Gujarat, India’s leading pharmaceutical hub, is a thriving business and start-up hotspot across multiple sectors. With its robust marketplace and excellent road connectivity, the state offers numerous opportunities for small businesses to boost profitability and build a strong reputation. Additionally, you can launch a small-scale venture with minimal investment. Let’s see small business ideas in Gujarat.
If you’re considering small business ideas in Gujarat and have a solid understanding of the current market trends, it will be advantageous. Being aware of the latest market demands will help you navigate challenges and set your business up for success in the future.
List of Most Profitable Business Ideas In Gujarat to Start
Here is a list of successful, low-investment business ideas in Gujarat that you can consider starting.
1. Solar Power Management
With its sunny weather year-round, Gujarat is an ideal location for solar energy development. The abundant sunlight makes it a perfect place to start a solar power business. You can manufacture various products such as solar panels, batteries, lights, water heaters, and other related items. Furthermore, the growth of large solar parks offers significant opportunities for new start-ups looking to expand their business in this sector.
Investment – ₹1 Lakh to ₹3 Lakh
Market Demand – The solar power management industry is projected to grow by USD 240.42 billion (₹1,974,882,006,000) from 2021 to 2026, with a CAGR of 35.24%.
Profit Margin – ₹50000 to ₹1.5 Lakh monthly
2. Dairy Farming
Starting a dairy farm business in Gujarat is a smart choice, as India is the largest producer of milk. This eco-friendly venture has minimal environmental impact compared to other industries. You can produce high-demand dairy products such as milk, butter, ghee, curd, and more. Additionally, this business can be established on a small scale, making it an accessible and profitable opportunity.
Investment – ₹10 Lakh to ₹20 Lakh
Market Demand – The dairy market is expected to reach ₹2,38,430 crores by 2027, growing at a CAGR of 14.3% from 2023 to 2028.
Profit Margin – ₹30000 to ₹40000 monthly
3. Tourist Guide
Becoming a tourist guide is a great low-investment business opportunity, especially in tourist hotspots. In Gujarat, you can introduce visitors to cultural and historical sites such as the Somnath Temple, Sabarmati Ashram, and Dwarka. This business allows you to interact with foreign tourists while showcasing the region’s rich heritage. However, strong English communication skills are essential for successfully launching this venture.
Investment – ₹4 Lakh to ₹8 Lakh
Market Demand – The travel and tourism industry is expected to grow at a CAGR of 13.47%, reaching a market size of USD 31.35 billion (₹25,745,403,750) by 2027.
Profit Margin – ₹75000 to ₹2 Lakh monthly
4. Tiffin Service Business
The tiffin delivery service business is a highly profitable small-scale venture in Gujarat, offering convenience to customers who prefer home-cooked meals. With minimal investment, you can target office employees and expand your business by providing high-quality food and reliable delivery services. This approach can lead to rapid growth and success.
Investment – ₹20000 to ₹30000
Market Demand – The tiffin service market in India is expected to grow at a CAGR of 11.19%, reaching an estimated market size of USD 79.65 billion (₹6,541,045,177,500) by 2028.
Profit Margin – ₹70000 to ₹80000 monthly
5. Garment Manufacturing
This is one of the top small business ideas in Gujarat, as the state is a major hub for the clothing industry. People wear distinct outfits for various festivals, creating a high demand for traditional Gujarati clothing such as ghagra cholis for women and girls, and dhotis for men and boys. Additionally, there is potential to manufacture other garments like shirts, trousers, and more, both for local and out-of-state markets.
Investment – ₹5 Lakh to ₹15 Lakh
Market Demand – The garment manufacturing industry will grow to USD 65 billion (₹533405925000) by 2026 with a CAGR of 11%.
Profit Margin – ₹30000 to ₹1 Lakh monthly
6. Grocery Store
Opening a grocery shop in Gujarat can be a lucrative business opportunity due to the steady demand for essential products in the local market. With consistent sales, the grocery business offers significant profit potential. However, it’s important to thoroughly understand the demand and availability of various items before starting. While online shopping is an option, most orders will come from the local area, making it crucial to focus on effective marketing and promotion strategies to attract customers.
Investment – ₹50000 to ₹2 Lakh
Market Demand – The market for grocery stores will have a CAGR of 10.98% from 2022 to 2030 and the market size will increase to USD 188 billion (₹15407352000000).
Profit Margin – ₹ 1.5 Lakh to ₹ 2.5 Lakh monthly
7. Spice Production
You can start a business to produce spices such as cumin, turmeric, fennel, and coriander. Gujarat boasts a robust supply chain for sourcing raw materials, processing, and distribution. The state is particularly renowned for its chilli spices, creating a high demand for them both locally and beyond.
Investment – ₹6 Lakh to ₹10 Lakh
Market Demand – Spices market in India reached a value of ₹160676 crores in 2022. It will grow at a CAGR of 10.8% between the period of 2023 and 2028.
Profit Margin – ₹50000 to ₹1 Lakh monthly
8. Papad Production
This is a great small-investment business opportunity in Gujarat, with the potential for significant growth, especially with the support of a small MSME business loan. Papad is a popular snack and staple in Gujarat, and the state’s rich culinary tradition, coupled with authentic dal and spices, makes it highly appealing. Additionally, foreign tourists often seek out this regional delicacy, further expanding the market for papad.
Investment – ₹10000 to ₹2.5 Lakh
Market Demand – The market demand for such Indian snacks will grow by a CAGR of 10.4% from 2023 to 2028.
Profit Margin – ₹25000 to ₹30000 monthly
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9. Textile Production
Starting a small-scale production business in Gujarat is a promising venture, as the state is known as the textile capital of India. The production of crossbreed cotton, spinning units, and power looms has established Gujarat as a key player in the textile industry. With an abundant supply of cotton and strong demand for high-quality clothing materials, this business offers significant profit potential.
Investment – ₹25 Lakh to ₹5 Crore
Market Demand – The textile industry has grown at 10% CAGR from 2019 to reach USD 190 billion (₹1559481050000) by 2026.
Profit Margin – ₹2.5 Lakh to ₹5 Lakh monthly
10. Fertiliser and Chemical Production
Investing in the fertiliser and chemical production business is a wise decision, given the rising demand for organic food in India. You can take advantage of subsidies for fertilisers under DBT and on ocean freight if you’re importing chemicals or fertilisers. Additionally, it’s crucial to identify the specific crops for which the fertiliser or chemical is intended, ensuring the products meet market needs.
Investment – ₹1.5 Lakh to ₹2 Lakh
Market Demand – The chemical fertiliser market will increase at a CAGR of 9.1% from 2023 to 2030.
Profit Margin – 31.7%
11. Printing and Paper Manufacturing
Gujarat is an excellent location to start a small-scale paper manufacturing and printing business, thanks to the high demand for paper and low investment requirements. You can establish a printing firm that specializes in paper products, positioning your business as a leading new venture in Gujarat with minimal investment. This opportunity demands only a few machines and a reliable team to ensure success.
Investment – ₹6 Lakh to ₹7 Lakh
Market Demand – The Indian paper market industry will grow at more than 8% CAGR from 2022 to 2028.
Profit Margin – ₹5 Lakh to ₹8 Lakh monthly
12. Event Management Business
Event management is a highly profitable small business opportunity in Gujarat, given the frequent events that take place throughout the year. You can organize a variety of events such as birthday parties, weddings, corporate functions, and more. To start, you’ll need a team of skilled professionals to handle venue selection, catering, entertainment, decoration, and logistics. With creativity and strong management skills, you can expand this business and generate a substantial income.
Investment – ₹3 Lakh to ₹5 Lakh
Market Demand – The event management market will grow at a CAGR of 7.92% from 2022 to 2027. Moreover, the market size will increase by USD 391.33 million (₹32097395329).
Profit Margin – ₹45000 to ₹75000 monthly
13. Handicraft
Gujarat’s rich culture and heritage offer numerous opportunities to create traditional art and craft items. Popular crafts like Meenakari, Zardosi, Bandhani, and Single Ikat are in high demand. Starting a handicraft business can attract both local and international visitors, especially those interested in the state’s archaeological heritage sites. To succeed, focus on crafting unique and high-quality products that stand out in the market.
Investment – ₹2 Lakh to ₹5 Lakh
Market Demand – The Indian handicraft market will grow at a CAGR of 7.7% from 2023 to 2028.
Profit Margin – ₹30000 to ₹50000 monthly
14. Bakery Business
A bakery business is a great small-scale venture in Gujarat for those with a passion and skill for baking. With the growing demand for artisanal cakes, pastries, breads, and more, this business is in high demand. You can start small by baking from home and selling to local customers. Alternatively, you can set up a bakery store with a solid marketing strategy and unique offerings to attract more customers.
Investment – ₹25000 to ₹40000
Market Demand – Indian bakery business will gain a CAGR of 7.28% between 2021 and 2027, reaching a value of ₹13000 crore.
Profit Margin – ₹60000 to ₹1.2 Lakh monthly
15. Salt Production
Starting a salt business in Gujarat can be highly profitable due to the state’s extensive coastline and abundant resources for salt production. By harvesting the right quantities and components from the sea, you can easily establish a profitable venture. Additionally, Gujarat is the second-largest producer and exporter of salt in India, making it an ideal location for opening a small-scale salt business.
Investment – ₹1 Lakh to ₹1.5 Lakh
Market Demand – The salt market industry will increase by around USD 26.8 billion (₹2198658600000) by 2030. It will exhibit a CAGR of 6.43% from 2022 to 2030.
Profit Margin – ₹10000 to ₹15000 monthly
16. Gems and Jewellery Business
Starting a gems and jewellery business in Gujarat is a profitable venture, as the state is a major contributor to India’s gems and jewellery sector, with a well-established diamond industry. You can create unique and innovative designs for artificial jewellery with low investment. Additionally, Gujarat’s extensive coastline provides access to exquisite stones and jewels that can be sourced and sold for a profit.
Investment – ₹10 Lakh to ₹15 Lakh
Market Demand – The Indian jewellery market will experience a CAGR of 5.54% from 2022 to 2027, leading to an increase in market size by USD 21.54 billion (₹1766980050000).
Profit Margin – ₹2.2 Lakh to ₹50 Lakh monthly
17. Petroleum Jelly Production
Starting a petroleum jelly manufacturing business, like Vaseline, is a profitable and low-risk opportunity. With high demand across industries such as cosmetics and pharmaceuticals, petroleum jelly is a highly sought-after product. The raw materials and equipment needed are affordable, making it feasible to begin on a small scale with minimal investment. A strategic business plan focused on sourcing high-quality ingredients can lead to success in this growing market.
Investment – NA
Market Demand – The petroleum jelly business will grow at a CAGR of 4.2% from 2023 to USD 770.3 million (₹63205040750) in 2033.
Profit Margin – ₹14 Lakh to ₹16 Lakh monthly
18. Pickle Industry
The pickle business in Gujarat has a rich tradition passed down through generations and continues to be in high demand. Pickles are an essential part of daily meals in Gujarat, and if you have the expertise to create flavorful pickles, you can easily establish a successful venture. Additionally, experimenting with various types of pickles and innovative packaging can help attract more customers and set your business apart.
Investment – ₹80000 to ₹1 Lakh
Market Demand – The pickle industry market was valued at USD 7.9 billion (₹648443850000) in 2018 on a global scale. It will exhibit a CAGR of 3.5% from 2019 to 2025, indicating steady growth.
Profit Margin – ₹25000 to ₹30000 monthly
19. Beauty Parlour
Starting a beauty parlour business is a great low-investment option, which you can either initiate after completing a 3-4 month beautician course or by hiring trained beauticians. If you have enough space at home, you can begin your business from there. With a good sense of makeup and dedication to attracting customers, you can offer high-quality services and potentially earn a significant profit.
Investment – ₹15 Lakh to ₹30 Lakh
Market Demand – The beauty and personal care market amounts to USD 27.23 billion (₹2234834175000) in 2023 and will grow at a CAGR of 3.38% from 2023 to 2027.
Profit Margin – ₹6000 to ₹50000 monthly
Conclusion
These small business ideas in Gujarat offer great opportunities with minimal investment. The state is known for its business-friendly environment, and the government provides various forms of support for entrepreneurs. By carefully managing finances and expenses, you can take advantage of the thriving market in Gujarat and achieve success in your venture.
