The beauty, wellness and personal care industry in India is booming. More and more consumers are investing in beauty and self-care. The Indian beauty salon market was valued at $US 11.65 billion in 2024, and is expected to grow at a CAGR of 7.85% to 8.57% over the next decade.
There are several factors contributing to this rapid growth. A few of them are rise in grooming awareness, rise in demand in tier 2 and tier 3 cities, increasing male grooming, influence of social media and demand for professional bridal services.
Starting a salon business in Delhi is more lucrative than you think. Also, Delhi is home to all kinds of salons. From luxury salons in south Delhi to mass premium and affordable salons in west Delhi, the city offers promising opportunities to both new as well as seasoned investors.
If you’re planning to start a salon business in Delhi, our guide will sort you out. We will be covering the salon setup cost in Delhi, the profit margins and the best locations so that you can make the most out of your business.
Key Takeaways
- Did you know? Delhi is one of the fastest growing markets for salon businesses in India due to high grooming demand, a happening wedding culture and rising disposable income.
- Starting a unisex salon is the most lucrative business creatively as well as financially since it caters to both male and female clients, and helps you enter a premium services market.
- Once a salon business is setup in Delhi, an investment can be recovered in 12-24 months.
Types of Salon Businesses you Can Start in Delhi & Investment Required
Firstly, you need to establish the kind of salon you want to start. For this, a good amount of market research is important. You also need a fair understanding of the salon industry in India, who the largest player is, what their profits are, etc.
Once you answer the above questions, you will be in a better position to establish the concept of the salon and the audience you’re targeting.
Here are the most popular salon businesses entrepreneurs in India start:
Men’s Salon/Barbershop
A men’s salon or barbershop is a low investment opportunity if you want to start a salon business in Delhi. It ensures a steady customer flow and is easy to run. Some of the best men’s salons in Delhi are Tony & Guy, Affinity Salon, Truefitt & Hill, and Looks Salon.
These salons specialise in services such as haircut, beard styling, hair spa, pedicure, facial and hair colouring.
A men’s salon or barbershop isn’t restricted to a particular high-traffic area, and is all over. You’re likely to find them in residential zones, close to student hostels and near metro stations.
The capital required to start a barbershop in Delhi can vary between 2 to 6 lakhs.
Note: The rough estimate mentioned is only for a small barbershop or home-based parlour, and not a luxury men’s salon.
Unisex Salon
Next comes the most profitable and scalable salon model and that is a unisex salon. It’s the most common type of salon business new entrepreneurs start.
When you start a unisex salon, you cater to male as well as female clients. The kind of services you offer can range from hair services to makeup, nail services, bridal packages, and so on. Salon owners either start a salon that offer all these services or a niche salon specialising in only one type of service.
Under this category, we have hair salons that specialise primarily in hair services such as haircuts, blow-dries, hair colouring, and more.
Then there are nail salons that only offer nail services including trendy nail art, gel nails, acrylic nails, manicure-pedicure and more.
Beauty salons are also popular that specialise in hair and nail treatments, facials, and other miscellaneous wellness treatments.
The top unisex salons in Delhi are Tony & Guy, Rod Anker Salon, Geetanjali Salon, Dessange Paris, and Looks Salon.
You’re likely to find unisex salons in premium societies, shopping markets, and commercial hubs.
A small unisex salon of 300-500 sq. ft. will cost anywhere between 5 to 10 lakhs whereas a mid-size salon of 700 to 1000 sq. ft. will cost between 12 to 15 lakhs.
However, your total investment depends on the salon size, city and the way your position the business.
Next comes the luxury salon or premium salon setup cost in Delhi.
Luxury/Premium Salon/Full-scale Branded Salon
A luxury salon or premium salon requires a high investment. However, in the long run, it promises high margins.
Most premium salons in India are unisex and are often tied up with companies that sell luxury beauty products. For example, Kerastase and Dyson. Their inventory too is premium and they use high-end beauty products with good formulations for every service.
The target audience of luxury salons are high net-worth individuals (HNIs), influencers, and wedding clients.
In Delhi particularly, you will find luxury salons in areas such as south Delhi, high-end malls and Gurugram.
In order to open a full-scale branded salon or luxury salon, the investment required is anywhere between 20 to 50 lakhs.
However, all the above prices mentioned are only ballpark figures. The real salon operating costs will depend on the business model, services offered, location and other overheads.
Factors that Influence the Total Capital Needed to Start a Salon
Whether you’re raising money or bootstrapping your business, there are an array of cost areas. Here’s what will influence your total capital:
- Location: This is a key factor. The investment completely depends on where you open – whether it is a suburb or prime location. If you’re opening in a prime area, the rent, overheads and renovation cost will also be higher.
- Interiors: No matter what kind of salon you open, you are going to be spending a fair amount of money sprucing up the place. Thus, as part of your capital, you also need to reserve a certain amount for interiors as well.
- Services Offered: The services you offer will also determine the beauty parlour cost in Delhi. Generally, hair salons require less capital than nail salons and spa centres. You will have to spend on equipment, chairs, mirrors, and other equipment.
- Franchise vs. Independent Salon: When you’re planning to open a salon business, another major decision you have to make is whether you want to run it on your own (independent salon) or take up a franchisee. In a separate blog, we have discussed in detail which model is right for you – Independent or Franchise salon. Franchise salons usually involve an upfront fee.
- Technology: Technology plays a crucial role when you start and setup a salon business. To provide your clients with a seamless experience, you will have to allocate a certain amount of capital towards the latest tools and technology such as salon management software for small businesses. It gives your business a competitive edge. In 2026, software is no longer optional. Instead, it is a part of business infrastructure.
The monthly running costs or recurring costs of a salon usually include rent, staff salaries, marketing, maintenance, electricity, water and inventory.
Profit Margin in a Salon Business in Delhi
The profitability of a salon business depends on an array of factors. The first prerequisite is location. If your salon is located in a prime, bustling location, you will be able to attract more clients.
Other key factors include client retention capabilities, staff efficiency and how premium the services are.
Here’s an approximate of the profit margins salon owners make:
- Small salon/home-based beauty parlours – 15-20% net profit margin
- Mid-size salon – 20-30% net profit margin
- Premium salon – 30-45% net profit margin
Please note that this is just an average salon profit in Delhi. There are several variables that can affect this margin.
Choosing the Right Location in Delhi to Start a Salon Business
When you’re starting a salon business, location is of utmost importance. The right location decreases marketing costs and increases walk-ins.
The kind of location you choose can make or break your salon business in Delhi. It’s best to look for places that promise high visibility and easy accessibility. It’s no point choosing a remote location only to save on rentals.
Shopping malls, premium residential areas and commercial hubs are ideal. Offering parking facilities is also a big plus in driving footfalls.
When you’re choosing a location in Delhi, avoid spaces that are hard-to-find and low visibility lanes. We have listed some of the best areas to start a salon business in Delhi:
- Hauz Khas
- Defence Colony
- Greater Kailash
- Model Town
- Kamla Nagar
- Vasant Vihar
- Preet Vihar
- Karol Bagh
- Connaught Place
Before you open a salon in any of the above areas, it is important to conduct thorough market research. This gives you a fair understanding of the location vs pricing model. For instance, opening a premium salon in a low-paying locality will be a complete mismatch.
Final Word
Starting a salon business or beauty parlour venture in Delhi can be highly profitable because there is a growing consciousness among urban youth to look and feel good.
No matter what type of salon business you start, the success depends on the location, service and treatment quality, client retention tactics, digital marketing and the salon POS software Delhi you choose.
Salon360 is the best salon software for managing appointments. It adequately meets the needs of new as well as seasoned salon owners. It gives your business a competitive edge and helps reduce no-shows which further enhance your profit margins.
Start with a free trial.
FAQs
How Much Money Do I Need to Start a Salon Business in Delhi?
Depending on the location, area and size, you will need anywhere between 5 to 25 lakhs. The capital you invest will cover interiors, equipment, licenses, technology and working capital for the first 3-5 months. As a new salon business owner, it is always better to keep a buffer.
Is Starting a Salon Business Profitable in Delhi?
Yes. Starting a salon business in Delhi is highly profitable because there is a strong demand for grooming, beauty treatments, nail and lash services, bridal services and premium self-care. If the salon is well-managed, you can earn anywhere between 15-45% net profit.
What Service Mix is the most Profitable for Delhi Salons?
Running a hair salon is the most profitable business as the investment is lesser too. However, high margins usually come from offering makeup and bridal services. You can even offer wellness treatments and facials at a premium. Also, retail can contribute around 15 to 20%.
What Licences are Required to Start a Salon in Delhi?
The common licenses required are GST registration, trade license, shop and establishment license, local municipal approval, MSME registration and fire safety NOC.
Should I Start an Independent Salon or Franchise Salon?
The decision you make is completely your choice. Independent salons offer higher flexibility and control while franchise salons offer necessary brand recognition and training. The con with franchise salons is that there is usually an upfront fee. The best option depends on the kind of business acumen you have and your budget.
