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Are you excited to explore the best new business ideas in Chennai, a bustling city known for its economic power and massive potential for new ventures?
Chennai is the capital city of Tamil Nadu and the sixth most populous metropolitan city. It offers a vast market of opportunities for budding entrepreneurs to start their businesses.
The city’s location along a vast coastline has led to establishing several ports, earning it the title of an industrial hub. According to FICCI, Chennai ranked fourth in tax collection, with an impressive INR 74,000 crore collected between 2018 and 2019.
Chennai’s economy rests on three strong pillars: the automobile industry, electronic hardware and software market research and development, information technology, and IT-enabled services (IT-ITeS) sectors.
The IT-ITeS sector alone generates a whopping revenue of over USD 18.51 billion and provides direct employment to more than 4,00,000 people in the city.
Additionally, Chennai is known as the “Health Capital of India,” attracting many health tourists, accounting for around 45% of all medical tourists in India.
Chennai is known as the Detroit of India due to its automobile industry.
Over the past few decades, Chennai has experienced remarkable growth across various sectors, creating numerous business opportunities for aspiring entrepreneurs like you.
Software services, automobile, healthcare, and financial industries anchor the economic base of Chennai.
Chennai’s consumer prices and rent are 54 percent cheaper than Mumbai’s.
Chennai’s population exceeds 11 million, providing a large market for various sectors.
The city has a high demand for healthcare services, particularly due to its aging population.
The rental cost for business locations in Chennai is lower than that of other major cities.
Chennai has a growing elderly population requiring specific services, creating a market demand and business opportunities.
The Chennai Metropolitan Area’s GDP is anticipated to reach approximately $200 billion, indicating economic growth.
Chennai is ranked as one of the safest cities in India, facilitating business investments.
Are you ready to explore the 18 best profitable business ideas in Chennai, which promise high profits and unlimited potential?
Let’s start this exciting entrepreneurial journey together!
Table of Contents
Chennai: A Thriving Hub for Businesses
Chennai, a city in Tamil Nadu, is well-known for its delicious Chettinad cuisine, rich art and culture, and many travel opportunities.
But that’s not all! It has also earned a reputation as a top industrial hub, making it a fantastic place for businesses to grow and thrive.
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SEZ Policy
Chennai’s special economic zones (SEZ) policies have been a game-changer. The city’s friendly policies attract businesses that focus on exporting goods.
Thanks to streamlined procedures and a helpful single-window clearance mechanism, it’s easier for them to operate here.
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Abundant Talent Pool
Chennai has many talented people to offer. Many educational institutions near the coastline attract and nurture skilled resources.
Businesses can save on workforce costs, as skilled labor is 10% to 30% cheaper here than in other big cities like Bengaluru, Pune, or Delhi NCR.
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Government Support
The government of Tamil Nadu has been supportive of businesses. Compared to other places, Chennai makes it simpler for aspiring entrepreneurs to set up and manage their companies.
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Solid Infrastructure
Chennai’s infrastructure is top-notch. It has well-connected airports, efficient metros, busy ports, and a well-developed road network.
These things create a strong foundation for businesses to grow, and that’s why Chennai is considered one of India’s best industrial hubs.
Now let’s begin and read about 20 unique and profitable business ideas in Chennai:
Best Business Ideas in Chennai
Now let’s begin and read about 20 amazing and profitable business ideas in chennai:
Franchise Business in Chennai
Want to start a small business yourself? Franchising is a smart option. You can sell products and services under an established brand name.
Here’s how it works: You contact a big brand and buy their franchise. This lets you open your outlet using their brand recognition. You can even work with national or international brands.
Food franchises are the best business because competition is strong, but profits can be high. They are very popular, though they may need more investment.
If you want an exciting business opportunity in Chennai, consider a franchise.
Cafe
Chennai is a vibrant city, and people love to relax in cafes with friends and family.
Opening a cafe can also be a great business idea. Pick a good location, design cozy interiors, and hire friendly staff. Create a menu that suits different tastes.
To attract more customers, offer home deliveries and have a strong social media presence. With dedication, your cafe could become a favorite spot in Chennai.
Travel and Tour Agency
Chennai is full of attractions. People visit for culture, heritage, shopping, and food.
You could become a tour guide, create unique tours, or work as a travel agent, managing bookings and reservations. This industry lets you meet people from all over.
It’s a great way to join the exciting travel industry in Chennai.
Food Business
Opening a local food stall or restaurant is a popular idea in Chennai. Tourists love authentic dishes like dosas, idlis, and biryanis.
If you can cook, you can start from home or rent a small office space. Alternatively, you can hire a skilled chef. The key is to provide a dining experience with authentic local flavor.
Photography Business
People always need good photographers for birthdays, weddings, and baby showers.
Start your photography business by promoting your work online or collaborating with event companies. Photography can be both a profitable business and fulfilling in Chennai.
House Help Services
Many people in Chennai need reliable help at home.
You could offer services like cooking, cleaning, and other household tasks. Build a local network to connect with those in need. Train your staff well, and focus on building trust.
Pet Care and Services
The pet industry is booming in Chennai. You could start a pet store, offer grooming services, or create an online shop to sell pet products.
Consider a mobile grooming truck to visit different areas. With the right approach, pet care can be a rewarding and profitable small business ideas.
Sell Spices
South India is famous for spices. Many people buy them as gifts or souvenirs.
You can open a store or even sell spices online. To attract more customers, offer organic spices and ready-made masalas.
Food Delivery
Food delivery is popular in Chennai, especially for young professionals.
You can start your service by adding restaurants and cafes to your app. For a personal touch, you can also offer home-cooked meals.
Tea Stall
Tea stalls are always in demand and need little investment.
Pick a busy spot, like near a college or office. Sell snacks and tea for more than the profit margin.
Babysitting
Babysitting is a good option if you enjoy caring for children.
It’s a flexible job with hourly pay, and it doesn’t need much investment, just dedication and patience.
Language Training
Teach languages like Tamil, Hindi, or English to tourists or locals.
You can start with online lessons or at language institutes. Certification courses can help you get relevant skills and attract more students.
Food Truck
Food trucks are popular and cost less than a full restaurant.
Focus on quick, tasty, food trucks and pick busy spots to set up. The average cost for a food truck is around INR 8-10 lakhs.
Bharatanatyam Classes
Bharatanatyam is a classical dance from Tamil Nadu.
If you know this dance, start classes online or rent a studio. This is a low-cost business with high cultural value.
Dry Cuisine
Make and sell dry food items online retail, like spice mixes and health teas.
You can start from home, sell online, or sell in coffee shops that offer unique regional flavors. Basic equipment like a mixer and packaging supplies would be best.
Event Management
Organize events like birthdays, anniversaries, or weddings.
You could specialize in weddings or expand to corporate events. Event management is in high demand, making it a profitable venture.
Curio Shop
Open a shop with unique items and gifts.
Find a location or start from home. Work with vendors or create your items. Market smartly and offer online shopping to boost sales.
Vacation Rental
Turn your home into a Bed and Breakfast for tourists. It will give them a local touch and a personal experience.
List a spare room or an entire house on BnB platforms. It can be a great way for tourists visiting Chennai to earn extra income.
Food Delivery Service
Offer homemade or specialized food delivery services.
You can focus on delivering high-quality, homemade meals or a specific type of cuisine that’s hard to find in the market. Catering to the health-conscious audience can also be a profitable niche.
Pickle Making
Start a pickle-making business from home.
Homemade pickles, especially traditional South Indian flavors, are in high market demand. To reach more customers, package them well and sell them locally and online.
Tuition Classes
Offer online tutoring and services to students.
Focus on specific subjects like math, science, or language classes. You can conduct lessons from home or online, making this a flexible business opportunity.
Blogging and Social Media
Start a blog or offer social media management services.
Write about topics you are passionate about or help businesses manage their social media presence. This business requires minimal startup costs and can be highly profitable with dedication.
Running a Store
Open a boutique or unique product shop.
You can sell clothing, accessories, or other specialty items. Find a niche in your small business that suits your skills and market it well in Chennai’s busy areas.
Candle Making
Candle-making is a low-cost, successful candle-making business and idea.
You can start your own business selling scented or decorative candles at local markets or online. With some creativity, this small-scale business can grow.
Digital Marketing Service
Start a digital marketing service.
Many small businesses in Chennai need help with online and digital marketing services. To help them grow, offer services like social media marketing, SEO, or website management.
Laundry Business
Start a laundry service.
This is one of the best small business ideas. It requires a low investment and startup costs and meets the needs of busy Chennai residents. To make it more convenient for customers, offer pickup and delivery options.
Fitness Trainer
Become a personal or group fitness trainer.
Fitness is gaining popularity, and many people are willing to pay for personalized training. Offer sessions in parks, at clients’ homes, or even through online services.
Handicrafts Business
Sell handmade crafts.
Make unique, traditional handicrafts and sell them at local markets or online. Tourists love buying local handicrafts as souvenirs.
Mobile Car Wash
Offer a mobile car wash service.
People are often too busy to go to a car wash. Provide convenient car cleaning services at clients’ homes or workplaces.
Plant Nursery
Start a small plant nursery.
Grow and sell indoor or outdoor plants. There’s a growing trend of keeping indoor plants, and many people are looking for quality plants and advice on plant care.
Yoga Classes
Teach yoga in local parks or online.
Yoga is famous for maintaining health and wellness. Offer classes that cater to beginners or focus on specific needs, such as stress relief or flexibility.
Gift Basket Service
Create and sell gift baskets.
Offer custom gift baskets for special occasions like birthdays, festivals, or corporate events. Include locally sourced products to add a unique touch.
Bakery
Open a home-based bakery.
Sell baked goods like cakes, cookies, and bread. To attract more customers, offer custom cakes for special events.
Second-Hand Bookstore
Start a second-hand bookstore.
Buy and sell used books, either online or in a small shop. Many people love to find good books at affordable prices.
Home Cleaning Services
Offer professional home cleaning services.
Busy households often need cleaning help. Provide deep cleaning, regular upkeep, or specialized cleaning services to cater to different needs.
Tailoring and Alteration Services
Start a tailoring or clothing alteration service.
Many people need clothes tailored or altered to fit. You can offer customization, mending, and alteration services from your home or a small shop.
Home Bakery
Specialize in home-baked treats.
Create cookies, cakes, and other baked items to sell locally or online. Home-baked goods have a special appeal, especially if you focus on quality and customization.
Mobile Repair Service
Provide mobile phone repair services.
Many people face issues with their mobile devices. Offer convenient repair services, either from home or by visiting clients directly.
Computer Training Classes
Offer computer training for kids or adults.
Teach basic computer skills or specialized software development. This is a growing need as technology use increases across all age groups.
Home Decor Service
We offer home decoration, wedding planning, and organization services.
Many people want their homes to look great but lack the time or skills to do so. Help them decorate, organize, or stage their homes for events or selling purposes.
Car Rental Service
Start a car rental business.
Offer cars for rent on a daily or weekly basis. A well-maintained fleet can generate steady income for tourists and locals who need temporary transportation.
Beauty Salon
Open a beauty salon.
Provide services like haircuts, facials, manicures, and pedicures. Offering specialized beauty treatments can help you stand out in the market.
Gaming Lounge
Open a gaming lounge.
Gaming is popular among both teens and adults. Set up a space with multiple gaming consoles and offer a social environment for people to play games.
Pet Boarding Service
Start a pet boarding service.
Many pet owners need a safe place to leave their pets while away. Offer comfortable boarding services, including feeding, exercise, and grooming.
Organic Farming
Start an organic farm.
Grow organic vegetables and fruits to sell locally. There is growing market demand for organic produce, especially among health-conscious consumers.
Cooking Classes
Offer cooking classes from home.
Teach local cuisine or international dishes to interested individuals. Cooking classes can be offered in-person or online, making them flexible and scalable.
Freelance Writing
Become a freelance writer.
Offer content writing and web development services for websites, blogs, and small businesses. With good writing skills, this can be a flexible and profitable business idea you can do from anywhere.
Grocery Delivery Service
Start a grocery delivery service.
Many people prefer having groceries delivered to their door—partner with local stores to provide quick and efficient delivery services, especially for busy professionals.
Elderly Care Services
Offer elderly care services.
Help elderly residents with daily activities like shopping, cleaning, and cooking. With an aging population, this service is increasingly in demand and can be rewarding.
Tiffin Service
Start a tiffin delivery service.
Prepare and deliver home-cooked meals for office workers and students. This can be a profitable small-scale business idea, especially if you focus on healthy, affordable options.
Party Planning
Become a party planner.
Organize and plan parties for birthdays, anniversaries, and other celebrations. Offer a full range of services, including decorations, and catering services,, and entertainment.
Virtual Assistant
Provide virtual assistant services.
Help businesses or entrepreneurs with scheduling, email management, and customer service tasks. This flexible work-from-home opportunity is in high and ever-increasing demand and market demand.
Tamil Nadu plays a significant role in our country’s economy and is a highly industrialized state. Chennai is an excellent city for business and offers various government schemes to help new ventures.
The state government has introduced different initiatives to attract foreign and local investments to the tourism business. Here are some key government schemes for new companies in Chennai:
Agriculture Subsidy:
- Capital and employment-intensive business subsidies are available for agricultural businesses in all 385 blocks in Tamil Nadu.
[NEEDS] Scheme:
- This scheme aims to assist educated youth in becoming first-generation entrepreneurs. Eligible youth can get a capital subsidy of 25% of the project cost, up to Rs. 25 lakhs, for projects not exceeding Rs. 1 crore.
Capital Subsidy:
- Micro Manufacturing units investing in capital assets (plant and machinery) can receive a 15% capital subsidy on eligible machinery, up to a maximum of Rs.30 lakhs.
Employment Intensive Business Subsidy:
- Businesses set up in Backward Blocks of industrial estates promoted by the Government can get an additional capital subsidy of 5%, up to Rs.5 lakhs, if they employ at least 25 workers for a minimum of 3 years within the first five years from the commencement of production.
Moreover, the government has implemented several favorable policies to support business growth in Chennai:
Subsidies:
- Small businesses can provide financial assistance for infrastructure development to support their growth.
Infrastructural Development:
- The government invests in projects to improve transportation networks and power supply.
Single Window Clearance:
- Chennai has a streamlined system for licenses and permits, making it easier for businesses to start and operate.
Business Incubators and Accelerators:
- Start-ups and small businesses receive resources and support through these initiatives.
Tax Incentives:
- Businesses may enjoy reduced corporate tax rates and exemptions from certain taxes to encourage investment and growth.
Skill Development Programs:
- Support for skill development programs ensures access to a well-trained workforce.
With these government schemes and supportive policies, starting a new business in Chennai becomes a promising and rewarding venture.
FAQs (Frequently Asked Questions)
Q: Why choose Chennai for investment and business?
Ans: Chennai is an up-and-coming city in India to start a successful small business. It offers excellent infrastructure, a pool of untapped talent, a high literacy rate, and policies supporting small business ideas and owners regarding investment, taxes, and labor regulations. Choosing Chennai creates a favorable environment for your small business idea to thrive.
Q: How good is the Taxi Business in Chennai?
Ans: Chennai’s taxi business is profitable due to the city’s high population and huge demand for transportation services. With many people relying on taxis for their daily commute, it offers a great opportunity for a successful venture.
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