How Much Does It Cost to Start a Laundry Business in India? (2026 Setup Breakdown)

How Much Does It Cost to Start a Laundry Business in India? (2026 Setup Breakdown)

Is Laundry Business Expensive to Start?

Many first-time entrepreneurs assume laundry businesses require huge investments.

That’s not always true.

The total investment depends mainly on how you want to position the business.

Some operators start with a simple wash-and-fold shop in a neighborhood market. Others launch premium laundry studios with pickup and delivery services.

Both are technically “laundry businesses,” but the investment difference can be significant.

The good news is that laundry is one of those service businesses where you can start small and expand gradually.

Total Laundry Setup Cost in India

Here is a simplified view of typical investment ranges.

Small Laundry Shop — ₹5 – ₹7 lakh

Standard Laundry + Dry Cleaning — ₹10 – ₹15 lakh

Premium Laundry Studio — ₹18 – ₹25 lakh

The main cost drivers are:

Machines

Shop setup

Interior work

Initial marketing

Working capital

Machines usually consume 40–60% of the total investment.

Cost Breakdown for Laundry Shop Setup

Let’s look at the common expenses when opening a laundry shop.

1. Commercial Laundry Machines

Machines form the backbone of the business.

Typical machines include:

Commercial washing machine

Laundry dryer

Steam iron setup

Steam boiler

Spotting table (for stain removal)

Approximate investment:

₹2.5 lakh – ₹8 lakh

Cost varies depending on machine capacity and brand.

2. Shop Interior Setup

Laundry shops don’t require luxury interiors, but they must look clean and organised.

Typical setup includes:

Counter desk

Garment racks

Flooring and wall tiles

Lighting

Signage

Estimated cost:

₹80,000 – ₹2.5 lakh

3. Electrical & Plumbing Work

Laundry machines require:

Stable water supply

Proper drainage

Electrical load capacity

Setup cost typically ranges:

₹40,000 – ₹80,000

4. Detergents & Laundry Chemicals

Initial stock usually includes:

Laundry detergent

Fabric softener

Stain remover

Dry cleaning chemicals

Estimated cost:

₹15,000 – ₹30,000

5. Branding & Marketing

Even a small laundry shop benefits from basic branding.

Common expenses include:

Shop board signage

Printed packaging

Pamphlets for nearby apartments

Estimated cost:

₹15,000 – ₹40,000

6. Working Capital

Every business needs operating cash for the first few months.

This covers:

Rent

Staff salary

Utility bills

Recommended working capital:

₹80,000 – ₹1.5 lakh

Machine Cost for Laundry Business

Machine pricing varies depending on capacity.

Typical range in India:

Commercial Washer — ₹1.2 – ₹2 lakh

Laundry Dryer — ₹80k – ₹1.5 lakh

Steam Iron Table — ₹20k – ₹40k

Steam Boiler — ₹20k – ₹60k

Choosing reliable machines is important because machine downtime directly affects revenue.

Monthly Operating Expenses

Once the shop is running, the major monthly expenses include:

Shop Rent — ₹20k – ₹50k

Staff Salary — ₹25k – ₹60k

Electricity — ₹15k – ₹35k

Detergents — ₹10k – ₹20k

Miscellaneous — ₹10k – ₹20k

Typical monthly operating cost:

₹80k – ₹1.5 lakh

Low-Budget vs Mid-Level vs Premium Setup

Understanding different investment levels helps in planning better.

Small Laundry Shop

Investment: ₹5–7 lakh

Services usually include:

Wash & Fold

Ironing

Best for Tier 2 and Tier 3 cities.

Mid-Level Laundry + Dry Cleaning

Investment: ₹10–15 lakh

Includes:

Multiple machines

Dry cleaning services

POS billing system

Suitable for residential areas in large cities.

Premium Laundry Studio

Investment: ₹18–25 lakh

Includes:

High-capacity machines

Branded interiors

Pickup & delivery system

Works best in high-income neighborhoods.

Hidden Costs Beginners Often Miss

Many first-time entrepreneurs underestimate a few expenses.

Some common examples:

Electricity consumption

Machine maintenance

Garment packaging

Marketing during early months

Another overlooked factor is machine capacity planning.

Buying machines too small for demand can create operational bottlenecks later.

How to Reduce Laundry Setup Cost

If your budget is limited, there are several ways to control investment.

For example:

Start with one washer and one dryer

Focus on wash & fold service first

Add dry cleaning later once customer base grows

Use functional interiors instead of decorative designs

Many profitable laundries actually begin with simple setups and upgrade gradually.

FAQs

What is the minimum cost to start a laundry business in India?

A small laundry shop can start with ₹5–7 lakh investment.

What is the average laundry setup cost in India?

Most independent laundry businesses require ₹10–15 lakh investment.

Are laundry machines expensive?

Commercial washing machines typically cost ₹1.2–₹2 lakh depending on capacity.

Is laundry business profitable in India?

Yes, well-managed laundry businesses can achieve 25–40% gross margins.

Final Thoughts

Starting a laundry business in India doesn’t always require a massive investment.

In fact, many successful operators start with modest setups and expand once the business stabilises.

What ultimately determines success isn’t just the amount you invest — it’s how efficiently the operations run and how well customers are served.

If the service is reliable and garments are handled carefully, customers tend to return again and again.

And in a service business like laundry, repeat customers make all the difference.