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Coconut Oil Manufacturing Business

Coconut oil manufacturing business is a profitable business with low capital investment, in this article we will explain why coconut oil is on-demand and how to start your own coconut oil manufacturing industry.

Coconut oil is made from the coconut fruit, the dried coconut fruit is called copra, coconut trees are found in the coastal region of India.

Coconut oil is much better for healthier than peanut oil

The amount of oil in copra is around 62 to 72%, you can also get oil from fresh coconut, and the term is known as 'virgin coconut oil'.

Another coconut oil called RBD (refined, bleached, deodorized) coconut oil, here bleaching is not a chemical process, bleaching is done by using a bleaching clay to filter out the impurities.

1. The potential business of coconut oil

Coconut oil is one of the cooking ingredients used throughout India, especially in the southern part of India.

Refined coconut oil is in high demand in Kerala, Maharashtra and another southern state

Coconut oil is also used in the commercial sector for the manufacture of soaps, detergents, hair oils, beard oils, massage oils, cosmetics, etc.

Coconut oil is also used as a lubricant for machinery

So the demand for coconut oil is high, so it is profitable to start a coconut oil manufacturing business

2 Essential Registration and License for Oil Business

There are some documents that you must complete before starting a coconut oil manufacturing business

  • Firming of firm: You can start small to medium scale coconut oil manufacturing business either proprietorship or partnership firm

If you are starting this coconut oil business as a One Person Company, then you have to register your firm as an ownership.

For a partnership operation, you must register as a Limited Liability Partnership (LLP) or Private. Ltd. with the Registrar of Companies (ROC).

  • GST Registration: Get GST number which is mandatory for every business.
  • Trade License: Then, apply for a trade license from the local authority which is mandatory to open a business in the public sector.
  • MSME / SSI Registration: Get Industry Based MSME Online Registration. So that you can get government facility.
  • BIS Certification: Apply for BIS Certification. For different application of coconut oil, you have different quality standards to maintain. Such as IS11470 (1985).
  • Food Safety and Standard Authority of India (FSSAI): Coconut oil is a food related industry so you have to apply for FSSAI registration.
  • IEC Code: If you are planning to export coconut oil then you have to apply for IEC code.
  • Trade Mark: Protect your brand with a trade mark mark.

3. Areas required for coconut oil manufacturing (location)

Area selection If each business is a difficult task, then you can start a coconut oil manufacturing business in place of at least 500 square feet of area.

While selecting the location it ensures that they have facilities like water supply, power supply, drainage facilities

In addition, the location should be easily accessible, the source of raw materials and the target market are near the location of the processing unit

Complete all the paperwork related to the land and see all the rules mentioned by the local government for location selection

4. Raw material for coconut oil manufacturing business

Coconut oil is made from copra, which is dried with coconut, ^% moisture-rich copra is the ideal raw material for the manufacture of coconut oil.

The quality of coconut oil depends on the quality of copra, so you need to locate a vast source of quality copra (dry coconut) supplies at an affordable cost.

 It is advisable to contact the farmer who can supply you a large quantity of coconut with high quality at a low price.

You need to balance these three things: quality, quantity and price because you have to produce a high quality product at a low price.

5. Machinery Required Coconut Oil Manufacturing

The requirement of machinery usually depends on the manufacturing process, raw material usage and capital investment.

Here we have listed some of the machinery required for manufacturing coconut oil.

  • Boiler
  • Bucket elevator
  • Screw conveyor
  • Copra cutter
  • Crude Coconut Oil Storage Tank
  • filter press
  • Filtered oil storage tank
  • Micro filter
  • Oil expeller
  • Steam jacket kettle
  • Volumetric filling machine
  • Wooden storage drum
  • packaging machine

Read more about Coconut Oil Manufacturing Process

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