Coconut Powder Manufacturing | Profitable Small Business Project

Do you want to know how to start coconut powder manufacturing business? Do you want to start desiccated coconut manufacturing business? Here in this article, we provide detailed information on how to start coconut manufacturing business.

India is the third largest coconut producing country in the world. Copra and coconut oil are the two major products of the coconut processing industry. In our country, 60% of the coconut goes for food processing. And the rest 40% generally goes for oil extraction.

Coconut powder is an essential ingredient for the sweets and confectionery industry. Additionally, it has larger shelf life than raw coconut.

The major coconut producing states are Kerala, Tamil Nadu, Andhra Pradesh, Karnataka, Orissa, and Maharashtra. So these areas are the ideal location for starting this project. However, you can start the business from any location where you can source the raw coconut easily.

Coconut Powder Market Potential

Desiccated coconut is a consumer item. It has a longer shelf life and is convenient to use. In addition, it comes with ready to use packs with same freshness of a fresh coconut milk. So, the product has a great market demand in the both domestic and international market. Generally, bakery and confectionery industries are the major consumers of this product.

Generally, bakery and confectionery industries are the major consumers of this product. Additionally, the demand for this product is higher in the areas those are not popular for coconut production. With the changing lifestyle, people are looking for more and more value added and ready-to-use products. Therefore, we can say, starting a coconut powder manufacturing business is the lucrative venture opportunity for the new entrepreneurs.

Registration & License For Coconut Powder Manufacturing

Coconut powder is a food item. And the business demands different registrations and licenses before commencing. These requirements hugely depend on the location where you are starting the unit. However, here put the basic requirements. It is advisable to check with a local small business expert and tax consultant.

First of all, you need to determine the management pattern of your organization. And accordingly, register the business.
Apply for MSME Udyog Aadhaar online registration.
In addition, apply for the Trade License for the local Municipality.
The business demands FSSAI registration. You can apply it online.
Check whether the product demands VAT registration or not.
Open a current bank account.
Apply for the BIS certification. The Bureau of Indian Standards specification for desiccated coconut is IS 966:1962. The product should also conform to PFA Act, specifications.
Additionally, check the tax liabilities of this business.

Investment For Coconut Powder Manufacturing Business

Coconut powder manufacturing business demands a moderate capital investment. And the major investment areas are fixed cost and working capital cost. There are several aspects that demand fixed capital investment in this project. The list includes plant, building, machinery and other initial costs related to preparation of project report and sourcing the technology.

There are several aspects that demand fixed capital investment in this project. The list includes plant, building, machinery and other initial costs related to preparation of project report and sourcing the technology.

On the other hand, there are certain investments related to working capital cost. This includes raw materials, staff payment, utility bills, transportation, and marketing expenses.

It is advisable to start this business with project loan. You can apply for the loan to your nearby banks or any other financial institutions. However, you must have a project report in your hand to apply for the loan. Additionally, you can avail the subsidy scheme for financial assistance. Under Technology Mission on Coconut (TMOC), Coconut Development Board is providing assistance for setting up of coconut based value-added industry in India.

Coconut Powder Manufacturing Plant Setup & Machinery

According to your investment capacity and desired production output, you have to secure a place for the unit. Generally, a 1500 Sq Ft area is sufficient for small scale production. Additionally, you will need to arrange the sufficient electricity and water supply at your factory.

Some of the major required machinery are:

Cabinet type hot air dryer with blower, motor, and other accessories
Disintegrator 12″ size with 10 H.P. Motor and accessories
Vibratory sifting machine fitted with G.I. wire mesh and 2 H.P motor
Al Trays
Platform weighing balance
Polythene sealing machine
Other Misc. equipment like LS scrapping Knives, Aluminium vessel, trolleys etc.
Working tables LS 0.20
Laboratory testing equipment etc.

Useful Links For Coconut Powder manufacturing Business

Coconut Powder Manufacturing Process & Raw Materials

First of all, you have to select good quality coconuts. Selection of the coconut is the most crucial factor in this business. Because the quality of the finished product hugely depends on the quality of the coconut. Basically, fully matured coconuts of about 12 months are the best for the preparation of desiccated coconut.

First of all, you have to store the fully matured nuts with the husk for about one month. Because you need the dry kernels. This also facilitates coconut kernels to get separated from shell walls. The coconuts

Then dehusk the coconuts and remove their shells. Additionally, you have to remove the brown portion of nuts by scrapping it off. About 10-15% of the kernel goes as paring by this process. You can use these parings for oil extraction.

Then break the deshelled coconuts into pieces. After that, wash them properly and disintegrate into powders of various grades. Then dry the powder in a dryer by spreading it out uniformly in
trays. However, you will need to maintain the temperature in the drying chamber at about 180° F. Additionally, you will need to stir the powder frequently to ensure uniform drying.

After drying, cool the powder and segregate with different sizes. The last step is packing. You must pack the finished item in oil proof and moisture proof polyethene. However, you have to select the packaging quantity according to the retail demand.During the process of manufacturing.

During the manufacturing of coconut powder, you may obtain a number of byproducts such as coconut shell and husks. However, you can convert these byproducts into value-added items. You can expect 100 kgs of desiccated coconut from 1000 coconuts.

Raw Materials

The major materials are coconut nuts. Additionally, you have to procure the packaging consumables for your coconut powder manufacturing business.