Introduction 

Coir is a natural fiber extracted from the husk of coconut. It is widely used for making various products such as mats, ropes, brushes, geotextiles, and handicrafts. Coir based manufacturing industries are mainly concentrated in the coastal regions of India, where coconut cultivation is abundant. Coir based manufacturing industries provide employment and income to millions of people, especially women and rural poor. Coir based manufacturing industries also contribute to the conservation of natural resources, reduction of pollution, and enhancement of soil fertility. 

Market Potential 

Global Market 

The global market for coir products is estimated to be around $500 million, with an annual growth rate of 7.6%. The major markets are the US, the EU, China, Japan, and Australia. The demand for coir products is driven by the increasing awareness of environmental sustainability, biodegradability, and versatility of coir products. Coir products are also preferred for their natural aesthetics, durability, and low maintenance. The global market for coir products is expected to grow further with the emergence of new applications and innovations in the coir sector. 

Indian Market 

India is the largest producer and exporter of coir products in the world, accounting for about 40% of the global production and 60% of the global exports. The Indian coir industry employs about 7.5 million people, mostly women, in the states of Kerala, Tamil Nadu, Karnataka, Andhra Pradesh, Telangana, Odisha, and West Bengal. The Indian coir industry is estimated to be worth Rs. 2,500 crore, with an annual growth rate of 10%. The domestic demand for coir products is mainly from the sectors of agriculture, horticulture, floriculture, landscaping, erosion control, and rural development. The Indian market for coir products is also expanding with the increasing demand from the urban and industrial sectors. 

Andhra Pradesh and Telangana Market 

Andhra Pradesh and Telangana are among the leading states in India in terms of coconut cultivation and coir production. The combined area under coconut cultivation in these two states is about 3.5 lakh hectares, producing about 2,800 million nuts per year. The coir industry in these two states employs about 1.5 lakh people, mostly women, in the districts of East Godavari, West Godavari, Srikakulam, Vizianagaram, Visakhapatnam, Guntur, Prakasam, Nellore, Kurnool, Anantapur, Chittoor, Rangareddy, Medak, Nalgonda, and Mahabubnagar. The coir industry in these two states is estimated to be worth Rs. 300 crore, with an annual growth rate of 15%. The domestic demand for coir products in these two states is mainly from the sectors of agriculture, horticulture, floriculture, landscaping, erosion control, and rural development. The Andhra Pradesh and Telangana market for coir products is also growing with the increasing demand from the urban and industrial sectors. 

Government Subsidies and Incentives 

Government of India 

The Government of India, through the Coir Board, provides various subsidies and incentives to the coir industry, such as: 

• Subsidy of 25% to 40% on the cost of machinery and equipment for setting up coir units. 
• Subsidy of 25% to 40% on the cost of raw materials for coir production. 
• Subsidy of 10% to 20% on the cost of transportation of coir products. 
• Subsidy of 10% to 20% on the cost of marketing and promotion of coir products. 
• Subsidy of 10% to 20% on the cost of skill development and training of coir workers. 
• Subsidy of 10% to 20% on the cost of research and development of coir products. 
• Interest subsidy of 4% to 6% on the loans availed by coir units. 
• Tax exemption and rebate on the income and sales of coir products. 

The Coir Board also provides various schemes and programs to support the coir industry, such as: 

• Coir Udyami Yojana (CUY): A credit-linked subsidy scheme for setting up of coir units with a project cost up to Rs. 10 lakh, with a subsidy of 40% of the project cost. 
• Coir Vikas Yojana (CVY): A scheme for the development of coir clusters, with a subsidy of 40% of the project cost, up to Rs. 2.5 crore per cluster. 
• Coir Industry Technology Upgradation Scheme (CITUS): A scheme for the modernization and upgradation of coir units, with a subsidy of 25% of the cost of machinery and equipment, up to Rs. 2 lakh per unit. 
• Export Market Promotion Scheme (EMPS): A scheme for the promotion of exports of coir products, with a subsidy of 10% to 20% of the cost of participation in international trade fairs, exhibitions, seminars, etc. 
• Domestic Market Promotion Scheme (DMPS): A scheme for the promotion of domestic sales of coir products, with a subsidy of 10% to 20% of the cost of participation in national trade fairs, exhibitions, seminars, etc. 
• Skill Upgradation and Mahila Coir Yojana (MCY): A scheme for the training and empowerment of women coir workers, with a subsidy of 75% of the training cost, up to Rs. 7,500 per trainee. 
• Research and Development Scheme (R&D): A scheme for the research and development of new and improved coir products, technologies, and processes, with a subsidy of 50% of the project cost, up to Rs. 50 lakh per project. 

Government of Andhra Pradesh 

The Government of Andhra Pradesh, through the Department of Industries and Commerce, provides various subsidies and incentives to the coir industry, such as: 

• Subsidy of 35% to 50% on the cost of machinery and equipment for setting up coir units. 
• Subsidy of 35% to 50% on the cost of raw materials for coir production. 
• Subsidy of 15% to 25% on the cost of transportation of coir products. 
• Subsidy of 15% to 25% on the cost of marketing and promotion of coir products. 
• Subsidy of 15% to 25% on the cost of skill development and training of coir workers. 
• Subsidy of 15% to 25% on the cost of research and development of coir products. 
• Interest subsidy of 5% to 7% on the loans availed by coir units. 
• Tax exemption and rebate on the income and sales of coir products. 

The Government of Andhra Pradesh also provides various schemes and programs to support the coir industry, such as: 

• Pavala Vaddi Scheme: A scheme for the provision of loans at a reduced interest rate of 3% to 4% for coir units. 
• Coir Development Fund: A fund for the development of coir infrastructure, technology, and marketing, with a corpus of Rs. 50 crore. 
• Coir Cluster Development Program: A program for the development of coir clusters, with a grant of Rs. 2 crore per cluster. 
• Coir Park Development Program: A program for the development of coir parks, with a grant of Rs. 10 crore per park. 
• Coir Training and Skill Development Program: A program for the training and skill development of coir workers, with a grant of Rs. 5 lakh per program. 
• Coir Research and Innovation Program: A program for the research and innovation of coir products, technologies, and processes, with a grant of Rs. 10 lakh per program. 

Government of Telangana 

The Government of Telangana, through the Department of Industries and Commerce, provides various subsidies and incentives to the coir industry, such as: 

• Subsidy of 35% to 50% on the cost of machinery and equipment for setting up coir units. 
• Subsidy of 35% to 50% on the cost of raw materials for coir production. 
• Subsidy of 15% to 25% on the cost of transportation of coir products. 
• Subsidy of 15% to 25% on the cost of marketing and promotion of coir products. 
• Subsidy of 15% to 25% on the cost of skill development and training of coir workers. 
• Subsidy of 15% to 25% on the cost of research and development of coir products. 
• Interest subsidy of 5% to 7% on the loans availed by coir units. 
• Tax exemption and rebate on the income and sales of coir products. 

The Government of Telangana also provides various schemes and programs to support the coir industry, such as: 

• Coir Mission: A mission for the promotion and development of coir industry, with a budget of Rs. 100 crore. 
• Coir Development Corporation: A corporation for the provision of financial and technical assistance to coir units, with a capital of Rs. 50 crore. 
• Coir Cluster Development Program: A program for the development of coir clusters, with a grant of Rs. 2 crore per cluster. 
• Coir Park Development Program: A program for the development of coir parks, with a grant of Rs. 10 crore per park. 
• Coir Training and Skill Development Program: A program for the training and skill development of coir workers, with a grant of Rs. 5 lakh per program. 
• Coir Research and Innovation Program: A program for the research and innovation of coir products, technologies, and processes, with a grant of Rs. 10 lakh per program. 

Marketing and Sales 

The marketing and sales of coir products depend on various factors such as the quality, variety, price, design, packaging, branding, distribution, and customer service of the products. Some of the strategies that can be adopted for marketing and sales of coir products are: 

• Identifying the target market segments and customers for the coir products. 
• Conducting market research and analysis to understand the needs, preferences, and expectations of the customers. 
• Developing and launching new and innovative coir products that meet the customer requirements and create a competitive edge. 
• Creating and maintaining a strong brand identity and image for the coir products. 
• Using effective and efficient marketing channels and tools such as online platforms, social media, exhibitions, trade fairs, advertisements, brochures, catalogs, etc. 
• Establishing and expanding the distribution network and channels for the coir products. 
• Offering competitive and reasonable prices and discounts for the coir products. 
• Ensuring the quality, durability, and reliability of the coir products. 
• Providing attractive and eco-friendly packaging and labeling for the coir products. 
• Providing excellent and timely customer service and support for the coir products. 

Production Scale and Investment 

The production scale and investment of coir units depend on various factors such as the type, size, capacity, location, and technology of the coir units. The following table gives an approximate estimate of the production scale and investment of coir units based on the coir fiber production per hour.