Lying in the Shiwaliks, the state of Himachal Pradesh is dotted with low-lying peaks, picturesque valleys, and thrilling treks, making it a tourist spot for all good reasons. The abundance of tourists, fertile soil, and rich culture make it a very good venue for businesses
It inspires many ideas and the views of the state make it a compelling factor that attracts millions of customers. Let’s look at what are some of the best businesses to start in Himachal Pradesh
Why Himachal Pradesh is a good location for business?
When you think of business the first question that arises in mind after confirming its niche is, where should be the business started? Here are some compelling factors that can make Himachal Pradesh a good location for a new business.
Growing Market
The state of Himachal Pradesh is bustling with tourists almost the whole year, apart from that the goods and agrarian products from the state are famous all around the country and also the world, expanding the volume of customers for a new business.
Refreshing environment
The fresh mountain air and the less polluted environment inspire everyone and it keeps the morale up in people. The never-ending enthusiasm and energy in the locals can be harnessed to create a better future for a new business and the state too.
Government Support
Since the ‘Make in India’ movement, the local government has extended a lot of its support and helped with a lot of resources for a new business in the state. The fact that Himachal Pradesh has a lot of potential to harness power through rivers has made it stand out and has brought the government to the attention of the public, which in turn has them lending support to the locals and new businesses.
Scope of the market in Himachal Pradesh
The market in Himachal Pradesh is diverse with customers ranging from locals to foreigners it offers many options to choose from as a new business.
- Tourism makes a huge chunk of the state’s economy providing a great and evergreen market to start a new business in.
- The second major quality of the state is highlighted with agriculture and horticulture. The quality of the produce is so good that it is famous worldwide too.
- Apart from that the state has many perennial rivers which can meet a quarter of the nation’s power requirements by using the hydropower generation system.
As the state develops many other market scopes open up in the area. They are only successful if one has the will and can gain local support too.
List of the best business ideas in Himachal Pradesh
1. Interstate Fruit Export
The state of Himachal Pradesh has the best produce of apples and almonds, along with other fresh fruits like plums and peaches. Exploring a fruit export business could be a great idea. The target areas could be nearby states and cities.
- Total Investment: 1-3 lakhs
- Resources: suppliers, transport company, trading permit, marketing contacts, etc
- Profit margin: 5-6%
2. Adventure Activities
Himachal Pradesh has many tourist spots and treks where people engage in adventure activities. An adventure company could be one of the best business ideas in Himachal Pradesh.
- Total Investment: 3-10 lakhs
- Resources: licenses, activity equipment, trained professionals, helping personnel
- Profit Margin: 10-12%
3. Tours & Travels
The hills in Himachal Pradesh offer picturesque views, thrilling treks, and many activities that amuse the tourists. Providing them with packages and assistance could be a very successful venture. Opening a tours and travel company will also help make a great business in the state
- Total Investment: 4-8 lakhs
- Resources: traveling facility, tour guides, local support
- Profit Margin: 10-20% per tour
4. Organic Farming
The land of Himachal Pradesh lies in the lower Himalayan ranges and it has very fertile soil and is very nutrient-rich for agriculture. The rising demand for organic food would be beneficial for an organic farming business
- Total Investment: 5-10 lakhs
- Resources: Farming land, farm equipment, seeds, manure, micronutrients
- Profit Margin: 20-60%
5. Souvenir Shop
As a tourist spot, many people visiting the state like to take souvenirs and gifts for their families or to remember their trip. This makes the idea of opening a souvenir or gift shop a plausible and profitable idea.
- Total Investment: 25000-10 lakhs
- Resources: attractive shop, helping assistance, souvenirs, etc
- Profit Margin: 40%
6. A Local Food Restaurant
The year-round pleasant weather of the state has attracted many people but so has the local delicacies. The state has its own culture of traditional food and dishes which are quite popular. It is a good idea if you plan on starting a restaurant in Himachal Pradesh.
- Total Investment: 50000-2 lakhs
- Resources: a restaurant space/food truck, chefs, serving materials, etc
- Profit Margin: 2-10%
7. Hydropower Plant
Many rivers flow through the steep mountains and valleys, and according to studies, it has the potential to harness 25% of India’s energy demands. if you are looking for a higher and more sustainable investment a hydropower plant is a good option. The government incentives like subsidies might also help.
- Total Investment: 5-9 crores
- Resources: machinery, engineers, technicians and scientists, power supply equipment, licenses, and permits, connection to the grid
- Profit Margin: 60%
8. Beverage Shop
Apart from food, the locals in Himachal Pradesh are also famous for making regional beverages, both alcoholic and non-alcoholic. They are quite famous and many people love those. It could be one of the best business ideas to start in Himachal Pradesh.
- Total Investment: 80000 to 2 lakhs
- Resources: recipes, raw materials, serving space, cutlery, servers
- Profit Margin: 2-10%
9. Packaging & Processing Unit
As mentioned earlier, the state of Himachal Pradesh is known for its fruits and vegetables so naturally a demand for sustainable packaging and food processing units arises. It is a very profitable business in a state like that and one can easily build a loyal customer base as agriculture is one of the main sources of income for the residents
- Total Investment: 7 lacs -1 crore
- Resources: supply chain system, machinery, helping hands, record-keeping assistance
- Profit Margin: 10-20%
10. Handicrafts Retail
Himachal Pradesh is also home to many artists who are very proficient in crafts like home decor and clothing. Tourists are always in awe of those and these handicrafts are always in demand. A handicraft business can also boost the art and culture in these areas.
- Total Investment: 1-5 lakhs
- Resources: a display space, eye-catching collection, computer
- Profit Margin: 20-40%
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11. Agriculture
As the population continues to rise in the country, so does the demand for food. Entering into the agriculture business could work out well. Himachal Pradesh’s fertile soil and fresh air are a good environment for the growth of several crops of fruits and vegetables.
- Total Investment: 15-25 lakhs
- Resources: seeds, farmland, herbicides, fertilizers, seeds, farming equipment
- Profit Margin: 5-15%
12. Bee-Keeping (Apiculture)
The fauna of the state is also a remarkable quality about it. The mountains are known to have a big bee population hence apiculture to produce fresh honey could work well in those areas
- Total Investment: 20000-1 lakh
- Resources: trained professionals, farming land, storage and safety equipment
- Profit Margin: 1.6-3 crore annually
13. Online Marketplace
Since the state has a lot of income generation by exporting and selling goods out of the territory an online marketplace could bring a lot of customers who are unable to access the specialty goods and it would also create more income and exposure for the locals of the state.
- Total Investment: 85000-1 lakh
- Resources: domains, IP protection, computers, developers, UI/UX designers
- Profit Margin: 20-50%
14. IT Training & Development
The state has a growing youth population and even though the basics are covered in schools, many are interested in learning more about the technical age and are eager to be a part of it too. This is a great business idea as it also helps in the moral cause of societal development.
- Total Investment: 5-10 lakhs
- Resources: teaching space, computers, software
- Profit Margin: 40-50%
15. Vegetable Export
Not only fruits, the vegetables in the hilly state are considered to be very fresh. Mushrooms are considered one of the specialties here. Even the world’s most expensive mushroom ‘Yartsa Gunbu’ is found in some of the hilly regions in the state
- Total Investment: 3-5 lakhs
- Resources: suppliers, packaging equipment, transportation, trading permits and licenses
- Profit Margin: 5-10%
16. Bike Rentals
The serene nature and the picturesque views attract many people to the state. Renting bikes is very popular among tourists and these could work well as a new business in Himachal Pradesh.
- Total Investment: 5-10 lakhs
- Resources: Bikes, safety equipment, a shop, computer, printer
- Profit Margin: 30-40%
17. Boutique Hotels/ Bed & Breakfasts
As a tourist’s favorite the problem of overbooking is very common in hotels and during peak season many people struggle with accommodation. There is a great market opportunity if you open a boutique hotel or bed and bed breakfast on an already-owned property
- Total Investment: 5 lakhs – 1 crore
- Resources: A hotel property, food preparation and serving facility, licenses and certificates
- Profit Margin: 20-40%
18. An Ayurvedic Medicine Shop
The rich flora of the hills is also rich in medicinal herbs and plants. The area of Ayurvedic medicine requires these plants regularly as cures. An ayurvedic medicine shop could be a good business as there is easy availability of raw materials
- Total Investment: 20-30 lakhs
- Resources: a shop, medicinal plants, preparation knowledge, packaging
- Profit Margin: 25-30%
19. Yoga Retreat Centre
Yoga is all about learning to control and unlock the abilities of the human body, if done in a serene environment it is even more relaxing and beneficial. A yoga retreat center could offer a reprieve for both the locals and the tourists from the hustle and bustle of the world
- Total Investment: 2-5 lakhs
- Resources: a center, equipment for exercise, a trainer
- Profit Margin: 5-25%
20. Woolen Garments Manufacture
The state of Himachal Pradesh is also very famous for its woolen clothes, making it a prospect for new business. It can also work very well as the harsh weather recurs every year and the demand never goes out.
- Total Investment: 20-25 lakhs
- Resources: machinery, technicians, woolen clothes
- Profit Margin: 5-10%
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Conclusion
Himachal Pradesh is a state of valleys, hills, and rivers, it is also a very big tourist spot and an agriculture hub of the nation. The state has a variety of options for starting a new business.
The market in Himachal Pradesh is ever-growing and is very diverse allowing people to tap into many avenues for business. It has a good and supportive local public which is always full of life. The youth in the state are in growing numbers making it a plausible workforce for any future company. The revenue generated in the state comes from export, tourism, and agriculture making them the most targeted venue for business.
There is a range of business ideas for both higher and lower investment options. In the higher investment options, there can be a hydropower plant business and other renewable energy avenues that can be explored. The lower investment options have more options like cafes, beverage carts, interstate agriculture exports, etc
Many businesses are possible in the state but along with a new market there is always competition too but the right circumstances and smart moves can always overpower competition too.
FAQs
Which business is the most profitable in Himachal Pradesh?
Businesses in the sectors of tourism, agriculture, and hydropower are some of the most profitable sectors of business. These businesses are in high demand and are more likely to succeed in the state.
What is the main business in Himachal Pradesh?
Agriculture is the main business in Himachal Pradesh followed by tourism. The recent economic reports show an agricultural export of approximately 6000 crore from the state. Many locals earn their livelihood from business
What is unique in Himachal Pradesh?
The weaving, chiseling, and carving art in Himachal Pradesh is highly praised and loved by people around the world. These handicrafts are loved by both locals and tourists alike.
How do you start a business in Himachal Pradesh in one lakh?
There are many low-investment options like cafes, food carts, and beverage shops that can be opened with low-investment. Agriculture businesses like beekeeping also have some good low-investment options
What business returns a high profit margin in Himachal Pradesh?
Many businesses like bee-keeping or online marketplaces give the highest returns. But, any business can give good profit if the right marketing and customer retaining skills are incorporated.
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