25 Most Profitable Businesses With Least Investment in India
In this article, we will take a look at the 25 most profitable businesses with least investment in India. If you want to skip our detailed analysis, you can go directly to 5 Most Profitable Businesses With Least Investment in India.
The Growing Indian Economy: At a Glance
According to the World Bank, India is one of the fastest-growing countries in the world. The country is expected to reach a high middle-income position by 2047. India's real GDP bounced back stronger after the effects of COVID-19 during the fiscal year 2021 subsided. For the fiscal year 2022 to 2023, India's real GDP expanded at an estimated 6.9%. Such was particularly due to the rising domestic demand supported by the increasing investment in government initiatives. However, Q3 fiscal year 22/23 suggests a slowdown in overall growth coupled with inflationary pressures and tightening financial conditions, which may ultimately weigh on the country's economic position in fiscal year 23/24. As the report suggests, Real GDP in India may fall to 6.3% in fiscal year 23/24 from the estimated 6.9% in FY 22/23.
On November 22, Reuters reported that the Indian stock market is expected to hit new highs over the next six months and rise by almost 10% by the end of 2024. The report also highlights that while the BSE index has been rising in 9 out of 10 years, such makes the market expensive compared to other regions and prominent indices. Despite that, 90% of the analysts hint towards massive growth in the Indian economy over the next 6 months. Additionally, the Indian economy may grow by 6% over the next few years. The increasing investment by youngsters has been a prominent factor contributing to the rising domestic equity prices. The report also highlighted that earnings by the corporate sector enhanced by 20% this year.
Prominent Names in the Indian Market
Large companies play a major role in shaping the country's economic growth. HDFC Bank Limited (NYSE:HDB), ReNew Energy Global Plc (NASDAQ:RNW), and Sify Technologies Limited (NASDAQ:SIFY) are some of the most prominent companies in India. You can also check out some of the most valuable companies in India.
HDFC Bank Limited (NYSE:HDB) is a financial services company based in Mumbai, India. The company is one of the largest private-sector banks in the region. On October 23, HDFC Bank Limited (NYSE:HDB) launched a self-service digital banking platform, "XpressWay." The platform is aimed at enhancing the speed at which financial services are provided to customers, while also going paperless. The new platform offers a range of services, including personal loans, business loans, car loans, home loans, loans on cards, credit cards, and savings accounts, to name a few. Customers can also manage their nominees, update personal details, and make requests through the platform. You can also check out some of the largest Indian banks by assets.
ReNew Energy Global Plc (NASDAQ:RNW) is one of the largest renewable energy companies based in Gurugram, India. The company currently has 13.7 GW of commissioned and pipeline utility-scale projects. On November 16, ReNew Energy Global Plc (NASDAQ:RNW) announced the successful commission of the company's first interstate transmission scheme. The Norwegian Climate Investment Fund, managed by Norfund, and KLP, a pension company in Norway, funded the project. The two signed to invest almost $9 million with a 49% stake in the project to be carried out in Gadag District. ReNew Energy Global Plc's (NASDAQ:RNW) first interstate transmission project, "Koppal Transmission Scheme," will be able to transmit 1.5 GW of renewable energy in Koppal.
Wipro Limited (NYSE:WIT) is an information technology company based in Bengaluru, India. The company engages in the provision of information technology, consultancy, and business processing services. On November 21, Wipro Limited (NYSE:WIT) announced its collaboration with NVIDIA Corporation (NASDAQ:NVDA). The collaboration will help healthcare companies fuel the use of generative artificial intelligence through AI-driven products and services. Wipro Limited (NYSE:WIT) will use the NVIDIA AI Enterprise software to produce AI-driven products and services for its healthcare portfolio. The portfolio spreads across the Affordable Care Act (ACA), Medicare, and Medicaid. The system will enhance the member experience and improve enrolment.
Without further ado, let's now take a look at the 25 most profitable businesses with least investment in India.
25 Most Profitable Businesses With Least Investment in India
Our Methodology
Our title, 25 most profitable businesses with least investment in India, entailed a thorough research and data-driven process. We first began our research by reading reports, including Oflox and LIO Blog, to better understand the market. We then sourced data from NYU Stern for industry-wise aggregated capital costs and net margins. We first tabulated the average capital costs/expenditure by dividing the aggregate capital costs/expenditure in an industry by the number of firms involved in the database to give us a rough estimate of the average investment made by a business. We then used the average capital costs/expenditure to shortlist the top 50 industries with the least investment. Then, we sourced the corresponding net margins for our initial data pool to come up with the 25 most profitable businesses with the least investment in India. The list of the 25 most profitable businesses with the least investment in India is in ascending order of the net margins. It is to be noted that the data is for the year ended 2022. We have also mentioned the relevant, profitable business ideas with the least investment in the list paragraphs.
25 Most Profitable Businesses With Least Investment in India
25. Electronics
Industry Net Margin (2022): 6.74%
Some of the most profitable business ideas with least investment in the electronics industry include electronics repair and maintenance services, electronics recycling, electronics distribution, electronics testing and certification, and electronics marketing. The average capital expenditure by a business in the electronics industry was valued at $2.1 million in 2022.
HDFC Bank Limited (NYSE:HDB), ReNew Energy Global Plc (NASDAQ:RNW), and Sify Technologies Limited (NASDAQ:SIFY) are some of the largest companies in India by market cap.
24. Office Equipment and Services
Industry Net Margin (2022): 6.77%
According to our methodology, the office equipment and services industry consists of the most profitable business ideas with least investment, with an average capital expenditure of almost $860,000 in 2022. Some of these include renting office equipment, office supplies distribution, office cleaning services, office relocation services, office furniture repair services, and office support services.
23. Business and Consumer Services
Industry Net Margin (2022): 7.21%
With an industry net margin of 7.21% and average capital expenditure of almost $2.44 million in 2022, the business and consumer services industry consists of some of the most profitable businesses in India. Some of the most profitable business ideas with least investment in the business and consumer services industry include virtual assistant services, personal training, pet sitting services, tutoring, freelancing, cleaning services, and laundry services.
22. Steel
Industry Net Margin (2022): 8.42%
The steel industry itself is a high-cost industry, however, there are a range of cheaper business opportunities in the industry. Some of the most profitable business ideas with the least investment in the steel industry include steel recycling, steel construction services, steel furniture manufacturing, and steel wire and cable manufacturing to name a few. The steel industry had an average capital expenditure of almost $38.23 million in 2022.
21. Paper Products
Industry Net Margin (2022): 8.63%
According to our methodology, the paper products industry consists of the most profitable business ideas with the least investment, with a net margin of 8.63% and an average capital expenditure of $7.67 million in 2022. Some of these include custom paper printing services, greeting card design and printing services, paper recycling, paper product distribution, and paper bag manufacturing.
20. Publishing and Newspapers
Industry Net Margin (2022): 8.83%
The publishing and newspaper industry, with a net margin of 8.83% and average capital costs of $900,00 in 2022, consists of some of the most profitable businesses in India. Some of the most profitable business ideas with least investment in the publishing and newspaper industry include content creation, self-publishing, blogging, online writing and editing, social media management, and copywriting to name a few.
19. Beverage
Industry Net Margin (2022): 8.84%
Some of the most profitable business ideas with the least investment in the beverage industry include starting a craft brewery business, beverage distribution, event catering, beverage delivery services, and online selling of beverages to name a few. The average capital expenditure in the beverage industry was $6.99 million in 2022.
18. Machinery
Industry Net Margin (2022): 8.98%
According to our methodology, the machinery industry consists of profitable business ideas with least investment, with an average capital expenditure worth $2.45 million in 2022. Some of these include industrial machinery repair services, machine tools sales services, industrial consulting, and 3D printing services.
17. Healthcare Products
Industry Net Margin (2022): 9.94%
Some of the most profitable business ideas with the least investment in the healthcare products industry include starting a medical equipment rental business, a medical supplies distribution business, and a medical laboratory technician services business to name a few. The average capital expenditure in the healthcare products industry was $2.22 million in 2022.
16. Chemical
Industry Net Margin (2022): 10.01%
The chemical industry is a large and expensive industry. However, there are multiple business ideas in the chemical industry that do not require large investments. According to our methodology, the chemical industry consists of the most profitable business ideas, with an industry net margin of 10.01% and an average capital expenditure of $12.80 million in 2022. Some of these include chemical distribution, chemical consulting, chemical education and training, industrial cleaning, and cosmetics manufacturing.
15. Drugs (Pharmaceuticals)
Industry Net Margin (2022): 10.14%
Some of the most profitable business ideas with the least investment in the drugs pharmaceutical industry include medical writing, pharmaceutical sales and marketing, pharmaceutical consulting, and pharmaceutical education and training. The drugs (pharmaceuticals) industry is large and usually demands hefty capital costs to start. However, you can check out some of the business ideas listed above that require minimal investment. The average capital expenditure in the drugs (pharmaceuticals) industry by a business was almost $14.02 million in 2022.
14. Metals and Mining
Industry Net Margin (2022): 10.39%
According to our methodology, the metals and mining industry consists of the most profitable business ideas with least investment. Some of these include scrap metal recycling, metal fabrication, metal refining, and mining safety and training to name a few. The average capital expenditure in the metals and mining industry was valued at $84.38 million in 2022. Such may indicate that starting a business in the metals and mining industry is expensive, however, there are a range of business ideas highlighted above that do not require hefty costs.
13. Power
Industry Net Margin (2022): 11.30%
The power industry is an expensive industry. However, there are multiple business ideas in the power industry that demand minimal investment. Some of the most prominent business ideas with least investment in the power industry include smart grid technology development, energy consulting, battery storage system installation, and renewable energy solutions. The average capital expenditure in the power industry was valued at $319.25 million in 2022.
12. Broadcasting
Industry Net Margin (2022): 11.56%
Some of the most profitable business ideas with least investment in the broadcasting industry include blogging, podcasting, social media influencing, consultancy, and public speaking. The average capital expenditure in the broadcasting industry by a business was valued at $10.74 million in 2022.
11. Healthcare Support Services
Industry Net Margin (2022): 13%
The healthcare support services consist of some of the most profitable business ideas with the least investment, with an average capital expenditure of $1.95 million in 2022. Some of these include medical transcription services, home healthcare services, and specialist services.
10. Software Applications
Industry Net Margin (2022): 13.60%
The software applications industry is one of the fastest-growing industries in India. Some of the profitable business ideas with least investment in the software industry include freelance web development services, customer service, virtual assistance, data entry, mobile development, and software development to name a few. The average capital expenditure in the software applications industry was valued at $1.95 million in 2022.
9. Home Furnishings
Industry Net Margin (2022): $13.87%
There are a range of profitable business ideas that require minimal investment in the home furnishings industry. Some of these include making custom furniture, home decor products and accessories, cleaning and decluttering services, and interior design services to name a few. The average capital expenditure in the home furnishings industry was valued at $5.40 million in 2022.
8. Computer Services
Industry Net Margin (2022): 14.78%
Some of the most profitable business ideas with least investment in the computer services industry include providing web development services, IT consulting, establishing computer learning centers, IT support, and cloud computing services to name a few. The computer services industry reported an industry net margin of 14.78% and an average capital expenditure worth $11.77 million in 2022.
7. Advertising
Industry Net Margin (2022): 15.21%
According to our methodology, advertising consists of some of the most profitable business ideas with least investment in India. Prominent business ideas include social media advertising, pay-per-click advertising, SEO consultancy, content marketing, content freelancing, and influencer marketing. The average capital expenditure for a business in the advertising industry in 2022, was almost $940,000.
6. Healthcare Information and Technology
Industry Net Margin (2022): 15.71%
Some of the profitable business ideas with least investment in the healthcare information and technology industry include providing healthcare marketing and consulting services, healthcare data analytics, medical billing services, and the development of mobile health apps. The average capital expenditure in the healthcare information and technology industry was valued at $17.54 million in 2022.
Some of the best Indian stocks to buy according to hedge funds include HDFC Bank Limited (NYSE:HDB), ReNew Energy Global Plc (NASDAQ:RNW), and Sify Technologies Limited (NASDAQ:SIFY).
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Disclosure: None. 25 Most Profitable Businesses With Least Investment in India is originally published on Insider Monkey.