§1What this business is

Logs are rip-sawn along the grain and cross-cut, then planed and milled into boards and pieces of the size buyers need. The report's logs are usually teak, mango and babool. Furniture and craft makers buy the cut wood and shape it further.

Capacity: 90 quintals of wood a day on a 10-hour shift; year 1 planned at 50%.

§2Is it right for you?

Who it is for

Someone who already trades timber and can get a saw-mill licence.

Who it is not for

Someone who cannot get forest-department permission for a saw mill.

Advantages

  • Low machinery cost (₹1.60 L)
  • Steady demand from furniture and craft makers
  • Sawdust and offcuts also sell as fuel

Drawbacks

  • Saw-mill licences are tightly controlled by forest departments
  • Thin margin in early years
  • Dust, noise and accident risk

Skills you need

  • Log grading and buying
  • Saw setting and blade upkeep
  • Workshop safety

Why difficulty 3/5: Simple work, but the forest licence is hard to get.

§3Market

Who buys

  • Furniture makers and carpenters
  • Woodcraft units
  • Builders needing door and window wood

How it sells

  • Direct sale from the mill
  • Timber markets

Good to know

  • The report notes engineered wood and ready-to-assemble furniture are growing in cities.

§4Raw material & machinery

ItemQtyCost
Circular saws1 set—
Bandsaws1 set—
Frame saws and hand saws1 set—
Planes and router1 set—
Lathe1—
All machinery and equipment together (excl. GST and installation)1 lot₹1,60,000 (approx.)

From: PMEGP sample project report — Wood Cutting Unit (prepared by Udyami/Samadhan)

  • Hardwood or softwood logs (teak, mango, babool)about ₹250–280 per quintal (report's approximate figure)

From: PMEGP sample project report — Wood Cutting Unit (prepared by Udyami/Samadhan)

In our raw material database

Industrial timber (roundwood from farms and trees outside forests) →Sal wood →Eucalyptus wood →

§5Licences & registration

  1. Udyam registration
  2. GST registration
  3. State Pollution Control Board consent to establish and operate, where the state requires it
  4. Trade licence from the local body
  5. Saw-mill licence from the State Forest Department (required for wood-based units under state rules)
  6. Buy timber only from licensed depots with a transit pass where state forest rules require it

We can do this registration for you

§6Schemes & subsidies

PMEGP fits (₹11.99 L); MUDRA covers the full cost; CGTMSE for a loan without collateral; Stand-Up India for SC/ST and women founders. Banks will ask for the saw-mill licence.

§7Money

How the investment is worked out: Building / shed (1,200 sq ft) ₹6.00 L + plant & machinery ₹1.60 L + furniture & fixtures ₹0.50 L + working capital ₹3.89 L = ₹11.99 L.

Working capital: Working capital ₹3.89 L, of which bank finance ₹3.50 L; 10–15 days of stock, 15 days' credit. Logs cost about ₹250–280 a quintal (report's approximate figure).

Year not printed on the report — check current machinery prices.

How to prepare a loan file

§8Export potential

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

4407.99Wood sawn or chipped lengthwise, sliced or peeled, over 6 mm thick (other non-coniferous)

Export council / board: FIEO (Federation of Indian Export Organisations)

  • Export of logs and timber is controlled — check the DGFT export policy for Chapter 44 before planning exports.
  • Confirm the 8-digit ITC(HS) line with DGFT or your customs broker before shipping.

§9Risks — where people fail

  • Licence or transit-pass problems
  • Log price swings
  • Injury at the saw

§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 wood cutting (sawing) unit 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 Wood Cutting (Sawing) Unit?

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

Get a DPR / loan file made

Sources

  1. PMEGP sample project report — Wood Cutting Unit (prepared by Udyami/Samadhan)

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