Entering into any new business in India can be rather tricky. Traditionally, Indians are wary about new products and services. Generally, consumers in India tend to patronize time tested and proven brands.
However, with some ingenuity, you can start a new business with innovative ideas. The prerequisite for beginning such a new business however are, you should possess the required skills and of course, capital.
Funding your new business
Venture capital and crowd funding have entered India, thanks to the interest shown by foreign investors in Indian start-ups. Additionally, cooperative societies, community organizations and a few banks also lend capital to new businesses.
The Indian government’s Micro Units Development and Refinance Agency (MUDRA) and its offshoot, Mudra Bank, also provide capital to new businesses, provided your business meets certain criteria.
Hence, funding a new business is not as difficult nowadays.
What you need?
Before embarking on any new business venture, you will require a lot of homework. In a nutshell, you will need:
- Proper study of the market for your product or service.
- Astute knowledge about consumer patterns for marketing.
- Comprehensive project report, if you intend to avail external funding from banks, VCs or crowd funders.
- Registration of your business with concerned government ministries and departments for legitimacy.
- Proper staffing policy to ensure consistency of product and service quality and delivery.
- And an excellent business plan.
25 Excellent New business Ideas
Yes, new businesses. This means, business ideas that have seldom been tried earlier or are rather rare to come by or those which are common but in great demand. Understandably, such ideas can take time to incubate.
However, they are worth trying. Here we present 25 such new ideas for business.
1. Extracting Moringa Oil
Extracting Moringa Oil is something that can be done anywhere in India. Moringa is very commonly in India. It is called ‘drumsticks’ that are commonly grown and consumed as vegetable.
Despite proven health benefits, India has very few suppliers of 100 percent Virgin Moringa Oil, which retails at over Rs.1,000 per 100ml. You will require an oil press and abundant supply of dried drumstick seeds to extract Moringa Oil.
If you are so inclined, you can launch your own brand of Moringa Oil or sell in bulk to companies that sell it in retail. Additionally, Moringa Oil is also used in high-end cosmetics and beauty products.
Byproducts which includes oil cake and drumstick waste is sold as cattle feed.
2. Generic medicine supply
Despite advances in healthcare systems of India, medical services in rural India remain dismal. Physicians in remote villages are hence forced to dispense medicines to their patients. Often, patients also cannot afford pricey prescription drugs.
Often, pharmacies are located far away from such villages and hamlets. Hence, there is a heavy reliance upon generic medicines for dispensing. Armed with a vehicle, you can start a generic medicine and medical products supply to physicians in remote villages.
Investment in this business is fairly low. However, you will have to offer some credit to doctors who buy generic medicines from you.
3. Vegetable and herb juice
Another new business idea with low investment. As people get more health conscious, the demand for healthy beverages is on the rise. India’s ancient medical science, Ayurveda, prescribes juices of certain vegetables and herbs to prevent, cure or arrest health problems.
Unfortunately, the market for such vegetable and herb juices in India remains largely under catered. With some knowledge about curative properties of vegetables, herbs and roots, you can open a lucrative new business of manufacturing and selling such medicinal juices.
Investment in this business is fairly low. However, you have to ensure a daily fresh supply of the raw material. Furthermore, only fresh juices have medicinal value and hence, you will be unable to offer packaged or bottled varieties that can be stored.
4. Bhoot Jolokia chili powder
Bhoot Jolokia, also known as Naga Jolokia or Naga Morich is the world’s hottest chili. Its pungency measures a scary 1.5 million Scoville Heat Units. This chili is indigenous to certain North Eastern states of India.
Small packets of dried Bhoot Jolokia chili, pickles and powder are available in retail from unorganized sellers. However, there are few manufacturers of large scale Bhoot Jolokia chili powder.
This chili powder has the potential of striking big in the international market for purposes other than food. Capsaicin from Bhoot Jolokia powder can be effectively used in making tear gas shells for riot control.
5. Rare Indian cheese
Very few Indians have heard about Bandel, Kalimpong, Chhenna and Kalari. These are rare varieties of Indian cheese from various states of the country. Unfortunately, these unique cheeses are on the verge of extinction due to popularity of mass produced common cheese made by large companies.
Connoisseurs in Europe and North America as well as India and the Middle East are always on the lookout for rare varieties of cheese from different parts of the world. Such cheeses command a very high price in the export market.
With some effort, you can source these rare Indian cheeses from local producers. With proper packaging and marketing, this can be a great business idea in the export market.
6. Readymade funeral bier
Admittedly, this business idea may seem grotesque to anyone planning to launch a business. However, this is a very lucrative & new business that requires low investment. Currently, there is only one manufacturer in India of readymade funeral biers.
These funeral biers are made of wood discarded by saw mills. Sold in boxes, these biers are easy to assemble and have a very aesthetic appearance. Users only need to follow instructions printed on an enclosed leaflet.
The contraption is held together by screws, nuts and bolts and hence, is very sturdy.
7. Last rites
While still on the topic, here is another business that has the potential of making it big in large cities of India. Offering funeral or last rite services to communities that cremate their deceased is a growing business.
Hectic schedules and lack of knowledge about funeral customs and tradition often leaves people flummoxed when someone passes away. They are unaware about documents needed to cremate mortal remains, places of cremation and rituals.
A few businesses that offer comprehensive funeral services have cropped up across India. However, the demand for this service remains high.
8. Personalized embroidery
Undoubtedly, embroidered garments are readily available in the market. However, their patterns are run-off-the-mill type and rather commonplace. A large market for garments that have personalized embroidery exists.
This means, embroidering a person’s name or initials or some message on garments. You can also offer personalized embroidery patches, according to orders from customers. To enter the business, you can buy an embroidery machine or hire skilled embroiders.
This business requires low investment. However, proper marketing is essential for the success of this new business idea.
9. Non-dairy ice creams
Once again, a vastly untapped business in India is non-dairy ice creams. This means, ice cream made without milk and milk products like yoghurt. This sounds impossible but is practical.
A handful of companies across India are trying to popularize ice cream made with coconut milk, peanut milk and soy milk. These small businesses are making headway, albeit gradually. Unfortunately, they do not possess large advertising budget like top, conventional ice cream brands.
You can enter this business of non-dairy ice creams too. There is a huge demand for such ice creams. However, the non-dairy ice cream industry is largely unorganized which accounts for its rarity.
These ice creams have a potential to strike it big in large cities where people are health conscious. Hence, they try and shun milk based ice cream, which they believe is loaded with calories.
10. Fish farming
Yet another business with huge export potential, fish farming is something you can consider. To enter this business, you will require ample space for setting up water tanks. Generally, fresh water fish that includes Murrel, Catfish, Rohu, Mrigal, Hilsa and Katla are farmed in tanks.
You can also include species of fresh water shrimps, that are always in great demand. Fresh water fish has a huge domestic market. Furthermore, the market for these fish is booming. The reason for this boom is- fish from seas often contains high levels of lead and mercury due to marine pollution.
Arabian Gulf states, Europe and the US are large markets for farmed fresh water fish. However, to enter the export market, the fish you farm has to be free from pathogens and toxins.
They must conform to international standards for fish export.
11. Enriched eggs
Nowadays, several people consider eggs as unhealthy. People consider health risks associated with consuming eggs such as increase in cholesterol levels and blood pressure. These fears have given rise to a small industry of enriched eggs.
This means, eggs that contain Omega-3 oils. Now Omega-3 is not a natural nutrient in conventional chicken eggs. However, a few poultry owners give special feed to their chicken that contains Omega-3 oils. Such feed is generally derived from fish.
Consequently, they produce eggs that are rich in Omega-3 oils, which are known to curb and combat cholesterol. Omega-3 enriched eggs retail at Rs.150 to Rs.200 per dozen. They are available only at select, high-end stores.
You can enter the poultry business to produce Omega-3 enriched eggs. This book on Amazon can help you to setup this business.
12. Freight and freight consolidation
With some knowledge of freight and cargo handling, you can enter this highly profitable business of incoming and outbound packages. To enter this trade, you will require a small premises and proper packaging material.
You will receive packages that are bound for various destinations in India, from individuals. You need to consolidate packages bound for a particular state or destination into one container and hand it over to a trucking company.
Additionally, you will receive packages from other parts of India. You will be required to sort the packages and hand them over to the receiver from your premises. You will need agreements with cargo and freight companies for entering this new business.
Generally, individuals are reluctant or do not know whom to approach to send a parcel home. You can provide this service for such people.
13. Aeroponic farming
Aeroponic farming is growing vegetables without the use of soil and water. Instead, you will grow vegetables and herbs using air and atmospheric humidity. Lettuce, cilantro (coriander), spinach and other green vegetables grown by aeroponic farming are rare in India.
Research indicates, such vegetables are free from any toxic chemical and contain higher levels of nutrients. You can set up an aeroponic farm with some basic equipment.
However, you will require adequate indoor space to set up an aeroponic farm since it involves equipment where the plants are suspended in air with little or no base. You will also require humidity control equipment and sprayers to provide a misty atmosphere for your produce.
14. Foreign exchange agent
Small towns and villages in India often lack banking facilities. Nor can one find a foreign currency exchange house there. However, these towns and villages are fast becoming popular among foreign tourists, especially backpackers.
They visit these areas to get a taste of rural India and see off-the-beaten-track places. For such travelers, you can offer a foreign exchange service. To do so, you will have to enter into a tie-up with a major foreign currency exchange.
This service is also useful for Non Resident Indians who live in towns and villages. All you need to do is exchange the foreign currency for Indian money. The foreign currency has later to be handed over to the exchange house, in return for your money and commission.
This is a very popular new business idea in the tiny Indian state, Goa. Especially because a large number of Goa natives work and live abroad.