MRP and production planning software tells an Indian factory what to make, when to make it, and what materials to buy, based on sales orders, forecasts, bills of materials (BOMs), routings, stock and capacity. For small and mid-sized manufacturers, cloud MRP tools such as MRPeasy and Katana are quick to adopt, but they price in US dollars and need work to fit Indian GST, e-way bill and job-work processes. ERP-based options such as Odoo Manufacturing (which publishes rupee pricing) and open-source ERPNext Manufacturing cover accounting, GST and inventory in the same system. Indian ERPs such as Tally Prime with add-ons, Marg ERP or industry-specific ERPs suit plants whose accounting already runs there. The right choice depends less on the planning algorithm and more on data discipline: accurate BOMs, routings and stock are the preconditions for any MRP to work.
Executive summary
- MRP fails on bad master data, not bad software. If BOMs, lead times and stock counts are unreliable, planning output is wrong regardless of tool. Budget time for data clean-up before go-live.
- Indian SMEs usually need MRP plus GST accounting. Standalone MRP tools must integrate with Tally or another accounting system for GST invoicing, e-way bills and job-work challans. ERPs such as Odoo or ERPNext handle these within one database, subject to localisation.
- Prices vary by model. Odoo lists all-app Standard pricing at Rs 725–950 per user per month on yearly billing. Katana lists Core from $299 per month with Manufacturing Management as a $199 per month add-on. Frappe Cloud lists ERPNext hosting from ₹410 per month for a single site, priced by usage rather than per user.
- The MSME base is large and formalising. Over 7.83 crore enterprises had registered on Udyam portals as of 28 February 2026, according to the Ministry of MSME. Formal registration, GST and customer audits all increase the need for traceable production records.
- Start with material planning and shop-floor visibility. Finite capacity scheduling and advanced optimisation are valuable later; most SMEs gain first from shortage visibility and accurate work-order status.
Market context
No government body publishes a figure for the Indian MRP or production planning software market, and we do not cite private estimates. Primary data shows the manufacturing activity and MSME formalisation that drive demand.
Manufacturing output. MoSPI's Quick Estimates of the Index of Industrial Production for May 2026 reported index growth of 5.1% year on year and manufacturing growth of 5.5%, on the new 2022-23 base year series. The same release notes that MoSPI adopted the Output Producer Price Index released by DPIIT as the deflator for item groups where output is collected in value terms.
MSME formalisation. The Ministry of MSME told Parliament in March 2026 that over 7.83 crore enterprises had registered on the Udyam Registration Portal and Udyam Assist Platform as of 28 February 2026, and that cumulative registrations were 0.79 crore at the end of 2021-22. The same statement lists schemes to strengthen MSME competitiveness through technology upgradation and digital adoption, including the MSME Champions scheme with its MSME-Sustainable (ZED) and MSME-Competitive (Lean) components.
Lean and ZED. The ZED certification scheme subsidises certification costs at 80% for micro, 60% for small and 50% for medium enterprises. ZED parameters include production, quality and safety practices. Production planning software helps generate the records assessors look for.
Indian process realities MRP must handle.
- Job work. Many SMEs send materials to job workers for machining, plating, heat treatment or stitching. Stock at job workers must be tracked, and movements documented for GST.
- E-way bills. Moving goods valued above Rs 50,000 requires an e-way bill on the GST e-way bill system, including many inter-unit and job-work movements.
- Make-to-order dominance. Many Indian SMEs make to customer order with frequent engineering changes, which strains fixed BOM and routing data.
- Mixed shop floors. Manual machines, CNCs and contract labour coexist; data capture must be simple (tablets, barcode, or supervisor entry).
- Labour codes. The four Labour Codes became effective on 21 November 2025. Shift planning and overtime assumptions used in capacity plans should reflect the working-hours rules that apply to your establishment.
Evaluation framework
App Advisor methodology: weighted criteria for MRP and production planning software for Indian SMEs. Weights total 100.
| Criterion | Weight | What good looks like |
|---|---|---|
| BOM, routing and engineering change | 15 | Multi-level BOMs, alternates, routings with work centres, version control |
| Material requirements planning | 20 | Net requirements from orders, forecasts, stock and lead times; purchase and work-order suggestions; shortage reports |
| Capacity and scheduling | 15 | Work centre capacity, rough-cut planning, finite scheduling or Gantt for bottlenecks |
| Shop-floor execution | 15 | Work-order release, barcode or tablet reporting, scrap and rework capture, WIP visibility |
| Inventory, traceability and job work | 15 | Lots and serials, stock at job workers, subcontracting orders |
| India compliance and accounting | 15 | GST invoicing, e-way bill support, job-work challans, integration with Tally or built-in accounting |
| Cost and adoption | 5 | Clear pricing, trial, local implementation partners |
Vendor comparison
Official pricing only; USD and INR as published. Taxes extra unless stated.
| Product | Type | Published pricing (official page) | Best fit |
|---|---|---|---|
| Odoo Manufacturing | ERP with MRP, quality, maintenance, inventory, accounting | One app free (unlimited users); Standard Rs 725–950 per user per month yearly or Rs 760–1,140 monthly, all apps; Custom Rs 1,150–1,420 per user per month yearly with Studio, multi-company and API (pricing) | SMEs wanting one system for production, inventory and accounting |
| ERPNext Manufacturing | Open-source ERP | Software is open source; Frappe Cloud hosting from ₹410 per month for a single site, servers from ₹1,800 per month, priced by usage rather than per user (pricing) | Cost-sensitive SMEs with an implementation partner or in-house IT |
| Katana | Cloud inventory and manufacturing | Free plan (30 SKUs); Core from $299 per month; add-ons: Manufacturing Management $199/month, Traceability $249/month, Warehouse Management $149/month; Advantage custom (pricing) | Make-to-stock product brands selling online and wholesale |
| MRPeasy | Cloud MRP for small manufacturers | Not published on the page we could access (pricing) | Small discrete manufacturers wanting fast MRP adoption |
| Tally Prime | Accounting and inventory with manufacturing vouchers | Not published on the page we could access | Very small plants where accounting leads and BOMs are simple |
| SAP Business One | SME ERP with production | Quote through partners | Growing manufacturers wanting a global ERP brand |
| Deskera ERP | Cloud ERP with MRP | Not published on the page we could access | SMEs comparing all-in-one cloud ERPs |
For a broader ERP comparison, including supply chain modules, see supply chain and manufacturing ERP software in India.
Total cost of ownership
Illustrative model — assumptions stated. A 120-employee engineering SME with 20 system users (planning, stores, purchase, production supervisors, accounts) compares Odoo Standard with Katana Core plus Manufacturing Management over year one.
Assumptions:
- Odoo Standard at Rs 950 per user per month yearly (top of the published range), 20 users.
- Katana Core at $299 per month plus Manufacturing Management at $199 per month; Katana lists unlimited users on Core. Accounting remains in Tally and needs an integration or manual export (assumed ₹1,00,000 per year in effort or connector cost).
- Implementation partner: assumed ₹6,00,000 for Odoo (manufacturing, inventory, accounting, GST localisation) and ₹3,00,000 for Katana (manufacturing and inventory only). These are assumptions, not quotes.
- Master data clean-up: 300 BOMs × 1.5 hours at an assumed ₹700 per hour = ₹3,15,000 on both routes.
- Tablets for shop floor: 6 × assumed ₹15,000 = ₹90,000 on both routes.
- GST and exchange-rate movement excluded; USD lines stay in USD.
| Cost line | Odoo Standard | Katana Core + Manufacturing |
|---|---|---|
| Licences | 20 × Rs 950 × 12 = ₹2,28,000 | ($299 + $199) × 12 = $5,976 |
| Accounting integration (assumed) | Included in same system | ₹1,00,000 |
| Implementation (assumed) | ₹6,00,000 | ₹3,00,000 |
| BOM and master data clean-up | ₹3,15,000 | ₹3,15,000 |
| Shop-floor tablets | ₹90,000 | ₹90,000 |
| Year-1 total | ₹12,33,000 | $5,976 + ₹8,05,000 |
The master-data line is as large as the licence on either route. Plants that skip it end up running planning in spreadsheets beside the new system.
Implementation roadmap
| Phase | Weeks | Activities | Output |
|---|---|---|---|
| 1. Process and data audit | 1–3 | Map order-to-dispatch; count BOM accuracy on 20 products; physical stock check on top 100 items; list job-work flows | Data readiness report |
| 2. Selection | 3–6 | Scripted demo: one real customer order through BOM, MRP, purchase, job work, production, dispatch and GST invoice | Selected system |
| 3. Master data | 6–11 | Clean BOMs, routings, work centres, lead times, reorder rules; standardise item codes | Validated masters |
| 4. Configuration | 9–13 | Planning parameters, warehouses and job-work locations, GST and e-way bill setup, approval rules | Configured system |
| 5. Opening balances | 13–14 | Stock count by location including job workers; open orders; WIP | Opening data |
| 6. Pilot | 14–18 | One product family end to end; daily MRP run; compare shortages with actual | Pilot sign-off |
| 7. Full go-live | 18–22 | All products; shop-floor reporting; weekly planning meeting uses system output only | Live planning |
| 8. Improve | 22–30 | Capacity scheduling, OEE capture, lead-time tuning | Optimised planning |
Risks and compliance checklist
- GST on job work. Configure challans and track materials at job workers; confirm treatment with your tax advisor.
- E-way bills. Ensure inter-unit, job-work and dispatch movements above Rs 50,000 have e-way bills generated or integrated.
- Inventory valuation. Align costing method in the MRP with statutory accounts to avoid mismatches at year end.
- Data migration errors. Freeze BOM changes during migration; reconcile item counts after import.
- Over-customisation. Custom planning logic increases upgrade cost; prefer configuration.
- Shift and overtime assumptions. Capacity plans that assume long overtime may conflict with working-hour rules under the Labour Codes now in force.
- Employee data. Shop-floor logins and productivity data are personal data under the DPDP Act, 2023; restrict access and set retention.
- Currency risk. USD-priced subscriptions change in rupee terms.
KPIs to track
| KPI | Definition | Why it matters |
|---|---|---|
| On-time in-full (OTIF) delivery | Orders delivered complete and on time ÷ total orders | Customer outcome of planning |
| Schedule adherence | Work orders completed on planned date ÷ total | Planning realism |
| Material shortage incidents | Work orders delayed for missing material | Tests MRP accuracy |
| Inventory turns | Cost of goods sold ÷ average inventory | Working capital |
| BOM accuracy | BOMs matching actual consumption ÷ BOMs audited | Precondition for MRP |
| Stock record accuracy | Items with system stock within tolerance ÷ items counted | Precondition for MRP |
| Manufacturing lead time | Days from work-order release to completion | Responsiveness |
| Overall equipment effectiveness (OEE) | Availability × performance × quality | Bottleneck productivity |
| Job-work stock ageing | Value of stock at job workers beyond agreed days | Hidden inventory risk |
How to choose
- If accounting and GST must live with production: shortlist ERP options such as Odoo or ERPNext, or an Indian manufacturing ERP.
- If you sell products online and wholesale with simple BOMs: Katana or MRPeasy may be faster, provided accounting integration works.
- If job work is central: make job-work tracking a pass/fail demo test.
- If you are on Tally and small: check whether Tally manufacturing vouchers plus disciplined BOMs are enough before buying MRP.
- Check partner capacity. A good local implementation partner matters more than a feature list.
- Plan data clean-up as a project. Assign an owner and a deadline.
Questions to ask vendors before signing
- Run our order, not your demo. Give the vendor one real customer order with a multi-level BOM, one job-work operation and a partial dispatch, and ask them to process it live.
- How does MRP treat stock at job workers? Confirm that material lying with job workers counts as available (or not) according to your rules, and that challans are generated correctly.
- How are engineering changes handled? Ask how BOM revisions affect open work orders and purchase suggestions.
- What shop-floor data capture is supported? Check tablet, barcode and supervisor entry options, and whether scrap and rework are recorded against operations.
- How does costing flow to accounts? Confirm how material, labour and overhead costs post to the general ledger, or how they export to your accounting system.
- What localisation is included for India? Ask specifically about GST invoices, e-way bill integration, job-work documentation and TDS on purchases.
- Who will implement, and how many similar plants have they done? Ask for references in your industry and plant size.
- What is the upgrade path? Customisations can block upgrades; ask what is configuration and what is custom code.
Related reading: inventory and warehouse management software, quality management software, HRMS for manufacturing companies, payroll software for manufacturing, the manufacturing software category and ERP software.
FAQs
What is MRP software?
Material requirements planning (MRP) software calculates what materials and components are needed, in what quantity and by when, based on demand, bills of materials, lead times and stock. Modern MRP tools also create purchase and work orders and track production.
What is the difference between MRP and ERP?
MRP focuses on production and material planning. ERP covers the whole business, including accounting, sales, purchase, inventory, HR and production. Many ERPs include MRP as a module.
Which production planning software is best for small manufacturers in India?
It depends on your accounting setup and processes. SMEs that want one system for GST accounting and production often choose ERPs such as Odoo or ERPNext; simpler product businesses may prefer cloud MRP tools such as Katana or MRPeasy with accounting integration.
How much does Odoo Manufacturing cost in India?
Odoo's pricing page lists one app free for unlimited users, and the Standard plan with all apps at Rs 725–950 per user per month on yearly billing, or Rs 760–1,140 monthly. Implementation partner fees are extra.
Does MRP software handle job work?
Some ERPs and MRP tools support subcontracting or job-work orders and track stock at job workers. Indian GST documentation for job work may need localisation or add-ons, so test it in demos.
What is production optimisation software?
It usually refers to advanced planning and scheduling or manufacturing operations software that optimises sequences, capacity use and changeovers. Most SMEs should stabilise basic MRP and shop-floor reporting before adding optimisation.
How long does MRP implementation take for an SME?
A focused SME implementation often takes around four to six months including data clean-up and a pilot. Plants with unreliable BOMs and stock records take longer.
Sources
- IIP Quick Estimates, May 2026 (MoSPI): https://www.mospi.gov.in/uploads/latestReleases/latest_release_1782727994645_1af6a37e-b7fb-4ee8-bf52-96fcea2a47e2_IIP_Press_release_May_2026.pdf
- Udyam registrations and MSME schemes (PIB, Ministry of MSME): https://www.pib.gov.in/PressReleasePage.aspx?PRID=2246892®=3&lang=1
- ZED subsidy on cost of certification (Ministry of MSME): https://zed.msme.gov.in/subsidy-on-cost-of-certification
- E-way bill system (GSTN): https://ewaybillgst.gov.in/
- Four Labour Codes made effective (PIB): https://www.pib.gov.in/PressReleseDetailm.aspx?PRID=2192463®=3&lang=2
- Odoo pricing: https://www.odoo.com/pricing
- Frappe Cloud pricing: https://frappe.io/pricing
- Katana pricing: https://katanamrp.com/pricing/
- MRPeasy pricing: https://www.mrpeasy.com/pricing/
