Kerala is one of India’s most beautiful, resourceful, and popular tourist destinations. Setting up a business in Kerala is easy as compared to other states, as it attracts lots of tourists and makes 10 Billion through tourism, and employs over 1 million people.
Whether you are a local or an outsider looking for some small business ideas in Kerala, you can start a business easily. This post will disclose all profitable business ideas you can try that require a low or minimal operational cost.
Let’s get started.
Top 11 Small Business Ideas in Kerala
1. Banana Chips Business
Banana is a versatile fruit, and preparing banana chips is a unique concept. Bananas are sliced into small pieces and deep-fried in coconut oil until crispy. People all around the world love banana chips.
Everyone enjoys having banana chips as snacks. You can sell it to schools, colleges, canteens, railway stations, clubs, pubs, and bars. With the banana chips business, you can make a profit of up to 50-60% because of its huge demand. So you can expect 4 to 6 lakhs of profit per year while running a small-scale business.
2. Coconut Oil-Based Food Processing Unit
Kerala is a top coconut-producing state with 70% of coconut supplies all over India. That is why making coconut-based food and selling it later in the market makes it one of Kerala’s most profitable small business ideas.
Rava ladoos, banana halwa & chips, roasted cashews, sweets, pudding, and other snacks can be easily made at home and sold to local retailers and online. People in India and throughout the world love coconut for its health benefits and taste; this business might be a massive success for you that doesn’t require a high investment.
3. Agarbatti Making
Kerala is one of the best places to start an Agarbatti-making business because raw materials like bamboo sticks, sawdust, and charcoal powder are available at affordable prices. Agarbatti has been widely used in India, as people enjoy its fragrance and have religious beliefs.
As a result, Agarbatti’s business can be a profitable business idea for you. It can be prepared by hand, and to scale its production, you can use several machines to make a lot of money.
The profit margin in raw agarbatti production is around 10Rs/Kg. The collected data is for the north India region and may vary in the southern part of India.
One high-speed automatic agarbatti-making machine can produce 100Kg of raw agarbatti in 10 hours.
So, Profit from 1 machine in 1 day = 100kg x 10 = Rs 1000/-
And Profit from 1 machine in 1 month = 1000 x 30 = Rs 30,000/-
You can easily make lakhs of profit by adding more machines to your production line. One machine will cost you around 50-60 thousand rupees.
4. Ayurveda Tourism
Ayurveda is an alternative medicine system heavily practiced and believed in India and worldwide.
Kerala has pleasant weather where temperatures range between 23-29 degrees, with abundant natural wealth and rainfall, which makes Kerala an ideal place to start Ayurveda tourism.
From ancient times Kerala had the potential to grow ayurvedic herbs and plants. So you won’t be required much capital to generate profit, except for a property, which isn’t too expensive.
Ayurveda tourism is one of the great business ideas to start in Kerala. Many people worldwide come to this beautiful city to experience Ayurveda therapy. You can help them by starting an Ayurvedic tourism business in cities or countryside areas. You can target places that attract the most tourists to increase your profit margin.
5. Home Decor Business
Young individuals are increasingly investing in their house decor these days. So starting a home decor business will be an excellent opportunity for new entrepreneurs with no prior business experience.
You can open a small store to make and sell products like designer candles, wind chimes, vases, wall art, cushion covers, baskets, kitchen dining and accessories, antique pieces, tables, floor lamps, and more.
Apart from setting up a small store, you can also sell your products online by creating an online store. So, if you have the skills to make those home decor items or are interested in making them, you can invest up to 5 Lakhs to get 15-20% of the monthly margin, which will be a profitable small business option worth investing in.
6. Travel agency
Kerala is one of the most preferred traveling spots for domestic and international tourists because of its beauty and culture. This state recorded an average annual growth of 25% in foreign tourists.
So starting a travel agency will help you earn lots of revenue, as tourists usually prefer travel agencies to make their holiday comfortable and trouble-free. You can also charge an extra commission for bringing tourists to local restaurants, hotels, etc.
7. Candle-making business
People are always looking for home decor items to make it beautiful; designer candles are one of them. Candles are also widely used for religious occasions, temples, and in case of power cuts. So starting a candle-making business will be a great idea. You can easily make more than 30% of profit by selling candles via retail and online stores.
8. Grocery Shop
Grocery shops are every green business idea, easy to set up and make profits. It doesn’t require any practical skill set; a suitable location for opening a physical outlet is enough. You should know about the local needs and start selling them through your grocery shop.
The gross margin for grocery items is different for different products. It is typically 25% for dry grocery, 30% for dairy products, and 30% for frozen food items.
9. Tour Guide
The tour guide is one of the most enjoyable business ideas that requires zero investment. If you know about different tourist spots, have high energy, professionalism, a good sense of humor, and communication skill, you can easily start a tour guide business.
Kerala is the most preferred tourist destination, which allows you to make a lot of money as a tour guide.
10. Growing And Exporting Crops
Kerala is the leading agricultural products exporter to other states of India. Kerala contributes 70% of coconut production in India. Moreover, it is also known for growing bamboo, spices, tea, and cashew.
Because of the low land rental price, you can easily start a crop growing and exporting business in Kerala.
11. Clothing Business (Beachwear)
Due to Kerala’s hot climate, swimwear and beachwear clothes are in high demand. You can easily start a clothing business and make designer beachwear clothes for tourists visiting Kerala to enjoy beach life. Knowledge of fabric and sewing machines will help you earn lots of profits from this business.
Conclusion
Hope you have some great business ideas to start with. These were the business ideas in Kerala you can set up at a low cost and earn a high profit. So, Find your interest and start building your own business to achieve a better life.
If you have any other small business idea suggestions in Kerala, then mention them in the comments; we will be happy to include them in our list.
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