14 Best Small Business Ideas in Chennai

Chennai, the capital of Tamil Nadu, ranks between fourth and sixth position among the most productive metro cities in India. It has diversified its economic base by anchoring it to software services, automobile, healthcare, and financial industries. Its various economic aspects make it an ideal place to commence any kind of entrepreneurial journey.

However, a low-investment business involves minimum risks and has budding prospects in a bustling metropolis like Chennai. Read further to discover some of the most feasible small business ideas in Chennai that can be highly lucrative.

Below discussed is a list of highly profitable low-investment business ideas in Chennai

1. Home Delivery Business

Chennai ranks second in terms of the elderly population and there is an increasing demand for freshly prepared home-cooked food. Besides, numerous migrants settle here for work. One may take advantage of this by starting a home delivery business. Not to mention, this can be a feasible option for someone who is looking for low-investment business ideas in Chennai.

• Investment: ₹4 Lakhs - ₹7 Lakhs.
• Resources: Licence, raw materials, containers, packaging materials, kitchen equipment, reliable staff, office space/store, etc.
• Market Demand: From 2023-2028 the Indian home delivery segment will register a growth of CAGR of 33%.
• Profit Margin: 20% - 30%.

2. Language Training Centre

Chennai is a cultural, educational, and IT hub and attracts people from different cultures from the rest of India. Most people who settled in Chennai find it a daunting task to learn and decipher the Tamil language. Therefore, a language training centre can be a highly rewarding business in Chennai.

• Investment: ₹60000 - ₹70000.
• Resources: Licence, location/space, qualified staff, computers, chairs and benches, blackboards, website, etc.
• Market Demand: The language training sector in India will register a swift growth of CAGR 18.7% by 2027 and acquire a market value of approximately ₹ 14 lakh crores.
• Profit Margin: Up to 90%.

3. Travel Agency

year. People visit here to witness the cultural grandeur and scenic beauty. Individuals who are looking for small-scale business ideas in Chennai can grab this opportunity and start a travel agency.

• Investment: ₹3 Lakhs.
• Resources: Licence, office space/store, computers, printing machines, fax machines, reliable staff, etc.
• Market Demand: The tourism business in India is one of the most lucrative sectors with a market value worth ₹15 lakh crore approximately. Moreover, this sector will be exhibiting a CAGR of 13.47% by 2027.
• Profit Margin: 10% - 15%.

4. Bharatanatyam Classes

Bharatanatyam is a popular dance form that originated in Tamil Nadu and is still practised by people who like to embrace their culture and art. Experienced Bharatanatyam dancers can make the most of this opportunity and venture into this profitable business. This is one such small-business idea in Chennai that allows budding entrepreneurs to follow their passion.

• Investment: Minimum ₹5 Lakhs.
• Resources: Space, music system, trained and professional staff, social media handle, etc.
• Market Demand: The performing arts market in India is a rewarding sector with a current value of ₹31 thousand crores. Furthermore, it will acquire a CAGR of 11.5% and reach a value of ₹57 thousand crores by 2027.
• Profit Margin: Up to 40%.

5. South Indian Food Café

South Indian delicacies are a perfect blend of all the dishes that are required to satiate the taste buds. Every South Indian delicacy is not only sumptuous but also loaded with nutritional ingredients. South Indian Cafés are hence considered to be one of the best small businesses in Chennai.

• Investment: Up to ₹20 Lakhs.
• Resources: FSSAI Licence, raw materials, packaging materials, trained staff, store, machinery, etc.
• Market Demand: The Indian food service market is estimated to witness a sharp uptick of CAGR 11.19% for the next four years. As per the NRAI report 2019, Hyderabad and Chennai cumulatively contribute a market value worth ₹ 9266 crores in the food service market.
• Profit Margin:  2.5% - 85%.

6. Spice-Making Business

Tamil Nadu is one of the leading producers of premium-quality spices like turmeric, cardamom, and tamarind. These spices are essential ingredients of every Indian delicacy and are known for their refreshing aroma and taste. So, a spice-making business can be highly lucrative and can yield huge profits in a short span.

• Investment: ₹5 Lakhs - ₹20 Lakhs.
• Resources: Licence, raw materials, pulverising machines, grinding machines, packaging materials, office space/store, distributors, trained staff, etc.
• Market Potential: The spices market in India acquired a market value worth ₹160676 crores in 2022. Furthermore, it is expected to grow at a CAGR of 10.8% between the period 2023 and 2028.
• Profit Margin: 40% - 50%.

7. Yoga Training Centre

(especially after COVID). However, not everyone considers a high-intensity workout in the gym to stay fit. So as a small-investment business in Chennai, one can start giving yoga classes to health-conscious people and earn a decent amount from it.

• Investment: ₹5 Lakhs - ₹1 Crore.
• Resources: Licence, store/space, trained staff, blankets, mats, active social media handles, etc.
• Market Demand: The current value of the Indian health and wellness market is over ₹490 billion. Additionally, this sector will register a CAGR of 9.39% between 2023 and 2027.
• Profit Margin: 15% - 25%.

8. Seafood Business

Chennai is a coastal city and a major seafood exporter. There has always been a high demand for fresh seafood in the city. Therefore, a seafood business can be highly profitable because of the surplus availability of varieties of sea fish.

• Investment: ₹ 30000 - ₹1 Lakh.
• Resource: Licence, storage space, preservatives, office space, seafood from reliable sources, etc.
• Market Demand: Chennai produced 807 Tonnes of fish in 2022. Moreover, the Indian fish market sector is expected to accelerate at a CAGR of 8.81% from 2023-2028.
• Profit Margin: Up to 75%.

9. Chocolate Making

There has always been a demand for chocolates among every age group and its popularity will never fade away. People who are skilled in making varieties of delicious chocolates can easily monetise their talents by starting a chocolate business in Chennai.

• Investment: ₹ 4 - ₹ 6 Lakhs.
• Resources: Licence, bulk supply of cocoa powder, dairy products, sweeteners, packaging material, engaging website, social media handles, distributors, etc.
• Market Demand: The chocolate market in India will acquire a market value of approximately ₹33 thousand crores by 2028. Furthermore, it is expected to grow at a CAGR of 8.8% from 2023-2028.
• Profit Margin: 8% - 10%.

10. Handicraft Business

Tamil Nadu is one of the most culturally rich states and art is embraced by most Tamilians. The state is home to highly skilled people who create intricate handicrafts that have high market value. Thus, setting up a handicraft business can be a highly profitable low-investment business in Chennai.

• Investment: ₹10000 - ₹30000.
• Resources: Raw materials like clay, fibres, wood, bamboo, colours, machines and equipment, storage space, reliable staff, website, social media handles, packaging materials, distributors, etc.
• Market Demand: Indian handicrafts are known for their exquisite designs. India exported handicrafts worth ₹ 155 billion in 2022. Additionally, the period between 2023 and 2028 will witness a growth of CAGR of 7.7% in this sector.
• Profit Margin: Up to 17%.

11. Coconut Sweets Business

Tamil Nadu is one of the largest producers of coconut in the country. Around 11,526 coconuts are produced per hectare in the state. People who are looking for small-investment business ideas in Chennai must not think any further and venture into this thriving business.

• Investment: ₹3 Lakhs - ₹4 Lakhs.
• Resources: FSSAI licence, office space/store, coconuts, coconut cutting machines, packaging materials, trained and efficient staff, distributors, storage space, website, social media handles, etc.
• Market Demand: As per reports the coconut candy market is expected to grow at a CAGR of 5.5%, i.e., from 2022 to 2028.
• Profit Margin: Up to 30%.

12. Candle Making Business

There has been a widespread usage of candles in India mostly for religious purposes. A candle-making business can be one of the most feasible options for individuals who are looking for small-scale business ideas in Chennai.

• Investment: ₹ 25000 -₹2.5 Lakhs.
• Resources: Licence, wax, glue, packaging materials, colours, website, social media handles, storage space, office space/store, trained staff, etc.
• Market Demand: A candle-making business can be a highly fruitful venture in India. From 2023-2027, this sector will register a CAGR of 4.81%.
• Profit Margin: 30% - 45%.

13. Fruit Juice Kiosk

Fruit juice kiosks are in high demand in a bustling metropolis like Chennai and can be a highly profitable business. Besides, Chennai is one of the leading producers of fruits and provides a golden opportunity for aspiring entrepreneurs.

• Investment: ₹10 Lakhs - ₹20 Lakhs.
• Resource: Office space/store, fruits from reliable sources, fruit cutting machines, glasses and containers, juice makers, chairs and tables, reliable staff, etc.
• Market Demand: The fruit juice industry in India has a market value worth ₹193 Crores and will grow at a CAGR of 2.92% from 2023-2027.
• Profit Margin: 15% - 20%.

14. Disposable Plates & Cups Business

The present generation actively participates in environment conservation. People in urban areas are gradually adopting eco-friendly products for their environmental benefits. Aspiring entrepreneurs can grab this opportunity by starting a disposable plate and cup business.

• Investment: ₹ 8 - ₹ 10 Lakhs.
• Resources: Licence, raw materials, machinery, equipment, storage space, office space/store, distributors, etc.
• Market Demand: The disposable paper cup business in India has high potential and is estimated to exhibit a CAGR of 2.87% from 2021-2026.
• Profit Margin: Up to 39%.