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A Guide to Starting a Power Tools Rental Business in India

Power tools are always in demand in any city or growing town. Most people do not want to purchase power tools because they only need them occasionally.

Therefore, there is always a demand for power tools rental businesses. If you are looking to start a business with a small investment, you can consider starting a power tools rental shop.

This business is relatively easy to start. You do not need any special skills or training. In this article, you will learn more about the power tools rental business.

Is this business profitable?

For example, a drilling machine can cost around ₹2000, an angle grinder ₹1500, a cutting machine ₹2500, and a demolition machine ₹4000.

When you rent out these machines, you can charge ₹100-200 per day for a drill or angle grinder, ₹200-300 for a cutting machine, and ₹400-500 for a demolition machine.

Now you can calculate how many days it will take to recover your investment. Once the investment for a machine is recovered, all future earnings are profit. You can earn income as long as the machine has a lifespan.

power tool business

Machine maintenance is challenging:

Since many people will use your machines, they will need to be repaired frequently. Partnering with a technician can help you get repairs done at a lower cost. It is also a good idea to learn how to do minor repairs yourself.

Investment required for Power Tools Rental Business

To start a power tools rental business in India, you’ll need a minimum investment of ₹4 lakhs. The exact investment amount depends on the scale of your business, specifically the types and quantities of machines you purchase.

  • Equipment purchase: ₹3–4 lakhs
  • Shop interior works: ₹50,000 (furniture, racks, signage, etc.)
  • Licenses and registrations: Around ₹4,000
  • Marketing expenses: ₹8,000
  • Shop security deposit: (varies depending on your location)

Ongoing monthly expenses include shop rent, machine repair work, utility bills, labor salaries, etc.

Before purchasing equipment, research the demand for specific tools in your area to determine the types and quantities needed.


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Operating the Business

When you rent out your machine to a customer, there is always a risk that they may not return it or that they may damage it. This is why it is important to collect a security deposit from the customer before you rent out the machine.

The amount of the security deposit should be equal to the value of the machine. For a new machine, you can charge the full purchase price as the security deposit. For a used machine, you can charge 50% of the purchase price.

Power tools rental business

In addition to collecting a security deposit, you should also get the customer’s contact information and the make and model of the machine. You should also record the condition of the machine when you rent it out.

When the customer returns the machine, you should inspect it for any damage. If the machine is damaged, you can deduct the cost of the damage from the security deposit. You should then return the remaining balance of the security deposit to the customer.

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Licenses and Registrations required

You do not require special licences or permits to start a power tool rental business. You can start with Shop and establishment registration and a GST certificate.

If you lack capital, then you can approach banks for Business loans with a proper business plan.

List of items to consider in your shop

When it comes to power tools, hundreds of different tools and equipment are available. However, it is not possible to stock all of these items in your shop. You should purchase tools based on the demand in your area.

Here are some common items you can expect to find in a power tool rental shop:

Tile cutter machine, Compressor, extension board, chain saw, Jackhammer, Pressure washer, Vibrator, Blower, Pump, Putty mixing machine, Grass cutter, Welding machine, Pump, Earth Auger machine, Grinding machines Welding machine, Vacuum cleaner, Sprayer, Drilling machine, Heavy Hammers, Hand cutter, Lawn mowers, Self screw machine, Power router, Putty rubbing machine, Polish machine, Generator.

Where to purchase power tools?

You can purchase these tools from power tool wholesalers. Large wholesalers are located in cities like Delhi and Mumbai, and you can purchase from them at a good price.

You can also get dealer contact details from the online wholesale marketplace IndiaMART.

There are many brands of power tools available in the Indian market, with Bosch, Makita, Hilti, Hitachi, Dewalt, and Stanley Black & Decker being the most common.

Who are the potential customers for the power tools renting business?

The potential customers for a power tool rental business are primarily homeowners, contractors, landscapers, and maintenance personnel.

How much shop space is required for a power tool rental business?

You can start a power tools rental business with a 300-square-foot shop.

Choosing a location with high demand, effectively marketing your services, and providing excellent customer service are all crucial factors

We hope this article has resolved many of your doubts related to the power tools renting business. If you have any suggestions feel free to mention them in the comment box below.

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