manufacturing business in Kerala manufacturing business in Kerala

15+ Profitable Manufacturing Business in Kerala

Because of its high literacy rate and entrepreneurial spirit, Kerala is fast emerging as an industrial manufacturing business in Kerala. There is a great demand for Kerala products, increased awareness of environmental issues, and government support for small-scale industries, making it a golden opportunity for such entrepreneurs to dive into various manufacturing avenues in this state. 

In this article, we shall look into the manufacturing business in Kerala, which speaks about profitable yet small-scale industry-appropriate ideas that require some significant investment from the entrepreneur. The guide will provide adequate knowledge and inspiration to start your venture in God’s Own Country.

For more information: Business Ideas and Investments Opportunities

Why Start a Manufacturing Business in Kerala?

Before looking into the various business ideas, let’s have a look at why setting up a manufacturing business in Kerala would be a good choice:

  • Government support: Kerala’s industrial policy strongly supports small scale industries in Kerala.
  • Skilled labor: High literacy rate plus an efficient workforce combine for effective operations.
  • Abundant resources: Easy access to natural and agricultural resources.
  • Growing market: Increased local consumption and demand on quality products.

Read all related article: NPCS blogs

Top 15+ Small Scale Manufacturing Business in Kerala 

Here are the top business ideas you can explore under the manufacturing business in Kerala category:

1. Coconut Oil Manufacturing

Kerala is the land of coconuts, making coconut oil production one of the most viable small scale industries in Kerala. It requires minimal investment, and a local and international market always demands it. 

2. Spice Processing and Packaging

Kerala is famous for its spices. Setting up a spice grinding and packaging unit can be a profitable manufacturing business in Kerala due to high export potential and domestic usage.

3. Banana Chips Manufacturing

This traditional Kerala snack enjoys widespread popularity. Banana chips manufacturing requires small machinery, making it a perfect fit for small scale industries in Kerala.

4. Ayurvedic Product Manufacturing

Kerala is world famous for Ayurveda. Manufacturing of herbal oils, creams, and medicines is a great manufacturing business in Kerala with viable opportunities for export. 

5. Rubber Products Manufacturing

Given that rubber plantations are widely available, the manufacturing of rubber goods such as gloves, bands, or mats becomes an attractive opportunity among small scale industries in Kerala. 

6. Paper Bag Manufacturing

With legal curbs placed increasingly on plastic, paper bag manufacturing has gained momentum. It is ecological, needs low investment, and is one of the fastest-emerging small industries in Kerala.

7. Coir Products Manufacturing

Kerala is the top producer of coir in India. Making mats, ropes, brushes, and handicrafts from coir is a sustainable manufacturing business in Kerala that supports rural employment. 

8. Handmade Soap Manufacturing

Consumers are now leaning toward natural and handmade soaps. You can start a soap production unit with herbal ingredients under the small scale industries in Kerala framework. 

9. Pickle and Food Processing

Traditional Kerala pickles and snacks have a huge demand both within and outside the state. Setting up a food processing unit is a highly profitable manufacturing business in Kerala.

10. Bamboo and Wood Craft Manufacturing

Kerala’s artisanship is renowned. With access to bamboo and wood, you can produce eco-friendly crafts and furniture—a top trend in small scale industries in Kerala.

11. Bakery Products Manufacturing

Kerala has a thriving bakery culture. Setting up a unit to manufacture cookies, bread, and cakes offers consistent returns in the manufacturing business in Kerala sector.

12. LED Light Manufacturing

With increasing awareness around energy efficiency, LED lights are in demand. A small unit can be set up easily, making it one of the most promising small scale industries in Kerala.

13. Disposable Cutlery Manufacturing

With Kerala’s eco-friendly initiatives, there’s demand for biodegradable products. Making plates, spoons, and cups from areca leaves or paper is a trending manufacturing business in Kerala.

14. Detergent Powder and Liquid Manufacturing

Cleaning products have regular demand. Producing detergents and liquids can be a budget-friendly option for small scale industries in Kerala.

15. Furniture Manufacturing

Woodworking and custom furniture units cater to the real estate and tourism industry. This traditional trade remains a powerful manufacturing business in Kerala.

16. Incense Stick (Agarbatti) Manufacturing

Widely used in temples and homes, incense stick manufacturing is a low-cost, high-demand business—ideal for small scale industries in Kerala.

17. Water Bottling and Packaging

With increasing concern for safe drinking water, a bottling unit is a scalable manufacturing business in Kerala, catering to rural and urban public. 

Project Reports: Best Business Opportunities in Kerala

Key Tips for Starting a Manufacturing Business in Kerala

Starting a business in Kerala entails some strategic planning. Here are tips to help you achieve the success:

  • Market Research: Assess the demand for your product in the local as well as export markets.
  • Legal Compliance: Register your unit and comply with local regulations for small scale industries in Kerala.
  • Funding Options: Avail government subsidies and MSME loans.
  • Technology: Invest in machinery to improve production and quality. 

Government Support for Small Scale Industries in Kerala

The government of Kerala has extended support to entrepreneurs by several means, such as:

  • Kerala State Industrial Development Corporation (KSIDC)
  • Kerala Financial Corporation (KFC)
  • Single Window Clearance Board
  • Subsidies for manufacturing business in Kerala

With this spirit of support, the entrepreneurial voyage across Kerala is made easier for entrepreneurs, ensuring their success in the long run.

Youtube Video: Best Business to Start in Kerala, India.

Conclusion

In today’s transforming economy, starting a manufacturing businesses in Kerala sounds like a fantastic idea. Be it food processing, Ayurvedic products, or green goods, the options are endless for the small-scale sector in Kerala. 

If you are ready to take the plunge into entrepreneurship, the following ideas will give you a head start. Focus on quality, sustainability, and innovation as differentiators in Kerala’s fiercely competitive market.

 

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