15 Best Small Business Ideas in Hyderabad
Hyderabad, the bustling capital of Telangana, surprisingly surpassed cities like Shanghai and Beijing in terms of economic development. Now, it is one of the fastest-growing cities in the world.
The high-tech city has offices of the major tech giants of the world including Google and Microsoft. This prolific growth has boosted the city's economy and opened several windows of opportunity to people who aspire to be successful entrepreneurs.
So, if you have a limited budget and are looking for small-business ideas in Hyderabad, this article might answer all your queries. Keep reading to know more!
List of The Best Business Ideas in Hyderabad
Below mentioned, are some of the highly scalable businesses that may be started in Hyderabad-
1. Pharmaceutical Drugs Business
The Telangana Government has initiated an ambitious project named ‘Hyderabad Pharma City’ that is all set to bring forth an unprecedented benchmark in the Pharmaceutical sector of India. Consequently, a pharmacy store in Hyderabad may yield huge profits and can be considered by people who are looking for small business ideas in Hyderabad.
- Investment: ₹3 Lakhs - ₹4 Lakhs.
- Resources: Pharmacy and drug licence, office space/store, reliable drug suppliers, storage space, furniture, chairs, tables, trained and professional staff, etc.
- Market Demand: The pharmacy retail market in India is proliferating at a CAGR of 44.44%. With this rapid rate, this segment will acquire a market value worth ₹317.87 Billion by 2026.
- Profit Margin: 16% - 22%.
2. Day-Care Business
Hyderabad is a bustling metropolis with a large working population. Working parents often find it a daunting task to take care of their kids while they are in the office. So, a daycare business in Hyderabad can reap lump sum yields in a short span.
- Investment: ₹30 Lakhs - ₹40 Lakhs
- Resources: Licence, authentic baby food products, comfortable beds, cleaners/helpers, food supplies, toys, toiletries, baby cutlery, spacious location, medical kits and medical staff, etc.
- Market Demand: With rapid changes in societal institutions and an increase in women-workforce, the daycare centre in India has grown at a CAGR of 23% till 2022. The market size of this sector amounts to ₹13000 crores.
- Profit Margin: 5% - 15%.
3. Room Rental/Homestay/Paying Guest Business
67% of the total population in Hyderabad are migrants from different states. The city has registered tremendous growth in recent years and has become a primary IT hub that attracts thousands of people from every part of the country. So, if you are looking for a small investment business in Hyderabad, you may offer vacant spaces in your rooms for rent to paying guests.
- Investment: ₹1 Lakh - ₹20 Lakhs.
- Resources: Licence, electricity supply, well-furnished rooms, proper water supply, geysers, helpers/staff, furniture (optional), etc.
- Market Demand: The technologically developed cities in India, have witnessed a 10%-20% rise in demand for rented properties.
- Profit Margin: Up to 50%.
4. Cooking Class Business
In the 21st century, people, regardless of gender, learn to cook and consider it a basic necessity rather than a luxury. As there are several people in Hyderabad with excellent culinary skills it demands cooking lessons from them. Such skilled people may conveniently start a class from their homes and earn huge figures. By sharing unique ideas and tips, you can help people who are willing to learn cooking or take cookery courses.
- Investment: ₹ 50000 - ₹1 Lakh.
- Resources: Kitchen space/location, raw materials like vegetables, meat, spices, condiments, utensils like cutlery and containers, microwaves, gas, social media handles, etc.
- Market Demand: The Indian cookery class business has immense potential. This segment will grow at a CAGR of 18.9% between 2021 and 2029.
- Profit Margin: Up to 80%.
5. Travel Agency
The royal city of Hyderabad attracts thousands of tourists who visit the city to cherish its extravagant art and culture. As per reports, Telangana tourism will register a 20% increase in tourists in 2023. Therefore, a travel agency in the city may be a highly profitable venture.
- Investment: Up to ₹3 Lakhs
- Resources: Licence, office space, printing machines, computers, fax machines, reliable staff, etc.
- Market Demand: The travel and tourism business in India has a market value worth ₹15 lakh crore (approximately). With this rapid progression, this sector will register a CAGR of 13.47% by 2027.
- Profit Margin: 10% - 15%.
6. Pearl Business
Called 'The City of Pearls', Hyderabad is famous for its pristine pearls that are crafted into beautiful ornaments by skilled artisans. It is the ideal place for all the jewellery lovers who pick up gorgeous pearl ornaments. Pearl processing has been an exquisite craft in the city, and individuals looking for a low-budget business in Hyderabad may turn their aesthetic talent into a thriving business.
- Investment: Up to ₹20 Lakhs.
- Resources: Licence, pearls, threads, packaging materials, office space/store, storage space, reliable staff, etc.
- Market Demand: The global pearl ornaments market will accelerate at a CAGR of 13.2% from 2022-2031 and acquire a market value worth ₹3.4 Lakh crores.
- Profit Margin: 42%-47%.
7. Cake Baking Business
Freshly baked cakes are in high demand as they are indispensable parts of every occasion, ceremony and party. People who love baking may consider starting a small baking business in the city. This business may even be commenced from home and does not require lump sum investments.
- Investment: ₹5 Lakhs - ₹10 Lakhs.
- Resources: Licence, utensils and containers, raw materials like dairy products, sweeteners, sugars, fresh cream, microwave, mixers, packaging materials, delivery staff, location/store, storage space, etc.
- Market Demand: The Indian cake market segment is poised to acquire a CAGR of 12.5% from 2023 and 2028.
- Profit Margin: 29% - 40%.
8. Tailoring Business
While the demand for readymade clothes has increased recently, the comfortable and uniquely designed garments handcrafted by tailors are unmatched. Thus, tailoring can be an interesting yet profitable small business idea in Hyderabad with low investment.
- Investment: ₹ 10000 - ₹5 Lakhs.
- Resources: Licence, store/location/space, sewing/stitching machinery, storage space, benches and chairs, skilled staff, racks to store garments, irons and iron board, cleaners, mirrors, etc.
- Market Demand: The tailoring market in India is expanding at a rate of 12% every year. Presently, the sector has a market share worth ₹27000 crores.
- Profit Margin: 30%-60%.
9. Biriyani Centre
Biriyani has been a part of Hyderabad’s rich cultural history. This delicious cuisine exhibits a royal flavour which is a treat to the taste buds of every Indian. As per statistics, 2.28 plates of Biryani were ordered per second on popular food applications in the previous year. Thus, you may open a small Biriyani centre with a couple of staff in any bustling locality of the city.
- Investment: ₹15 Lakhs - ₹1.6 crore.
- Resources: Licence, raw materials, utensils, space/store, containers, chairs and tables, trained staff, etc.
- Market Demand: Indian food service market will rise at a CAGR of 11.19% and acquire a market value worth ₹6.5 Lakh crores by 2028.
- Profit Margin: 30%-50%.
10. South Indian Café Business
South Indian delicacies are popular across the nation for their unique flavour and subtle taste. Idli, Dosa, Appam and Uttapam are immensely popular for their nutritional benefits and are the staple diet of the people in the southern part of India. Resultantly, a South Indian Café is considered to be one of the best small businesses in Hyderabad.
- 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 register a CAGR of 11.19% by 2028. As per the NRAI report 2019, Hyderabad and Chennai contribute a whopping amount of ₹9266 crores in the Indian food service sector.
- Profit Margin: 2.5% - 85%.
11. Meat Store
People in Hyderabad regularly consume meat and chicken as part of their staple diet. Besides, Hyderabadi Biryani is incomplete without juicy chicken pieces and sumptuous mutton curry. Therefore, a meat store will reward you with huge profits.
- Investment: ₹1 Lakh - ₹2 Lakhs.
- Resources: Licence, store/location, poultry and sheep/goat, butchering tools, packaging materials, trained staff, chairs, benches etc.
- Market Demand: The Indian meat segment will accelerate at a CAGR of 10.61% from 2023-2028. Presently, the market value of this sector is close to ₹2.6 Lakh crores.
- Profit Margin: Up to 50%.
12. Chocolate Making
There is a pleasant nostalgia and comforting essence associated with chocolates, and it occupies a special place in the heart of every Indian. While branded chocolates are loved by all, homemade chocolates are in high demand for their unique flavour and taste. People looking for small business ideas in Hyderabad may opt for this lucrative and interesting venture.
- Investment: ₹4 Lakhs - ₹6 Lakhs.
- Resources: Licence, raw materials like cocoa powder, dairy products, sweeteners, wrapping material, engaging website, active social media handles, reliable distributors, etc.
- Market Demand: The chocolate market in India will register a CAGR of 8.8% from 2023-2028. With this prolific rate, this sector will acquire a market value worth ₹33 thousand crores by 2028.
- Profit Margin: 8% - 10%.
13. Handicrafts Business
The magnificent handicrafts of Hyderabad exemplify brilliant artistic finesse and represent the sheer class. The intricate designs of Bidriware, Kalamkari and Filigree handicrafts are kept as prized possessions by people across the world. These extravagantly designed handicrafts are of immense value in the global market. Therefore, if you are looking for a low-investment business in Hyderabad, you may consider starting a handicrafts business from home.
- Investment: ₹10000-₹30000.
- Resources: Licence, office space/store/location, raw materials, storage space, colouring materials, packaging material, social media handles, website, trained staff etc.
- Market Demand: Indian handicrafts market will acquire a CAGR of 7.7% from 2023-2028.
- Profit Margin: 13.54%.
14. Candle Making Business Image
Candles have widespread usage in almost every part of India. Coloured and scented candles are often an indispensable part of religious activities. Candles are also used as home décor. So, if you are looking for a small-scale industry in Hyderabad, a candle-making business can be an ideal choice.
- Investment: ₹25000 - ₹5 Lakhs
- Resources: Licence, location/store, raw materials like wax, colouring materials, scents, reliable staff, packaging materials, well-maintained website, social media handles, distributors, etc.
- Market Demand: The candle-making market in India will accelerate at an impressive CAGR of 4.81% from 2023-2027. The market value of this segment is pegged to be ₹25000 crores (approximately).
- Profit Margin: 30%-45%
15. Disposable Plates & Cup Business
The over usage of plastic has severely impacted the environment and people are gradually shifting towards environment-friendly products. The disposable cup and plate business will not only be one of the best small-scale business ideas in Hyderabad but also contribute towards a healthy environment.
- Investment: ₹8 Lakhs - ₹10 Lakhs
- Resources: Licence, machines, raw materials, important equipment, storage space, store/location, reliable distributors, etc.
- Market Demand: The disposable paper cup business in India will project an impressive CAGR of 2.87% from 2021-2026.
- Profit Margin: Up to 39%
It is necessary to conduct market research before starting these businesses. A careful analysis will help you understand the market status and trends. You must evaluate your strengths and weaknesses and strive towards delivering the USP of your brand/company. The above-discussed small business ideas in Hyderabad will scale high if you keep the above-mentioned points in mind.