Coconut Oil Manufacturing Business
The coconut oil manufacturing business is a profitable business with a low capital investment in this article we will show why coconut oil is on demand and how to start your own coconut oil manufacturing industry.
Coconut oil is made from coconut fruit, dry coconut fruit is called copra, coconut trees are found in the coastal area of India
Coconut oil is much better for health than the groundnut oil
Copra is having oil content around 62 to 72 %, also you can get oil from fresh coconut, and this term is known as ‘virgin coconut oil.’
Another coconut oil named as RBD (refined, bleached, deodorized) coconut oil, here bleaching is not a chemical process, bleaching is processed filtering to remove impurities by using bleaching clay
Coconut Business Plan
Before knowing about coconut business plan, here are some details about coconut business Coconut production has a significant role in the Indian market. Thus, beginning a coconut-based Business creates possible income opportunities for entrepreneurs. The nation is the maximum producer of coconuts on earth. The total cultivated area is over 1.94 million hectares.
Fundamentally, the four southern states of India, together with Kerala, holds 90 percent of coconut manufacturing occupying about 50 percent of the coconut cultivated region in India. The developing marketplace for all coconut goods is waking up in the United states, Europe, and other nations.
#1 Potential of coconut oil Business (Market Opportunity)
Coconut oil is one of the cooking ingredients, which is used all over India, especially in the southern part of India
Refined coconut oil has a high demand in Kerala, Maharashtra and another south state
Coconut oil is also used in the commercial sector for manufacturing of soap, detergent, hair oil, beard oil, massage oil, cosmetics, etc
Coconut oil is also used as a lubricant for machinery
Therefore the demand for coconut oil is more, so it is profitable to start the coconut oil manufacturing business
#2 Registrations & Licenses Required for oil Business
There is some documentation that you have to complete before starting the coconut oil manufacturing business
#1.Registration of Firm: You may start the small to medium scale Coconut Oil Manufacturing Business either a Proprietorship or Partnership Firm.
If you are starting this coconut oil business as One Person Company, then you have to register your firm as a proprietorship.
For Partnership operation, you have to register as a limited liability partnership (LLP) or Pvt. Ltd. Company with Registrar of Companies (ROC).
#2.GST Registration: Obtain GST number which is compulsory for every business.
#3.Trade License: Then, apply for Trade License from the local authority which is mandatory to open a business in a public area.
#4.MSME/SSI Registration: Obtain Udyog Aadhaar MSME online registration. From which you can get a government facility.
#5.BIS Certification: Apply for BIS Certification. For the different application of coconut oil, there are different quality standards you must maintain. Such as IS11470 (1985).
#6.Food Safety and Standard Authority of India (FSSAI): Coconut oil is food related industry so you have to apply for FSSAI registration.
#7.IEC code: If you are planning to export the coconut oil then you have to apply for IEC code.
#8.Trade Mark: Secure your brand with the tread mark registration.
#3 Area required for Coconut Oil Manufacturing (Location)
Area selection if a tough task in every business, you can start the coconut oil manufacturing business from at least 500 sq ft area space
While selecting the location makes sure that they are having facilities like water supply, electricity supply, drainage facility
Also, the location is must be easily accessible, the raw material sources and target market are near to the location of the processing unit
Complete all the paperwork related to the land and check out all rules that mention by local government for the location selection
#4 Raw Materials for Coconut Oil Manufacturing Business
Coconut oil is made up of copra which is dried coconut, well-dried copra with ^% moisture content is ideal raw material for the coconut oil manufacturing
Quality of the coconut oil is depending on the quality of copra, so you need to find out the huge source of Quality copra (dry coconut) supply at an affordable price.
It is advisable to contact the farmer who can supply you coconut in large quantity with high quality in low price.
You need to balance these three things that are quality, quantity, and price because you have to produce a high-quality product at a low price.
#5 Machinery Requirement Coconut Oil Manufacturing
The machinery requirement generally depends on the manufacturing process, the raw material used and capital investment
Here we listed some machinery required for the coconut oil manufacturing
- Baby Boiler
- Bucket Elevator
- Copra Cutter
- Crude Coconut Oil Storage Tanks
- Filter Press
- Filtered Oil Storage Tanks
- Oil Expeller
- Screw Conveyor
- Steam Jacketed Kettle
- Volumetric Filling Machine
- Wooden Storage Drums
- Packaging Machine
#6 Coconut Oil Manufacturing Process
Step 1 Separation Of Nuts:
Broke the shell of the coconut and keep it in sun to dry, and then separate the nut from husk on next day.
Step 2 Copra Making:
Keep the nut in sun for more than three days to make copra of required moisture contain
Step 3 Reheating
Dry copra is again heated in the dryer before chopping into pieces, to obtain copra of 6% moisture contain
Step 4 Chopping:
Dried coconut (copra) cut into small pieces with the help of a copra cutter.
Step 5 Roasting:
Feed the copra pieces into steam-jacketed kettles and cooked around 70oC temperature for 30 minutes.
Step 6 Crushing:
After cooking, feed the cooked copra into the expeller continuously and press twice.
Collect the combined oil from the first pressing method and the second pressing takes place in the separate tank.
Step 7 Separation of Cake:
Filter the oil with the help of the filter press; you will get the oil cake as a byproduct
Oil cake is used as ready-made cattle feed
Step 8 Double Filtration:
Extracted oil filters twice to get the fine filter quality oil
Extraction of the remaining oil is taking place by the solvent extraction method.
Step 9 Stores in Tanks:
Store the filtered pure coconut oil in storage tanks.
Step 10 Packaging:
The packing is done using multilayered films, bottles, cans, and tins; you can pack the coconut oil into the small packets to sell directly to the customers
How you packed your own item will decide whether it will offer or not. You have to pack your coconut oil item in an attractive way so you can attract customers.
Related Business Ideas:
#7 Usages of coconut oil for health benefits
Use for cooking:
The saturated acid found in coconut oil can be easily separated into absorbable bits
This is the reason a great many people favor utilizing the oil to cook than other saturated oil like the groundnut, palm and melon oil.
Anybody trying to shade some overabundance weight is urged to take a greater amount of coconut oil.
This is because that the oil contains supplement that builds the body digestion rate and to separate nourishment quicker for the body to effortlessly absorb.
Research has demonstrated that coconut oil contains a type of fatty acid (unsaturated fat) known as lauric acid.
This helps to fabricate the body immune system to fight against diseases and antibodies in the body
For external use:
Coconut oil is connected to the skin to influence it to look smoother and milder; it is additionally used to clear stretch imprints.
#8 Where to sell Coconut Oil
You need to promote your brand and be a good marketer, the promotional strategies you choose and your marketing process will impact on the coconut oil production
Local market (retail market)
You can sell your coconut oil with the help of retailers or local market
Glossary store: Coconut oil is used for the cooking purpose, so you can sell your coconut oil in glossary store
Medical stores: Coconut oil is also used in medical purpose so you can sell your coconut oil in medical store.
You can sell your coconut oil in your city wholesale market at a bulk amount
Create a small online store where can sell the product or take help of other hosting sites
Register your business on B2B websites like
etc. where you can sell your product on bulk orders.
Register your business on B2C websites like
etc. where you can sell your product directly to the customer.
Brand and Uniqueness
Social media is one of the best ways to connect with customers.
Encourage your customer to use your brand coconut oil, also offer them some exciting combo such as buy one get one promo.
You can open your own website where you publish the article related to your business such as benefits of coconut oil, facts about coconut oil.