HowIndiaEarns

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.

₹5–10 lakhPrices not yet confirmed with suppliers

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 town

60 kg/day: Wash, dry and steam iron (per kg)

Add-ons

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.

Break-even at 39% capacityDSCR 3.49 (banks like ≥1.5)Payback ≈ 2.3 years

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Investment breakdown

Machinery & equipmentPrice
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 chemicals5.00
Covers, hangers and tags3.00
Water and steam fuel5.00
Material cost13.00
Selling price80.00
Margin before running costs67.00 (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

mandatory

When: Within the period your state sets after opening · Cost: Small fee; varies by state

Local body trade licence

if applicable

When: Before opening, if your municipality requires it · Cost: Varies

Pollution control consent

if applicable

When: 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 applicable

When: When turnover crosses the registration limit for services · Cost: Free

Hotels and corporate clients usually want GST invoices. Confirm with a CA.

Udyam registration

recommended

When: Before applying for a loan · Cost: Free

Apply only on udyamregistration.gov.in.

How it works

  1. Collect clothes, count and weigh in front of the customer; tag each lot.
  2. Sort by colour and fabric; treat stains.
  3. Wash and extract; tumble dry.
  4. Steam press and fold or hang.
  5. 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 works

PMEGP (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 works

Assumes 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.

Similar businesses

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.