Business Ideas In Kerala [Profitable Options]

If you're from Kerala and planning to start a new business of your own, then this article is definitely gonna help you with your research. Owning a small business has several benefits for a person. From independence, financial pros, learning opportunities, lifestyle changes to creative satisfaction, it is rewarding. And what better place to start your small business than the investor-friendly state of Kerala? It has several business opportunities that individuals can tap on. Located in the southern part of India, this state is known for fetching entrepreneurs wanting speedy returns.

If you’re looking for small business opportunities and ideas in Kerala, we’ve got you covered. So, without further a do, let's take a look at some of the most profitable businesses in Kerala.

Business Ideas In Kerala

Small Scale Businesses

1. Home Decor Services- More and more individuals these days are investing in their home decor. So, if you have the required skill set, this would be an excessively profitable small business option that you must consider. Apart from setting up a small store, you can also sell your products online. From wall arts, antique pieces, dining accessories to designer vases and candles, there are tons of things with a high demand that you can include. You’d be needing an investment of up to 4-5 Lakhs for this business.  
   
   Also Read: How to start home decor business?
   
2. Electronics & Accessories Store- Times are changing. We’re witnessing a massive growth in internet users and electronics buyers. Mobiles and laptops have become a basic need, and that’s why more and more people are investing in them. That is why it’s a great time to enter this business. However, remember that this industry has cut-throat competition. So when you start, keep the products and accessories that the locals would buy. Once your business grows, you can begin investing in high-end products. If done right, it’s an extremely profitable and sustainable business idea.
   
   Also Read: How to start electronics store?
   
3. Bakery Business- The reason a bakery would be a profitable small business is that it doesn’t require much investment. Moreover, in this world of personalisation and experimentation, you can let your creativity flow while offering the basics. In a state like Kerala, it’d be beneficial to start it in a crowded market or a place that has ample parking space. So if you have the desired skillset or can partner with an individual who does, open a bakery.
   
   Also Read: How to start a Bakery?
   
4. Grocery Shop- Every individual all over the world needs groceries. So naturally, grocery shops are a viable business idea. The best part about this business is that it doesn’t require any particular skill set. But when opening a grocery shop in Kerala, you must do ample research about the products that the locals need most. In addition to that, the location of your physical outlet would also play a vital role.
   
   Also Read: How to start a kirana store?
   
5. Fitness Centre or Gym- Much like the rest of the country, individuals in Kerala are slowly gravitating towards fitness. That is why opening a gym or fitness centre there can yield great results. All you need to do is have a plan and offer the right services to attract customers. Boutique gyms are the talk of the town and something you can cash in on in Kerala. You can set them up with less investment and make significant profits.
   
   Also Read: How to set up a gym?
   
6. Ayurveda Tourism- Kerala is a highly sought after travel destination amongst both Indians and foreigners. Meanwhile, individuals all around the world are becoming more aware of the benefits of Ayurveda. So why not combine the two? Kerala has a pleasant climate with the temperature hovering between 23-29 degrees, abundant natural wealth, and ample rainfall. These factors make it the ideal place for Ayurveda practises and tourism. You can set up an Ayurvedic retreat in both cities or the countryside area.
   
   Also Read: Ayurvedic Brands In India
   
7. Boutique Hotel- As mentioned above, Kerala hosts a ton of visitors throughout the year. And that makes it an ideal place for doing travel or hospitality-related business. Did you know that this industry provides around 13% of Kerala’s GDP? From the picturesque attractions to historic landmarks, everything makes Kerala travel-worthy. And to have an exquisite little boutique hotel would be an excessively profitable business idea.
   
   Also Read: How to start a homestay business?
   
8. Growing and Exporting Crops- Almost 70% of India’s coconut supply comes from the state of Kerala. Moreover, the place is also rich in bamboo crafts and spices. So why not turn this into a business opportunity? You can rent a place to grow all these different crops. As rentals aren’t too costly, you can find an area at a reasonable price. And afterwards, you can export them to other parts of the country or the world. Before starting, you can consult experts or businesses who’re in the same field.
   
   Also Read: How to start Agriculture business?
   
9. Clothing Business- Another profitable business idea for Kerala is the clothing business. Fashion travels fast in this country, and there is a lot of demand for anything and everything vogue. But it’s not necessary to offer a massive variety of apparels. You can also go with something niche like beachwear clothing. As Kerala’s climate is a topical one, there is a lot of demand for beachwear and swimwear clothing. You can also choose to export these clothes. Although it’d require significant capital initially, it’d be worth it in the long run if done correctly. You’d need to hire professionals to sew and purchase sewing machines and other equipment. Once you get a place where you’d produce articles, you can move on to tie up with stores.
10. Agarbatti- A product that has demand in Indian households throughout the year is Agarbatti. Some people use it for religious purposes while others for its aroma. And Kerala is the ideal place for this business. Why? It’s because raw materials like bamboo sticks, sawdust, and charcoal powder are comfortably available in the state, and you can get them for affordable prices. You can start this business with a low to medium level investment.  
    
    Also Read: How to start Agarbatti business?

Top Profitable Business Ideas In Kerala To Try In 2022

The new year is around the corner, and it could be a great time if you're planning to start your new business and give it a fresh start. Here is the list of some of the top 30 most lucrative business ideas to start in Kerala:

• Spice Business (Kochi)
• Indian Cultural Products Business
• Tea & Coffee Business
• Dry Fruits Business
• Ayurvedic Products & Aroma Oils Business
• Banana Chips Business
• Cashew Nuts Import-Export Business
• Wooden Caskets & Boat Models Business
• Handicrafts Items & Jewellery Business
• Glass Business
• Pest Control Service Business
• Beauty Salon Business
• Costume Rental Business
• Dairy Products Business
• Diner/Restaurant/Bistro Business
• Pet Shop
• Customised Gift Basket Business
• Day Care Center
• Oratory Course Business
• Handcrafted Chocolate Business
• Uniform Making Business
• Frozen Foods Business
• Home-Tiffin Meal Services Business
• Dog Hostel
• Cocktail Bar or Pub Business
• Trendy Clothing Store
• Fancy Balloons Business
• Recycled Paper Goods Business
• Occasion-based Clothing Rental Business
• Cultural exchange agency

Benefits Of Doing Business In Kerala

There are numerous benefits of doing business in Kerala. The cultural appeal, the big market and many more. Before you dive into researching for new business ideas in Kerala, read on to get a look at market benefits:

1- Massive Digital Reach

When compared to other states of the country, Kerala has a significantly higher digital reach. More digital reach is beneficial for any business as it ensures you reach the target audience with much ease.

2- High Literacy Rate

As many of you must be aware, Kerala has the highest literacy rate in the country. It means that small business owners can hire more qualified and well-informed candidates who’d take their business forward.

3- Low Rentals

A primary consideration for many small businesses is low rentals. And Kerala would provide just that. Compared to many other states in India, you can get a shop or property in Kerala for a significantly lower price.  

4- Less Cost of Operations

Cost of operations or operating costs is the expense incurred on the day to day operations of a business. Owning and running a small business in Kerala promises a lower cost of operations. Furthermore, you can reinvest the money saved.

5- Well Connected

The state of Kerala is very well connected with other parts of India. It has an extensive railways network that allows individuals to travel to other parts of the country with ease. Apart from that, it also has numerous airports and ports. Now that you’ve understood the advantages of doing business in Kerala let’s get into the profitable business ideas that’d yield impeccable profits and promise impeccable ROI.

Key Takeaways

Kerala is a hub of business opportunities. But you got to figure out what you’d profit doing, keeping in mind your skillset and resources. All the business ideas mentioned above do contain a fair share of risks, but they also have a high potential and chance of succeeding in Kerala if done right.

Plus, the state is becoming a centre point for investors making this the right time to start and grow a business. So take your pick and start a business from the list of the Best Business Ideas in Kerala.

Also read:

1) Best business in India
2) Best business in Delhi
3) Best business in Jaipur
4) Best business in Goa
5) Manufacturing Companies in Kerala
6) Best Markets in Kerala

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FAQs on Business Ideas In Kerala

Q. Which business is best to start in Kerala?

Ans- Some of the most lucrative businesses ideas to start in Kerala are:

• Beauty Parlour Service At Your Doorstep
• Online Plumber And Electrician
• Home Tuition Online
• Designer Fashion Boutique
• Online Home Decor Services
• Blog Content Writer
• Self Employed SEO
• Accounting Services
• App. Based Home-made Food Delivery
• Property Management Services/Estate Agency

Q. What is the most profitable business in Kerala?

Ans- Some of the topmost profitable business to start in Kerala are as follows:

1. Tea & Coffee Business
2. Banana Chips Business
3. Handicrafts Items & Jewellery Business
4. Beauty Salon Business
5. Dairy Products Business
6. Diner/Restaurant/Bistro Business
7. Pet Shop
8. Handcrafted Chocolate Business
9. Uniform Making Business
10. Frozen Foods Business

Q. What is the best small scale business in Kerala?

Ans- Here is a list of the top small scale business in Kerala:

1. Home-Tiffin Meal Services Business
2. Candle-Making Business
3. Garment Selling Business
4. Garments Manufacturing Business
5. Imitation Jewellery Business
6. Stainless Steel Utensils Business
7. Mobile Repairing Business
8. Coconut Oil/Chips/Condiments Business
9. Online Toys Business
10. Online Ayurvedic Products Business

Q. How can I start a small business in Kerala?

Ans- To start a small business in Kerala you need to fulfil all the legal formalities and get all your registration process completed with the Companies Act of India.

Q. What is the good business to start in Kerala?

Ans- The top 3 best business to start in Kerala are:

• Real Estate/Property
• Accounting Services
• Jewellery Business

Q. What business can I start with RS 10000?

Ans- These are the Top 5 business ideas to start between Rs. 5,000 to 10,000:

1. Homemade sweets and snacks
2. Breakfast joint
3. Fresh fruit juice Kiosk
4. Online bakery
5. Social media strategist

Q. What are some of the profitable businesses in Kerala?

Ans. Businesses in Agriculture, Hospitality, and Tourism tend to do well and usually turn out to be profitable. That said, no one business type of sector guarantees profits.

Q. Is it tough doing business in Kerala?

Ans. Till a few years back, it was comparatively difficult to do business in Kerala. However, due to the multiple initiatives taken by the state government, things have changed. As of today, Kerala is full of business opportunities.

Q. What is the best business to start in Kerala with 1 Lakh Rupees?

Ans. You can start a small tour and travels business as there’s a lot of tourist influx in Kerala. You can market your business as a problem solver for any travel-related query that one might have.

Q. Is it a good idea to start an e-commerce business in Kerala?

Ans. Yes, it is. The reason for that is that we’re more connected than ever. On top of that, Kerala has a massive digital reach, with most of its population active on the internet.

Q. Is it safe to start a business in Kerala?

Ans. As long as you’re following the rules and regulations and systematically doing business, it is excessively safe.