19 Best Small Business Ideas in Gujarat
Gujarat, ranking first in the pharmaceutical industry in India, is a hub for several businesses and start-ups across various sectors. With its thriving marketplace and road connectivity, it provides a number of opportunities for small businesses to enhance their profitability and reputation. Also, you can start a small-scale venture here with a very low investment amount.
So, if you are looking for small business ideas in Gujarat and have a good knowledge of the current market, it will be beneficial for you. You will be able to avoid difficulties in the future by knowing the trending market demands.
List of Most Profitable Business Ideas In Gujarat to Start
Below is a list of some successful new business ideas in Gujarat with low investment that you can consider to start.
1. Solar Power Management
Known for its sunny weather throughout the year, Gujarat is an ideal location to develop solar energy there. With its abundant sunlight available throughout the year, you can start a solar power business there. In this venture, you can manufacture several products like solar panels, batteries, lights, water heaters, and other related products. Additionally, the development of large solar parks provides ample opportunities for new start-ups who want to grow their business.
- Investment - ₹1 Lakh to ₹3 Lakh
- Resources - A land area of around 1000 to 2000 sq. ft., raw materials, tools and equipment, silicon, an electric arc furnace, minimum labour cost, marketing materials, packaging, etc.
- Market Demand - Solar power management industry will grow by USD 240.42 billion (₹1974882006000) from 2021 to 2026, at a CAGR of 35.24%.
- Profit Margin - ₹50000 to ₹1.5 Lakh monthly
2. Dairy Farming
Starting a dairy farm business in Gujarat is a wise decision considering the fact that India is the largest producer of milk. It is an eco-friendly model as it does not cause much environmental pollution compared to other industries. You can produce various demanding dairy products such as milk, butter, ghee, curd, and more. Moreover, you can establish this venture on a small scale.
- Investment - ₹10 Lakh to ₹20 Lakh
- Resources - Professional consultant, irrigation system to nourish grass, storage room, milking parlour, sterile facility, sheds, licence, etc.
- Market Demand - The dairy market will reach ₹238430 crores by 2027, exhibiting growth at a CAGR of 14.3% from 2023 to 2028.
- Profit Margin - ₹30000 to ₹40000 monthly
3. Tourist Guide
Becoming a tourist guide is a good option as it involves interacting with foreigners and introducing them to various cultural and historical sites. It is the best business in Gujarat with low investment that you can start in tourist attraction areas. For example, the Somnath temple, Sabarmati Ashram, and Dwarka are a few tourist attractions where you can set up your business. However, you need to have good English communication skills in order to start this venture.
- Investment - ₹4 Lakh to ₹8 Lakh
- Resources - An office space, a strong social media presence, partnerships with hotels and tourist destinations, professional guides, etc.
- Market Demand - The travel and tourism industry will exhibit a CAGR of 13.47% and reach a market size of USD 31.35 billion (₹257454037500) by 2027.
- Profit Margin - ₹75000 to ₹2 Lakh monthly
4. Tiffin Service Business
The tiffin delivery service business is one of the profitable small-scale business ideas in Gujarat as it provides convenience to customers who prefer home-cooked meals. You can start this business at a very low investment amount and can target office employees. By providing good quality food and delivery services, you can expand your business rapidly.
- Investment - ₹20000 to ₹30000
- Resources - Utensils, social media presence, culinary skills, burner, tiffin boxes, licence, etc.
- Market Demand - The tiffin service market in India will grow with a CAGR of 11.19% and reach an estimated market size of USD 79.65 billion (₹6541045177500) by 2028.
- Profit Margin - ₹70000 to ₹80000 monthly
5. Garment Manufacturing
It is one of the best small business ideas in Gujarat as the state is a major centre for the clothing industry. Here people dress differently for various festivals. Traditional Gujarati clothing items like ghagra cholis for women and girls and dhotis for men and boys are in high demand within the state and even in other states. Further, you can also manufacture garments like shirts, trousers, and other clothing items.
- Investment - ₹5 Lakh to ₹15 Lakh
- Resources - Textiles like cotton, yarn, fabric, e-commerce platform, office space, packaging supplies, labour cost, inventory storage, etc.
- Market Demand - The garment manufacturing industry will grow to USD 65 billion (₹533405925000) by 2026 with a CAGR of 11%.
- Profit Margin - ₹30000 to ₹1 Lakh monthly
6. Grocery Store
Opening a grocery shop in Gujarat can be a successful business venture due to the high demand for essential products in the local market. With regular sales, you can earn a huge profit from the grocery business. However, you need to understand the demand and availability of different items crucially before starting the business. Though online shopping is an option, the maximum order flow comes from the local area where the store is located. Therefore, focus on marketing and promotion strategies.
- Investment - ₹50000 to ₹2 Lakh
- Resources - Office space, grocery supplies, containers, licences, shopping baskets, disposable racks and shelves, packaging supplies, etc.
- Market Demand - The market for grocery stores will have a CAGR of 10.98% from 2022 to 2030 and the market size will increase to USD 188 billion (₹15407352000000).
- Profit Margin - ₹ 1.5 Lakh to ₹ 2.5 Lakh monthly
7. Spice Production
You can start this business to produce spices such as cumin, turmeric, fennel, and coriander. The state has a strong supply chain to gather raw materials, process, and distribute them. Gujarat is famous for producing chilli spices and thus there is a huge demand for them throughout the location.
- Investment - ₹6 Lakh to ₹10 Lakh
- Resources - Raw spices, grinding machine, weighing scale, packaging machine, compressor, roaster, etc.
- Market Demand - Spices market in India reached a value of ₹160676 crores in 2022. It will grow at a CAGR of 10.8% between the period of 2023 and 2028.
- Profit Margin - ₹50000 to ₹1 Lakh monthly
8. Papad Production
Papad production is an excellent small investment business in Gujarat that can grow eventually with the help of a small MSME business loan. It is because Papad is a widely popular dish and common snack in Gujarat. The state is well-known for its culinary ingredients, and papad preparation using authentic dal and spices can impress anyone. Moreover, foreign tourists are fond of this regional cuisine and often seek it out.
- Investment - ₹10000 to ₹2.5 Lakh
- Resources - The different types of flour, pulses, spices, machinery, packaging items, weighing scale, etc.
- Market Demand - The market demand for such Indian snacks will grow by a CAGR of 10.4% from 2023 to 2028.
- Profit Margin - ₹25000 to ₹30000 monthly
9. Textile Production
Starting a small-scale production business in Gujarat will be beneficial as it is the leading textile capital of India. The production of crossbreed cotton, spinning units, power looms, etc., has made this industry renowned. Due to the abundant supply of cotton and high demand for top-quality clothing materials, setting up this venture is profitable.
- Investment - ₹25 Lakh to ₹5 Crore
- Resources - High-tech machinery, skilled labours,
- Market Demand - The textile industry has grown at 10% CAGR from 2019 to reach USD 190 billion (₹1559481050000) by 2026.
- Profit Margin - ₹2.5 Lakh to ₹5 Lakh monthly
10. Fertiliser and Chemical Production
Investing in the fertiliser and chemical production business will be a smart decision since there is an increasing demand for organic food consumption in India. You can claim subsidies for fertilisers under DBT and on ocean freight if you want to import chemicals or fertilisers. Moreover, you must check the appropriate type of crops for which the fertiliser or chemical is intended to use while supplying the products.
- Investment - ₹1.5 Lakh to ₹2 Lakh
- Resources – Office space, licence, inventory, equipment, packaging supplies, etc.
- Market Demand - The chemical fertiliser market will increase at a CAGR of 9.1% from 2023 to 2030.
- Profit Margin - 31.7%
11. Printing and Paper Manufacturing
Gujarat is an ideal place to start a small-scale paper manufacturing and printing business due to the state's high demand for paper and low investment requirements. So, you can start a printing firm that works with papers, and position your business as one of the top new business ideas in Gujarat with low investment. This business opportunity requires few machineries and a team of dependable staff to prosper.
- Investment - ₹6 Lakh to ₹7 Lakh
- Resources - Wheat straw, flax, bamboo, wood, linen rags, sugar cane waste, hemp, specialised types of machinery, etc.
- Market Demand - The Indian paper market industry will grow at more than 8% CAGR from 2022 to 2028.
- Profit Margin - ₹5 Lakh to ₹8 Lakh monthly
12. Event Management Business
With numerous events occurring every month, event management is one of the most profitable small business ideas in Gujarat for you to start. You can get the opportunity to organise various events like birthday parties, weddings, corporate events, and many more. Starting this business requires a team of skilled professionals who can manage tasks like venue selection, catering, entertainment, decoration, and logistics. You can grow this business with creativity and good management skills to earn a significant income.
- Investment - ₹3 Lakh to ₹5 Lakh
- Resources - A team of experienced professionals, licence, social media presence, etc.
- Market Demand - The event management market will grow at a CAGR of 7.92% from 2022 to 2027. Moreover, the market size will increase by USD 391.33 million (₹32097395329).
- Profit Margin - ₹45000 to ₹75000 monthly
Gujarat’s vibrant culture and heritage provide many opportunities for you to make traditional art and craft items. Crafts like Meenakari, Zardosi, Bandhani, and Single Ikat are popular there and have high demand in the market. Thus, starting a handicraft business can attract both local and foreign visitors that come to witness the state's archaeological heritage sites. However, create only unique and high-quality products to stand out in the market.
- Investment - ₹2 Lakh to ₹5 Lakh
- Resources - Textiles or leather, wood, metal, clay, horn, glass, stone, paper or canvas, vibrant colours, etc.
- Market Demand - The Indian handicraft market will grow at a CAGR of 7.7% from 2023 to 2028.
- Profit Margin - ₹30000 to ₹50000 monthly
14. Bakery Business
A bakery business is one of the best small business ideas in Gujarat if you have the passion and skill to bake. Currently, bakery businesses are in high demand because of the high demand for artisanal cakes, pastries, breads, and many more. You can start through a small investment by baking from home and selling to local consumers. Moreover, you can also set up a bakery store with the right marketing strategy and unique offerings.
- Investment - ₹25000 to ₹40000
- Resources - A workspace, freezer, grinders and processors, oven, display boxes, packaging supplies, skilled labour, social media presence, etc.
- Market Demand - Indian bakery business will gain a CAGR of 7.28% between 2021 and 2027, reaching a value of ₹13000 crore.
- Profit Margin - ₹60000 to ₹1.2 Lakh monthly
15. Salt Production
Establishing a salt business in Gujarat is profitable because of the state’s long coastal line and abundant availability of resources to produce salt. By collecting the right quantities and components from the sea, you can jumpstart your new business and incur profit. Moreover, the state is the second largest producer and exporter of salt thus, opening a small-scale business will benefit you.
- Investment - ₹1 Lakh to ₹1.5 Lakh
- Resources - Roll Crusher, mixer, air compressor, packaging supplies, labour cost, licence, etc.
- Market Demand - The salt market industry will increase by around USD 26.8 billion (₹2198658600000) by 2030. It will exhibit a CAGR of 6.43% from 2022 to 2030.
- Profit Margin - ₹10000 to ₹15000 monthly
16. Gems and Jewellery Business
It is a profitable small business idea in Gujarat, as the state is the leading contributor to India's gems and jewellery sector. It also has a well-established diamond industry. Here, you can create new and unique designs for your products and sell artificial jewellery under low investment. Moreover, you can gather or source exquisite stones and jewels from Gujarat's extensive coastline to sell for a profit.
- Investment - ₹10 Lakh to ₹15 Lakh
- Resources - High-skilled labour, licence and trademarks, outlet, business plan, professional staff, etc.
- Market Demand - The Indian jewellery market will experience a CAGR of 5.54% from 2022 to 2027, leading to an increase in market size by USD 21.54 billion (₹1766980050000).
- Profit Margin - ₹2.2 Lakh to ₹50 Lakh monthly
17. Petroleum Jelly Production
Starting a petroleum jelly manufacturing business, such as Vaseline, is a profitable and low-risk venture. The demand for petroleum jelly is high in various industries, including cosmetics and pharmaceuticals, making it a sought-after product. The raw materials and equipment required for this business are not expensive, making it accessible to start on a small scale with low investment. A well-planned business strategy includes sourcing the best quality ingredients and can ensure success in the industry.
- Investment - NA
- Resources - Paraffin wax, oil, jars, machinery, etc.
- Market Demand - The petroleum jelly business will grow at a CAGR of 4.2% from 2023 to USD 770.3 million (₹63205040750) in 2033.
- Profit Margin - ₹14 Lakh to ₹16 Lakh monthly
18. Pickle Industry
The pickle business in Gujarat has a long history that has been passed down from generation to generation and still has high demand in the market. Pickles are a part of daily meals in Gujarat. Having the skill to produce delicious pickles and jewels from roots can help you establish this business. Furthermore, you can experiment with different varieties of pickles and packaging options to attract more customers.
- Investment - ₹80000 to ₹1 Lakh
- Resources - Weighing scale machine, mixer, grinder, utensils, etc.
- Market Demand - The pickle industry market was valued at USD 7.9 billion (₹648443850000) in 2018 on a global scale. It will exhibit a CAGR of 3.5% from 2019 to 2025, indicating steady growth.
- Profit Margin - ₹25000 to ₹30000 monthly
19. Beauty Parlour
You can start a parlour business either doing a three to four months beautician course or hiring trained beauticians. It is a low-investment business that you can start from your own home as long as you have enough space, a good sense of makeup and work hard to attract customers. You can earn a huge profit from this business by providing high-quality services to your consumers.
- Investment - ₹15 Lakh to ₹30 Lakh
- Resources - Salon equipment, makeup kits, trained beauticians, licence, etc.
- Market Demand - The beauty and personal care market amounts to USD 27.23 billion (₹2234834175000) in 2023 and will grow at a CAGR of 3.38% from 2023 to 2027.
- Profit Margin - ₹6000 to ₹50000 monthly
In conclusion, these are the different small business ideas in Gujarat which you can start with a very low investment amount. The state is known for its ease of doing business, and the government also provides support in various ways for these business ventures. By keeping a check on finances and expenses you can benefit from the vibrant market in Gujarat.