§1What this business is

Discarded woollen garments, torn woollen fabric and textile scraps are collected, sorted, washed and shredded into fibre, carded, spun into yarn and woven into blankets on looms, then dyed, edged and packed. Sales go to retail and wholesale markets, NGOs, schools and government departments, hotels and resorts, and online.

§2Is it right for you?

Who it is for

A textile entrepreneur who can run spinning and weaving machines and win institutional orders.

Who it is not for

A small artisan without machine and bulk-selling experience.

Advantages

  • Raw material is waste wool, cheaper than virgin wool
  • Steady demand for blankets from institutions
  • Strong eco story for urban buyers
  • Can add shawls, stoles and cushion covers

Drawbacks

  • High investment for a craft-type product (₹80 lakh)
  • Recycled blankets compete with cheap Panipat goods
  • Collecting and sorting waste wool is slow
  • Winter-heavy sales

Skills you need

  • Fibre recovery and carding
  • Spinning and loom weaving
  • Institutional and tender selling
  • Quality and cost control

Why difficulty 4/5: Large investment, machine-heavy process and a crowded blanket market.

§3Market

Who buys

  • Retail and wholesale blanket buyers
  • NGOs, schools and government departments
  • Hotels, resorts and wellness centres

How it sells

  • Handicraft emporiums, tourist shops and cooperatives
  • Amazon, Flipkart and sustainable lifestyle portals
  • Trade fairs

Good to know

  • The profile also suggests customised blankets for hotels and export of eco-friendly blankets later.

§4Raw material & machinery

ItemQtyCost
Wool shredding machine—₹8.00 lakh
Carding machine—₹10.00 lakh
Spinning machine—₹6.00 lakh
Blanket weaving loom—₹7.00 lakh
Dyeing and washing unit—₹4.00 lakh
Stitching and finishing tools—₹2.00 lakh
Packaging unit—₹1.50 lakh

From: Uttarakhand DUY project profile — Recycled Wool Blanket Manufacturing

  • Discarded woollen garments and torn woollen fabricfrom households, local markets and NGOs
  • Textile industry wool scrapsfrom textile waste vendors
  • Natural dyes and finishing agentsfor colour and feel

From: Uttarakhand DUY project profile — Recycled Wool Blanket Manufacturing

In our raw material database

Cotton waste →

§5Licences & registration

  1. Udyam registration
  2. GST registration
  3. Pollution consent for washing and dyeing from the state board
  4. Factory licence if the size crosses the legal limit

We can do this registration for you

§6Schemes & subsidies

At ₹80 lakh this is above the PMEGP manufacturing limit and MUDRA; Stand-Up India and CGTMSE fit. The profile names PMEGP, the Uttarakhand industrial policy and women-entrepreneur schemes.

§7Money

How the investment is worked out: DUY profile cost ₹80.00 lakh: land and building ₹20.00 lakh, machinery ₹35.00 lakh, raw material ₹5.00 lakh, working capital for 3 months ₹10.00 lakh, training ₹3.00 lakh, marketing ₹5.00 lakh, contingency ₹2.00 lakh. Its machinery list adds to ₹38.50 lakh.

Working capital: ₹10.00 lakh for 3 months.

Year not printed on the DUY profile — check current machinery and material prices.

How to prepare a loan file

§8Export potential

Confirm the HS code in the DGFT ITC(HS) lookup before you export

6301Blankets and travelling rugs

Export council / board: Wool and Woollens Export Promotion Council (WWEPC)

  • Get an IEC and register with WWEPC (RCMC) before exporting woollen goods.

§9Risks — where people fail

  • Low-priced competition
  • Uneven waste wool supply
  • Machine downtime
  • Unsold stock after winter

§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 recycled wool blanket making 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 Recycled Wool Blanket Making?

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

Get a DPR / loan file made

Sources

  1. Uttarakhand DUY project profile — Recycled Wool Blanket Manufacturing

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