Introduction to Coimbatore’s Coconut Oil Industry Coimbatore is a city in the southern Indian state of Tamil Nadu that is well-known for its flourishing coconut oil industry. The city has a rich history of coconut cultivation and oil extraction that dates back centuries. Today, Coimbatore is one of the leading suppliers of high-quality coconut oil in India, with numerous small-scale and large-scale oil mills operating in and around the city.