§1What this business is

Coir fibre bales are soaked for an hour, cleaned in a willowing machine, made into slivers, then spun on double-head spinning machines around a core thread of nylon, cotton, HDPE or LDPE. Two strands are doubled into 2-ply yarn of the required twist and runnage (50–300 m per kg, 10–30 twists per foot) and wound into balls for coir mat, matting, rope and geotextile makers.

Capacity: 0.08 tonne per machine per shift; 4 machines, 2 shifts, 300 days = 192 tonnes a year; year 1 at 70%.

§2Is it right for you?

Who it is for

Someone in a coir cluster with access to fibre and to mat and matting makers.

Who it is not for

Anyone far from coir fibre supply.

Advantages

  • Automatic machines give far more output than hand or ratt spinning
  • Any yarn grade can be spun by changing machine settings
  • Steady demand from mat and matting makers in coir clusters
  • All machinery is made in India

Drawbacks

  • Labour-heavy — 26 people
  • Fibre is most of the cost
  • Only viable near fibre supply
  • Yarn prices follow the coir market

Skills you need

  • Spinning machine setting (twist, runnage)
  • Fibre cleaning and grading
  • Managing a large crew
  • Selling yarn to weavers and traders

Why difficulty 3/5: Proven machines, but a large crew and a thin margin on fibre.

§3Market

Who buys

  • Coir mat and matting makers
  • Coir rope makers
  • Coir geotextile weavers
  • Yarn traders and exporters

How it sells

  • Direct sale to weaving units
  • Yarn traders

Good to know

  • Yarn sells at ₹45,000 a tonne in the profile.

§4Raw material & machinery

ItemQtyCost
Willowing machine, 1.5 HP1₹90,000
Double-head double-combing 2-ply coir yarn spinning machine, 1.5 HP4₹7,90,000
Auto-feed for double-head spinning machine with 0.5 HP motor, gear box and panel board4₹5,40,000
Auto rewinding machine2₹90,000
Electrical fittings and other equipment1 lot₹1,62,000

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

  • Coir fibre bales211 tonnes a year at full capacity, ₹25,000 a tonne
  • Core thread (nylon, cotton, HDPE or LDPE)carrier for the fibre during spinning

From: Coir Board Project Profile — Automatic Coir Spinning Unit (PMEGP) (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
  3. Coir Board registration
  4. Labour registrations for a 20+ worker unit (EPF, and ESI where applicable)
  5. Fire NOC (fibre stock)

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: Work shed ₹4.00 L + machinery ₹16.72 L + working capital ₹4.28 L = ₹25.00 L (term loan ₹19.68 L, working-capital loan ₹4.07 L, promoter 5% ₹1.25 L).

Working capital: Working-capital gap ₹4.28 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

5308.10Coir yarn

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 shortage or price rise
  • Yarn price fall
  • Machine downtime
  • Workers leaving

§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 yarn spinning (automatic machines) 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 Yarn Spinning (Automatic Machines)?

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

Get a DPR / loan file made

Sources

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

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