
Business Research for Inverter Business
Business research is the process of gathering information about your competitors. As a result, conduct some research on the inverter manufacturing industry, identify your competitors’ businesses, and learn about their advertising system and how they advance their startup. You should also conduct research on the products related to your business that have piqued the interest of buyers in recent months. All of this information will assist you in determining where to begin.
Registration and License for Business
The manufacturing of electrical inverters necessitates the approval of higher-level government officials. The entrepreneur would need to enroll their startup from the government’s higher authorities to get a legitimate permit. Some of the licenses and certifications that you should consider at the time, to start a business are given below:
1. Trade License from Municipal Authority.
2. Business registration with ROC.
3. MSME Udyog Aadhaar Registration.
4. GST Registration.
5. Trademark Registration
6. Factory license for medium and large-scale factory operation.
7. ‘Consent to Establish’ and ‘Consent to Operate’ from the Pollution Control Board.
Location for Inverter Business
The choice of location for the business is also critical. Power inverters are created in an industrial setting. As a result, it necessitates a dedicated manufacturing space. The development area should be at least 2500 square feet and include a manufacturing unit, an assembly unit, extra space, and a functional office. Similarly, ensuring that the unit’s area complies with all of the local authorities rules and regulations.
Investment for Business
The investment plan for the inverter-making business depends on which scale you are starting. if you are starting on a small scale then it requires less budget or investment as compared to starting on a large scale. The minimum cost of opening a small or medium scale inverter manufacturing plant is a minimum of 25 to 50 lakhs in Indian Rupees. And, if you want to open a large scale inverter manufacturing plant is a minimum of 1 crore in Indian Rupees. Also, there will be an added investment in land and workforce.
Raw Material for Inverter Business
The raw material required for the production of power inverters is not unpredictable, and it is widely available on the market. There are numerous providers on the market who provide this type of material at a low cost. You can also make good profits by importing this type of raw material in bulk from other countries.
The following raw materials are required for the production of a power inverter:
Switches, Diodes, Resistors, Capacitors, Heat sink, SCR, Transformers, LED, Sockets & Plugs, PCB, Relays, Transistors, Mosfet, ICs, Connectors, Lug, Cabinet, Jacks, Fuse Holder, Mains Lead, Copper Wire, Tapes, Sleeves Plastic Formers, Impregnation Compound, Ktheriod + Prespam Paper, Hardware fittings, Wire & Sleeves.
Machines for the Business
The machines used in this business are readily available, and you can import these types of machines from a variety of countries. If you lack sufficient resources or assets, you can purchase used machines with the help of a consultant.
The following machines are required for the manufacturing and assembly unit:
Soldering Machine, Winding Machine, Sealing Machine, Packaging Machine.
The following equipment may also be required for testing purposes:
Oscilloscope (dual-trace 10 MHz), Frequency counter, Multi-meter, LCR Bridge (digital), RMS meters (4 digits), Line frequency monitor, Power analyzer, Megger, Panel Meters, HV tester, Rheostat, Testing equipment and Power analyzer.
Manufacturing Process Inverter
The manufacturing of power inverters is not that difficult if you have technical workers who would have knowledge related to this. You must have to follow this procedure which is given below:
First of all, you have to design the schematic diagram of the inverter circuit with the help of schematic design software.
After that, you have to convert the schematic diagram into a physical circuit board layout with the use of PCB machines.
The complicated and critical components must then be tested to ensure that they meet the required specifications.
The soldering process now begins, with the soldering machine being used to fix and solder the necessary components on the physical circuit board layout.
Following that, the sockets and control switches are individually assembled.
Then, arrange the PCB board and transformers on the inverter’s frame and connect all of the necessary components.
Following that, the company name and logo printed plastic case is screwed to the entire frame.
Finally, the assembled inverter will go through testing, packaging, and sealing, in that order. These inverters are now ready to sell in the market after completing the entire process.
Marketing for Inverter Business
There are a few stages where you can advance and sell your inverters with both conventional and partner showcasing methodologies. You can hire some sales assistants who can sell your inverters to the local distributors and advertise your products in the local market. And, Another way to sell your inverters is to promote your products with the help of Affiliate marketing platforms.
There are two types of online shopping websites, one is B2B, where you can sell your product in bulk order, and the other is B2C, where you can sell your product directly to the customer. Also, You can start an ad campaign on social media platforms like Facebook to increase your products sale. You can also hire some active influencers on social media for the promotion of your brand.