It is the capital of the state of Telangana in southern India. It is also the biggest city in that state, with an area of approximately 650 square kilometers. The state is popularly known as the “City of Nizams” and is basically known for its vibrant history, rich legacy, and economic importance to Telangana. For the fact that this city has a long history of being the center of the world trade for large diamonds, emeralds, and natural pearls, Hyderabad is more famously known as “The City of Pearls.”
Hyderabad has strong links to commerce and entrepreneurship besides being a historical and cultural monument. Let’s look now at what makes Hyderabad a very good city in which to start a business venture, what the best kind of venture it would be to start there and what are the small business ideas in Hyderabad.
Why Hyderabad is a good city to start a small business in 2025?
The capital of Telangana, Hyderabad, has been famous for its tourism, education, and traditional industrial sectors. Since 1591, Hyderabad has been in the limelight for international trade and commerce, and it used to be the only diamond market in the world. Moreover, until the rule of Nizam in the 1930s, the city’s growth as an industrial town complemented and grew simultaneously along with the growth of traditional industry.
1. Economy of Hyderabad
Hyderabad has got the maximum number of Special Economic Zones-If you did not know it, then now is your turn. A third of the state’s income, approximately 9.2 billion dollars, came from the city alone in 2011. The city also ranked 93rd globally and sixth in India by importance as a city having generated a GDP of 74 billion dollars in the year 2021.
2. Life Quality
The city was ranked as the second most active city in the World Economic Forum’s 2019 JLL’s City Momentum Index. Hyderabad has also won three Smart Cities India awards: startup, intelligent waste disposal, and green and clean city. The awards were given by the India Trade Promotion Organization at the 6th Smart Cities India Expo. The city has been performing well, retaining its position among the top five cities in India for the sixth consecutive year.
3. Infrastructure
Hyderabad has an impeccable blending of modern and ancient design. With the excellent rail, road, air, and water connectivity of the city, businesses can reach out to the rest of the world with much more convenience. Besides, Telangana is the second most significant generator of solar energy in the country. The state of Telangana has laid immense focus on renewable sources of energy and has a solar potential of about 20.41 GW and a wind potential of around 4.2 GW.
4. Government Policies and Support:
The Government of Telangana has been putting in effort to extend support to the small enterprises in the area. They wish to do this by introducing the Open Network for Digital Commerce platform, which shall permit small shops to actively participate in the e-commerce industry.
5. A Fast-Growing IT Industry
Do you know that Hyderabad is also called Cyberabad or Cyber City? It houses various international centers of information technology: business process outsourcing, financial services, entertainment, and IT-enabled services.
Top 15 Small Business Ideas in Hyderabad
1. Business of South Indian Cafes
Due to its unique taste and mild flavor, South Indian cuisine is spread across the country. Idli, dosa, appam, and uttapam are the staple foods of the southern Indian population, which is very popular due to their healthy contents. Hence, a South Indian Café is one of the best small businesses in Hyderabad.
- Investment: up to: ₹20 lakhs maximum.
- Resources Required: Raw Materials, Packaging Supplies, Skilled Staff, Shop, Machinery, FSSAI license, etc.
- Market Demand: The food services industry of India is going to grow with an 11.19% CAGR up to the year 2028. In the Indian Food Service, cities like Hyderabad and Chennai add INR ₹9266 crores only as shown in the NRAI report 2019.
- Margin Of Profit: 2.5 To 85 %.
2. Tailoring Business
Though the ready-made garments business has developed over the recent years, the comfortable and uniquely tailored clothes made by tailors are unmatched. In Hyderabad, tailoring could hence be a low-cost interesting, and profitable small business idea.
- Investment: Between 10,000 to 5,000 rupees.
- Resources Required: License; shop, location, and space; stitching and sewing tools; storage place; benches and seats; experienced staff; hangers of clothes; irons and iron boards; cleaners; mirrors, etc.
- Market Demand: The tailoring industry of India is at a growth rate of 12% annually. At this time, the market share is ₹27000 crores.
- Margin of Profit: 30% to 60%.
3. Center for Biriyani
Hyderabad’s rich cultural heritage includes biryani. This delicious food has a royal flavor that will allure the taste buds of every Indian. According to data, in the last year, 2.28 plates of biryani were ordered per second on popular food applications. You can, therefore, construct a small biryani center in any busy area of the city with a few employees.
- Investment: ₹15 lakhs to ₹1.6 crore.
- Resources Required: include licenses, raw materials, utensils, storage space, containers, tables and seats, and staff with proper training.
- Market Demand: The Indian food service industry is set to grow at a CAGR of 11.19% and reach a market size of ₹6.5 lakh crores by 2028.
- Margin of Profit: 30% to 50%.
4. Disposable Plates and Cups
Due to the adverse changes that excessive usage of plastic has brought to the ecosystem, people are slowly shifting to eco-friendly products. Along with being one of the best small business ideas in Hyderabad, the disposable cup and plate business will contribute to keeping the environment clean as well
- Investment: ₹ 8 – ₹ 10 lakh
- Resources Required: license, equipment, supply of essential machinery, storage space, a shop or place, reliable sellers, etc.
- Market demand: The Indian Disposable Paper Cup market will see an outstanding CAGR of 2.87% from 2021 to 2026
- Margin of Profit: 39%
5. Candle Making Business
Candles have an ever-increasing demand in almost all States of India. Candles can also be used to decorate a home for elegance. Hence, opening a candle-manufacturing unit could serve as one of your best options to pursue a small business in Hyderabad.
- Investment: ₹ 25,000 – ₹ 5 lakhs
- Resources Required: License, business or place, raw materials in the form of wax, colors, fragrances, trustable employees, packaging material, a neat website, social media accounts, distributors, etc.
- Market demand: The candle-making market of India is anticipated to grow with a phenomenal CAGR of 4.81% from 2023 to 2027. The market value for this segment was estimated at ₹25000 crores.
- Margin of Profit: 30% to 45%
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6. Handicraft Business
The handicrafts of Hyderabad are a marvelous example of skill and finesse. The exquisite patterns of Filigree, Kalamkari, and Bidriware handicrafts are cherished possessions among people across the world. These gaudy handicrafts are of great value on the international market as well. So, you can consider initiating a home-based handicraft business if you are looking for a low-investment business in Hyderabad.
- Investment: ₹10000-₹30,000.
- Resources Required: The resources include but are not limited to a license, a store, a location, raw materials, storage space, coloring and packaging materials, a website, social network handles, and trained personnel.
- Market Demand: The Indian handicraft industry is expected to grow at a CAGR of 7.7% from 2023 to 2028.
- Margin of Profit: 13.54%.
7. Chocolate Making
Chocolates are the weakness of every Indian because they arouse nostalgic feelings due to their warm and pleasant nature. People always prefer having branded chocolates, but handcrafted chocolates have a different taste and are sought after greatly. This can be a very gaining and enthusiastic venture for those who seek small business ideas in Hyderabad.
- Investment: ₹4-₹6 lakhs.
- Resources Required: One can say that resources include a license, raw materials comprising dairy products, cocoa powder, sweeteners, wrapping materials, an interesting website, active social media accounts, trustworthy distributors, etc.
- Market demand: The Indian Chocolate Market is expected to grow from 2023–2028 at a CAGR of 8.8%. By 2028, this industry would have a market value of ₹33 thousand crores because of its prolific rate.
- Margin of profit: 8% to 10%.
8. The Meat Shop
Chicken and mutton are the two most consumed meats in Hyderabad, apart from other available ones. Hyderabadi biryani would also not be complete without tender chunks of chicken and delicious mutton curry. Hence, a meat shop will give you giant returns.
- Investment: from one to two lakhs of rupees.
- Resources Required: license, shop/location, sheep/goats and poultry, killing tools, packing materials, skilled workers, benches, seats, etc.
- Market Demand: The Indian meat market is bound to surge at a CAGR of 10.61% from 2023 to 2028. This sector alone has accounted for nearly 2.6 lakh crores at present.
- Margin of Profit: 50%.
9. Tour Operator
Hyderabad, the city of pearls, attracts thousands of tourists every year with its rich art and culture. Statistics say the footfall in Telangana is likely to increase by 20% in the year 2023. Thus, starting a travel company in the city can be very profitable.
- Investment: Up to three lakh rupees
- Resources Required: License, office space, computers, fax machines, printing devices, reliable employees, etc.
- Market Demand: The Indian industry of travel and tourism is estimated to be more than ₹15 lakh crore. This industry is expected to grow by 13.47% by 2027 due to its fast development.
- Margin of Profit: 10% to 15%.
10. Pearl Company
Hyderabad, commonly called “The City of Pearls, offers world-class white pearls and uses it impeccably with the expertise of craftsmen while designing beautiful decoration pieces. Thus for exquisite pearl ornament shoppers here exists a great marketplace to sell your jewel products. Persons hunting for the lowest-investment businesses in Hyderabad may start developing their latent artistic skills by offering processed pearls-a Hyderabadi beauty into an economically attractive company.
- Investment: A maximum of ₹20 lakhs can be invested.
- Resources required: license, pearls, threads, packing supplies, shop or office, storage space, trustworthy employees, etc.
- Market Demand: The global pearl ornaments market is set to grow at a CAGR of 13.2% during the period 2022-2031 and reach a market value of ₹3.4 lakh crores.
- Margin of Profit: 42%–47%.
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11. Cake Decorating Company
Freshly baked cakes happen to be in immense demand since they are the key ingredients in any event, celebration, and occasion. Those fond of baking may consider setting up a small urban bakery. This business doesn’t require huge initial investments and may easily be initiated from home also.
- Investment: ₹5 – ₹10 lakhs.
- Resources required: license, containers and utensils, raw ingredients like dairy products, sugars, sweeteners, and fresh cream, a microwave, mixers, packaging supplies, delivery personnel, a store or site, storage space, etc.
- Market Demand: The Indian cake market sector is set to grow at a CAGR of 12.5% from 2023 to 2028.
- Margin of Profit: 29% to 40%.
12. Pharmaceutical Drug Industry
Hyderabad Pharma City is an ambitious undertaking initiated by the government of Telangana which will raise a new bar for the pharmaceutical industry in India. Thus, aspiring entrepreneurs looking forward to small business ideas in Hyderabad may consider opening a pharmacy in Hyderabad that has the potential to bring huge profits.
- Investment: ₹3-₹4 lakhs.
- Resources Required: A pharmacy with a drug license, a shop or office, good suppliers of drugs, space for storage, tables, chairs, and other fittings. Employees must be qualified and experienced to handle the business.
- Market Demand: The retail pharmacy industry in India is growing at 44.44% CAGR. At this growth rate, the market value for the segment will rise to ₹317.87 billion by 2026.
- Margin of Profit: 16%-22%.
13. Daycare Industry
Hyderabad is a busy city, having the majority of the population working around. Taking care of their children while they go to work may be a tough task for working parents. Thus, a daycare center in Hyderabad may see a large payout in no time.
- Investment: between ₹ 30 and ₹ 40 lakhs
- Resources Required: a license, real baby food items, warm beds, assistants and cleaners, food supplies, toys, toiletries, baby silverware, space, medical kits, personnel, etc.
- Market Demand: Social institutions have rapidly changed, and because of that, the number of working women is increasing. Therefore, childcare in India was able to mark 23% CAGR till 2022. The market is valued at ₹ 13000 crores.
- Margin of Profit: 5% to 15%.
14. Homestays & PG Business
Migrants from other states make up about 67% of Hyderabad’s overall population. The city has experienced rapid expansion in recent years, emerging as a major IT hub that draws thousands of visitors from throughout the nation. Therefore, you might rent out empty rooms in your rooms to paying visitors if you’re searching for a small investment business in Hyderabad.
- Investment: ₹1–20 lakhs.
- Resources Required: Include a license, electricity, clean, well-furnished rooms, a water supply, geysers, personnel, assistance, optional furnishings, etc.
- Market Demand: The demand for rental properties has increased by 10% to 20% in India’s technologically advanced cities.
- Profit of Margin: 50%.
15. Cooking Class
In the twenty-first century, both men and women learn to cook and consider it a necessity rather than a luxury. The tremendous cooking skills possessed by many people in Hyderabad need to be learned by taking cooking lessons. These skilled people can easily start a class from home and earn a considerable amount of money. You can help others who would want to know how to cook or join cookery classes with your innovative ideas and tips.
- Investment: ₹50,000 to ₹1 lakh.
- Materials/Equipment: social media handles, microwaves, gas, and raw ingredients such as meat, veggies, spices, sauces, containers, and cutlery.
- Market Demand: Indian Cooking Classes have tremendous scope for development in the Indian market. The market will see growth at a CAGR of 18.9% from 2021 to 2029.
- Profit Margin: As high as 80%.
To sum up
Hyderabad is a perfect city to stay, visit, or establish your firm. All it requires is an entrepreneurial passion and an investment accompanied by a business idea. We guarantee you that one of the good company startup ideas has been presented to you. What has remained to be done now is just building your company. Good luck then!
Frequently Asked Questions
1. What business can be started in Hyderabad?
The most rewarding industries in Hyderabad for starting a new business include affiliate marketing, tourism, car rentals, event planning, manufacturing, and IT consulting, among many others.
2. What are the most lucrative small businesses?
The most lucrative small businesses include dropshipping, house leasing, online course offerings, bookkeeping, graphic designing, and digital agencies, among many others.
3. Which Hyderabad neighborhood is ideal for business?
The greatest place to do business in Hyderabad is HITEC City.
4. How can I, within my means, advertise my business in Hyderabad?
Though considered sometimes to be very expensive, ads can be created with a minimum effort and without any extra finances. You also have the same digital services in Hyderabad through which you can promote your products and services via social media. Another innovative way of showing your products is creating a website.
5. Who exactly can be defined as my target audience based in Hyderabad?
Establishing who your target market is when starting a business is one of the most crucial things to be done. You will have to conduct ample research and closely look into the trends. You will also have to study the strategies and USPs of the competition.
