Best Small Business Ideas in Kerala: Investment, Resources & Profitability

When you are starting a small business in Kerala, it is advisable to have everything planned in order to manage all operational aspects in a smooth manner. The right ideas for businesses should be based on the current market trends.

Here are some top small business ideas in Kerala to help you get a quick start.

Are you planning to start a small-scale business in Kerala? Then, it will be beneficial to know about the best small business ideas here. Starting a business without knowing the current market demands can be problematic for the future. Find out all about these business ideas from the following list.

Groceries are mandatory requirements for people in any part of the world. Residents of Kerala prefer fresh groceries on a regular basis. The best part of developing such a business is that the owner does not require specific skills or specialisation. Kerala's most popular grocery items include rice, coconut, flour, milk, jaggery, spices, etc. While such a store can be established online, offline stores are considered a better option.

• Investment – ₹50,000 to ₹15 Lakh
• Resources – Office space, grocery supplies, containers, shopping baskets, disposable racks and shelves, packaging supplies, etc.
• Market Demand – The Indian grocery business is currently valued at about ₹ 24,023 crore, with an annual CAGR of 37.1%.
• Profit Margin – ₹ 1.5 lakh to ₹ 2.5 lakh monthly

Ayurveda is one of the most ancient forms of Indian medicine, which has been popular over the years. Kerala is a rich hub for finding such medicines, which is another tourist attraction. It can be a good idea for a small-scale industry in Kerala. The favourable weather and natural wealth of Kerala help to grow such medicinal plants, which reduces the investment amount for sourcing the raw materials. You can develop and run this business with a basic knowledge of Ayurveda.

• Investment – ₹ 5 Lakh to ₹ 10 Lakh
• Resources – Supplier information, links with Ayurveda medicine manufacturers and tourism businesses, office space, pleasant temperature for storage, warehouse and packaging, etc.
• Market Demand – This industry has a CAGR of 16% and is currently valued at ₹ 335 billion. Moreover, the tourism growth in Kerala ensures higher sales of such medicines here.
• Profit Margin – ₹ 50,000 to ₹ 2 Lakh monthly

As discussed already, the industry of tourism is growing rapidly in Kerala. A firm for personal tour guidance can be a good idea for a small business in Kerala. The best part is that you hardly need much investment, as your work guides tourists across the city. You need to know the different tourist spots and the right directions within Kerala to start such a business.

• Investment – ₹ 50,000 to ₹ 1.5 Lakh
• Resources – Office space, social media presence, tie-ups with hotels and tourist spots, professional guides, etc.
• Market Demand – India's tourism business is growing at a CAGR of 11.38%. With Kerala’s growing popularity as a tourist destination, this can be the right idea for a business.
• Profit Margin – ₹ 75,000 to ₹ 2 Lakh monthly

Having a spice business can also be profitable in Kerala. It is a hub for multiple Indian spices, such as cardamom, clove, turmeric, pepper, ginger, cinnamon, and others. Apart from preparing food items, spices are also used to prepare various preservatives, perfumes and medicines. You will find the harvest of such spices in abundance in an agriculturally rich country like Kerala. This makes it easier to run a business in this field.

• Investment – ₹ 2 Lakh to ₹ 5 Lakh
• Resources – Supplies, Pulveriser machine, weighing scale, roster, spice grinder, packaging machine, compressor, warehouse and packaging supplies, etc.
• Market Demand – The spice business is on the rise in India. It is showing a CAGR of 11.29% as of 2022.
• Profit Margin – ₹ 50,000 to ₹ 2 Lakh monthly

Kerala is one of the leading exporters of coconut. This makes it a rich spot for producing coconut oil-based food processing businesses. It is the right business to start if you are into food processing. You can process various snacks with coconut oil, such as chips, RavaLadoos, Jaggery Stuffed Pancakes, Banana Halwa, pudding, Kerala spicy mixtures, etc. You can sell these from both online and offline stores.

• Investment – ₹ 50,000 to ₹ 1 Lakh
• Resources – Coconut oil supplier, machines, vegetables, preservation supplies, packaging and delivery supplies, storage temperature and resources, etc.
• Market Demand – The snack industry has a significant CAGR of 8.11%. Using the right quality of coconut oil will help you produce high-quality and healthy snacks.
• Profit Margin – ₹ 35,000 to ₹ 1 Lakh monthly

Indian households are always in need of agarbattis or incense sticks. Particularly in Kerala, the residents are religious and use it mainly for worship purposes. Some people also use it for its aroma. Kerala is an ideal place for manufacturing these sticks, with rich supplies of sawdust, bamboo sticks and charcoal powder. Many machines are available that make the process of manufacturing agarbattis simple and fast. It can therefore be a good business idea.

• Investment – ₹ 80,000 to ₹ 1 Lakh monthly
• Resources – Supplies, machines, warehouse, office space, packaging supplies, perfumes, pleasant room temperature, etc.
• Market Demand – It is one of the most profitable businesses, as India is a religious country. It has a CAGR of 8.8%.
• Profit Margin – ₹ 50,000 to ₹ 1 Lakh monthly

The textile quality of Kerala is popular among tourists. Balaramapuram and Kuthampully sarees are some of the most popular items. Other famous textile types include Karalakudi Sarees, also known as Kerala Sarees. These are entirely hand-woven cotton clothing items. You can start this business with a low investment. It is highly profitable during the tourist season.

• Investment – ₹ 4 Lakh to ₹ 10 Lakh
• Resources – Textile supplies, link with the makers, online application and office space, packaging supplies, social media presence, etc.
• Market Demand – This business has a 6% annual growth rate in India. In Kerala, particularly, it has been highly successful. This business is expected to grow at a CAGR of 10%.
• Profit Margin – ₹ 20,000 to ₹ 1 Lakh monthly

With the advent of social media, the trend for photography has increased rapidly. Moreover, as Kerala is a popular tourist destination, it has a running business for photography. This kind of business has high possibilities of creativity, while the capital investment required is also low. Therefore, having a good knowledge of photography or hiring professionals with a good camera set-up can help you run a successful business in Kerala.

• Investment – ₹ 1 Lakh to ₹ 10 Lakh
• Resources – Cameras, lights, professional photographers, lenses, backgrounds, props, studio space, tripod, mailing options, etc.
• Market Demand – There is a huge growth of 25%-30% annually in this industry. Moreover, the common trend of being active on social media also shows the growth of this industry. This industry is growing at a CAGR of 7.55%.
• Profit Margin – ₹ 80,000 to ₹ 1 Lakh monthly

This business gives you complete liberty to work on your terms and creativity. Kerala citizens are food lovers, and they have a great sweet tooth. Thus, if you have an interest in baking, you can choose this business. Muffins, cakes, brownies, cookies and doughnuts are some popular dishes in Kerala. You can also introduce your own recipes and personally curated dishes to attract customers.

• Investment – ₹ 5 Lakh to ₹ 10 Lakh
• Resources – Workspace, grinders and processors, oven, display boxes, packaging supplies, website or application (optional), social media presence, etc.
• Market Demand – Indian bakery business is expected to develop a CAGR of 7.28% between 2021 and 2027, reaching a value of ₹ 13,000 crore.
• Profit Margin – ₹ 60,000 to ₹ 1.5 Lakh monthly

The business for snacks is also popular in Kerala. Items like bananas and jaggery-coated chips are popular both among the residents and tourists in Kerala. Bananas are versatile fruit, and their snacks are popular here. This kind of snack includes small slices of banana deep-fried in coconut oil. It is a unique snack that is available only around this region. Therefore, it can make good sales around canteens of schools and colleges, railways stations, airline caterers and bars.

• Investment – ₹ 1 Lakh to ₹ 5 Lakh
• Resources – Office space, grinders, choppers, food processors, supplies, workforce, warehouse and packaging supplies, room temperature, etc.
• Market Demand – Its popularity is rising among the residents and tourists of Kerala. The business of banana chips is expected to increase at a CAGR of 7.4% between 2022 to 2028.
• Profit Margin – ₹ 1 Lakh to ₹ 2 Lakh monthly

Finally, this can be an idea for a successful small business in Kerala. While Kerala is known for its gold jewellery, the demand for artificial jewellery has also increased. You do not need specific knowledge of stones and metals for such a business. Moreover, having a tie-up with the manufacturers of artificial earrings, necklaces, bangles, bracelets, anklets, etc., can help you out.

• Investment – ₹ 50,000 to ₹ 10 Lakh
• Resources – Supplies, packaging supplies, tie-ups with the manufacturers, office space and/or online application, social media posts, etc.
• Market Demand – This market is rising with a CAGR of 7%. Therefore, it can be a good choice for a small business around Kerala.
• Profit Margin – ₹ 50,000 to ₹ 1 Lakh monthly

Interior decoration has been trending recently. Kerala residents have taken a growing interest in working on home décor to improve the appearance of their residences. If you have a degree in interior design or simply a basic knowledge of home décor, this is just the right business idea for you. Some popular products include candles, wall art, wind chimes, table lamps, etc. The best part is that you can sell these products both online and offline.

• Investment – ₹ 4 Lakh to ₹ 5 Lakh
• Resources – Office space and/or personal website and application, packaging supplies, suppliers, delivery service providers for shipping, social media presence, etc.
• Market Demand – India's home décor business is valued around ₹13,000 crore as of 2022. The home decor business is growing annually at a rate of 6.75% CAGR between 2023 to 2027.
• Profit Margin – ₹ 1 Lakh to ₹ 2 Lakh monthly

The popularity of fitness and physical well-being is a common concern across the globe. Kerala residents have taken a growing interest in hitting the gym to ensure healthy weights. If you have a basic understanding of physical fitness, you can start your own business. Professional fitness trainers will be responsible for offering specific health services to the residents.

• Investment – ₹ 10 Lakh to ₹ 20 Lakh
• Resources – Office space, equipment and tools, professional trainers, licence, marketing, etc.
• Market Demand – The fitness business is growing at a CAGR of 6.13%, currently valued at approximately ₹ 461 crore. Nearly 1.5 lakh people go to the gym regularly in Kerala.
• Profit Margin – ₹ 1.5 Lakh to ₹ 2 Lakh monthly

Kerala is also popular for its high-quality hand-crafted chocolate. The local hand-crafted chocolate items are super popular among tourists. There is a good supply chain network for such items in Kerala. You can visit their factories to see the process. Moreover, you can also choose to prepare your own items or personalised things with this chocolate.

• Investment – ₹ 2 Lakh to ₹ 5 Lakh
• Resources – Supplies, preservatives, refrigerators, machinery, storage supplies, packaging and delivery supplies, etc.
• Market Demand – This industry has a CAGR of 8.4%, currently valued at over ₹ 500 crore in India as of 2022. So it can be the perfect business idea in Kerala.
• Profit Margin – ₹ 30,000 to ₹ 1 Lakh monthly

With the advent of technology, there is a growing demand for electronic goods. Most households across India prefer using electronics to increase efficiency and reduce extra labour. It is also evident in the case of Kerala. Apart from mobiles and laptops, items like refrigerators, washing machines, water coolers, microwaves, rice cookers, etc., are also popular. You can start a business with these items if you have a basic understanding of operating electronic appliances.

• Investment – ₹ 10 Lakh to ₹ 25 Lakh
• Resources – Supplies, warehouse and packaging supplies, professional sales team, office space, storage supplies, delivery supplies, etc.
• Market Demand – This industry is growing at 12.7%, currently valued at more than ₹ 300 Crore. It shows a high demand for this industry. This industry is is expected to grow annually at the rate of 5.61% CAGR.
• Profit Margin – ₹ 1 Lakh to ₹ 2 Lakh monthly

Kerala is a rich and fertile country, exporting crops all across India. For instance, nearly 70% of the coconut supplies come from Kerala. It is also the leading exporter of bamboo crafts, coffee, cashew, marine products, etc. This is one of the easiest business ideas, as you simply need to export products from the manufacturers to the buyers. Renting a place and having enough connections with the farmers and suppliers will help you run this business.

• Investment – ₹ 1 Lakh to ₹ 1.5 Lakh
• Resources – Rented place, export partners, link with suppliers and farmers, packaging supplies, warehouse management, etc.
• Market Demand – There is an annual growth of 20% in the industry of crop exporting. Currently, it is valued at ₹ 500 Crore. The business of crop export is expected to rise at a CAGR of 4.9% by 2027.
• Profit Margin – ₹ 50,000 to ₹ 1 Lakh monthly

The beverage business is also booming in India. Kerala is a rich source of tea and coffee plantations. Its farming areas produce high-quality tea leaves and coffee beans, which can be just the right business ideas for export. With this business idea, you can find a range of suppliers with good quality products. Moreover, having minimal knowledge of these items can be sufficient for running such a business.

• Investment – ₹ 10 Lakh to ₹ 20 Lakh
• Resources – Supplies for tea leaves and coffee beans, office space, packaging supplies, preservation and temperature needs, etc.
• Market Demand –Nielsen report states that Indians drink over 217 million cups of tea and coffee annually. This shows the growth of this industry. The business is expected to grow by a CAGR of 4.7%.
• Profit Margin – ₹ 50,000 to ₹ 2 Lakh monthly

Fashion and apparel products have gained much popularity recently. This makes the clothing business one of Kerala's best small scale business ideas. The residents here keep track of the changing fashion trends, a popular commodity for tourists visiting Kerala. Apart from fashionable and traditional clothing, there is a demand for beachwear and swimwear clothing based on the tropical climate of Kerala. Basic know-how of fashion will help run this business.

• Investment – ₹ 5 Lakh to ₹ 10 Lakh
• Resources – Supplies, a network of suppliers, research investment, office space, warehouse, packaging supplies, delivery network, etc.
• Market Demand – There is a CAGR of 4.66% in India's clothing and fashion business.
• Profit Margin – ₹ 30,000 to ₹ 1 Lakh monthly

Pickles can be the perfect answer to sudden cravings for sweet and sour tastes. A classic lunch is considered incomplete in India without tasty pickles, especially during the winter. Pickle making is not even real cooking. Hence, you can easily start this business from home by investing a low capital to purchase vegetables, oil and spices. Pickles with amla, cucumber, mango, lime, chilli, ginger, etc., are integral to Kerala's cuisine.

• Investment – ₹ 10,000 to ₹ 50,000
• Resources – Vegetables and spices, storage supplies, preservation supplies, packaging and delivery supplies, room temperature, etc.
• Market Demand – The pickles industry is a large ₹ 400 crore industry in India. It goes to show the popularity of such items. Pickle making business has grown at a CAGR of 3% between 2019 to 2024.
• Profit Margin – ₹ 40,000 to ₹ 1 Lakh monthly