§1What this business is
Bituminous coal is ground in ball mills, heated at 700–900°C without air in coke ovens for 7–8 hours, cooled, crushed to size and tested for strength, carbon, sulphur and ash. Foundries use the coke in cupolas to melt grey iron.
Capacity: 3 ovens of 800 kg coke a batch; annual cost of production ₹8.39 L at full use.
§2Is it right for you?
Who it is for
Someone in a coal belt near a foundry cluster who can meet strict pollution rules.
Who it is not for
Anyone near homes or without pollution-control expertise.
Advantages
- Foundries need cupola coke regularly
- Simple process
- Tar can be collected as a by-product
- Near coal belts, raw material is close
Drawbacks
- Heavily polluting; pollution consent is hard to get
- Very thin surplus at the profile's figures
- Coking-coal supply is controlled and scarce
- Hot, hazardous work
Skills you need
- Coal grading and blending
- Oven operation and safety
- Coke quality testing
- Selling to foundries
Why difficulty 5/5: Small investment but very hard to get pollution consent, and margins are thin.
§3Market
Who buys
- Grey-iron foundries with cupolas
- Small steel and casting units
How it sells
- Direct supply to foundries
- Coal and coke traders
Good to know
- The profile notes cupola coke is of lower grade than blast-furnace coke.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Coke oven, 800 kg coke a batch | 3 | — |
| Coal crusher | 2 | — |
| Ball mill, 200 kg capacity | 3 | — |
| Material handling tools, testing lab, platform balance, office equipment | — | — |
| Full equipment set | — | ₹1,50,000 |
From: KVIC Project Profile — Bee - Metallurgical Coke (PMEGP)
- Bituminous (coking) coal₹2,32,000 raw material a year in the profile; blends with non-coking coal are also used
- Packing material₹15,000 a year
From: KVIC Project Profile — Bee - Metallurgical Coke (PMEGP)
Suppliers in Building Business Bazaar
Central Institute of Mining & Fuel Research (CSIR-CIMFR), Dhanbad · Dhanbad →
In our raw material database
§5Licences & registration
- Pollution control board consent to establish and operate (coke making is a red-category industry)
- Udyam
- GST
- Factory licence
- Coal purchase linkage or auction registration
§6Schemes & subsidies
The KVIC profile is a PMEGP model; check with the bank and pollution board before applying.
§7Money
How the investment is worked out: KVIC profile: workshed 300 sq ft ₹60,000, equipment ₹1,50,000 (3 coke ovens of 800 kg a batch, 2 coal crushers, 3 ball mills of 200 kg, handling tools, testing lab, platform balance, office equipment), working capital ₹80,000 = ₹2,90,000.
Working capital: Working capital ₹80,000; requirement per cycle ₹1,39,967.
Year not printed on the KVIC profile — check current prices; equipment costs will be far higher now.
§8Export potential
Confirm the HS code in the DGFT ITC(HS) lookup before you export
Export council / board: DGFT (IEC needed)
- A small unit sells locally to foundries.
§9Risks — where people fail
- Pollution-board closure
- Coal supply cuts
- Worker safety and burns
- Low margin
§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 metallurgical coke unit (small coke ovens) unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
- Days 31–60: Udyam and the licences you need (Pollution control board consent to establish and operate (coke making is a red-category industry), Udyam), 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 Metallurgical Coke Unit (Small Coke Ovens)?
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.