How Much Money Do I Need to Open a Grocery Store in India? Starting a Grocery Store in India

Investment and Location

In India, the average cost of opening a small grocery shop will be Rs 2 Lacs to Rs 5 Lacs. However, for starting a larger grocery shop, the investment can go up. The best places to open an Indian grocery store are locations with a high Indian population or places with a concentration of Generation Z and millennials.

Business Planning

Before initiating the grocery store an individual must perform market research to check the competition and know the fundamentals of how to start a grocery store in India. Businessmen can determine niche products they plan to keep in the grocery store so it will differentiate them from other grocery stores and develop a target customer base. Business owners can plan to offer fresh products sourced directly from manufactures.

The Indian grocery market is expected to grow by 20% in the next five years, so there is potential for growth. There are ways to start a grocery store in India with low investment: Franchise model, Joint venture model and Ecommerce model.

Profitability Analysis

Is grocery store profitable in India? You can expect a profit margin of 35 to 40% for a grocery store in India. The profits mainly depend upon the quality of the products and the maintenance of the store.

Independent grocery stores earn a margin of 1-4% while larger brands earn more than 5%. Gross margins – the selling price of goods minus their cost – are lower in India than in developed markets. So food and grocery retailers typically have a 14 per cent gross margin in India, compared with around 17 per cent in developed markets.

Ethnic foods have enjoyed massive popularity, particularly among millennials. Indian grocery stores often stock specialized products that are not easily available in regular supermarkets.

Business Model and Market Strategy

Here is a step-by-step guide on how to start a grocery store in India and make money. Go from zero to one with this business startup plan. If yes, then consider starting a grocery store. In the last few years, there has been a rise in demand for online and brick and mortar grocery stores.

Opening a supermarket in India could take an investment up to Rs 2 crores, depending on the store size and location. First, get the whole business plan for your supermarket ready.

Find out how much it will cost to start, typical target market, growth potential & more…. Opening an Indian grocery store initially requires a significant amount of money.

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