written by Khatabook | July 13, 2021

10 Best Wholesale Business in India 2021-22

To start a profitable wholesale business, a trader needs to create a wholesale business plan based on an understanding of products that are in demand in the market. You need to prepare a business plan and evaluate related factors in order to establish a successful venture. In the 21st century, India has emerged and evolved as a big market, giving traders good business opportunities due to which it is ideal to open a wholesale business. This article covers all details on how to start distribution business in India along with how to become a successful wholesaler. 

What Is A Wholesale Business?

Wholesalers are middlemen who help manufacturers distribute their products to a broader customer base. A wholesaler buys goods from the manufacturer. He then sells it to retailers at different places at a higher price with a profit margin. This opens supply channels to places where the manufacturers can't reach. 

How many types of wholesale businesses are there?

There are three types of wholesale businesses:

  • Merchant Wholesaler is the most common type. These wholesalers buy larger quantities of goods and sell smaller amounts to multiple retailers at a higher price.
  • Brokers are middlemen between wholesalers and retailers who make transaction easier.
  • Distributors essentially deal with larger quantities and broader areas of distributing a product. Usually, the transaction with the manufacturer involves a specific deal.

How to start distribution businesses in India?

Following is a to-do list on how to become a wholesaler:

  • Identify a profitable product.
  • Know the market and significant manufacturers.
  • Identify the correct channels to distribute the chosen product.
  • Find the target areas and retailers.
  • Learn how to do competitive pricing to reach more retailers while making a profit.

10  Best Wholesale Businesses in India

The following are some wholesale business ideas suitable for a big market like India - 

1. Agrochemical Business 

India is an agriculture-based economy. Therefore, there is a huge demand for agrochemical products like insecticides, fungicides, herbicides, and seed treatment for agricultural output. Pesticides help keep food prices in check for the consumers. Agrochemicals have a huge scope in horticulture, dairy farming, poultry, crop shifting, commercial planting, etc.

The table below shows agrochemical products and their usage.

Product

Usage

Price

Eagle Plant Protect’s Eagaxam, A Bio-Insecticide

Seed Treatment

720/litre

Eagle Plant Protect’s Bio Zyme Power Granules

Growth and flowering stimulant by root growth

20/kg

Eagle Plant Protect’s Thripan Bio Miticide

To control thrips and mites

950/litre

Eagle Plant Protect’s Organic Fertilizer 

Organic Farming

280/kg

2. Textile Business 

India's textile industry is one of the oldest. Textile has a huge wholesale market in India. You can choose to buy and distribute any finished or raw products such as sewing machines, threads, fabric yarns, dye, leather, footwear, clothes, etc. The variety in products creates more chances of profit-making.

Also Read: How to Start a Readymade Garment Business In India?

 3. Jewellery Business 

Though a tricky business, the jewellery sector is profitable. It requires credibility as it is a capital-intensive business. It would help if you have a good design and craft sense to buy and sell quality products and thereby create a network of loyal retailers. 

4. Organic Food Business

The demand for organic foods has increased with the growing awareness of healthy eating, especially in the urban population. This growing market provides huge domestic and international opportunities. With rising consumer demands, manufacturers are looking for distributors with wider reach and supply channels.

Table below lists a few examples of organic products available in the market.

Product

Feature

Price

Aavaram’s Moringa Rice Mix

A Dietary Supplement

60

Aavaram’s Curry Leaf Mix

Natural Nutriment

80

Aavaram’s Aloe Vera Juice 

Treats Dehydration 

190

Aavaram’s Fenugreek Enerj 

A Dietary Supplement

275

5. Ayurvedic Products or Medicines 

No license is required to distribute Ayurvedic medicines or products, making it easier to do domestic and international business in this sector. There has been a sharp rise in demand for Ayurvedic products in recent times as they are made of natural materials with no known side effects. 

6. Stationery Business 

This recession-proof business has a high success rate as a wholesale business. With a rise in the Indian youth population, the stationery business never stops expanding. These products are always in demand in schools, colleges, art centres, and offices. The demand and high profit margin associated with it make it a lucrative business idea.

Product 

Feature

Price

Camel Arfina Artist’s Fixative Spray

Protection Solution

250

Camel Artist’s Oil Colour 12 Assorted Colours Set (9 ml tubes)  

Non-Yellowing Oil 

378

Camel Canvas Board 20 x 20 cm (8*8) 

Light weighted non bending board 

47

Camel Premium Poster Colour 14 Shade Trial Pack (10 ml) 

Colour Set

187

7. Kitchen Utensils Business 

It is evident that utensils will never go out of demand. Irrespective of the business location, since kitchen utensils are related to one of the basic needs of human life, they will never go out of demand. Whether it is utensils for domestic kitchens, industrial size for packaged foods, or hotels and restaurants, there is a huge scope of a profitable wholesale business for these products.

8. FMCG Products Wholesale Business

FMCG- Fast Moving Consumer Goods are nothing but all categories of everyday products that you see at home. There is a huge FMCG wholesale market in India. These are essentially products that every household refills monthly. Food products, cosmetics, toiletries, hygiene products, alcohol, and tobacco- all come under this category. Needless to say, these products will never go out of demand. The intelligent thing to do is to buy and sell multiple products of various types and multiple brands.

9. Bakery Business

A popular foodservice business, bakeries have a good presence in most parts of India. As per a report by a market research company called IMARC Group, the market value of bakery in India is to exceed $ 12 billion within a few years. 

10. Building and Construction Items Business

Raw materials used for construction are some of the best wholesale business products available. It is a hugely profitable sector as most of these products like cement, bricks, stones, and tiles are distributed mainly by wholesalers and not retailers. It is also a recession-proof sector as it caters to one of the basic human needs and is a symbol of improving lifestyles and overall development of the country.

11. Automobile Products Business

The automobile sector is an ever-expanding industry in India. As our economy grows, so does the sale of cars, two-wheelers, buses, trucks, tractors, and other vehicles used in various parts of our lives. A huge part of this industry is the maintenance of these vehicles. As a distributor or wholesaler for automobile parts, your scope of business spreads to all parts of the country. You can choose to distribute parts either for consumer vehicles or for heavy industry vehicles. However, you can deal in both kinds of auto parts if your business permits the volume.

Also Read: How To Start A Car-wash & Bike-wash Business? Here Are 9 Steps You Should Follow

12. Handicrafts Wholesale Business

This is a great wholesale business idea as it involves profitability and a part of our culture. Handicrafts like needlework, tribal paintings, woodcrafts, handloom weavers, and other regional art forms are usually practiced in villages and rural areas. These producers do not have the reach or means to distribute their products to various locations. There is huge scope for profitability as there is a big demand for crafts like these in urban and international markets. You can also help preserve these art forms by increasing their reach.

12. Sports Items Business 

Gone are the days when parents discouraged children from making a career in sports. A wholesale business in sporting goods opens a big market for you since sports is enjoyed all over India. You can either become a dealer in accessories and tools required in one particular sport or cater to all kinds. 

13. Plastic Products Wholesale Business

The demand for plastic and its products in India is rising at 16% every year. A wholesale business idea in this sector is worth considering because of the growing domestic and international market. India is one of the biggest exporters of plastic products to the UK. These products are lightweight, sometimes foldable, durable, and used in houses, offices, and industries. 

Some of the best distribution businesses in India require little investment if you have the right retail connections. Wholesalers ensure a smooth flow of goods from manufacturers to the end consumers. Especially in a big and diverse country, distribution businesses in India do really well. In a way, a wholesaler often becomes responsible for promoting a product at the retail stage. An increase in retail demand results in increased production, boosting sales at the manufacturer's end. The smooth workings of the entire supply chain of any product depend on wholesalers and their market reach.   

Conclusion 

A trader or entrepreneur can do wonders in a wholesale business in India. Due to its geographic vastness and ever-growing consumer demands, wholesale distribution businesses have huge scope for success. However, to start a wholesale business, one needs to keep specific points in mind - 

  • cash investment, no matter how little; 
  • knowledge and experience of the industry; 
  • the economic situation in India; 
  • studying the target consumer base; 
  • existing competitors in the industry, and 
  • an ideal location. 

A wholesaler should keep himself up to date with the trends in the market. Proper inventory management is also one of the key aspects of a wholesale business plan. 

Also Read: How to Apply for the Best Business Loan in India? - Types of Govt. Loan Schemes

FAQs

1. What should be the market size to start a wholesale business?

For selling any product, the market has to be large. But a trader or an entrepreneur can begin with a smaller base as well. Before starting a wholesale business, one needs to identify the target consumer for each product. Proper research should be done on pricing, and local retailers should be contacted to maintain a healthy network.

2. How important is a supply chain for a successful wholesale business?

The whole system depends on a healthy supply chain. The wholesaler needs to know both ends of this chain. Knowing the supply source of the products is as important as knowing the demand destinations. A wholesaler needs to maintain a healthy network of both manufacturers and retailers.

3. Is Inventory System Important?

Storage and inventory management is one of the biggest challenges faced by wholesalers in India. Even if you have the best distribution business in India, it'll not work if you don't have a proper inventory management system.

4. What is Wholesale Price? How is it different from retail price?

 Wholesale price is the amount of money set as the price of a product when bought in bulk directly from the manufacturer for the purpose of distribution or resale. This is significantly lower than the retail price at which the end consumer receives the product. This is so because wholesale prices do not include costs of transportation and distribution.

5. Is there a large amount of money involved in starting a wholesale business?

Not necessarily. Some capital investment might be needed at the beginning of a wholesale business. The investment will not be a burden if the business operates to generate significant profits. Proper research can help in minimising business costs, and entrepreneurs can explore options like loans and other financial services to gather the required capital.

6. Does the government provide some funds to start a wholesale business?

The Government of India has initiated some plans and schemes to help small business owners to start wholesale businesses such as:

  • Credit Guarantee Fund Scheme (CGFS)
  • Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
  • Raw Material Assistance
  • Infrastructure Development Scheme
  • Micro-units Development and Refinance Agency Loans (MUDRA)
  • Multiplier Grants Scheme (MGS) for IT Research and Development

7. Which product is appropriate for online wholesale?

There is a healthy online wholesale market in India for various products, depending on who the trader wants to market to and the suppliers he is in contact with. Some examples are - travel accessories, smartwatches, skincare products, health and wellness products, lamps and lighting, and hobbies and craft products/kits.

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