When anyone says Mumbai, the first thought that crosses everyone’s mind is Bollywood. The city of dreams isn’t just fast-paced but comprises people who want to look and feel good.
Starting a salon business in Mumbai in 2026 is a high-potential venture. It gives you a chance to navigate India’s largest beauty markets.
The Indian salon industry is worth Rs. 20,000 crore and is growing annually at 15% CAGR. This growth is driven by a large number of factors. The primary reason for this is due to the rise in the disposable income of the people and urban consumers seeking professional grooming services.
Starting a salon business in Mumbai is no mean feat. Just like any other city, there is a lot that goes into it. While it involves securing the right licences, other parameters include finding a location which has an affordable rent and balances foot traffic, and building a salon business model.
If you’re wondering how to open a salon in Mumbai, this guide has you covered. From best locations to costs and expected profits, we will be highlighting every little detail.
Key Takeaways
- Starting a salon business in Mumbai is a lucrative business option as there is a growing demand for beauty, personal care, bridal and premium wellness services.
- The kind of profits you generate all depend on choosing the right salon model. However, a unisex salon offers the highest revenue earning potential as you get to serve a large client base.
- Choosing the right location is the biggest success factor. It influences client footfall, pricing strategy and long-term profitability.
- With the right client retention strategies and salon software, most salons are able to breakeven within the first 12-36 months.
Why Start a Salon Business in Mumbai in 2026?
Here’s why starting a salon business in Mumbai is a lucrative opportunity for entrepreneurs and investment seekers:
- Increasing disposable income especially among Gen Z and millennials
- The desire of urban youth to look and feel good
- Increasing demand for bridal and premium beauty services
- Social media influence as a lot of bloggers post transitions, and before and after photos
- Expansion of the men’s grooming market
- Large opportunity to setup a scalable business model
- Franchise opportunities with key players including Lakme, Enrich, Jawed Habib and Looks Salon
- High recurring client base
How to Open Salon in Mumbai: Cost, Best Locations & Profit Potential
Mumbai is a beauty and fashion hub, and a primary place where trends originate. Once you’ve decided that you want to open a salon in Mumbai, there are an array of prerequisites that you have to meet.
In this blog, we will be walking you through the real process:
Choose a Salon Business Model
First and foremost, you need to establish the kind of salon business you want to start. Ideally, there are three different paths you can foray into:
Independent Salon
As the name implies, this kind of salon gives you complete control over your business. You’re the sole owner of an independent salon. However, it is a high-risk business because only you and no one else is responsible for the future of the business.
If you’re still trying to figure out whether you should go in for an independent business model or opt for a franchise, we’ve covered all the important points in detail in this blog – https://salon360app.com/marketing/beauty-salon-business-model/.
Under an independent salon business model, you can start a unisex salon, women’s beauty parlour, men’s barbershop or premium luxury salon.
In a place like Mumbai, the investment varies based on the location. However, here’s a cost estimate of starting a salon business in Mumbai:
Salon Type | Area | Investment (Approx) |
Basic Salon | 300-600 sq. ft. | 10-15 lakhs |
Mid-range Salon | 600-900 sq. ft | 15-30 lakhs |
Luxury Salon | 900-1500 sq. ft. | 30-50 lakhs |
When you’re choosing a salon business model, it is important that you make the decision in the first couple of weeks. Because, the next few steps include setting up the legal foundation of the business, scouting for locations, licensing, compliance, and so on.
Salon Franchise
The second business model you can go in for is a salon franchise. This is a simple and risk-free way to start a salon business. All you have to do is purchase rights to launch a salon under an existing and established brand name. When you take up a franchise, you don’t have to start a new business from scratch.
It’s a lower risk business compared to starting an independent salon. Also, you get established brand support. However, you need to pay a certain amount of money every month. The investment required to take up a salon franchise varies by brand.
Shared Space/Co-working Salon Model
The third business model you can go in for is a shared space or chair rental model. The investment required in such a model is lower but the growth potential is also limited.
This kind of model is ideal for stylists and freelance beauticians who don’t want to start a full-fledged salon but still want to experience what it feels like to own a salon. Instead of paying an up-front franchise fee or commission, stylists pay a flat fee to rent a chair or private suite.
A co-working salon model has become quite popular in India especially Mumbai. As a stylist or freelancer, you can find such setups on social media, Facebook groups and commercial listing platforms.
The stylist usually keeps up to 85-90% of earnings and has complete autonomy on how they want to run their salon business. The only disadvantage of such a model is the administrative burden.
Freelancers have to handle their own bookings, scheduling, bookkeeping, and marketing or get salon software that handles all these tasks.
Choosing an Ideal Location to Start a Salon in Mumbai
Next comes the most important step and that is choosing a location to start a salon. No matter what kind of business model you’re running, the location is the deciding factor that will determine whether it will flourish or not.
A few factors you must keep in mind while selecting a location are high visibility and accessibility.
The rent must not be too high, and must still be able to offer a 60-75% client retention. Choosing an empty plot in a remote lane is of no use if you’re inaccessible to walk-ins.
The location strategy in the financial capital of India follows three different approaches – residential areas, higher footfall but premium pricing areas, and niche areas.
If you open a salon in a residential area, you can benefit from lower rents and a loyal client base. However, you cannot price your services too high.
Next, you can open in a prime location like shopping malls or high-streets that are driven by high foot traffic. However, the competition in such areas is fierce and the rents touch the roof.
If you’re a freelancer or niche specialist, you can simply juggle from one area to the other or even choose mid-tier locations.
If you’re a newbie, a neighbourhood approach or residential area works best. Finding the right salon location in Mumbai not just requires a budget but the right strategy as well.
In order to master the Mumbai real estate game, enough location research is required. Below we will be discussing the best areas for salon in Mumbai.
Location | Target Audience | Rent per sq. ft/month | Advantages |
South Mumbai (Colaba, Marine Drive, Lower Parel) | Affluent residents and celebrities | Rs. 250-400+ | Premium pricing, high footfall, luxury market |
Central Mumbai (Dadar, Prabhadevi, Matunga) | Middle-class families, students and expats | Rs. 80-150+ | Affordable pricing brings consistent footfalls |
Western Suburbs (Bandra, Juhu, Versova, Andheri, Chembur) | Affluent families, Gen Z, working professionals and students | Rs. 200-350+ | Ability to target those with a high-disposable income |
Navi Mumbai (Vashi, Nerul, Panvel) | Middle-class families and IT professionals | Rs. 60-120+ | Lower rent, less competition |
The salon cost in Mumbai varies and is dependent on a number of factors. Some of the major upfront costs include:
- Rent/deposits
- Salon equipment (chairs, styling tools, shampoo stations, beds in case of wellness centres)
- Interior setup and lighting
- Licenses and registration
- Inventory
- Initial marketing
- Staff recruiting and training
- Working capital
The estimated salon cost in Mumbai is:
- Small neighbourhood salon – Rs. 7 lakh – 15 lakh
- Medium unisex salon – Rs. 20 lakh – 50 lakh
- Premium salon – Rs. 50 lakh – 1 crore
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.
Legal Documentation & Licenses Required
When you start a salon business in Mumbai, you need to obtain a certain number of licenses and complete a few legal formalities. Some of the required licenses include:
- Business registration (sole proprietorship, LLP)
- GST registration
- Trade license
- Fire safety NOC
- Professional tax registration with Maharashtra government
- Other licenses from the BMC depending on the region
Once you’ve chosen a business model, picked a location that suits your requirement and completed legal formalities, you need to work on other things such as salon interior design, building a team and training them, creating a service menu and setting the prices, marketing and investing in the right technology.
Modern clients in Mumbai desire seamless experiences. Therefore, investing in salon management software is imperative. New salon owners especially can handle bookings, inventory, payments, marketing and analytics from a single dashboard.
Running a Salon in Mumbai: Expected Monthly Revenue
When you run a salon business in Mumbai, the most profitable salon services are hair services including hair colouring, Keratin, smoothening, hair spa and haircuts.
They contribute around 40-50% of revenue. Other profitable services include bridal makeup, skincare services, and nail services including acrylic extensions, gel nails and nail art.
All the above-mentioned services are high-profit segments.
Type of Salon | Estimated Monthly Revenue | Net Profit | Breakeven Period |
Small Salon | ₹1.5 lakh – ₹4 lakh | ₹50,000 – ₹1.5 lakh | 12–18 months |
Medium Salon | ₹5 lakh – ₹15 lakh | ₹1.5 lakh – ₹5 lakh | 18–30 months |
Premium Salon | ₹15 lakh – ₹50 lakh+ | ₹5 lakh – ₹20 lakh+ | 24–48 months |
Final Word
Starting a salon business in Mumbai in 2026 can be a highly profitable venture. With proper location selection and financial support, you will be able to breakeven in 12-18 months, and then start making profits.
When you’re entering the beauty salon space, it’s always better to start with a realistic budget. To establish the visibility of your business, you can leverage various digital marketing tactics.
If you’re worried about admin tasks, Salon360, salon software has you covered. It takes care of all the non-glamorous parts of running a beauty business so that you can focus on making your clients look good.
Request a free demo.
Want to start a salon business in Delhi? Read our complete guide.
FAQs
How much investment is required to start a salon business in Mumbai?
The kind of investment required depends on the size of the salon and the location. If you’re starting a basic salon in an area of 300-500 sq. ft. expect to invest 8 to 15 lakhs. This only includes rent, setup, staff, equipment and six months of working capital.
Is it profitable to start a salon business in Mumbai?
Yes, starting a salon business in Mumbai is a lucrative and profitable salon venture as there is a large demand for grooming services, beauty and personal care, and wellness services. Here again, depending on the type of salon you own, the breakeven period varies. However, expect to make 15% to 35% profit margin.
Should I start with a franchise or independent salon?
When you open a franchise, you get to enjoy brand recognition and training, and it is a low-risk investment. Independent salon owners are involved with higher risk but better profit potential and creative control.
