§1What this business is
Coir fibre, sometimes blended with sisal, banana, jute or silk, is hand-worked into slippers, bags, umbrellas, lamp shades, animal figures, watch straps, pen stands, jackets and gift articles, and into ornaments such as chains, rings, bangles and necklaces. Only needles, tables, benches and small tools are needed.
Capacity: 7 tons of products a year (2 shifts, 300 days); sales value ₹113.40 lakh at ₹17,50,000 a ton.
§2Is it right for you?
Who it is for
A self-help group, NGO or craft cluster with trained artisans.
Who it is not for
Someone looking for high profit from a small team.
Advantages
- Very low machine cost — under ₹1 lakh of tools
- Creates jobs for 30 artisans
- Eco-friendly gifts have a growing market
- Can start from home clusters
Drawbacks
- Profit is small because nearly all cost is wages
- Needs skilled artisans and good design
- Sales depend on fairs, tourists and online reach
Skills you need
- Hand craft and finishing
- Product design
- Exhibition and online selling
- Training artisans
Why difficulty 2/5: Low investment and simple tools; the hard part is design and steady sales.
§3Market
Who buys
- Tourists and gift buyers
- Handicraft emporiums
- Corporate gifting firms
How it sells
- Craft fairs and exhibitions
- Online marketplaces
- Government emporiums
Good to know
- The profile values output at ₹17,50,000 a ton, showing how much the hand work adds.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Needles, tables, benches, nails and similar tools | — | ₹1,00,000 |
From: PMEGP project profile — Coir Handicraft/Ornaments Production Unit (prepared by Coir Board, Ministry of MSME) (2018)
- Coir fibre and yarnraw material ₹6,00,000 a ton of output
- Sisal, banana, jute or silk fibrefor blended products
From: PMEGP project profile — Coir Handicraft/Ornaments Production Unit (prepared by Coir Board, Ministry of MSME) (2018)
§5Licences & registration
- Udyam registration
- GST registration
- Registration with the Coir Board (needed to export; also opens Coir Board schemes)
- Local trade licence
§6Schemes & subsidies
- PMEGPCentralActive15–35% subsidy
- MudraCentralActiveLoan up to ₹20 lakh, no collateral
- CGTMSECentralActiveNo collateral, up to ₹10 crore
PMEGP (this profile was made for it), MUDRA loans up to ₹20 lakh and CGTMSE cover for a collateral-free loan fit.
§7Money
How the investment is worked out: Coir Board profile: work shed ₹4.00 lakh + machinery and tools ₹0.93 lakh + working capital ₹2.07 lakh = ₹7.00 lakh.
Working capital: Working capital ₹2.07 lakh (bank ₹1.97 lakh).
Prices from June 2018 — machinery costs will be higher now.
§8Export potential
Export council / board: Coir Board
- Coir exporters register with the Coir Board and take its registration-cum-membership certificate.
§9Risks — where people fail
- Low margin
- Unsold stock after a season
- Design copying
- Artisans leaving
§1030 / 60 / 90-day plan
A general plan that applies to any business. A plan for this business will be added after research.
- Days 1–30: Visit a working coir handicrafts and ornaments unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
- Days 31–60: Udyam and the licences you need (Udyam registration, GST registration), a project report (DPR), and the scheme or loan file.
- Days 61–90: Space and machines, trial production, and first deliveries to 10 customers.
§11Who to connect with
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 Handicrafts and Ornaments?
DPR, loan file or registration — ask us on WhatsApp.
¶Sources
Data review: 6 October 2026. Spotted a mistake? Report it. For information only — not legal or financial advice.