Get the Tata Capital App to apply for Loans & manage your account. Download Now


Equipment Finance

Avail Digital Equipment Loans
up to Rs. 1 Crore

  • Attractive ROIs
  • Customizable Loan tenure

Equipment Leasing

Avail Leasing solutions
for all asset classes

  • Up to 100% financing
  • No additional collateral required

New Commercial Vehicle Financing

  • First time user
  • Retail and strategic Clients

Used Commercial Vehicle finance

  • Repurchase
  • Refinance
  • Top up
  • Balance Transfer

Tata Capital > Blog > Loan for Business > How to Start a Wholesale Business in India?

Loan for Business

How to Start a Wholesale Business in India?

How to Start a Wholesale Business in India?

Starting a wholesale business is a lucrative endeavour in India. It allows you to purchase discounted products in bulk from manufacturers and distributors and resell them to retailers at a higher price, making attractive profits.

You can easily run a thriving wholesale business with a strong network of connections and a good understanding of the market. But if you have no prior experience, you might wonder how to start a wholesale business.

In this blog, we'll help you navigate just that. We'll dive into how to start a wholesale business in India and the different wholesale business opportunities that you can leverage to maximize your profits.

How to start a wholesale business in India?

If you don't know how to start a wholesale business, you might find it intimidating to juggle between manufacturers and retailers constantly. But once you master the strings, managing a wholesale trading business is not that difficult. 

Here are a few simple steps for how to start a wholesale business that will help you kick off your endeavour on the right foot-

#1 Conduct market research

Like any other business, setting up a wholesale business requires researching your ideal market, manufacturers, retailers, and other potential customers. This will help you understand the market better and determine the demand for the products you wish to sell.

To identify the best wholesale business opportunities, don't forget to look into your competitors, their products, prices, and strategies.

#2 Set up your office and warehouse

You'll need a dedicated space to conduct your business and a warehouse to store the goods. Further, you'll also have to hire reliable, honest staff who can help you run the business efficiently. 

If you have a low budget and are looking for how to start a wholesale business with no money, you can also ask a friend or family member to help you during the initial days.

#3 Find suppliers

To start a new wholesale business, you'll have to identify reliable manufacturers and distributors for the products you want to sell. For this, you can look into your connections or take help from online directories or trade shows. 

But remember to carefully vet your suppliers to ensure they are trustworthy and able to meet the needs of your business. It's also wise to check their license, work permit, and legal papers to ensure a secure association.

#4 Obtain required licenses and permits

When understanding how to start a wholesale business in India, you must also consider the permits and licenses you need to obtain. 

For example, a business license, GST registration, and any other permits required by your local government.

#5 Set up your wholesale business

After all the legal formalities and paperwork, you're all set to start a wholesale business. Start by creating a business plan and discussing payments with your distributors and retailers. Then, set up a system for accounting, record-keeping, and inventory.

You can also invest in accounting and inventory software to bring more efficiency to your business, give accurate quotes, and keep up with delivery schedules.

#6 Monitor and adjust

Now that you understand how to start a wholesale business, don't forget to monitor its performance and make the required adjustments. For example, adjusting your product mix, identifying new markets, or implementing new strategies to increase sales and profitability.

Types of Wholesale Business in India

There are multiple options that you can choose from when looking for how to start a wholesale business. Here are the top 5 wholesale business opportunities that are popular in India-

#1 Textile business

The textile wholesale space in India is the most profitable one and offers a variety of options. From clothing to sewing materials, you can choose a niche that interests you and start your business. 

#2 Jewellery business

Be it festivals or special occasions, most Indians turn towards jewellery. As a result, this business is always in demand. But remember, it is capital-intensive, which means it can be slightly expensive to become a wholesaler.

#3 Organic food business

More and more consumers are turning to healthier food options in recent years, boosting the demand for organic products. This makes now an excellent time to enter this industry with a new wholesale business.

#4 Ayurvedic products

You don't need any license to enter the ayurvedic wholesale market, making it a lucrative option for new wholesalers. What's more? You can even sell your ayurvedic products internationally without much restriction.


FMCG was one of the few industries that struggled the least, even during the pandemic. Increasing rural populations, reverse migration, and e-commerce platforms further drive the growth of this sector. But remember, the profitability of your FMCG wholesale business depends on the volume you sell. The higher the sales volume, the higher your profit.

The Takeaway

Starting a whole trading business in India requires careful planning and a strong understanding of the market. But it is also a rewarding field. Based on the type of business you select, you can easily get started without a lot of capital or legal formalities.

But if you require a heavy capital investment, getting a business loan is the most convenient way. At Tata Capital, we offer the best interest rates in the industry, along with flexible repayment options. Visit our website to apply today.

Leave a Reply

Your email address will not be published. Required fields are marked *