The folder structure should be like this.

The solution is created by using the ListTemplate. Following are the file required as shown above.
1) Feature.xml
<?xml version="1.0" encoding="utf-8" ?>
<Feature
Id="76927D6A-AC93-436b-9193-B65AC76D7088"
Title="Custom List Action Menu."
Description="Custom List Action Menu."
Scope="Site"
xmlns="http://schemas.microsoft.com/sharepoint/">
<ElementManifests>
<ElementManifest Location="Elements.xml" />
</ElementManifests>
</Feature>
2)Elements.xml
<?xml version="1.0" encoding="utf-8" ?>
<Elements xmlns="http://schemas.microsoft.com/sharepoint/">
<ListTemplate
Name="Lists\CustomListAction"
Type="1111"
Category="Custom Lists"
CacheSchema="TRUE"

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