Initiating a distribution business in India is a very lucrative and profitable option for aspiring entrepreneurs. In addition to that, the business demands comparatively less capital investment than manufacturing operations. Here in this article, we intend to provide the best distribution business ideas and opportunities currently available.
Initiating a wholesale distribution company demands right planning and proper inventory management. Also, selecting the right product is crucial. Generally, the success of a distribution company depends on the local market demand, product promotion, and customer service. In starting this type of business, you must choose a product that has buyers in your territory.
List of 30 Most Profitable Distribution Business Ideas
#1. Agriculture Equipment Distribution
The agriculture equipment segment has a huge potential in retail distribution. And there is the number of manufacturing and import companies who look for distributors for the specific regions. Some of the most popular items are farm machinery, hand tools, etc.
#2. Agrochemical Distribution Business
Generally, agrochemical includes a wide range of products. The list includes fertilizer, nutrients, growth promoters, pesticides, insecticides, fungicides, etc. And fertilizer distribution is a highly lucrative opportunity that one can consider. However, metro cities are not the preferred locations for this business.
#3. Apparel & Textile
This is another lucrative segment for entrepreneurs who are looking for wholesale distribution opportunities. Broadly, the industry caters to textiles, threads, sewing supplies, safety clothing, upholstery, readymade garments, footwear, accessories, etc. However, if you want to initiate a business in this segment, you must have specific knowledge about the industry.
#4. Arts & Crafts Distribution Business
Actually, art and craft segments cater to a wide range of products. Some of the most popular items are art supplies, handicrafts, corporate gifts, wooden crafts, etc. Generally, small gift sellers are your target audience in this business. And if you want to go with art supplies, then artists, retail stores, and art schools are your target audience.
#5. Automobile Distribution Business
Some of the most potent products in the automobile segment are vehicles, spare parts, accessories, lubricants, batteries, tire, etc. And in our country, the automobile segment is partly organized. So, there are plenty of distribution opportunities you can find in several niche segments.
#6. Building and Construction Material Distribution Business
Starting a business in this category demands moderate capital investment. Generally, the products under this segment are high-valued. Some of the most lucrative items are cement, TMT rods, sand, stone chips bricks, glazed tiles, paints, etc.
#7. Books Distribution
Globally, book distribution is a multi-million dollar industry. And literally, you can earn good revenue from this business. Also, the book industry caters to magazines, CDs, and DVDs. You can grow the business by expanding the territory and product lines.
#8. Chemical Distribution Business
Broadly, the chemical industry includes a wide range of products. These are plastic & polymer, natural gas, petrochemicals, inorganic chemicals, surfactant, rubber adhesive, etc. And there are plenty of products you can find have good potential for distribution.
#9. Computer & Peripheral Distribution Business
Nowadays, computers and peripherals account for a major share in the electronics product segment. Initiating a distribution company in this segment demands huge capital investment. And in our country, the retail market is highly competitive. So, you must have financial planning prior to start this business.
#10. Cosmetics Distribution Business
Cosmetics and personal care market is very vibrant in India. And several companies are fighting hard to get consumer attention. So, initiating a wholesale distribution company in this segment is a highly lucrative opportunity. Also, organic cosmetics products are gaining tremendous popularity.
#11. Education & Training Industry
If you want to start a business in the service industry, then this is the most profitable one. Generally, the industry consists of preschool, computer & IT training, vocational training, language school, corporate training, sales training, soft skill training, etc.
#12. Engineering and Industrial Supplies
Practically, this is a huge industry. And it caters to a wide range of products and sub-categories. Some of the most lucrative items are machinery, control equipment, pipe & fittings, plastic & PVC products, etc. It is better to start the business of a reputed brand.
#13. FMCG Product Distribution Business
FMCG product distribution is the most lucrative business in India. The top FMCG companies get success from the wide distribution channel. So, every new and old FMCG company always looks for a good distributor for the region where they are functioning.
#14. Furniture Distribution Business
Furniture is another lucrative industry in both developed and developing countries. Also, the product has great foreign trade potential. The plastic furniture, steel furniture, wrought iron furniture, wooden furniture, office furniture, and patio furniture have a great demand currently.
There are several furniture making companies that look for distributors in the regions.
#15. Gem & Jewelry Distribution Business
If you want to start a business in this segment, it is better to start with the distributorship of a renowned company. However, initiating any business as such in this industry is cash-intensive. And you must have enough investment capacity to start a business in the gem and jewelry category.
#16. Herbal & Ayurvedic Product Distribution Business
Due to the raising awareness of harmful chemicals, the demand for ayurvedic and herbal products is increasing. Also, there are several established companies like Patanjali, Dabur is appointing distributors throughout the country. And definitely, this is the right time to tap the opportunity for the aspiring entrepreneurs who want to make money from the Ayurvedic and herbal business.
#17. Home Appliances Distribution Business
This is another great segment for initiating a successful distribution company. Also, the industry is highly profitable. However, starting a home appliances distribution business demands moderate capital investment and strategic planning. Also, you must select the products according to the local market demand.
Generally, you can set up the business in two ways. Either as a distributor of a renowned brand like Godrej, Samsung, etc. or as a multi-brand dealer.
#18. Hospital Equipment Distribution
If you want to initiate a business in the medical industry, then you can consider hospital equipment distribution. Also, it is a cash-intensive business and you must have a sound hospital network. Generally, patient beds, ECG machines, X-ray machines, operation theater equipment, MRI machine, wheelchairs hold the major share in the industry.
#19. Leather Products Distribution Business
The leather industry is very prominent in our country. And there are several products that have both domestic and industrial applications too. Also, it caters to the fashion industry. Some of the most popular leather items are handbag, footwear, belt, garment, gloves, etc. Also, corporate leather gifts are very popular these days.
#20. Livestock Distribution
Currently, the ready to cook non-veg items are getting huge popularity in the metro cities and even in small towns. If you check the supermarkets and shopping malls, you can find a lot of brands that are operating in this segment. So, it is high-time for starting a distributor business to tap the growing market.
#21. LPG Distribution
In India, there are several petroleum companies that appoint distributors for the domestic and industrial LPG supply. However, initiating this type of distribution company demands adequate investment capacity. LPG distribution is a highly organized sector and you will need to fulfill the criteria of the LPG companies to get the distributorship.
#22. Medicine Distribution
This is another great opportunity is the pharmaceutical industry. In India, medicine distribution is a highly lucrative sector. Apart from medicines, you can also consider different products like personal care, beauty products, nutrient supplements, energy drinks, etc.
#23. Mineral Water Distribution Business
Actually, mineral water distribution is a highly localized business. And the demand for packaged drinking water specifically depends on the quality of the drinking water of that particular area. So, it is important to check the potential first.
#24. Organic Food Distribution Business
Both in developed and developing countries, the demand for organic food items is growing. Also, the organic food companies are selling the products offline and online too. Actually, there are several organic food items production companies that look for the distributors for the regions where they want to capture the market.
#25. Paper & Stationery Distribution Business
Paper and stationery are the vast industry. And literally, there are thousands of products that are perfect for distribution.
Some of the most potential items are exercise books, computer papers, pens, pencils, erasers, geometry boxes, color papers, gift wrappers, art papers, etc. Also, the business is suitable for any location regardless of the population density and buying capacity.
#26. Safety and Security Products Distribution Business
Actually, these products have both domestic and commercial buyers. Also, these have industrial applications. Nowadays, security is everyone’s concern. Even, the homeowners are these days look for the basic security items to protect their homes. Some of the most popular items are CCTV cameras, intelligence systems, access cards, devices, etc.
#27. Scientific Instrument Distribution
This is another a great B2B business that you can start even with a small investment. Actually, you can start the business with limited products. And as your business grows, you can enhance the product range.
Generally, educational institutions, government laboratories, and private manufacturing companies are the major buyers of these items. And some of the most popular items are measuring tools, devices, test equipment, and laboratory supplies.
#28. Seeds Distribution Business
Actually, seeds are the essential items in agriculture. And the quality of the crop and yield highly depend on the quality of the seeds. Therefore, farmers and growers always look for good quality seeds for better yield. In our country, seed distribution ensures a good margin. Also, there are several seed distribution opportunities available in different regions.
#29. Sports Items Distribution Business
Games and sports are a huge industry. And practically, there are thousands of products available for distributions. Also, you can consider importing the products and distributing them to the domestic sellers. Also, the toys, water sports equipment, sportswear, and apparels have great potential in the domestic market.
#30. Telecom Products Distribution Business
Due to the increasing mobile connectivity throughout the country, the demand for several telecom products is increasing. Also, the digitization is one of the major reasons for this booming demand. Hence, initiating a telecom product distribution business is a highly lucrative opportunity for individuals who want to start a business in this industry.
Things to Consider Before Starting a Distribution/ Wholesale Business
In countries like India, starting a distribution business is comparatively easy. However, you must consider carefully the aspects such as logistics, cash flow, and inventory control. Some basic factors that must be explored are the following:
1. Choose the Right Product
Choosing the right product is the single most important decision to make before starting a distribution business. Conduct market research and understand the demand and trends of the local population, competition from existing players. This will help you in exploiting the gaps and define your product properly.
Suggested Read: Product Positioning: How It Helps In Marketing?
In addition, you must check whether the profit margin is good enough to overcome working capital expenses.
2. Understand the Size of the Market
To make a good profit from distribution, it is essential that the size of the immediate market is big enough. There must be enough space to appoint retailers throughout the area that you intend to cater to.
3. Select a Proper Location
Unlike a retailing business, wholesale or distribution ventures need a large area for inventory purposes. Space must have enough space to store a bigger inventory and must be located in an area where transportation costs won’t be much for distribution.