§1What this business is

Agro-waste is chopped into small pieces, sun-dried to cut moisture, and fed to a briquetting press that compacts and heats it into a continuous log, which is cut to size — usually about 1 inch across and 6 inches long. Briquettes burn hotter than loose waste. They are packed in 25 kg bags for retail or sold loose to bulk buyers. Buyers are factories using coal or firewood in boilers, hotels and restaurants, and households.

Capacity: 3,000 tonnes of briquettes a year from about 3,600 tonnes of agro-waste.

§2Is it right for you?

Who it is for

Someone in a farming area who can collect waste cheaply and knows nearby factories that burn coal or wood.

Who it is not for

Someone far from crop waste or without buyers lined up.

Advantages

  • Turns crop waste that is often burnt into a saleable fuel
  • Cheaper than coal for many boiler users
  • Simple process: chop, dry, press, cut
  • Strong margins and low break-even in the profile

Drawbacks

  • Raw-material price and supply change with the season
  • Wet waste must be dried first — monsoon slows output
  • Buyers must be convinced to switch from coal or wood
  • Presses wear fast and need regular repair

Skills you need

  • Collecting and storing agro-waste cheaply
  • Press maintenance and repair
  • Selling to factories and hotels
  • Moisture and quality control

Why difficulty 3/5: Simple technology, but raw-material collection and finding steady bulk buyers decide success.

§3Market

Who buys

  • Factories with boilers using coal or firewood
  • Hotels and restaurants
  • Rural and urban households

How it sells

  • Direct supply to nearby industries
  • Retail through 25 kg bags

Good to know

  • The profile says being close to buyers cuts cost, and that early on the promoter must build awareness.
  • Briquettes are sold at ₹4,000 a tonne in the profile.

§4Raw material & machinery

ItemQtyCost
Briquetting press, chopping machine, conveyor, weighing scale and material-handling trolleys1 set₹35.00 lakh (all plant & machinery)

From: SIDBI Stand-Up Mitra project profile — Briquetted Fuel (2018) — private guide — confirm locally

  • Agro-waste — sugarcane bagasse, cotton stalk, wood dust, groundnut husk, corn cobsabout 3,600 tonnes a year; the profile assumes ₹1,500 a tonne, varying by place and season
  • 25 kg bagsfor retail sale; bulk buyers take loose supply

From: SIDBI Stand-Up Mitra project profile — Briquetted Fuel (2018) — private guide — confirm locally

Suppliers in Building Business Bazaar

Central Institute of Mining & Fuel Research (CSIR-CIMFR), Dhanbad · Dhanbad →MINERALS LAB SERVICES Private Limited · Vasco →GO GREEN MECHANISMS PRIVATE LIMITED (TESTING LABORATORY) · Ahmedabad →OMRESEARCH & TESTING LABORATORY PRIVATE LIMITED · Ranchi →MSV ANALYTICAL LABORATORIES · Bellary →CENTRAL POWER RESEARCH INSTITUTE · Bengaluru →POLUCHEM LABORATORIES PVT. LTD. · Ernakulam →CU INSPECTIONS & CERTIFICATIONS INDIA PRIVATE LIMITED (LABORATORY) · Visakhapatnam →MAHABAL ENVIRO ENGINEERS PVT. LTD. · Nagpur →JAIN RESEARCH & DEVELOPMENT, JAIN IRRIGATION SYSTEM LIMITED · Jalgaon →PULP AND PAPER RESEARCH INSTITUTE (PAPRI) · Rayagada →CHANDIGARH POLLUTION TESTING LABORATORY · Mohali →

§5Licences & registration

  1. Udyam registration
  2. GST registration
  3. State Pollution Control Board consent where applicable
  4. Fire safety clearance
  5. PF, ESI and labour registrations if applicable

We can do this registration for you

§6Schemes & subsidies

At ₹68.49 L the project is above the PMEGP limit; Stand-Up India fits SC/ST or women founders and CGTMSE covers a loan without collateral.

§7Money

How the investment is worked out: Land ₹10.00 L + building ₹15.00 L + plant & machinery ₹35.00 L + furniture and electrical ₹2.50 L + other assets ₹0.50 L + working-capital margin ₹5.49 L = ₹68.49 L. Promoter ₹20.55 L, bank ₹47.94 L.

Working capital: Working capital ₹13.43 L (stock ₹4.50 L, receivables ₹10.00 L, overheads ₹1.18 L, less supplier credit ₹2.25 L); margin ₹5.49 L, bank ₹7.94 L.

Prices from 2018 — machinery and running costs will be higher now.

How to prepare a loan file

§8Export potential

Confirm the HS code in the DGFT ITC(HS) lookup before you export

4401.32Wood briquettes

Export council / board: FIEO (Federation of Indian Export Organisations)

  • This heading fits briquettes made from sawdust or wood waste; briquettes from other crop residues may fall under a different heading — confirm with DGFT.
  • You need an Import Export Code (IEC) from DGFT before the first shipment.

§9Risks — where people fail

  • Agro-waste price rise or shortage
  • Machine breakdowns
  • Coal price falls making briquettes less attractive
  • Fire in raw-material stock

§1030 / 60 / 90-day plan

A general plan that applies to any business. A plan for this business will be added after research.

  1. Days 1–30: Visit a working biomass fuel briquettes (agro-waste) unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
  2. Days 31–60: Udyam and the licences you need (Udyam registration, GST registration), a project report (DPR), and the scheme or loan file.
  3. Days 61–90: Space and machines, trial production, and first deliveries to 10 customers.

§11Who to connect with

Not verified yet

Associations, clusters and training institutes — the directory is being built. Connect

§12Watch

There is no episode on this business yet. Shows are coming soon on the Podcast page.

Want to start Biomass Fuel Briquettes (Agro-Waste)?

DPR, loan file or registration — ask us on WhatsApp.

Get a DPR / loan file made

Sources

  1. SIDBI Stand-Up Mitra project profile — Briquetted Fuel (2018)

Data review: 6 October 2026. Spotted a mistake? Report it. For information only — not legal or financial advice.