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*Virgin Coconut Oil - Project Profile

 

*Introduction

Virgin coconut oil (VCO), extracted from fresh coconut meat without chemical processes is said to be the "mother of all oils". It is rich in medium chain fatty acids, particularly lauric acid and is a treasure trove of minerals, vitamins, antioxidants and is an excellent nutraceutical. It has about 50% lauric acids, having qualities similar to mother's milk, thus confirming its disease-fighting ability. When lauric acid enters human body it gets converted to Monolaurin, which has the ability to enhance immunity. Several studies have confirmed that this compound has the ability to kill viruses including herpes and numerous other bacteria. Its antiviral effect has the ability to considerably reduce the viral load of HIV patients. VCO is not subjected to high temperatures, solvents or refinement procedures and therefore retains the fresh scent and taste of coconuts. It is rich in vitamin E, is non-greasy, non-staining and is widely used in soaps, lotions, creams and lip balms. The health benefits of VCO are second to none; ranging from speeding up body metabolic system and providing immunity against a horde of commonly prevalent diseases. Coconut palms are grown widely in the coastal tracts of the country. Copra, the dried kernel is the chief /commercial product from coconut, which is mainly used for oil extraction. Copra normally has an oil content varying from 65 to 72 per cent. Coconut oil is an important cooking medium in Southern parts of the country especially in Kerala State. Besides, the oil has varied industrial applications. It is used in the manufacture of toilet soaps, laundry soaps, surface active agents and detergents, hair tonics, cosmetics, etc. It is used throughout the country as a hair oil as it helps growth of the hair. As a massage oil it has a cooling effect on the body. Owing to these qualities coconut oil has a potential market in the country. Since the price of coconut oil in the international market is very much lower than the domestic price, the quality and attractiveness of consumer packs are important factors to compete in the world market. While the demand for coconut oil for cooking purpose is elastic, its demand as hair oil is inelastic. For the extraction of oil from copra the common method still prevailing in our country is by using rotary chucks. But the efficient system of extraction of oil is by the use of expellers.

*Process

Coconut Kernels are first disintegrated into small pieces in a Disintegrator and then fed into a screw press for milk extraction. The oil is then separated from the water using a mechanical centrifuge. The result is a clear coconut oil that retains the distinct scent and taste of coconuts. Laboratory tests show that this is a very high quality coconut oil, with the lauric acid content being 47 to 52%.

 *Product specification

Moisture % wt., Max.  0.25 Colour in 1/4  cell Lovibond Y+5R, not Deeper than 2.0
Acid value, Max.   0.50 Unsap. matter % by wt., Max. 0.8
Polenske Value, Min.   0.8    

 

*Project Cost  20000 coconuts /day capacity)

Land (cost variable) 50 cents Building 6000 sq.ft. Rs.40 lakhs
Plant and Machinery Rs.85 lakhs Preliminary and preparative expenses Rs.10  lakhs
Contingencies Rs.2.50 lakhs Working capital (Margin Money) Rs.20 lakhs

*Machinery

Hammer Mill       Bucket elevator Centrifuge
Screw press  Screw conveyor   Crude coconut oil storage tanks
Vibratory Sieve Micro filter    Filtered oil storage tanks
Volumetric filling machine        

*Yield

Raw material  10000 coconuts  Virgin Coconut oil 600 litres

*Project Highlights (at 90% cap. Utilization)

Sales turnover  800 lakhs  Net Profit       160.0 lakhs
IRR     18% Break Even point   65%

*Manufacturing units

  1. M/s.Golden Vintage Farmer’s Industry, Muringoor, Koratty.P.O., Chalakudy-680 308 ,CEO: K.A.Jogy, Ph. 0480-2732858,3252858 Mob: 9447782851

  2. M/s. Mosons Extractions, Industrial Estate, Palayad, Thalassery, Kannur Dt. Ph: 0490-3206825, Mob- 9388636181(Shri Anvar), 9447370956 E-mail: mosonsextractions@yahoo.co.in

  3. M/s. Keratech Coconut Oil Manufacturing Company (P) Ltd., 1/332 B, P.O.Engandiyur, Trichur Ph: 0487-2294515, 2296393, Web Site: www.keratechindia.com

  4. M/s.Srithara Agro Tech, G1, Tip Top Towers, Opposite Power Office Road N.G.O. Colony, Ongole, A.P. PIN 523 002 Ph: 08592 282366, Mob: 9246463118

Note: The cash estimates and returns are variable.

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