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23+ Business Ideas in Tamil Nadu (100% working, Great returns)

23+ Business Ideas in Tamil Nadu (100% working, Great returns)

Maximize Festive Season Sales With Fynd Platform

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Are you someone who is planning to start a business in Tamil Nadu? If yes, you have landed at the right place! Here we have listed Best Business Ideas in Tamil Nadu which are 100% working for future.

Tamil Nadu is one of the fastest-growing economies in India and one of the most industrialized and urbanized states. Their service industry contributes around 45 per cent, the manufacturing industry contributes about 34 per cent, and the agricultural sector contributes 21 per cent to economic activity.

The state has 113 industrial parks and facilities that offer great infrastructure. Tamil Nadu has excellent scope in specific sectors like agriculture, mining, electronics, leather, fireworks, manufacturing, transportation, energy, tourism, and automotive. Also, it is home to plenty of Small and Medium Enterprises (SMEs).

According to a report published in the Times of India, Tamil Nadu’s government is hoping to nurture startups well to power it to a One Trillion Dollar Economy.

Hence, if you are too tired of their regular 9 to 5 job, looking for some side hustle, or wanting to be an entrepreneur, we have got you some great business ideas that could be viable in Tamil Nadu.

Why You Should Start a Business in Tamil Nadu?

Tamil Nadu is the second-largest economic state in India and has been ranked first by the Economic Freedom Rankings of the States of India. Moreover, Tamil Nadu has the highest literacy rate which is one of the reasons why companies plan on setting up their businesses there.

SEZ (Special Economic Zone)

The biggest reason why people are so keen on running their businesses there is also that the state has certain cities that fall into the Special Economic Zone or SEZ which provides the entrepreneurs with a lot of benefits.

The liberal trade laws provide entrepreneurs with a competitive and hassle-free business environment. The SEZ (Special Economic Zone) has made the whole process of running a business much easier as it equips the entrepreneurs with a single-window clearance with matters that are related to the State and Central government.

Excellent Infrastructure

The state has an extremely impressive infrastructure facility and it provides the businesses and aspiring entrepreneurs and investors to start a business in Tamil Nadu. The state is well-connected with rail, road, water and air, making things easier for operation.

Tamil Nadu has a road network with a total length of 199,040 km and 14,257 km of Highways network. They are segregated into two different categories, National and State based on the traffic intensity and connectivity. As like we all know, a good infrastructure is directly related to the economic and social growth of the state while attracting foreign and domestic investors.

Endowed with Resources

Tamil Nadu is a state that is abundant with multiple resources. It is a hub for metals, minerals and agricultural commodities. The state is rich in limestone, lignite/ brown coal, iron ore, magnesite, gypsum and bauxite.

Tamil Nadu also holds the title of having the highest production of clove, bananas, oilseeds and tapioca. Along with that, it ranks number one in holding ilmenite, dunite, garnet, magnetite, vermiculite, molybdenum and rutile in the country.

Safe Economic Foundations

In terms of GDP, Tamil Nadu ranks second and is also the most industrial state. More than half of the state is urbanised and accounts for 10.6 per cent of the country’s urbanised population despite having 6 per cent of India’s complete population.

And did you know that the state has been given the title of being an economically free state as per the Economic Freedom Rankings? Well, these were a couple of reasons why Tamil Nadu is a great place to run a business. Now, let us take a good look at some of the best business ideas in Tamil Nadu.

Business Ideas In Tamil Nadu

After conducting extensive research, we have got you a detailed guide on some of the best business ideas in Tamil Nadu. A few viable business ideas in Tamil Nadu are stated below.

1. Paper Manufacturing Unit

Tamil Nadu is one of the largest manufacturers of paper and paper products in India with over 74 paper mills working day in and out. The state accounts for a production of 3.7 lakh tonnes which is about 17.30 per cent of the national production after Andhra Pradesh.

Hence, setting up paper manufacturing could be a profitable venture, keeping in mind the existing infrastructure and you could also manufacture paper from several different raw materials other than just trees to run an even sustainable business model.

2. Clothing Brand

Tamil Nadu is a leading producer in the garment production industry and exporter of leather goods, cotton, and footwear. The state ranks first in producing and exporting cotton fabric and second in synthetic yarn production.

As per a piece published in The Hindu, Tamil Nadu contributes to one-third of the textile business with 2,023 spinning mills, 5.63 lakh power looms, 1.55 lakh handlooms and 15,000 garment units.

Coimbatore has been regarded as the Manchester of South India and can be a great place to set up a garment business. A physical store is a great idea, but you can quickly scale it up by launching an online store.

And Fynd can be your best friend through it all. From professional tools, building websites, listing your products on different platforms, marketing your products, and having a secure payment gateway, you get it all with Fynd. And not just that, you can also easily manage your catalogue and inventory with this platform.

3. Turmeric Processing Unit

If you were not aware of this, let us inform you that Tamil Nadu is where a majority of India's turmeric farming takes place. And in a place like India, known for its exotic spices and India being the biggest exporter of spices all over the world, a turmeric processing unit could be a great business opportunity for you.

Moreover, you can scale this business and reach out to a broader market by taking your business online. With platforms like Fynd, your job becomes so much easier as you can manage your inventory and your incoming orders.

4. Auto Body Manufacturing

You must not be aware of it, but Tamil Nadu has an abundance of manufacturing units for automobiles, battle tanks, bikes, railway coaches, heavy machinery, etc. Hence, venturing into the automobile business in Tamil Nadu could be a great pick; given the impressive infrastructure and the government's grants, you will get excellent returns.

The auto body business involves equipping people with auto body repair solutions and new bodybuilding and selling/dealing with spare parts and accessories related to the vehicle. And with the ever-growing number of cars, this business is your sure shot to success.

5. Tea Processing or Trading Unit

India is the second-largest producer of tea internationally and Tamil Nadu contributes about 18 per cent of the total production. With India's most extensive Tea Co-operative Federation, INDCOSERVE, in Tamil Nadu, the state is the perfect place to run a tea-related business or a tea processing unit.

Also, in a country like India, tea is consumed in abundance. Therefore, it indeed is a successful venture. You can start a tea processing or a trading unit where you process, pack, distribute and market the tea leaves. You can also have tie-ups with different restaurants, brands, cafes, etc. Not just that, you can reach the masses with the help of Find.

This omnichannel platform can help you take your business online by creating a website and making listings on multiple platforms like Amazon, Flipkart, etc. Not just that, you also manage your inventory and orders while having a streamlined payment gateway.

6. Energy Business

Electricity Polls

Did you know that Tamil Nadu is on the 9th number at the global level when it comes to contributing to Wind Energy in the total Power Generation? And with the world becoming conscious and a never-ending hunt for sustainable sources of power, you could have a sure shot at success if you venture into wind energy, solar energy or tidal energy business.

Also, The Tamil Nadu Energy Development Agency (TEDA) has been working rigorously to promote entrepreneurs in renewable energy sources and energy conservation now, and a lot of subsidies and grants are being given for the same.

7. Leather Manufacturing and Trading

There are a lot of leather and tannery facilities located near Vellore, Ambur, Ranipet and Vaniyambadi. And with Tamil Nadu accounting for 70 per cent of leather tanning and producing 38 percent of leather footwear and accessories, setting up your leather business here could be an easy task.

Also, getting a customer base could be even easier if you take your business online with the help of Fynd. Fynd will aid you in building an eCommerce store, uploading catalogues, running marketing campaigns, getting insights about your performance and so on.

Also Read How to Start Online Saree Business from Home.

8. Salon

The beauty and wellness industry is for sure a recession-free industry with a growth rate of about 25 to 30 percent with a CAGR of 18.5 per cent. A salon is a significant venture, in our opinion. Salon services are used by people of all age groups and genders in most urban areas.

Before venturing into the beauty industry, make sure that you thoroughly analyze your potential market, likes, dislikes, preferences, competitors, location, and demands. Along with that, you must also analyze your potential footfall and budget.

Not just that, to brush up on your skills, or if you are on a relatively tight budget, you could also provide beauty or salon services from your home and make word of mouth your best friend.

9. Agricultural Business

Plants of Fruits

Agriculture has always been the most predominant sector of the economy with 70 percent of the state’s population being involved in it. The state covers an area of 1.3 lakh sq. km and 63 lakhs hectares dedicated to plantations.

Tamil Nadu's soil and climate are excellent for cultivating crops such as rice, jawar, bajra, maize, ragi, and some pulses. You can also quickly grow coffee, coconut, tea, sugarcane, and cotton.

And given the massive rise in the demand for refined and organic products, you can venture into organic farming and equip the people of Tamil Nadu with healthy and nutritious products. Moreover, this business requires low investment and can give you very high returns in the long run.

10. Dropshipping

People Are Discussing and Reviewing Growth

Dropshipping has gained immense popularity over the years as it is a risk-free and highly profitable venture because you do not have to take shipping or inventory into consideration. All you have to do is pay attention to scaling the business.

And did you know it is straightforward to do with the help of Fynd? In case you are wondering how to let us break it to you. Fynd is an omnichannel platform that helps businesses to grow.

And to promote your dropshipping business, it helps you run campaigns using emails and SMS and other strategies to attract more customers. It is a very low-risk business that could give you some great returns; all you need to do is find a great product in the long run.

11. Tutoring

As per the stats laid by Technavio, it is being said that the online tutoring services industry in India is all set to grow by USD 14.76 billion by 2025. It also states that the industry will progress at a CAGR of 15.96 percent. Doesn’t that sound interesting?

Tutoring is a great business that requires absolutely no investment at all. You can make the most out of the tutoring business by imparting your skills and knowledge to others and helping them grow while earning money.

The best part of being in the tutoring industry is that you have minimal overhead and startup costs, and in case you do not plan on having a proper space or office, then your prices go further low. And after the COVID-19 era, online tutoring has risen to fame.

12. Freelance Writing

Man is Writing in Notebook

Freelance writers devote their time to creating creative articles, blogs, ads, slogans, etc. And in case you want to express your heart to the world through writing, as a marketing specialist, you can use narration, the most conventional type of human articulation, in your work.

In Tamil Nadu, marketing specialists and freelance writers are in great demand to help a business grow. And for being a freelance copywriter, all you need to have is a creative mind, a great vocabulary, and a stable internet connection.

Moreover, as per some reports, it is projected that India’s freelance community will grow by 20 to 30 Billion USD by 2025.

13. Online Store

Online Store

Post-covid, people have switched majorly to online shopping instead of shopping from traditional stores. Be it a small business or a home-based business, it is imperative to keep track of finances and invest them in the right place.

You can sell anything online, from a safety pin to massive cars. Also easy to scale in online business, add new products, and manage your business online. And with platforms like FYND, running in online stores and even easier tasks.

Fynd gives you access to user-friendly design tools, themes, and building apps and websites not just. You can also list your products with a single click on multiple shopping platforms with Fynd.

14. Event Management

Most event managers initially start by working from home, and Tamil Nadu is the home to the movie industry. With an abundance of advertising agencies present in the state, the need for creative and dedicated event managers has increased massively.

To start as an event management company, you must first determine what events you want to host. There are majorly two kinds of events, celebratory and promotional. And once you have figured that part out, you then need to figure out what part of event planning you are inclined towards. It can be conducting extensive research, vendor management, food department, supervision, or creative direction.

15. South Indian Food Joint

South Indian Food is Displaying in Dishes

What could be a more excellent idea than serving the masses with authentic South Indian delicacies? Tamil Nadu takes immense pride in serving the locals and tourists with mouth-watering food like idlis, dosas, sambar, appam, and more.

However, to set a perfect South Indian restaurant, you must pick a great chef, sort your cuisine, choose the ideal location that attracts the people, get appropriate licensing, etc.

The best example here is Saravanaa Bhavan. They started years ago in KK Nagar, Chennai on a very small scale and currently, they have around 70 outlets and around 20 of them being in abroad.

Also Read 70+ Small Scale Business Ideas.

16. Consultancy

After Maharashtra, Tamil Nadu is known to be the second-largest economy. The state has a massive number of factories in various segments like automobiles, heavy machinery, castings, textiles, plastics, etc. This implies that they are consistently on a hunt for skilled people to help them grow.

And when you work as a consultant, you take on many roles to solve your client's most challenging problems. You use your skills and expertise to solve their issues and create long-lasting impacts.

Also, it would be best if you kept it in mind when you work as a consultant because it is an ever-evolving and dynamic thing. You could be working as an advisor for the board for one hour, and for the next hour, you could be coaching the front-line workers. Anyway, this is a great business idea with low investment.

17. Medical Tourism

India is the land of origin for Ayurveda, and it is one of the reasons why many people used to come here in the olden days to get treated. But with time, things have changed majorly, and with the advancement in healthcare facilities, India has emerged as the best place to get treated, especially in Tamil Nadu. People worldwide visit cities like Chennai, Coimbatore, Vellore and Madurai to get best-in-class medical treatments from world-renowned doctors at a lower price.

Also, as per the International Experts, it is being predicted that there will be 110 percent hike in the medical tourism industry by 2023.

Hence, the medical tourism business could be an excellent pick for you. You can make the most out of Fynd to reach out to prospective clients and scale your business.

18. Poultry Farming

In 2019, Tamil Nadu had the highest poultry population in India at around 120.8 million. Poultry farming is increasing and has promising growth potential if led tenaciously. But you must make a wise choice, in light of the resources, pick if you wish to venture into meat, eggs, poultry feed, chicken breeding or egg and meat processing.

However, the initial investment might be a bit too high. You will need money to cover the costs of equipment, land, staff, etc. And to have an excellent customer base, you can have tie-ups with supermarkets, restaurants, cafes, hotel chains and so on.

19. Homestays

Tamil Nadu sees thousands of tourists every year. As per the Ministry of Tourism report in 2020, it was stated that the number of domestic arrivals was 494.8 million, making Tamil Nadu a famous tourist place and with foreign arrivals at 6.86 million, the highest in India.

And with the state government promoting tourism majorly, a homestay could be a rather profitable business given the number of tourists the state attracts every year. You can list your property online and gain a lot of traction. You can also build a website using Fynd to reach many people quickly. Homestay is a great business idea that requires minimal investment.

20. Handicraft

Given that Tamil Nadu is rich in culture and heritage, it also has a variety of stunning handicraft pieces. The skilled artisans of Tamil Nadu create some of the finest Tanjore paintings, jewellery, terracotta figurines, floor rugs, ornaments, stone carvings, pottery, etc. And in case you didn't know this, these handicrafts have a massive market in India and worldwide.

Hence, you can make the most out of it by opening an online handicraft store and bridging the gap between artisans and buyers worldwide, and Fynd can help you do so.

21. Courier Company

The courier industry in India is small but plays a huge role in the logistics industry. It is one of the fastest-growing industries in India and is projected to grow at a rate of 17 percent per annum in the next three years at a valuation of 20,000 crores.

Tamil Nadu, as of now, has an exceptionally fantastic industrial base and is developing at an incredible speed, and that implies an ever-increasing demand for courier companies.

To crown everything, the eCommerce industry has seen an unforeseen speed increase in the wake of the pandemic. You could get a franchise for a courier company, or all alone, assuming you have sufficient funds, you could start one on your own. You can investigate potential industries: personal gift bundles, office-related couriers, FMCG products and so on.

22. Transportation Business

Transportation is responsible for a hike in the state's economic conditions. However, the current transportation system is equally imperative, and it needs to be grown further to stay up with the ever-growing expansion.

Tamil Nadu is served by a well-connected and extensive road, rail, air and water transportation. Also, the 2024 Budget India has laid more emphasis on opting for sustainable growth of the transportation sector and that includes repairs and development of infrastructure.

Various kinds of specific demands with the changing way of life have presented a few innovative and beneficial startups that open doors in the vehicle business. Giving transportation facilities is one of the most helpful business ideas in Tamil Nadu.

Also Read 22+ Most Profitable Business In India.

23. Bakery Business

Bread with Flour

There has been a massive rise in the demand for bakery products in recent times. Therefore, starting a bakery business in Tamil Nadu could be a pretty profitable business. And if you are someone who is pretty fond of baking or is pretty skilled at it, you can initially start on a small scale and then grow it. A home bakery is often considered to be an intelligent idea as it does not require a lot of investment and some professional courses; you could also pursue it as a passion project.

24. Travel Agent

A Girl Is Walking With Travelling Bag Outside of Airport

Fortune has smiled on you if you plan to start a travel agency in Tamil Nadu. Tamil Nadu is a state known for its beaches, temples, museums and beauty, which attracts a lot of people.

The travel industry keeps on flourishing, with travel services ending up the most successful endeavour and the best business in Tamil Nadu. Tamil Nadu is a tourist-friendly state, so opening a travel agency could be a rewarding business, particularly on the off chance that you love travelling too.

And in today's time where everything is done online, you could try your hands at a digital travel agency with the help of Fynd and have a better reach while providing your customers with quick support too.

25. Application and Website Development

Application and Website Development

People have been shifting to digital platforms for running businesses for a while now but ever since the world was affected by the COVID-19 pandemic, the shift happened at an even faster pace.

The demand for skilled app and website developers is super high. If you are someone from a tech background with ample knowledge and skills, this surely could be a profitable venture for you.

And in case you have a tight budget or you plan on keeping this as a side hustle, you could become a freelance developer or a part-time one and still make good money by meeting prospective clients online.

Conclusion

And with that, we have now come to an end to our guide on Business Ideas in Tamil Nadu. We are sure that setting up a business can seem a bit too much at first, but you can succeed with great dedication, hard work, and effort. Also, with platforms like Fynd, it becomes even easier for you to run a business successfully.

And in case you are wondering why you should opt for Fynd and not some other platforms like Shopify, Dukaan or Khatabook, let us tell you why! With Fynd being an omnichannel platform, it helps retail businesses to grow online while also equipping them with product cataloguing, managing inventory and orders, securing payments, running marketing campaigns and so on. Along with the third-party apps that they provide, your business could reach new heights.

Maximize Festive Season Sales With Fynd Platform

Learn from the masters and cracks the code to festive season sales success with Fynd Platform's Festive Readiness Guide

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FAQ

Which business is in demand in Tamil Nadu?

There are a lot of businesses that are in demand in Tamil Nadu. There is no one foolproof business idea that is in need as it varies from person to person. Some of the most common ones include travel-related businesses, leather manufacturing and trading, poultry farming, handicraft business and so on.

What are the most successful small businesses?

There are plenty of small businesses worth investing your time and money in. But if you want to be successful without investing a lot of money, you could try your hands at a bakery, tutoring, travel agency, homestays, garment business or dropshipping.

Which business is best in Tamil Nadu 2024?

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A couple of businesses that are considered to be best in Tamil Nadu 2024 are automobile business, textiles, South Indian food joints, poultry farming, travel agency, homestays, handicrafts and much more.

What business can I start in Tamil Nadu?

There are endless business ideas that you can venture into in Tamil Nadu, and a great market too. Some of the business ideas include consultancy, garment manufacturing, energy business, transportation, tutoring and so on.

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