§1What this business is

Husks are wetted for a few hours, broken up in a disintegrator, finished in a decorticator (beater) and cleaned in a revolving screener; the fibre is baled. About 25,000 husks can be processed in an 8-hour shift. The profile notes that only 40–45% of available coconut husk is now used by industry.

Capacity: 2.5 tons of fibre a day; 750 tons a year (300 days). 12,000 husks make a ton of fibre.

§2Is it right for you?

Who it is for

Someone in a coconut-growing district with steady husk supply.

Who it is not for

Anyone outside the coconut belt — husk transport kills the margin.

Advantages

  • Husk is a cheap farm waste in coconut areas
  • Every coir product starts with this fibre — steady demand
  • Coir pith comes out as a saleable by-product
  • Mechanical extraction avoids polluting retting

Drawbacks

  • Needs 75 HP — high power bill
  • Husk is about 77% of sales value — thin margin
  • Only viable close to coconut farms

Skills you need

  • Husk sourcing from farms and traders
  • Machine maintenance
  • Fibre grading
  • Selling to spinners and mat makers

Why difficulty 3/5: Proven machines, but heavy power use and a thin margin need tight control.

§3Market

Who buys

  • Coir yarn spinners
  • Curled coir and rubberised coir makers
  • Mat, rope and brush makers

How it sells

  • Direct sale in bales to coir units
  • Fibre traders and cooperatives

Good to know

  • The profile says the industry now depends on mechanically extracted fibre from green or dry husk.

§4Raw material & machinery

ItemQtyCost
Disintegrator, 10 HP1₹2,30,000
Decorticator, 30 HP each2₹6,82,000
Screener, 2 HP1₹70,000
Baling press, 5 HP1₹1,60,000
Conveyors, 4 HP (as required)—₹3,64,000
Well and pump set, 2 HP1₹90,000

From: PMEGP project profile — Coir Fibre Extraction Unit (prepared by Coir Board, Ministry of MSME) (2018)

  • Coconut husk (green or dry)₹1.80 a husk; 12,000 husks a ton of fibre = ₹21,600 a ton
  • Waterto wet the husk before crushing

From: PMEGP project profile — Coir Fibre Extraction Unit (prepared by Coir Board, Ministry of MSME) (2018)

Suppliers in Building Business Bazaar

Ambalapuzha Coir Development Society · Alappuzha →Amlapuram Coir Cluster · East Godavari →Andaman Coir Cluster · South Andamans →Balusserry Coir Cluster · Kozhikode →Banaskantha Cluster · Banas Kantha →Bhograi Coir Cluster · Baleshwar →Cheluru Coir Cluster · Tumkur →Dharmapuri Coir Cluster · Dharmapuri →Dindigul Coir Cluster · Dindigul →Ethamozy Coir Cluster · Kanniyakumari →Haripada Coir Cluster · Thrissur →Hassan (Haralkatta) · Hassan →

In our raw material database

Coir fibre and coir pith →

§5Licences & registration

  1. Udyam registration
  2. GST registration
  3. Registration with the Coir Board (needed to export; also opens Coir Board schemes)
  4. State Pollution Control Board consent (check the category for your process)
  5. Factory licence if 10 or more workers use power

We can do this registration for you

§6Schemes & subsidies

PMEGP (this profile was made for it), MUDRA loans up to ₹20 lakh and CGTMSE cover fit; Stand-Up India suits women and SC/ST founders.

§7Money

How the investment is worked out: Coir Board profile: work shed (about 1,200 sq ft) ₹4.00 lakh + machinery ₹15.68 lakh + working capital ₹5.32 lakh = ₹25.00 lakh.

Working capital: Working capital ₹5.32 lakh (bank ₹5.05 lakh).

Prices from 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

5305Coconut (coir) and other vegetable textile fibres, raw or processed; tow, noils and waste

Export council / board: Coir Board

  • Coir exporters register with the Coir Board and take its registration-cum-membership certificate.
  • Confirm the exact 8-digit code in the DGFT ITC-HS schedule before you ship.

§9Risks — where people fail

  • Husk shortage or price rise
  • Power cuts
  • Coir pith piling up if not sold
  • Fire in stored fibre

§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 extraction 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 Coir Fibre Extraction?

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

Get a DPR / loan file made

Sources

  1. PMEGP project profile — Coir Fibre Extraction Unit (prepared by Coir Board, Ministry of MSME) (2018)

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