Ask five vendors "ERP kitne ka banega?" and you'll get quotes from ₹1.5 lakh to ₹50 lakh — for what sounds like the same thing. The gap isn't dishonesty; it's scope. Here's how ERP pricing actually works, so you can read a quote like a builder, not a buyer.
The base ranges (custom cloud ERP, 2026)
- Focused ERP (3–4 modules): ₹2.5L – ₹4.5L — e.g. inventory + billing + basic reports for a trading business.
- Mid-size ERP (5–7 modules): ₹4.5L – ₹9L — add production planning, HR/payroll, multi-godown, role dashboards.
- Full-suite ERP: ₹9L – ₹20L+ — multi-branch, approvals workflow, deep integrations, mobile apps for floor staff.
What each module roughly costs
| Module | Typical add-on cost | Cost driver |
|---|---|---|
| Inventory & stock | ₹60K–₹1.2L | Batch/serial tracking, barcode, multi-godown |
| GST billing & accounts | ₹50K–₹1L | E-way bills, e-invoicing, credit notes |
| Production (BOM, work orders) | ₹80K–₹2L | Multi-level BOM, machine scheduling |
| HR & payroll | ₹60K–₹1.2L | Shifts, biometric integration, PF/ESI |
| Reports & dashboards | ₹40K–₹1L | Number of custom reports (biggest silent inflator) |
| Mobile app (staff/owner) | ₹80K–₹1.5L | Offline sync, per-role screens |
What silently inflates quotes
- "Bas ek report aur" — every custom report is design + query + testing. Twenty reports can cost more than a module. Fix: launch with 5 core reports, add later.
- Integrations — Tally sync, biometric devices, weighbridges, payment gateways. Each is real engineering; each belongs as a line item, not a surprise.
- Data migration — years of messy Excel needs cleaning and verification. (We include it; many vendors bill it after signing.)
- Approval workflows — "manager approve kare tabhi PO bane" sounds small, multiplies screens and states.
Custom vs ready-made (Tally/Busy/Marg + plugins)
Ready-made works while you fit its mould. The switch to custom usually happens when you're running the business on 6 Excel sheets around the ready-made software — that's the tax you're paying for "cheap". A ₹4L custom ERP replacing 3 tools + 6 spreadsheets typically recovers its cost in 12–18 months of saved admin hours alone (our manufacturing clients report 30–40% admin time reduction).
Where you can genuinely save
- Phase it. Launch inventory + billing in month 2; add production and HR in phase 2. Cash flow stays sane, adoption improves.
- Standard reports first. Resist customizing every report before go-live.
- One champion user. Nominate one person per department for feedback — committees double timelines.
FAQ
What's the minimum realistic budget for a custom ERP?
₹2.5 lakh for a focused, genuinely custom cloud ERP. Quotes far below that are usually a template being reskinned — ask to see what happens when you request a workflow change.
What about running costs?
Cloud hosting ₹1,000–₹3,000/month at typical SME scale, plus an optional AMC (10–15% of project cost/year) for support and small changes.