§1What this business is

Coir fibre extracted from coconut husks is fed in a sheet onto an automatic conveyor and dried by hot air from a firewood-heated heat exchanger, then tied into bundles and baled for transport. Dried fibre goes to coir spinning and product units.

Capacity: 2 tonnes a day, 1,200 tonnes a year (2 shifts, 300 days); year 1 at 70% = 840 tonnes.

§2Is it right for you?

Who it is for

Someone in a coconut-growing belt (such as Kerala, Tamil Nadu, Karnataka or Andhra Pradesh) already in the fibre trade.

Who it is not for

Anyone far from coconut husk and fibre supply.

Advantages

  • Adds value to raw fibre in coconut-growing areas
  • Mechanised process with a small staff
  • Coir Board support exists for the sector
  • Year-round demand from spinners and coir product makers

Drawbacks

  • Very thin margin — about 1–2% net on a large turnover
  • Firewood is a big running cost
  • Only works close to fibre extraction units
  • Fibre prices swing with coconut seasons

Skills you need

  • Moisture control
  • Fibre grading
  • Baling and logistics
  • Buying and selling fibre

Why difficulty 3/5: Simple process, but a large turnover on a thin margin.

§3Market

Who buys

  • Coir spinning units
  • Coir product makers
  • Coir fibre traders and exporters

How it sells

  • Direct sale to spinning units
  • Fibre traders

Good to know

  • Fibre is dried to the moisture level the customer asks for.
  • Dried fibre sells at ₹26,000 a tonne in the profile.

§4Raw material & machinery

ItemQtyCost
Coir fibre drier, 15 HP (with heat exchanger, drier, blower, piping)1₹13,48,000

From: Coir Board Project Profile — Automatic Coir Fibre Drier Unit (PMEGP) (2018)

  • Coir fibre (mechanically extracted)1,380 tonnes a year at full capacity, ₹20,000 a tonne
  • Firewood₹10.50 L in year 1, ₹15.00 L at full capacity

From: Coir Board Project Profile — Automatic Coir Fibre Drier Unit (PMEGP) (2018)

§5Licences & registration

  1. Udyam registration
  2. GST
  3. Pollution control board consent (furnace smoke)
  4. Fire NOC
  5. Coir Board registration (for exports and Coir Board schemes)

We can do this registration for you

§6Schemes & subsidies

₹25 L or less: inside PMEGP's ₹50 L manufacturing limit; CGTMSE for collateral-free credit; MUDRA up to ₹20 L; Stand-Up India for SC/ST and women. The Coir Board also runs support schemes for coir units — check its website.

§7Money

How the investment is worked out: Building ₹6.00 L + machinery ₹13.48 L (15 HP coir fibre drier with heat exchanger, blower and piping) + working capital ₹5.52 L = ₹25.00 L (term loan ₹18.51 L, working-capital loan ₹5.24 L, promoter 5% ₹1.25 L).

Working capital: Working-capital gap ₹5.52 L in year 1.

Profile prepared June 2018 — machinery 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

5305.00Coconut (coir) and other vegetable textile fibres n.e.s., raw or processed but not spun

Export council / board: Coir Board

  • HS codes are from the WCO HS 2022 list; confirm the 8-digit ITC(HS) line with DGFT or your customs broker.
  • You need an Import Export Code (IEC) from DGFT before the first shipment.

§9Risks — where people fail

  • Fibre price swings
  • Fire in fibre stock
  • Firewood cost
  • Thin margin wiped out by losses

§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 coir fibre drying unit (automatic drier) 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), 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 Coir Fibre Drying Unit (Automatic Drier)?

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

Get a DPR / loan file made

Sources

  1. Coir Board Project Profile — Automatic Coir Fibre Drier Unit (PMEGP) (2018)

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