Profits in the coconut powder manufacturing business (the cost to start)
Are you interested to know about beginning a coconut powder manufacturing business? Do you wish to start a desiccated coconut manufacturing business? Here in this blog, we share thorough information about how to start the coconut powder manufacturing business for profits.
Ideas to start and make profits in coconut powder manufacturing
India stands as the third-largest coconut producing country in the whole world. Copra and coconut oil are the two main products of the coconut processing industry. In our country, 60% of the coconut is channelized for food processing. And the rest 40% commonly sent for oil extraction.
Coconut powder is a vital ingredient for the sweets and confectionery units. Moreover, it has a larger shelf life which is higher than raw coconut.
The chief coconut producing states are, Tamil Nadu, Kerala, Andhra Pradesh, Orissa, Karnataka, and Maharashtra. So these areas are the perfect areas for initiating this project. However, you can initiate the business from any place where you can obtain the raw coconut without any pain.
Coconut powder market potential
Desiccated coconut is a custom item. It has a higher shelf life, thus is convenient to use. Also, it is available with ready to use packs with similar freshness as of fresh coconut milk. So, the product has a high market need in both the here in India as well as in international markets. Usually, bakery and confectionery industries are the main customers of this product.
Generally, the bakery and confectionery sectors are the main consumers of this product. Moreover, the demand for this product is great in places that are not common for coconut production. With varying lifestyles, people are observing for more and more value-added and readymade products. Hence, we can say, opening a coconut powder manufacturing business is a moneymaking business opportunity for new entrepreneurs.
Registration & license for coconut powder manufacturing business
Coconut powder is a food product. And the business requires various registrations and licenses before beginning only. These requisites are mainly based on the location where you are planning to initiate the unit. However, it is suggested to contact local small business professionals and tax consultants.
- Primarily, you must define the management design of your organization. And then as per the design, register your business.
- Firstly, apply for MSME Udyog Aadhaar which is available as online registration.
- Then, the important trade license from the local municipality should be applied.
- The business comes under the food Industry category and requests consent from FSSAI which is also done online.
- Nowadays it is a must to apply for GST registration.
- Try to create a current account in any of the nearby banks.
- Then it is important to apply for the BIS certification. The Bureau of Indian Standards specification for the product is IS 966:1962. The product must also conform to the PFA Act, guidelines
Moreover, it is essential to check the tax liabilities as well for this business.
Investment for coconut powder manufacturing business
Coconut powder manufacturing business requires a medium capital investment. And the main investment segments are fixed cost and working capital cost. Several aspects demand fixed capital investment in this business. The list comprises plant, machinery, building, and other initial costs associated with the preparation of project reports and sourcing the technology.
Moreover, there are specific investments associated with the working capital cost. This comprises raw materials, utility bills, staff payment, transportation, and marketing expenses.
It is suggested to initiate this business with a project loan. You can avail the loan from nearby banks or any other financial institutions. However, you should have a business plan in your hand for loan application. In addition to that, you may get the subsidy scheme for financial aid from Under Technology Mission on Coconut (TMOC), Coconut Development Board for the setup of the coconut-based value-added industry in India.
Coconut powder manufacturing plant setup and machinery
As per the capital, you are planning and having the interest to start production output, you must secure an area for the unit. Usually, around 1500 square feet area is adequate for small scale production. In addition to that, you must arrange a proper power facility and water supply at your unit.
Some of the chief machinery for coconut powder making are needed 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 equipment such as LS scrapping Knives, trolleys, Aluminium vessels, etc.
- Working tables LS 0.20
- Laboratory testing equipment etc.
The cost of coconut powder making machinery ranges from Rs. 1 lakh to Rs. 3 lakhs.
Coconut powder manufacturing process & raw materials
In case if you miss this: Profit from Chikki Making Business.
Primarily you must choose good quality coconuts. The selection of the coconut is the main aspect of this business. Because the quality of the finished product majorly depends on the quality of the coconut. Completely mature coconuts of around 12 months are considered perfect to prepare the desiccated coconut.
First of all, you must store the fully matured nuts along with husk for around one month. Because you require dry kernels. This also eases coconut kernels to detach from shell walls.
Then dehusk the coconuts and separate their shells. In addition to that, you must remove the brown part of nuts through scrapping. Around 10-15% of the kernel here goes as paring during this process. You have to utilize these pairings for oil extraction.
Then break the deshelled coconuts into small pieces. After this, wash them perfectly and disintegrate into powders of different grades. Then this powder is dried in a dryer by spreading it uniformly in trays. However, you must maintain the heat in the drying chamber to 180° F temperature. In addition to that, you must stir the powder frequently to make sure the drying is done uniformly.
After drying, it is important to cool the powder and segregate it with different sizes. The last process is packing. You must pack the finished product in an oil proof and no- moisture- polyethylene. However, you must choose the packaging quantity as per the retail demand.
During the process of manufacturing of coconut powder, you will have many by-products like coconut shells and husks. However, you can use these by-products into value-added items. You can get around 100 kgs of desiccated coconut by 1000 coconuts.
Profits in the coconut powder manufacturing business in India
You can get a good amount of profits in coconut powder making business. You can expect a profit range from 40 to 45% as it involves very little cost for investment.
The chief materials are coconut nuts. In addition to that, you must obtain the packaging materials for your coconut powder manufacturing business.
Where you can sell coconut powder
Coconut powder is classified under the FMCG segment. So, you should consider allotting the product within the local wholesalers and the retailer. You can even deal with the supermarkets or shopping malls nearby to keep your product in proper circulation.
In developed or developing regions people prefer buying household items through online stores such as Grofers, and BigBasket. Thus, you can sell from some online grocery stores too. Finally, also keep an eye on international market trends and needs. Restaurants, hotels, coffee shops, clubs are chief buyers of this product. So, you may sell them as well.
We hope this compressive blog of initiating starting the coconut powder manufacturing business will assist you in taking a firm decision.
To reduce the input cost, and make more profits, you can consider commercial Coconut Production.