Laundry and Dry Cleaning Business
लॉन्ड्री और ड्राई क्लीनिंग व्यवसाय · लॉन्ड्री आणि ड्राय क्लीनिंग व्यवसाय
Wash, dry and steam-press clothes by the kilo for households, hostels and small hotels, with pick-up and delivery in a small area.
Investment
₹6 lakh
Profit (year 2)
₹31,000/month
Space
400 sq ft
Staff
3 + you
A small laundry collects clothes, sorts and tags them, washes them in a commercial washer, dries, steam-presses, packs and delivers them. Most small units charge by the kilo for daily wear and per piece for sarees, suits and blankets, and send true dry cleaning to a larger plant. It suits someone in a city or large town with working couples, hostels, paying guests, clinics and small hotels nearby. Income depends on kilos processed each day, so regular customers and bulk accounts matter most. The hard parts are high electricity and water use, claims for lost or damaged clothes, labour for ironing, and delivery on time every day.
Skills needed: Fabric and stain knowledge (which clothes not to machine wash), careful tagging, and disciplined pick-up and delivery.
Profit calculator
Change the numbers to match your town60 kg/day: Wash, dry and steam iron (per kg)
Total investment
₹6.03 lakh
Your own money
₹60,255
Subsidy
—
Bank loan
₹5.42 lakh
Mudra Tarun
A typical month in year 2
| Sales | ₹1,24,800 |
| Raw material & packing | −₹20,280 |
| Electricity | −₹11,700 |
| Salaries | −₹36,750 |
| Rent | −₹15,750 |
| Other running costs | −₹9,450 |
| Operating profit | ₹30,870 |
| Loan instalment (EMI) | −₹12,644 |
| You keep each month | ₹18,226 |
After the loan is repaid, the EMI becomes your income too. Your own salary is not counted as a cost: the profit is your income.
Need this for a bank loan?
Turn these numbers into a full project report: cost of project, means of finance, 5-year profit and loss, balance sheet, repayment schedule, DSCR and break-even.
Make my project reportInvestment breakdown
| Machinery & equipment | Price |
|---|---|
| Commercial washer-extractor, 10–15 kg | ₹1,20,000₹80,000–₹1.5 lakh |
| Tumble dryerMatch dryer capacity to the washer | ₹75,000 |
| Vacuum ironing table with boiler | ₹43,500₹15,500–₹89,000 |
| Second ironing table and steam iron | ₹17,500₹13,000–₹22,300 |
| Polythene packing machine | ₹20,000₹20,000–₹60,000 |
| Tag printer, computer and billing software | ₹45,000 |
| Racks, hanger rails, sorting bins and counter | ₹45,000 |
| Water tank, pump and softener | ₹30,000 |
| Used two-wheeler for pick-up and deliveryadd-on | ₹45,000 |
| Machinery & equipment (without add-ons) | ₹3,96,000 |
| Rent deposit | ₹45,000 |
| Shop Act and other registrations | ₹3,000 |
| Plumbing, drainage and electrical work | ₹40,000 |
| Signboard, leaflets and opening offers | ₹15,000 |
| Working capital 20 days of raw material, 7 days of credit to buyers, 1 month of expenses | ₹1,03,552 |
| Total project cost | ₹6,02,552 |
Typical market prices as of October 2026, from supplier listings. Prices vary by brand, capacity and city; always get 2–3 quotes.
Cost and margin per unit
| Wash, dry and steam iron (per kg) (per kg) | ₹ |
|---|---|
| Detergent, softener and stain chemicals | 5.00 |
| Covers, hangers and tags | 3.00 |
| Water and steam fuel | 5.00 |
| Material cost | 13.00 |
| Selling price | 80.00 |
| Margin before running costs | 67.00 (84%) |
Blended rate across wash-and-fold, wash-and-iron and per-piece items; check rates charged in your city. Capacity assumes about eight loads a day on a 15 kg washer.
Space, power and staff
400 sq ft
Rented shop · rent ≈ ₹15,000/month
City or large-town rent for a ground-floor unit with water supply and drainage. The collection counter can be small if washing is at the back.
10 kW, three-phase
Bill ≈ ₹18,000/month at full capacity
3 staff + you
- 1 × Washer / machine operator: ₹12,000
- 1 × Ironer: ₹12,000
- 1 × Pick-up and delivery: ₹11,000
Licences and registrations
Shop and Establishment registration
mandatoryWhen: Within the period your state sets after opening · Cost: Small fee; varies by state
Local body trade licence
if applicableWhen: Before opening, if your municipality requires it · Cost: Varies
Pollution control consent
if applicableWhen: Before starting, especially if you do dry cleaning with solvents · Cost: Varies by state
Laundries discharge detergent water. Ask your State Pollution Control Board what applies at your size.
GST registration
if applicableWhen: When turnover crosses the registration limit for services · Cost: Free
Hotels and corporate clients usually want GST invoices. Confirm with a CA.
Udyam registration
recommendedWhen: Before applying for a loan · Cost: Free
Apply only on udyamregistration.gov.in.
How it works
- Collect clothes, count and weigh in front of the customer; tag each lot.
- Sort by colour and fabric; treat stains.
- Wash and extract; tumble dry.
- Steam press and fold or hang.
- Pack, match tags to the bill and deliver on the promised day.
Loan route
Mudra loan (Tarun)
Own money ₹60,255 · Loan ₹5.42 lakh · EMI ≈ ₹12,644
No collateral, no subsidy.
How Mudra worksPMEGP (new units)
Subsidy ₹90,383 (general, urban) to ₹2.11 lakh (special category, rural). EMI ≈ ₹10,537–₹8,430.
Own money 5–10%. Applicant must be at least 8th pass for this project size. Subsidy is held as a 3-year deposit, then adjusted against the loan.
How PMEGP worksAssumes 10.5% interest, 5 years including a 6-month moratorium. PMEGP was approved up to FY 2025-26. Check on the KVIC PMEGP portal that applications are open before you plan around the subsidy.
No collateral and no third-party guarantee (covered by the Credit Guarantee Fund for Micro Units).
Who buys and how to sell
Buyers
- Working couples and bachelors
- Hostels, PGs and students
- Small hotels, lodges and guest houses
- Clinics, salons and gyms (linen and towels)
- Households (blankets, curtains, sarees)
Ways to sell
- Pick-up and delivery within 2–3 km
- Monthly kilo packages
- Contracts with hotels, hostels and clinics
- Society WhatsApp groups and Google Business listing
Season: Busier in the monsoon (drying is hard at home) and in winter for woollens and blankets; festival and wedding seasons bring sarees and suits.
Competition: Traditional dhobis and ironing stalls on price, and franchise laundries on convenience. Reliability and careful handling win repeat business.
Risks and how to handle them
Clothes lost, mixed up or damaged
Tag every lot, record counts on the bill, state your liability limit and train staff on delicate fabrics.
High power and water bills at low volume
Run full loads only, sign bulk accounts early and consider a gas or heat-pump dryer.
Late deliveries lose customers
Promise realistic times, and keep a second ironing table for rush days.
Machine breakdown
Buy from a supplier with local service and keep a domestic washer as backup for small loads.
Tips from the trade
- A few hostel or hotel contracts give a base load that covers fixed costs.
- Outsource solvent dry cleaning at first; a dry-cleaning machine is a large separate investment.
- Weigh and count at pick-up in front of the customer to prevent disputes.
Questions people ask
Is a franchise better than an independent laundry?
A franchise gives a brand, software and training but takes a fee and a share of sales, and guides put the investment at ₹7 lakh and above. An independent unit costs less but you build the customer base yourself.
Can I start with domestic washing machines?
For a very small home service, yes, but domestic machines wear out quickly under daily heavy loads. A commercial washer-extractor is built for continuous use.
How much investment is needed to start a laundry and dry cleaning business?
About ₹6.03 lakh for a small unit: ₹3.96 lakh for machinery and equipment, ₹1.03 lakh for set-up costs and ₹1.04 lakh as working capital (stock, credit to buyers and one month of expenses). Prices as of October 2026.
How much profit can a laundry and dry cleaning business make per month?
At 50% of capacity, sales are about ₹1.25 lakh a month and operating profit about ₹30,870 before the loan instalment. After an EMI of about ₹12,644, the owner keeps about ₹18,226 a month until the loan is repaid. These are estimates; your prices, rent and sales decide the real figure.
Which machines are needed for laundry and dry cleaning?
Commercial washer-extractor, 10–15 kg (₹80,000–₹1.5 lakh); Tumble dryer (about ₹75,000); Vacuum ironing table with boiler (₹15,500–₹89,000).
Can I get a Mudra loan or PMEGP subsidy for laundry and dry cleaning?
With a project cost of about ₹6.03 lakh, the bank loan of about ₹5.42 lakh falls under Mudra Tarun. Mudra has no subsidy. As a new unit you may instead apply under PMEGP, where the subsidy is 15–35% of the project cost (up to about ₹2.11 lakh here for a special-category applicant in a rural area). PMEGP was approved up to FY 2025-26. Check on the KVIC PMEGP portal that applications are open before you plan around the subsidy.
What licences are required for laundry and dry cleaning?
Mandatory: Shop and Establishment registration. Depending on your set-up you may also need: Local body trade licence, Pollution control consent, GST registration, Udyam registration.
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Prices as of October 2026. Prices here come from online listings and published guides and have not yet been confirmed with local suppliers. Profit figures are estimates from the assumptions above, not a promise of income.
Sources: IndiaMART: Maxima Engineering laundry machines · IndiaMART: vacuum ironing table listings (Greater Noida) · IndiaMART: steam ironing systems (Coimbatore) · Udyam Registration
Spotted an outdated price? Tell us. Data for this page: HowIndiaEarns.