written by Khatabook | August 7, 2021


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Table of content

Top 10 Successful and Profitable Small Business Ideas in Kerala

Kerala is a beautiful state that welcomes investors. Kerala has reasonable operating costs for start-up firms when compared to other competitive states. A person who owns a small business enjoys a number of advantages- Financial independence, learning new skills, living a desired lifestyle, and many more. Is there a more investor-friendly and cost-effective state than Kerala to establish your small business?

Kerala's tourism industry currently receives around Rs 10 Billion in annual investment and employs over 1 million people. Kerala is one of the top 50 lifetime destinations and one of the world's 13 paradises. Kerala's base is its tourism sector, which provides tremendous opportunities for entrepreneurs. Let's look at a variety of ways to invest and obtain quick returns in the state.

Whether you are a local or an outsider looking to start a business in Kerala, we can assist you in identifying reputable investment possibilities and business ideas in Kerala. But first, let's understand why Kerala is such a great place to do business.

What makes Kerala an excellent business location?

Kerala is blessed in every way, from its rich nature to its natural resources and its climate. Here are some of the market benefits of starting a small-scale business in Kerala.

  • When beginning a business, the most important consideration is the initial investment, and a significant portion of that cost goes toward renting a location where the business will operate. Starting a business in Kerala is entirely feasible since you can get a property or a store for a meagre cost.
  • Ownership and operation of a small business in Kerala guarantee a cheaper cost of operations, just as rentals. You may now reinvest and expand your business with the money you saved on operational and renting costs.
  • Kerala is also one of India's most connected states, with four international airports, 18 major and small. It features a well-developed railway network that allows residents to travel to different country regions, making business easier.
  • Kerala's strong economic growth and supply of trained and semi-skilled labour make it a land with enormous investment possibilities.
  • Kerala has a  wide online presence. Because digital reach is advantageous to any organisation, it also means that you may quickly contact your target audience and set up a profitable business in Kerala
  • Kerala is gradually transitioning to a knowledge-based industry; this state is also known for its high literacy rates. Start-up companies will be able to hire more competent and knowledgeable candidates who will help them grow their company.
  • Infrastructure, building capacity, & human resource development are recognised as the most powerful and effective elements for constructing a business environment. As a result, it's no wonder that Kerala with an abundance of these elements has evolved into a land with enormous investment possibilities.

Now that you've learned about the benefits of starting a profitable business in Kerala with low investment let's look at some successful business ideas that will pay off handsomely.

Also Read: Top 10 Business Ideas After Lockdown

Top 10 cost-effective and profitable small Business Ideas in Kerala

1. Business of banana chips: 

Snacks such as banana chips and jaggery-coated chips are popular in Kerala. One of the most lucrative cash crops is bananas. Banana is a versatile fruit, and the concept of preparing banana chips is unique. It is cut into small slices and deep-fried in coconut oil until crispy. Kerala is home to the original banana chips. Starting a business in this industry will appeal to many customers, particularly those from outside the state and country. Banana chips of good quality have export potential.

Banana chips have a large market that can be offered in places like clubs, schools & college canteens, railway stations & airline caterers, bars and pubs, and so on. Everyone enjoys this delicacy at all times. Consider starting a small banana chip business and enjoy the monetary rewards.

2. Agarbatti Making: 

In Indian households, lighting Agarbatti for various religious occasions is a popular tradition. Some of us use it for spiritual reasons, while others enjoy the fragrance. As a result, in a wealthy state like Kerala, you can make a fortune from it. This industry has a rich and strong history, and it may very well be a less risky business with more returns.

The process of making agarbatti is rather simple. Agarbatti can be prepared using a machine or by hand. Making agarbatti is a very profitable business, and depending on the number of units produced, you can make a lot of money. Materials such as bamboo sticks, charcoal powder, and fragrances are readily available in Kerala at low prices; thus, the initial investment will be minimal unless you opt to invest in machinery. This agarbatti-making business can be launched at as low as Rs 50000.

3. Ayurveda Tourism: 

Ayurveda is an ancient Indian healing system that has become a significant selling factor for Kerala's tourism business. The benefits of Ayurveda are being recognised by people all over the world. Kerala has a natural supply of traditional medicines plants, so you won't need to invest much to get started, except for a property, which isn't too expensive.

Kerala has a one-of-a-kind medical system that is practised with utmost devotion. For all of these reasons, Kerala is an ideal location to start your Ayurvedic business. Some people come to this beautiful city to experience Ayurveda therapy. Ayurveda is a philosophy that encompasses all aspects of one's life. It lowers impurities in the body and minimises the risk of sickness when followed properly. To maximise your profits, you can open Ayurvedic centres in places that attract the most tourists.

4. Coconut Oil Based Food Processing Unit:

Coconut oil Based Food production is a profitable enterprise with a low initial investment. Making coconut goods at home and then selling them in the market is one of the finest businesses to start in Kerala. Snacks such as Rava Ladoos, Banana Halwa, various varieties of chips, Sweet, Jaggery Stuffed Pancake, pudding, Kerala spicy mixtures, roasted cashews, and other snacks can be made at home and sold both online and to local retailers. People in India and throughout the world love coconut for its taste and health benefits, which is why this business might be a huge success for you.

5. Photography business: 

Social media has driven the passion for photography among Indian youngsters. Since Kerala is a popular tourist destination known for its natural beauty, photography is among the most rewarding small business ideas to start with very little capital, high demand, and plenty of other opportunities.

You can start a tourist photography business by offering to take some of the best pictures of your visitors as souvenirs and grow quickly in this field. A photography business involves little money and a lot of dedication and training. And there's no better place to start this business than the pleasant state of Kerala, where you can take some incredible candid nature photos.

To attract more individuals to hire you, post these photos and promote your business on social media. This can be regarded as a fantastic self-employment opportunity.

6. Growing & Exporting Crops: 

Kerala is the leading exporter of agricultural products such as spices, tea, coffee, Coconut, Cashew, Marine products. Kerala is responsible for about 75% of India's coconut production. So why not make this into a successful investment? Since land rentals are not prohibitively expensive, you can rent a plot of land and cultivate various crops and spices. After that, you'll be able to export them to other parts of the globe.

7. Clothing Business (Beachwear): 

Clothing, particularly beach attire, is another excellent Kerala start-up idea as many people visit the state to enjoy beach life. There is a lot of desire for fashionable clothing; as a result, you might choose a niche, such as beach attire, and establish a market for tourists. Due to Kerala's hot climate, beachwear and swimwear clothing are in high demand. These garments can also be exported. The clothing business may take a small additional expenditure, but the results will be well worth it.

8. Home décor business: 

Starting a home decor business is an excellent option if you are a first-time entrepreneur with no prior business experience. Individuals are increasingly investing in their house décor these days. Home decor items that are in high demand are candles, wind chimes, vases, wall arts, table lamps, baskets, antique pieces, floor lamps, dining accessories to designer trays and candles. So, if you're interested in home decor and have the requisite skills, this is a highly profitable small business option worth investigating.

9. Pickle making business: 

A classic lunch would be incomplete without a pickle on the dish. Pickling is a low-cost home-based business concept suitable for stay-at-home moms or housewives who want to support their families financially. Pickles are an essential part of Keralan cuisine; It's easy to start manufacturing several sorts of pickles at home, such as mango, lime, cucumber, chilli pickle, amla, ginger, and ginger-garlic pickle and sell them in the market and online.

The initial investment is low; it can be started with as little as Rs. 10,000. The length of time it takes for you to recoup your investment is determined by your marketing the product and fulfilling orders.

10. Tour Guide: 

If you live in Kerala, a tourist-friendly state, and if you are quite familiar with the area, running a business as a personal tour guide in Kerala is a great way to get started. You can make a lot of money without making any initial investment. All you have to do is form strong bonds with your customers and give them an unforgettable experience. Request feedback from your customers and promote your services.

Here are some suggestions to develop your small scale business in Kerala:

You must figure out how to put your strategy into action in order to reach your business objectives.

  • Adding value to every relationship can lead to business success. Value can be added by being genuine in what you have to offer
  • Practising your company's growth abilities will pay off in the long run.
  • Keep in touch with your consumers, use social media for advertising and influencing your customers, as well as to keep them informed about new products and services.
  • Recognise your customers' demands and create products and services to suit them.
  • Not only will your consumers remember your excellent service, but they will also be more inclined to recommend you to others if you provide wonderful customer service.

Also Read: 15 Best Online Business Ideas to Start with Less Money 2021


There are numerous opportunities to establish a low-cost business in Kerala, and we hope this article has helped locate reputable investment opportunities. Finding the correct niche, creating a network, and being enthusiastic and devoted to your clients is the most important for a business to be successful.


Q: What steps should I take to start a home-based business?


Anyone can now work from the comfort of their own home and generate money online. Keralans are no exception. Here are a few options:

  • Create a blog
  • Do small tasks and surveys.
  • Content creation as a freelancer.

Q: What is the best way for me to establish a small business in Kerala ?


 You can either rent a store or a property based on the nature of your business, or you can start a business from the comfort of your own home. Small-scale businesses, such as pickle-making or snack-making, are typically run from home. It's a case of less investment and higher returns.

Q: How much can you earn from a small business in Kerala ?


In Kerala, you can start a number of different businesses. When calculating the number of returns, a variety of factors are taken into account, such as Business type, the business niche, the initial investment, marketing, promotion, demands vs supply, and so on.

Q: In Kerala, which industry is the most profitable?


The most profitable business in Kerala can be considered tourism, garment industry agriculture, and many more. Take a look at the above article to know more about the profitable industries so that you can choose according to your niche.

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