Vanakkam! Looking to start a business in Tamil Nadu? You’ve come to the right place. Here are some amazing business ideas in Tamil Nadu to feed the entrepreneur in you!
Tamil Nadu is India’s fourth-largest state, situated on the southernmost tip of the country. It is bound by the Indian Ocean to its east and south and shares land borders with Kerala, Karnataka, and Andhra Pradesh. Let’s look at what are the best business ideas in Tamil Nadu.
As an economy, the state of Tamil Nadu exhibits high economic dynamism and human development indicators (with a literacy rate of over 70%), strong infrastructure, a highly attractive investment climate that can be benchmarked with the best in Asia, and India’s leading knowledge and innovation hub.
Business ideas in Tamil Nadu
Here are some of the most lucrative business ideas in Tamil Nadu to pursue.
1. South Indian food joint
The state of Tamil Nadu prides itself in its authentic and distinctive cuisine, with a delicious spread that includes idlis, dosa, upma, pongal, sambar, rasam, parotta and more! With rising cosmopolitan culture, however, food choices of the population have diversified to include national as well as global cuisine options.
Therefore, if you research well, the perfect food business opportunity will not be very hard to find. Select a niche and start with a limited menu of options. Choose a convenient location (or even start online), acquire licences, secure your sourcing, hire staff, essential cutlery and get requisite licences.
Make a strong brand image that represents your offering most aptly, and you can then start promoting your business online. It is ideal for smaller budget businesses to start with a pure delivery model. You could also look for bulk supply to institutions.
2. Home tutoring
The COVID-19 pandemic has played an unusually disruptive role in the education ecosystem. People are now far more open and amenable to online platforms for learning. This is applicable to people from all walks of life, from students to housewives to executives looking to accelerate their careers.
A report by RedSeer and Omdiyar Networks has projected that the online education market for classes 1-12 could grow by 6.3 times in a year, while post-K-12 could grow 3.7 times. If you have mastery in any discipline that is demanded by the market, it is an opportune time. The essential investments are procuring a quality laptop, good internet connection and a room with good lighting.
If you have more resources, build your store and invest in digital marketing. It is also advisable to sharpen your online presentation skills and use possible tools that can improve attention, learning and retention.
Salon services are widely used by men and women across age groups in urban areas of Tamil Nadu nowadays. You must carefully analyse the market potential in your area, likes and preferences of customers, the prevailing competition and optimum location based on your budget and potential footfalls.
Develop your services and marketing plan, set prices depending on target clientele and procure raw materials and skilled staff. You could also opt for the franchise route. Today, people are even starting beauty services from homes, leveraging their residential neighbourhood and pre-existing connections/friends initially.
4. Clothing venture
Tamil Nadu is a leader in garment production and exports in India, and is also a major hub for footwear, leather and leather products. It ranks first in the production and export of cotton yarns and second in the production of blended yarn.
While Tirupur has earned the recognition of the knitwear hub of the country, Coimbatore has been labelled the Manchester of South India. Therefore, it is an excellent location to set up an online garment retail business.
You can start your clothing line, customise ready-made wholesale clothes, Drop shipping or create a small t-shirt company using print-on-demand services, or even sell souvenir T-shirts and beachwear to visitors.
E-commerce stores provide rich features that enable you to start an online store with minimum time and effort. Again, it is important to identify your target audience, product offering and brand identity. With the high competition, it is important to be innovative and stand out.
5. Poultry farm
Tamil Nadu had the highest poultry population in India at around 120.8 million in 2019. Poultry demand is growing rapidly and has huge growth potential if conducted diligently. Firstly, you must decide, based on resources, on the segments you wish to enter – meat, eggs, poultry feed, chicken breeding or egg and meat processing.
Ideally, the farm should be at a significant distance away from the city to ensure more economical land and labour costs. You may need to take adequate financing initially to cover for equipment, staff costs, land expenses, etc. Build an attractive brand identity for your business and promote it on the internet.
6. IT Consulting
The IT ecosystem of Tamil Nadu has moved from strength to strength in the past few years, and it is only getting better. With the right skill sets, you can provide various value managed IT services, hardware repair, ERP consulting, software consulting, or cloud services.
Procure your specific certificates and licences, register your business and start promoting your services. You need essential office equipment and space, and then you can start on your own. Promote your business online and steadily build your professional network for the long term.
It makes sense to tie up with other service providers to expand your suite of offerings initially. There is always room for competent, qualified and professional vendors, especially in IT, since most client businesses are SMEs with little understanding of the domain.
7. Packaged food products
Due to the strong base of raw agricultural inputs in Tamil Nadu, you can start a wide gamut of food processing units, and sell packaged food products – tea, coffee, jams, spice blends and pastes, pickles, biscuits, chips, bread, chocolates, cakes, namkeens (snacks), coconut milk powder, etc.
It is important to register your business and procure an FSSAI licence. Scan the market for opportunities, but ensure that your product sourcing is verified and quality tested. While you must aggressively promote your venture, you must start slow unless finances are very strong.
It is advised to target niches like health, gluten-free, vegan, etc, as these are emerging categories with relatively less competition. Gain knowledge by talking to veterans, and be prepared to experiment with a few categories before you hit bulls eye.
Give tourists from India and around the world a taste of the rich cultural traditions and hospitality of Tamil Nadu. While the pandemic has caused much devastation to tourism, the rebound is expected to be equally sharp once the virus dies out.
And with widespread recognition of ecological conservation, homestays are expected to get more popular among tourists in the coming years. The government has already been encouraging them as employment opportunities and a means to showcase the ‘Indian way of life’.
Select a location well in the vicinity of the popular tourist attractions in the state. Again, it makes sense to target a niche – nature, traditional, adventure, wellness, rural, spiritual, etc.
Make exciting and distinctive packages that will attract your niche and ensure a rewarding experience that builds positive word of mouth. List yourself on popular online sites and promote your package to the world.
Given its cultural richness, it is not surprising that Tamil Nadu hosts a variety of handicrafts that are well regarded throughout the world. There is a wealth of brilliant work by the state’s hardworking and skilled artisans including Tanjore Paintings, Jewelry, terracotta figurines, bronze ornaments, floor rugs, Woodcarving, Stone Carving, Pottery, musical instruments and much more. You can play a vital role in bridging the gap between these artisans and buyers looking for authentic and traditional items.
Information on such business opportunities may not be available easily. Map artisans and discuss the business models with them before choosing your segment, target audience, price points, etc.
10. Courier service
Tamil Nadu already has a very strong industrial base and strong connectivity that’s growing at an impressive pace, which means rich gains for courier companies. To crown it all, the eCommerce segment has witnessed an unprecedented acceleration in the aftermath of the pandemic.
This makes the market even more lucrative for courier services. There are opportunities across B2B, B2C and C2C services. Invest time in learning about the business and infrastructure required.
You could start as a franchise for a courier company, or on your own if you have adequate finances. You can explore possible segments: personal gift items package, small office-related couriers, perishable goods, packages of hotel and tourism companies, etc. Carefully compare the rates and services being offered by competitors before preparing your quotation list.
How Dukaan can help?
Irrespective of the nature of your business, you can get started with the Dukaan that offers merchants, retailers, and others with a powerful DIY platform that they can conveniently operate without the need of complex programming skills.
Why keep planning about your business when you can start your business with just a few simple steps?
Just give your mobile number, verify OTP and you’re in.
Step 2 – Choose your store name and category.
Step 3 – Upload your products.
Step 4 – Promote your Dukaan store.
Simple! Isn’t it?
Which business is famous in Tamil Nadu?
Agriculture, energy, textile, automotive and tourism businesses are famous in Tamil Nadu.
What are the top 10 small businesses to start?
Consider starting one of the following businesses:
- Transportation Services
- Tourism Business
- Graphic Designing Services
- Bakery Business
- Translation Services
- Fitness Trainer
What kind of business can I do at home?
Today, you can make a business out of just about anything - online tuition, groceries, food delivery, restaurant, baking, clothes, art, electronics, etc.