how to start khadi india franchise business

How to Open Khadi India Franchise Shop Business

Khadi is an emblem of India’s rich heritage and a symbol of self-reliance. It has gained a renewed sense of importance in recent times. The Khadi and Village Industries Commission (KVIC), under the Ministry of Micro, Small, and Medium Enterprises, is promoting Khadi and village industries for socio-economic development. Opening a Khadi India franchise shop not only supports this mission but also provides an excellent entrepreneurial opportunity. In this article, we will guide you through the steps to open a Khadi India franchise shop.

Understanding Khadi and Village Industries

Before diving into the franchise process, it’s essential to comprehend the significance of Khadi and village industries:

a) Khadi

Khadi is hand-spun, handwoven cotton fabric that carries a deep historical and cultural legacy in India. It represents self-sufficiency, non-violence, and sustainable living. Khadi products range from clothing to accessories and home decor.

b) Village Industries

Village industries encompass a wide array of traditional, artisanal, and rural-based activities. These can include manufacturing handcrafted products, processing raw materials, or providing services like pottery, honey production, and more.

Benefits of Opening a Khadi India Franchise Shop

Starting a Khadi India franchise shop offers various advantages:

  • Established Brand: Khadi India is a well-known brand with a loyal customer base. Associating with this brand provides credibility and trust.
  • Government Support: The KVIC is a government organization committed to promoting Khadi and village industries. As a franchisee, you benefit from their support and guidance.
  • Ethical Business: Promoting Khadi aligns with sustainable and eco-friendly practices, making it an ethical business choice.
  • Product Variety: Khadi India offers a wide range of products, from clothing to cosmetics, ensuring a diverse customer base.
  • Employment Opportunities: By opening a Khadi franchise, you contribute to rural employment and empowerment.

Steps to Open a Khadi India Franchise Shop

Here is a step-by-step guide to get started:

1. Research and Feasibility

Begin with market research to understand the demand for Khadi products in your chosen location. Evaluate the feasibility of opening a Khadi shop.

2. Contact KVIC

Reach out to the Khadi and Village Industries Commission through their official website ( Express your interest in starting a franchise and request the necessary information.

3. Business Plan

Create a comprehensive business plan that includes details on the shop’s location, size, interior design, and marketing strategy. Present this plan to KVIC.

4. Location and Space

Find a suitable location for your Khadi India franchise shop. Ensure that it complies with KVIC’s requirements in terms of size and accessibility. The minimum area requirement to open a Khadi India outlet is 350 sq. ft. You need to own or have a lease contract of the space for a minimum of 5 years.

5. Legal Formalities

Register your business and acquire the necessary licenses and permits. Check with local authorities for any additional requirements.

6. Financial Investment

Prepare a budget that includes expenses like shop setup, initial inventory, and operating costs. Be ready to invest the required capital. If the application is considered for Franchise, a Registration fee of Rs.11, 800/- (Rs.10,000/- registration fee + GST @ 18%) is to be deposited along with the security deposit of Rs.50,000.00 (Rupees Fifty Thousand only) before signing of the agreement. In case the applicant withdraws from establishing the Franchise after sanction (before setting up), then 50% of Registration Charges (Rs.5,000/-) may be refunded.

7. Inventory and Stocking

Once you receive approval from KVIC, stock your shop with a range of Khadi products, from clothing to cosmetics, and home furnishings.

8. Staff Recruitment

Hire staff who are knowledgeable about Khadi products and provide excellent customer service.

9. Marketing and Promotion

Create a marketing strategy that includes both offline and online promotion. Utilize social media and other marketing channels to reach a broader audience.

Read: Best Retail Franchise Business in India

10. Inauguration and Launch

Plan a grand opening to attract customers to your Khadi India franchise shop. Consider collaborating with KVIC for a successful launch.

The store comes in the name and style of “Khadi India Outlets”. Interested individuals or proprietorships or Private Limited Companies or Limited Companies can apply in the prescribed format to the Director (marketing) KVIC.

Eligibility for Khadi Franchise Opportunity

  • You must be an Income Tax payee for at least 3 years.
  • Additionally, you must have a sound financial condition.
  • The authority will give the preference to those who have their own air-conditioned showroom /rented showroom of the minimum size of 1000 Sq, Ft. Additionally, who have the retail space in a prominent place.
  • It is better to have experience in marketing apparel/readymade garments/dress
    material etc.
  • Selected parties will agree with the KVIC for 5 years to sell Khadi & Village Industries products.
  • The first step to show your interest is to submit the application form duly filled up with a non-refundable tender fee of Rs. 5000/- +18% GST to the authority. You can get the application form, and details of the terms and conditions of the Agreement at the Website of KVIC at

Also Read: Haringhata Franchise | Open a Meat & Chicken Shop Business

Challenges and Considerations

While opening a Khadi India franchise shop offers numerous benefits, it comes with certain challenges. These include competition from other retail stores, the need for effective marketing, and staying updated on the latest Khadi trends.

Conclusion: Opening a Khadi India franchise shop is not only a potentially lucrative business but also a way to support traditional Indian craftsmanship, rural artisans, and sustainable living. It’s a noble endeavour that aligns with the vision of a self-reliant and prosperous India. By following the steps mentioned above, you can embark on your entrepreneurial journey and become part of the Khadi India legacy.