10+ Small Business Ideas in Kerala – Minimal Investment 2020

Looking for business ideas in Kerala? If yes, then this article is for you. Kerala falls under the category of those places with an abundance of beauty and resources. Most of the Indians want to start their career in South India. Kerela is home for opportunities. Kerela has the largest figures of migrant workers, whereas Keralites only comprise 1.6 million.

Inexperienced workers and freshers often find their way in Kerala. They provide support in every field. Be it industry or casual worker or IT or in the field of education. Various educational institutions provide great placements and they provide education at a very minimal cost.

Also Read:- 20+ Business Ideas for Housewives & Moms

It is known to be the fastest-growing city in India and provides support to anyone with even minimum resources. According to a survey it was found that Kerala has more than 1k billionaire. Can you imagine! Anyway, we will help you provide a list of successful businesses that can be done in Kerela. It is very important that you choose the right kind of business to become one of the billionaires!

1#. Primary Reasons For Established Business In Kerala?

With 100% literacy and 100% digitalization and up to 100% direct investment(with criteria)! Kerela ranks at the top among Indian cities. And why not? Kerela offers the lowest cost for any start-ups, for electricity, for water, for home, for even transport. All of these amazing facilities are making Kerala the hub of Start-ups and that’s the reason you should be careful while choosing your start-up business ideas.

We have already listed a few interesting and profitable businesses that can originate and be Operated from Kerela. Let’s begin with the list.

2#. Here Are A Few Business Ideas In Kerela

Kerela offers few amazing business ideas you can drool over. Whether you are from Kerela or from any other state, Kerela keeps her doors open for everyone. Utilizing the scenic beauty, Kerela can offer hundreds of business ideas. Let’s check out the ideas.

1. Become The Spice King

business ideas in kerela

Kerela offers a large variety of spice production apart from cash crops. You can be a manufacturer of spices or a trader. Spices from Kerela travels all over the world. Kerela offers one of the best cinnamon, cardamom, clove, nutmeg, turmeric, and vanilla. You can sell these whole spices or grind and packet them for selling. You can do both, open a retail shop and also become a distributor.

2. Papad And Pickle

Cottage industries are growing at faster rates. We mainly find the association of women with this industry. You need to invest, maximum ₹10,000. If you don’t have money, you can take loans from banks. If you are women you can take help from the Self Help Groups. These groups are designed to help women entrepreneurs. Small business loans fall under Mudra Loans. Minimum 5 to 8 people can start this business easily. You don’t need a large manufacturing area because you can start doing your business from your home itself.

It is very important that you find out a way to sell your products. Talk to distributors or you can directly sell them yourself. Keep good quality and reasonable price and see your business grow.

3. Nettipattam Business

A heritage business in Kerala ideal for women. Nettipattam is used on the heads of elephants to decorate them during festivals. Kerela’s biggest festival is Poonam. During any festival, elephants are decorated and they are included in different processions. To make Nettipattam you need velvet cloth, different types of stones(sapphire ruby, pearl, crystals, etc) and gum. This is an ideal business for Keralites. If you can contact the wholesalers, you can make a huge profit out of it.

4. Boutique Hotel

Boutique Hotel

Boutique hotels generally have 10 to 100 rooms with customized necessities of the. With unique community halls, personalized decorations you will feel at home. Boutique hotels are very famous in Kerela. Boutique hotels provide food you prefer. One gets the taste of local food, culture, and customs residing at a boutique hotel. If you are not thinking of an expansion, this is a one-time investment. With the moderate investment, you can provide the memory of a lifetime to the tourists.

5. Tea Bag Making

It doesn’t take much skill or materials, you can do this manufacturing business with moderate investment. Kerela is one of the major tea producing states of India. Therefore tea bags are needed in abundance. Manufacture the tea bags and supply them to tea sellers. Selling these online on wholesale and large-scale is quite profitable.

6. Open A Rice Mill

Rice is the staple diet in Kerela. Therefore rice mills are one of the profitable businesses you can do in Kerela. You need large machines to operate the mills. Depending on your production, install the machine. These machines cost moderate and establishing the business ranges from moderate to high. Contact with rice sellers and retailers to sell your products.

7. Spa And Facial

business ideas in Kerela

The scenic beauty will naturally attract you for a body pampering session. The use of natural oils and aromatherapy makes spa in Kerela great fun. Setting up a Spa center somewhere near the sea beach or along the western ghats. Setting up a Spa Centre will be costly if you decide to open it in tourist places but remember these places will also help you earn huge profit. A Good Spa should have a hygienic, calm, presentable and should be embraced by nature. It is a costly business if you opt for the tourist spot otherwise a moderate investment will get your Spa running.

8. Paying Guests Or Hostel Business

Kerela offers good institutions, industries, and jobs for daily wage earners. Therefore the most important thing to them will be a home to live in. You can make a huge profit by running a Hostel. Hostels provide inexpensive food and lodging.

The concept of Paying Guest or PG is very simple. It is a system of accommodation where an outsider(student, worker or traveler) stays at your home and will pay you for food and lodging. Also, it is a very homely approach.  Therefore, students, migrant workers, or travelers will be your target customers. Due to high competition advertisements are necessary to run these businesses.

Similarly, online marketing through social media promotions or flyers and wall stickers near railway stations. This is one of the most profitable business ideas in Kerela.

9. Coconut Business

Coconut and Kerela come hand-in-hand. You cannot think of Kerela without coconut. It is one of the largest producers of coconut along with Andhra Pradesh, Tamil Nadu, and Karnataka. Therefore Kerela has different opportunities with coconut.  Some of the most important business-related to coconuts are

  • Coconut chips making
  • Coconut oil(food & other usage)
  • Candies of Coconuts
  • Desiccated coconut powder
  • Coconut vinegar
  • Coconut honey
  • Nut milk powder
  • Coconut syrup
  • Desiccated coconut powder
  • Coconut water(packed)
  • Condensed milk(sweetened)
  • Coconut ice-creams
  • Virgin coconut oil
  • Coconut shell artifacts

You can operate on any one kind of business with coconut. It is not just consumed in the Southern part of India, it is also exported to foreign countries. This is a very profitable business. This is the major source of income in Kerela. You can cultivate, manufacture, packet products or sell them.

10. Tourism

Business in Kerela - Tourism

One of the most visited places in India. Kerela experienced a 25% growth in foreign tourists’ arrival. Kerela has about 50 beautiful tourist destinations to offer. You can open a Tourist Lodge, Tour agency, become a Tour guide or work as a translator for foreign tourists as well as Indian tourists. Kerala earns huge from tourists, almost 10% of the total state’s GDP. The “backwaters” will be a treat to your tourist’s eyes. Hence, doing any business related to tourism will definitely help you in making a profit.

11. Ayurveda Tourism

Ayurveda is one of the oldest traditions in India. Ayurvedic therapy is a natural healing process through herbs and natural oils. According to the ayurvedic literature, herbs and oils have great healing powers that calm the mind and body. Kerala had held the traditional healing therapy for many years and it is the most important tourism center for the ones who seek ayurvedic healing.

Kerela provides a pleasant climate with 28°c to 32°c in the plane lands but temperature drops to 20°c in the highlands. The pleasant climate is due to its nearness to the sea and the presence of the spectacular Western Ghats. Kerela also experiences two monsoons which makes this place heaven on earth. Ayurveda works wonder when your mind is calm and Kerala can provide it.


These are some of the unique business ideas in Kerala. If you are thinking of establishing a business, these are some of the best business ideas in Kerala. You need to be patient because every business takes time to provide the profit amount.

These business ideas are listed after doing good market research, therefore you can be very much sure about its profitability. If you don’t think these ideas fall under your niche, you can opt for any other business idea. Food is also an important business idea in any tourist spot.

What do you think of the business ideas, let us know in the comment section below!

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