11 Most Profitable Businesses in India with low Investment

11 Most Profitable Businesses in India with low Investment

Posted on June 20, 2019 148 Comments175

In a country like India, where there is so much unemployment; startups prove to be a great idea. While some people are pretty satisfied working for 9 to 5 jobs, or even for longer hours than that, some people want to set up their own business. People often think that there is much capital required in starting a business, but this is not true, you can always start your business either online or offline with low investment.
Even some of the most famous entrepreneurs in the world started their business with very low investment. The best example is that of Facebook, it was started by Mark Zuckerberg and his college friends in a dorm room but is now one of the leading businesses in the world.
Here I have mentioned both low-cost internet based businesses and low-cost offline businesses, so you can choose which suits you the most. These businesses are also the most profitable Indian businesses, according to their start-up cost range.

1. Incense Stick Manufacturing

Incense stick also popularly known as Agarbatti has a unique purpose in our community. It is being burnt in religious as well as social functions from centuries. It is used in Indian homes as a fragrant fumigant and is known to possess insecticidal and antiseptic properties. It is a labor-intensive cottage type of traditional industry. Agarbatti is being used by communities residing in India, Sri Lanka, Burma and by Indians residing abroad. Moreover, it is an export-oriented business. About 90 foreign countries are currently using agarbatti. It requires the use of low-level technology. Hence, it can be easily taken to rural areas, thus, implementing the rural industrialization policy of the government to a large extent.

If you decide to manufacture 2,25,000 packets per month and sell them at a rate of Rs. 2.3 per pack then the minimum investment required would be around Rs. 4,93,113 which includes all the expenses(cost of machinery, working capital, production cost, and other expenses). This would lead you to a net profit of 7.11% with an ROI of 30.94% per annum. This is the reason due to which Incense making is one of the most profitable businesses in India if we consider all the low investment businesses. Most of the raw materials can be acquired from Mysore and Bangalore.

2. Bus Service Website

This is a low-cost internet based business which can make you a millionaire. As 90% of people travel by buses in India and people always prefer to know beforehand the schedule of buses and all the details related to them like ticket rates, bus route, etc. So it can be an extremely profitable business and that too, with a meager investment if you allow people to book buses from your website or an app.

A bus service website like Redbus.in which provides details regarding all this would prove to be very useful. It shall also provide details of the channels from which the ticket can be booked or can earn their commission by booking the tickets themselves. This business requires accurate knowledge of interstate and intercity bus routes. However, it is essential to have excellent IT skills to maintain the website and communicate with the customers. This business entails a minimum investment of Rs. 2,00,000 and the expected gross profit is close to 10%.  The minimum interval needed to achieve break-even in this business is five months.

3. Housekeeping Services for Hotels

According to the Federation of Hotel and Restaurant Association of India (FHRAI), India will need 15 million hotel rooms in all categories by 2020. So demand by hotel authorities to keep their rooms sparkling clean is paving the path for this business to grow. To succeed in this domain of the business world, you would require excellent communication and management skills. It calls for a low investment of Rs. 3,00,000 and provides a gross profit of almost 20%.

4. Shoe-Wash Company

In earlier days, people used to clean their shoes on their own, but those were canvas shoes which could be cleaned using old toothbrushes and detergent. Nowadays, people have started using trendy sneakers, and they wish to maintain them properly. Thus, if you are an expert in the field, i.e. possess a fair degree of marketing skills and knowledge of how to use chemicals then this business can turn out to be a great success giving you a gross profit of nearly 40% with a low investment of Rs 2,00,000-3,00,000 for a small scale business. There are a total of 1.25 billion people, and each person in India has one pair of shoe on an average, so this business can also prove to be the most profitable business for you.

Read More about Shoe Washing Business

5. Property Management

If you have a minimum start-up budget of Rs. 3,00,000, this business can prove to be very profitable. You need to get hold of a proper workplace and be ready to take the responsibility of the detailed documentation procedures and documents of the clients. Thus, saving a lot of their time. The pre-requisite for this business is adequate sales and marketing skills. Moreover, you can expect to achieve a gross profit of around 50% and can attain the status of break-even within a month.

6. Ultra-Short Temping Services

Many event management firms require workforce services temporarily. As a part of this business, you can provide these services to these firms as well as household and companies which require manpower temporarily. This profession can turn out to be a great success if you have got the skill of networking. You can expect a gross profit of approximately 20% with the break-even period close to 10 months and a minimum investment of Rs. 1,00,000.

7. Event Management

Event Management has always remained the most profitable business in India. Be it a wedding ceremony or a company’s product launch or any other function; people prefer that it is organized and celebrated on grand scales. However, the host may not have the time to attend to every little detail of the function. Creativity proves to be a big game in making this profession a successful one. With gross profits of almost 15% and a minimum investment of Rs. 4,00,000, this company can achieve the status of break-even depending on the quality of projects that it gets.

8. Pre-Recruitment Assessment

If you have a minimal startup budget of Rs. 5,00,000, this is a profitable business venture to invest in. Companies want to hire the best possible employee. You can help the companies by providing them with some services like creating a test at different levels and then evaluating the candidates based on their performance in these tests. However, you require a combination of good marketing and sales capabilities for good performance in this domain. The minimum breakthrough period is two months, and you can succeed in getting a gross profit of nearly 25%.

9. Custom-made Gifts

In India, there is a tradition to exchange gifts on every occasion, be it a festival or a birthday. Gone are the days when people used to give traditional gifts. Nowadays, people prefer to give customized gifts as they attract more like customized jewelry, cards, customized videos, etc. It is essential that you have the knowledge of excellent gift makers in town. It is important that you should be creative, sensitive, understanding, and seek innovative gifts. You can wrap the gifts in an eye-catching manner before sending it to your clients. It can take at least three months to achieve uniformity which can provide a gross profit of almost 20% with a minimum investment of Rs. 1,00,000.

Read More about Gift Business

10. Online ads Service

With the boom in the IT sector, the demand for online ads is increasing. Every person tries that the details of their products and services reach the target audience. For this, they are ready to pay the website owners who can provide them with appropriate space. If you have good knowledge of networking and media planning and have contacts with the website owners, then this business can get you a gross profit of 20% with the minimum investment of Rs. 3,00,000 and the minimum time interval to attain parity is 1 year.

11. Scrap Collection

There is an unorganized sector that comprises of rag pickers, local kabaris, intermediaries, recycling factories and affluent businessmen who work upon the task of scrap collection and earn their share of profit while running parallel to the MCD’s waste management system. It is a multi-crore business in which the informal waste collection and disposal sector work starts literally from scratch. If you decide to deal with the scrap then you can contact any manufacturing company and make a deal with them. You can collect their scrap materials and sell them at much higher rates to the industries or people who need it. For example, you come across an iron rod which is a scrap for the company. You buy it at a price of Rs. 10-12 per kg. However, the market price of it is Rs. 35 per kg. You sell it to a customer at the price of Rs. 25 per kg, thus earning your share of profit. You would have to collect scrap and classify the items according to their raw materials and purpose. The pre-requisite for this business is that the dealer should have the basic knowledge of the current price of each item and should know the buyer who would provide them with the best price. Scrap business can be started with a low investment of Rs 3,00,000 to buy the essential measuring instruments and to contact the dealers. The profitability of the business will vary according to the item you deal with. However, whatever items you will choose, this business will always remain profitable if you give time to your business.

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175 Comments on “11 Most Profitable Businesses in India with low Investment”

  • · Edit

    hello ,

    thanks for writing such an awesome article.. the most uncommon business is Shoe-Wash , I think it would be an attracted and new type of business ahead.

    Reply
  • · Edit

    scrap collection is a good concept but i want the machinary to seprate scrap and classify it. i am looking to establish a polyster making plant from plastic bootle. please help

    Reply
      • · Edit

        Dear Sir,
        I am in a plan to start a wire nail manufacturing plant in Gurgaon, Haryana with 3 machines initially. Can you please guide me about the demand vs supply in Delhi NCR market and list of wholesalers who can buy the finished product and price of raw material and final product selling price?

        Reply
        • · Edit

          If you know about Gurgaon then I am sure you are also familiar with Manesar also, this complete area is a hub of manufacturing. But I am not sure about demand and supply ratio for the wire nail. For that, you need to do “Secondary Market Research” or do some collaboration before setting up your plant.
          Though in such cases chances for written collaborations/ agreement are extremely rare but still try to have before starting up. If you can’t get that then “Secondary Market Research” is a must.

          If you don’t know about how to do Secondary Market Research then you can buy my course for the same. Here is the link
          https://course.businessalligators.com/p/business-crux-1-0/

          Reply
  • · Edit

    I really liked the idea of Shoe-Wash business, can you help me in planning and understanding how can I get it started? Value your response.

    Reply
  • · Edit

    hello ,
    I really liked the idea of bus service website and really want to work on it will you please provide me all the details regarding this business.

    Reply
    • · Edit

      We are working on it mam, will update you very soon. Meanwhile, you can drop mail regarding your interest areas, your strengths and how much you can invest on our email id. Will contact you.

      Reply
  • · Edit

    Dear Sir, Please let me know about incense stick business and shoe wash company. Please guide me, I have dropped the email id to you.

    Reply
    • · Edit

      Hi Palash,

      All the above-mentioned businesses can earn a good profit and all are low investment business ideas, but if you are still not satisfied then you can go to following the link where I have mentioned some awesome business ideas and I regularly update it.
      http://www.businessalligators.com/business/business-ideas/
      If you still feel unsatisfied after reading all these then you can email me anytime but while mailing please let us know about your qualities, strengths, interests, etc so that we can help you in a better way.
      Cheers 🙂

      Reply
  • · Edit

    Hello sir.
    Where I can get details of all these businesses on how to start and setup.
    Can you provide some valuable information?
    I need to start scrap collection business, can you provide details, analysis for same. please!!!!

    Reply
    • · Edit

      Hi sir,
      We are looking to start a business with a small investment; my parents will be looking after the work. Can you please provide some insight into this. We have a small space of 450 sq.ft in Kolkata.

      Reply
  • · Edit

    i want to do some creative business in fashion line..but not getting any idea for unique business..
    i’m a single mother.

    Reply
  • · Edit

    I’m Sridhar.M, Mr. Lokesh can you provide me details on how to get a wholesale vine (Drinks and beverages) license and also cost and investments for the business.

    Reply
    • · Edit

      There are two options and vary from State to State.
      1. Fill the tender and best one will get the store.
      2. Government finalizes a day for bidding and you can participate in that by submitting the fees of participation, the one with the highest bid will get the store.

      Hope that will help.

      Reply
  • · Edit

    Hello Mr. Lokesh,

    Can you please suggest me good business idea under 2lac to 5lac investment. Right now I am running my Advertising Agency by the name of “The Brandistan”. But I would like to explore some other segment.

    Your prompt and positive revert will be highly appreciated.

    Regards
    Vineet Kumar Shishodia

    Reply
    • · Edit

      Hi Vineet,

      Can you please let me know more about you?
      Like why you want to be in 2nd business, the field of interest, your location, etc.
      If possible then mail us.

      Reply
      • · Edit

        Thanks for the revert.. Actually every segment has it’s limitations and saturation points, so before reaching to those limitations i would like to explore some other opportunities which might be related to same segment or something else.

        Your revert awaited.

        Regards
        Vineet Kumar Shishodia

        Reply
  • · Edit

    Hello, just read all the posts I’m interested and planning to set up E-Waste procurement company! Can you please help me with the proper steps, which are to be followed! And any other details would be really helpful.

    Regards,
    Sharath Chandra Reddy.

    Reply
  • · Edit

    Hello Mr. Lokesh,
    Can you please help me out in starting up of incense manufacturing…Is this having scope in market?..If yes, please support me by providing good ideas.

    Reply
    • · Edit

      You can start incense stick business, this business has a great scope.
      And what idea you want from me?

      Reply
        • · Edit

          You can check cutting tool or manufacturing consumable market. A bit hard to penetrate initially but extremely profitable and comfortable in long run.

          Reply
    • · Edit

      You can sell it in two ways.
      1. To whole sellers
      2. Direct Customers
      Now it will depend on how you want to operate your business.

      Reply
  • · Edit

    Please let me know about incense stick business and shoe wash company. Please guide me, I have dropped the email id to you.Also let me know about professional photography & tour and travel guide.

    Reply
    • · Edit

      Hi Sunny,

      First I will advise you to choose one business. Once you finalize one then you can ask details of that business from me.
      And I have already mentioned details of shoe cleaning business. You can click on the link which was mentioned in the article to read in detail.

      Reply
  • · Edit

    Hi Lokesh – Thank you for your article. V helpful. Can you pls give me your guidance towards starting Incense stick business.Thank you in advance.

    Reply
  • · Edit

    hi my name is sapna .earning just 10000.rs month. want to earn extra.want to start business with low investment and sure income

    Reply
    • · Edit

      Hi Sapna,
      As you don’t have any startup idea or money to invest then you can start with Niche Blogging. Within 6-10 months you can start earning decent money if all worked out properly.
      But choose a niche wisely.

      Reply
  • · Edit

    Dear sir,
    I completed my graduation BE at 2011, i not getting proper job, I decided to do some business with low investment. Will you help me out which is the best business to start. I just confusing to take decision. Please help me out

    Reply
  • · Edit

    Hello sir, this is Bharath, im interested to start paper bag manufacturing company, so please suggest how to build up company and what are the marketing techniques to improve business dynamically

    Reply
    • · Edit

      Hi Bharat,
      What is the process you are following to make your paper bag?
      What is the budget?

      Reply
    • · Edit

      It is a great business idea. Red bus worked on the same model and made a great business.
      To start with you first need to develop a mobile app which is very easy to use and have to collaborate with bus owners of the different routes.
      Start with a single and by showing your performance in that region raise funds and scale your business.

      Reply
  • · Edit

    Sir, I am from Dehradun rural area, and want to start paper bag manufacturing unit in my area. How can I start?

    Reply
  • · Edit

    Hi sir,
    Please let me know about incense stick business and shoe wash company. Please guide me, I have dropped the email id to you.Also let me know about professional photography & tour and travel guide.

    Reply
  • · Edit

    Dear Sir, Please let me know about incense stick business and shoe wash company. Please guide me, I have dropped the email id to you.

    Reply
  • · Edit

    Very good work you have done sir… I appreciate your business ideas. Sir please make some articles on construction related products manufacturing. I’m contractor,I want to establish manufacturing business in construction field. Thank you

    Reply
    • · Edit

      Thanks for appreciation Adil. Will surely research in construction field but meanwhile, you can contact me personally as I have worked in real estate also for 4-5 years so might be can help you 🙂

      Reply
    • · Edit

      Hi Bala,

      You can do business with Amazon and Flipkart in many ways and I am not sure how you are planning. You can start in the following ways
      1. Become an affiliate marketer
      2. Become an agency which helps other manufacturers/ offline sellers in selling their product online on ecommerce portals
      3. Sell your own products online
      4. Buy unique products from the market at cheap prices and then sell them online with a good margin

      Reply
    • · Edit

      Make pages on different social media websites and share your videos. If you are really good then people will follow you

      Reply
  • · Edit

    HI Lokesh,
    I am a Kundan meena diamond polki jewelry manufacturer from Bikaner Rajasthan, but now not satisfied with my business. Can you suggest a nice business opportunity for me?

    Reply
  • · Edit

    Hi sir
    I am Maheshkumar Mirji completed BE Mechanical. Presently working in Godavari Bio-refineries Ltd Sameerwadi Mudhol(Tq) Bagalkot(Dist) (Sugar Factory) from last 7 years as a Jr. Officer (Design & Drawing). Have a good knowledge of Auto-Cad software and Strong enough to understand and analyze all kind of drawings. Looking for work where I can work from home. Like any drawing work through online.

    Reply
    • · Edit

      You can start your website and can advertise to your target audience. At the same time signup for the website like Upwork, Freelance, Fiverr. If you want to build a business then focus more on getting clients from the website, else focus on getting clients from mentioned sites.

      Reply
    • · Edit

      These are extremely profitable plus stable businesses but they require a lot of hard cash to start with. There is no way to start these businesses with low investment. Besides this, you also need good contacts to get the licenses. If you have both things then just go with these businesses.

      Reply
      • · Edit

        I have heard from some people that opening a wine shop is risky, police officers and some criminals will demand money from the owner weekly. Is it true?

        Reply
  • · Edit

    Dear Lokesh Sir,

    Planning to take incense stick dealership from Bombay based company. I am from Karnataka coastal region. Is this business profitable? And how much it may coast to take dealership?

    Reply
  • · Edit

    Hi, Lokesh Sir,
    I want to start a business and I already have an amount of 20 lakh. Please give me any idea sir. I am intrested in the manufacturing field. Which business is possible with this amount?

    Reply
  • · Edit

    Hi Lokesh Ji,

    I want to start a business of INCENSE manufacturing. Can you please help me in the process from wholesale dealer to row material seller in Delhi-NCR or India.
    Already dropped you an email.

    Thanks

    Reply
  • · Edit

    I want to start a pharmacy wholesale business. Can you please suggest me some ideas and advice regarding pharmacy wholesale business?

    Reply
  • · Edit

    Sir
    I m 24 years girl, I want to start my own business but very confused what to start and how to start. I am well educated, have done MBA. Can you please help me with this?

    Reply
    • · Edit

      First of all, congrats that you have the spark to do something. We can surely help you, but current information is not sufficient to guide you. So please tell more about you, like your strengths, interests, location, etc.
      You can even mail us if you want to talk about something specific.

      Reply
  • · Edit

    Respected sir,
    I am a student of class 12 and I am planning to set up a business because i dont want to do the job. So could you tell me which business will be good for me? I will be very thankul to you

    Reply
  • · Edit

    Dear Sir,
    I am a mechanical engineer and have experience of about 12 years in the design field. Now want to start a business in of kind which is related to mechanical engineering, either fabrication or design which gives more profit. Please suggest me some business ideas.

    Reply
    • · Edit

      Use your contacts and deliver the consumables in the companies for which you have worked.

      Reply
    • · Edit

      Try to design some new machines which will be used in everyday life, even if you good at building custom cars or bikes you can do that.

      Reply
    • · Edit

      It is not possible to discuss this thing in the comment section. It is related to your business strategy. You can book an appointment for a video call with me for the same.

      Reply
  • · Edit

    Dear Sir,

    I am a Trader in Indian Share Market and have experience of about 7 years in this field. Now I want to start a business, not something related to this market. I want a few ideas for business. Please suggest some of your valuable ideas.

    Reply
  • · Edit

    Sir, I am a graduate unemployed person, staying at Sindhanur Taluk in Raichur district of Karnataka. I want to start any business with very low investment.

    Reply
    • · Edit

      You can join our online course and learn how to find targeted customers who are willing to pay you.

      Reply
  • · Edit

    Dear Sir,
    I am very much impressed by your business ideas; I had completed MBA residing at Hyderabad. I want to start a paper bag manufacturing industry. Can you please send complete details for that along with that kindly provide your phone no.

    Reply
  • · Edit

    Want to start a diet and nutritional food supply to gym business. Please share some info regarding like how can I start it?

    Reply
    • · Edit

      There are two ways of doing this:
      1. Open your food counter near gyms
      2. Open your food counter anywhere and deliver meals to the targeted audience at the right time, according to there diet plan.
      So first choose how you want to proceed and then we can discuss further over email.

      Reply
  • · Edit

    I want to start a business with an online store; which kind of stuff will be best, and where can I purchase or get this kind of website? Please help me.

    Reply
    • · Edit

      That’s the main thing which we do 🙂
      Our courses are the best fit for such situations. You can even email us to discuss how you can improve your business.

      Reply
  • · Edit

    Hello Sir,

    I want to start the scrap collection business, expecting your guidance on it. Please provide the details on how can I start up with it?
    Thanks!

    Reply
  • · Edit

    I am thinking of starting a scrap collection business. I don’t have anything to get started, have no ideas. Please help.

    Reply
  • · Edit

    Dear All,

    I am Vembukumar manufacturer of Coir-Fiber and Coco-Peat in Pollachi, India. I am looking for funding (investors/shareholders) for my company. If anyone interested, please let me know. I will share more details.

    Reply
  • · Edit

    My friend has recently opened a second-hand car dealing business. Can you tell me how to grow it, and what strategies should be implemented?

    Reply
  • · Edit

    Excellent post, really helpful. Keep going, guys.
    I would like to know more about the bus service website & Incense sticks manufacturing.

    Reply
  • · Edit

    I want to start a shoe laundry. Provide me with the beneficial details relating to it and also all the details of local vendors having all these machines.

    Reply
  • · Edit

    Well it was a very impressive read. I would really like to know more about the scrap selling business; do you think it might include raw material for different manufacturers in vivid businesses?

    Reply
    • · Edit

      Yeah, it is entirely possible, you can look for such companies for whom scrap is the raw material; in such cases, you will get a better price for your scrap material.

      Reply
  • · Edit

    I want to start trading of alu alu base foil for the pharmaceutical industry. Please advise me on the best supplier of these products.

    Reply
    • · Edit

      You can take quotations from multiple suppliers, and ask for their sample pieces and then select as per your buyer’s criteria. You can get 100s of such suppliers from indiamart and alibaba.
      If you still need any help then you can email us.

      Reply
  • · Edit

    I am an intrapreneur. I want to start my business with capital around 2-3 lakhs in Maharashtra in food and beverage/ hotel. I am a bit confused. May I know better options for the same?

    Reply
    • · Edit

      Start your journey with the “WHY” to get clarity about your career. Ask yourself a straightforward question that why you want to start a hotel or why you want to start the food and beverage business.
      By the way, if you are planning an IoT business in the hotel industry, then it is fine, else it is not possible to start a hotel with such a small budget.

      Reply
  • · Edit

    Hello Alligators,
    Impressed with your comments. I am a medico with a passion to not to stop with one clinic or two. I want to build my franchise in dental clinics but still not prepared enough for myself to jump into it.
    Also, I want to establish any business which is eco-friendly in Andhra Pradesh; I need proper contacts and guidelines to support my ideas.
    Hope you are helpful to me

    Reply
    • · Edit

      Hi Virinchi,
      It is not easy to tell so much in just one comment because to do so, we need to discuss a lot of things. You need a proper business plan to make this thing a reality. So you can contact us on our official email, we can discuss everything there. Will be happy to help you 🙂

      Reply
    • · Edit

      Hi Kunal, are you selling the fire fighting equipment? If so, then you can reach new startups that have recently established their new offices.

      Reply

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