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How to Start a Profitable Coconut Oil Manufacturing Business

  • August 8, 2023
  • by Next What Business Research Team

Do you want to start a coconut oil manufacturing business? If yes, you have landed at the right place. Here in this article, we will walk you through the important steps to start a coconut oil manufacturing plant business with costs. machines, licenses, and more/

Coconut palms can be found in the coastal areas of India. The dried kernel of coconut is popular as copra. This is an industrial term. Copra is the major commercial product of coconut. Copra normally has an oil content varying from 65 to 72 percent. There is another term is ‘virgin coconut oil.’ Basically, virgin coconut oil comes from the extraction of fresh coconut (not from copra). Here in this article, we intend to explore how to start a coconut oil manufacturing business from Copra.

There is another type of coconut oil, named RBD coconut oils. RBD stands for refined, bleached, and deodorized. The “bleaching” is generally not a chemical process, but rather a filter process to remove impurities. A “bleaching clay” is used for this filtering.

Here are the 10 Steps to Follow to Start Coconut Oil Manufacturing Plant

1. research and plan.

First, identify whether you have an easy raw material sourcing system or not. At the plant location, you must have plenty of raw materials to get the viability of the project.

A small-scale coconut oil manufacturing plant demands at least 1000 SqFt of covered shade and 3000 SqFt of land area to get operated.

Suggested Read: Coconut Farming Business Guide for Beginners

You must have a business plan or project report in hand before initiating. a project report clearly demonstrates the manufacturing technology, machinery requirement, fixed capital investment, and working capital requirement.

2. Coconut Oil Manufacturing Business Registration & License

  • First of all, register your firm with ROC according to the ownership and liability pattern
  • Then, apply for Trade License from the local authority
  • Obtain Udyog Aadhaar MSME registration. You can apply online.
  • Additionally, obtain GST registration.
  • FSSAI Registration
  • For large-scale operations, Factory License is a must.
  • Finally, apply for BIS Certification. For the different applications of coconut oil, there are different quality standards you must maintain.

3. Machines & Raw Material

The requirement for machines generally depends on different aspects. Such as the manufacturing process, the raw material used, the specification of the desired output, and the investment capacity of the owner. Here we have listed some of the common machines required for coconut oil manufacturing.

  • Copra Cutter
  • Bucket elevator
  • Steam jacketed kettle
  • Oil expeller
  • Screw conveyor
  • Crude coconut oil storage tanks
  • Filter press
  • Microfilter
  • Filtered oil storage tanks
  • Volumetric filling machine
  • Baby boiler
  • Wooden storage drums

Well-dried copra with a moisture content not exceeding 6% is the ideal raw material for coconut oil manufacturing. Actually, the quality of the coconut oil hugely depends on the quality of the copra.

Read:   Best Profitable Coconut Business Ideas

4. Cost of Coconut Oil Manufacturing Unit

The major cost component in manufacturing coconut oil is plant machinery. For example, an automated 5-ton/day capacity plant machine will cost you in the range of Rs 25 Lacs to Rs 30 Lacs per unit. Overall, the total cost of starting small-scale coconut oil manufacturing will be around Rs. 40 Lacs to 50 Lacs.

5. Arrange Funds

If you do not have sufficient funding sources, it is advisable to approach banks and other financial lenders . Do keep your business project plan ready as all types of investors will have a first look at this document before taking any funding decision. Also, do not forget to apply for a credit card to meet small-time business expenses.

6. Location and Infrastructure

Choose a suitable location with easy access to coconuts and transportation. Set up the manufacturing unit with the required machinery and equipment.

7. Coconut Oil Manufacturing Process

Coconut oil can be made both manually and by machine in a manufacturing unit. The manual production process is simple. It includes broadly 5 steps as listed below:

  • Collecting Coconuts
  • Breaking the Coconuts
  • Grating the Coconut Meat
  • Soaking the Coconut Meat
  • Extracting the Oil

coconut oil

However, if you are planning to produce coconut oil commercially, the steps to be followed are mentioned below:

Step 1: Dried copra cut into small chips in a copra cutter.

Step 2: Then, feed the chips into steam-jacketed kettles and cook. It cooked mildly at a temperature of 70oC for 30 minutes.

Step 3: After proper cooking, feed the cooked material into the expeller continuously and press twice. Then, collect the combined oil from the first and the second pressing in a tank provided separately.

Step 4: Finally, filter this oil by means of a filter press and store it in MS tanks.

Step 5: Generally, you can pack the item in bulk packaging them in containers. Additionally, you can use HDPE containers and polymeric nylon barrier pouches for small consumer packing.

You will find oil cake as a by-product. the product has a ready market as a cattle feed and in the manufacture of mixed cattle feeds. You can use the product as the raw material of coconut oil manufacturing for the extraction of remaining oil by solvent extraction method.

Read: Best Coconut Scrapers

8. Hiring and Training

You will need to hire skilled staff for oil extraction, quality control, and packaging. Additionally, provide necessary training on production processes and safety guidelines.

9. Quality Control and Packaging

Implement quality control measures to ensure the purity and freshness of coconut oil. Choose appropriate packaging options (bottles, jars, pouches) and design labels.

10. Distribution and Marketing

You need to identify potential distribution channels such as local markets, retailers, or online platforms. In addition, develop a marketing strategy to promote your coconut oil brand.

Frequently Asked Questions

What are the benefits of coconut oil.

Coconut oil is known for its moisturizing properties for hair and skin, as well as its use in cooking and as a natural health remedy.

Is coconut oil manufacturing a profitable business?

Yes, with increasing consumer awareness about the benefits of coconut oil, it can be a profitable venture. Coconut oil is an important cooking medium in Southern parts of the country, especially in Kerala and Karnataka State. Besides, oil has varied industrial applications. It is used in the manufacture of toilet soaps, laundry soaps, surface active agents and detergents, hair tonics, hair oil, massage oil, cosmetics, etc.

What is the shelf life of coconut oil?

Properly stored, coconut oil can have a shelf life of up to two years or more.

Can I start a coconut oil manufacturing business from home?

While it is possible, a dedicated manufacturing unit is recommended for efficient production and quality control.

Are there any specific quality standards for coconut oil manufacturing?

Yes, coconut oil must adhere to FSSAI quality and safety standards.

How do I market my coconut oil brand?

Utilize social media, online platforms, and local promotions to create brand awareness.

Next What Business Research Team

The Editorial Staffs at NextWhatBusiness is a team of Business Consultants with years of experience in small and medium-scale manufacturing and service-based businesses.

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Starting a Coconut Oil Business – Sample Business Plan Template

Looking to start producing coconut oil from scratch? Or do you need a sample coconut oil business plan template? then I advise you to read.

Coconut oil is one of the many commercial end products that can be obtained from the coconut palm. Coconut oil is made from the fruit of the coconut and it is believed to be much better than peanut butter for health. Starting a coconut oil business is a very profitable business and requires less capital investment than other types of coconut related products.

In this article, I’ll start by mentioning some of the many uses for coconut oil to show you why the product is in demand; then i will tell you how to start your own coconut oil business.

4 health benefits of coconut oil

  • Contains nutrients to strengthen the body’s immune system -. Research has shown that coconut oil contains a fatty acid called lauric acid, which helps boost the body’s immune system to fight disease and antibodies in the body.
  • Used for cooking -: the saturated acid contained in coconut oil can be easily broken into absorbable pieces; This is why most people prefer to use butter for cooking rather than other saturated oils like peanut, palm, and melon oils.
  • Weightloss -: Anyone trying to hide excess weight, it is recommended to take more coconut oil. This is because the oil contains nutrients that help increase the body’s metabolic rate and break down food faster so that the body can be easily absorbed.
  • For external use -: Coconut oil is applied to the skin to make it smoother and softer; it is also used to remove stretch marks.

1. Develop a well-defined business plan -: This is the first step to take in setting up the structure of your company: you must develop a clear business plan on coconut oil that will shape the future of the company.

What will your product brand look like? Or will your coconut oil product be similar to any other coconut oil on the market? Where do you think your business is going in the next few years ? The answers to these questions will help you structure your business plan.

2. Register a business as a legal person -: Since you will have to manage the business as a business, you must register it as a legal entity. You can start as a sole proprietor and become a partner business as your business grows in the future.

3. Complete the required training -: If you need to produce a coconut oil product that will be demanded on demand, you should take the necessary training on how to make the best coconut oil. There are many eBooks and video tutorials on the internet that teach you how to make the best coconut oil on the market. Later in this article, I will cover two popular ways to process coconut oil.

4.Source of coconut supply -: as the main raw material for the production of coconut oil is fruit, you need to find a supplier who can regularly supply you with a huge quantity of coconut; advise you to buy a piece of land, plant coconut palms and wait for it to bear fruit will take a long time. So find a farmer who can provide you with healthy coconut fruit for less.

5. Real process -: This is the actual process involved in converting coconut fruit into coconut oil. I mentioned above that I will be discussing how you can turn your coconut into coconut oil. Remember you are doing this in commercial quantities which means you have to choose the best process which will give you faster and cheaper results while maintaining high quality.

The easiest way to make coconut oil is to get ripe coconuts; the amount of coconut you need depends on how much oil you want to make. Then break the coconut and cut the fleshy part of the white coconut; cut into small pieces and place in a blender.

Stir the nuts until they turn into creamy white water, then take a sieve or cloth and separate the fiber from the milk water. Put the water in a container and let it sit overnight. The next morning, you will notice that the water has separated, the oil settles at the bottom of the container; Gently pick up the top particles on the container and you have coconut oil.

6. Packaging … There are dozens of brands of coconut oil on the market. how you package your product will determine whether or not it sells. You should package your coconut oil product in such a way that anyone who sees it for the first time wants to know what’s in it. packaging ( first impression is very important ).

Then the oil should be of the highest quality, because even if a customer purchases the product for the first time because of the packaging and finds that the oil inside does not meet expectations, you might lose. not only this client, but several others as well. he or she will talk about the poor quality of coconut oil.

Be sure to include your logo, company name, and company contact on each package so anyone wanting to order more will know how to contact them. Your business.

7. Marketing -: How do you encourage customers (but retailers and wholesalers) to patronize your coconut oil compared to other brands in the market ? You can first offer them to buy two and get a promotion. Second, you can visit the food or prepare meals and share coconut oil samples.

Finally, you create an online blog where you post articles about coconut oil and its health benefits via e-commerce, where visitors can place their order. You can also use the best social media sites with millions of traffic to generate sales. For example, you can create a video for a few minutes on the health benefits of coconut oil and post it on Youtube with a link to your e-commerce site.

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Anna Cornet - Author

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[Pdf Sample] Business Plan For Coconut Farming Docx

Coconut farming, where the golden fruits of the tropics hold immense potential for a lucrative and sustainable business venture. Coconuts, known for their versatility and numerous applications, have captured the imagination of entrepreneurs seeking to tap into the ever-growing demand for coconut-based products.

If you’re considering embarking on this rewarding agricultural journey, this comprehensive coconut farming business plan will serve as your roadmap to success.

So, let’s embark on this exciting journey together, exploring the vast potential of coconut farming and creating a robust foundation for your entrepreneurial success. Get ready to cultivate the sweet fruits of your labor and carve your path in the thriving world of coconut farming .

[Pdf Sample] Coconut Farming Business Plan Proposal Docx

Table of Contents

To write a business plan , here is a breakdown of how it should be structured and what should be in each category. After this instruction, I will provide you with a sample of one I wrote for my farm , let us go:

Executive Summary

The executive summary provides an overview of your strawberry farming business plan . It should include a brief introduction to your business, its goals, target market, competitive advantages, and financial projections. This section serves as a snapshot of your entire business plan and should entice readers to explore further.

Business Overview

Market analysis.

Conduct a thorough market analysis to understand the demand for strawberries in your target market. Identify your target customers, such as retailers, wholesalers, or individual consumers. Analyze market trends, competition, and consumer preferences. This analysis will help you develop effective marketing and sales strategies later in the plan.

Farming Operations

Marketing and sales strategies.

This section focuses on how you will promote and sell your strawberries. Identify your unique selling proposition (USP) and positioning in the market. Outline your pricing strategy, distribution channels, and plans for branding and packaging. Discuss how you will leverage online platforms, local markets, and potential partnerships to reach your target customers effectively.

Financial Projections

Risk assessment.

Evaluate the potential risks and challenges that may affect your strawberry farming business . Identify both internal and external risks, such as weather conditions, pests, diseases, and market fluctuations. Develop contingency plans to mitigate these risks and explain how you will adapt to unforeseen circumstances. Consider insurance options to protect your farm and investments.

Here Is The Download Links To Business Plan For Coconut Farming Docx

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How to write a business plan for a coconut farm?

coconut farm business plan

Writing a business plan for a coconut farm can be an intimidating task, especially for those just starting.

This in-depth guide is designed to help entrepreneurs like you understand how to create a comprehensive business plan so that you can approach the exercise with method and confidence.

We'll cover: why writing a coconut farm business plan is so important - both when starting up, and when running and growing the business - what information you need to include in your plan, how it should be structured, and what tools you can use to get the job done efficiently.

Let's get started!

In this guide:

Why write a business plan for a coconut farm?

  • What information is needed to create a business plan for a coconut farm?
  • What goes in the financial forecast for a coconut farm?
  • What goes in the written part of a coconut farm business plan?
  • What tool can I use to write my coconut farm business plan?

Having a clear understanding of why you want to write a business plan for your coconut farm will make it simpler for you to grasp the rationale behind its structure and content. So before delving into the plan's actual details, let's take a moment to remind ourselves of the primary reasons why you'd want to create a coconut farm business plan.

To have a clear roadmap to grow the business

It's rarely business as usual for small businesses. The economy follows cycles where years of growth are followed by recessions, and the business environment is always changing with new technologies, new regulations, new competitors, and new consumer behaviours appearing all the time...

In this context, running a business without a clear roadmap is like driving blindfolded: it's dangerous at best. That's why writing a business plan for a coconut farm is essential to create successful and sustainable businesses.

To write an effective business plan, you will need to take stock of where you are (if you are already in business) and where you want the business to go in the next three to five years.

Once you know where you want your coconut farm to be, you'll have to identify:

  • what resources (human, equipment, and capital) are needed to get there,
  • at what pace the business needs to progress to get there in time,
  • and what risks you'll face along the way.

Going through this process regularly is beneficial, both for startups and existing companies, as it helps make informed decisions about how best to allocate resources to ensure the long-term success of the business.

Need a convincing business plan?

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To get visibility on future cash flows

If your small coconut farm runs out of cash: it's game over. That's why we often say "cash is king", and it's crucial to have a clear view of your coconut farm's future cash flows.

So, how can you achieve this? It's simple - you need to have an up-to-date financial forecast.

The good news is that your coconut farm business plan already includes a financial forecast (which we'll discuss further in this guide). Your task is to ensure it stays current.

To accomplish this, it's essential to regularly compare your actual financial performance with what was planned in your financial forecast. Based on your business's current trajectory, you can make adjustments to the forecast.

By diligently monitoring your coconut farm's financial health, you'll be able to spot potential financial issues, like unexpected cash shortfalls, early on and take corrective actions. Moreover, this practice will enable you to recognize and capitalize on growth opportunities, such as excess cash flow enabling you to expand to new locations.

To secure financing

Crafting a comprehensive business plan for your coconut farm, whether you're starting up or already established, is paramount when you're seeking financing from banks or investors.

Given how fragile small businesses are, financiers will want to ensure that you have a clear roadmap in place as well as command and control of your future cash flows before entertaining the idea of funding you.

For banks, the information in your business plan will be used to assess your borrowing capacity - which is defined as the maximum amount of debt your business can afford alongside your ability to repay the loan. This evaluation helps them decide whether to extend credit to your business and under what terms (interest rate, duration, repayment options, collateral, etc.).

Similarly, investors will thoroughly review your plan to determine if their investment can yield an attractive return. They'll be looking for evidence that your coconut farm has the potential for healthy growth, profitability, and consistent cash flow generation over time.

Now that you understand the importance of creating a business plan for your coconut farm, let's delve into the necessary information needed to craft an effective plan.

Information needed to create a business plan for a coconut farm

Drafting a coconut farm business plan requires research so that you can project sales, investments and cost accurately in your financial forecast, and convince the reader that there is a viable commercial opportunity to be seized.

Below, we'll focus on three critical pieces of information you should gather before starting to write your plan.

Carrying out market research for a coconut farm

As you consider writing your business plan for a coconut farm, conducting market research becomes a vital step to ensure accurate and realistic financial projections.

Market research provides valuable insights into your target customer base, competitors, pricing strategies, and other key factors that can significantly impact the commercial success of your business.

Through this research, you may uncover trends that could influence your coconut farm.

You might find that local consumers may be interested in purchasing organic coconuts, or that there could be a trend towards buying smaller coconuts for snacking.

Such market trends play a significant role in forecasting revenue, as they offer valuable data about potential customers' spending habits and preferences.

By incorporating these findings into your financial projections, you can present investors with more accurate information, helping them make informed decisions about investing in your coconut farm.

Developing the marketing plan for a coconut farm

Before delving into your coconut farm business plan, it's imperative to budget for sales and marketing expenses.

To achieve this, a comprehensive sales and marketing plan is essential. This plan should provide an accurate projection of the necessary actions to acquire and retain customers.

Additionally, it will outline the required workforce to carry out these initiatives and the corresponding budget for promotions, advertising, and other marketing endeavours.

By budgeting accordingly, you can ensure that the right resources are allocated to these vital activities, aligning them with the sales and growth objectives outlined in your business plan.

The staffing and capital expenditure requirements of a coconut farm

Whether you are starting or expanding a coconut farm, it is important to have a clear plan for recruitment and capital expenditures (investment in equipment and real estate) in order to ensure the success of the business.

Both the recruitment and investment plans need to be coherent with the timing and level of growth planned in your forecast, and require appropriate funding.

The staffing costs for a coconut farm might include wages for workers, as well as costs associated with their training and benefits. The equipment costs for a coconut farm might include costs for tractors and other machinery, as well as tools for harvesting and planting coconuts. Additionally, costs associated with maintaining the machinery and tools, such as repairs, might also be incurred.

In order to create a realistic financial forecast, you will also need to consider the other operating expenses associated with running the business on a day-to-day basis (insurance, bookkeeping, etc.). 

Once you have all the necessary information to create a business plan for your coconut farm, it is time to start creating your financial forecast.

What goes into your coconut farm's financial forecast?

The financial forecast of your coconut farm will enable you to assess the profitability potential of your business in the coming years and how much capital is required to fund the actions planned in the business plan.

The four key outputs of a financial forecast for a coconut farm are:

  • The profit and loss (P&L) statement ,
  • The projected balance sheet ,
  • The cash flow forecast ,
  • And the sources and uses table .

Let's take a closer look at each of these.

The projected P&L statement

The projected P&L statement for a coconut farm shows how much revenue and profits your business is expected to generate in the future.

projected profit and loss statement example in a coconut farm business plan

Ideally, your coconut farm's P&L statement should show:

  • Healthy growth - above inflation level
  • Improving or stable profit margins
  • Positive net profit

Expectations will vary based on the stage of your business. A startup will be expected to grow faster than an established coconut farm. And similarly, an established company should showcase a higher level of profitability than a new venture.

The forecasted balance sheet of your coconut farm

The projected balance sheet of your coconut farm will enable the reader of your business plan to assess the overall financial health of your business.

It shows three elements: assets, liabilities and equity:

  • Assets: are productive resources owned by the business, such as equipment, cash, and accounts receivable (money owed by clients).
  • Liabilities: are debts owed to creditors, lenders, and other entities, such as accounts payable (money owed to suppliers).
  • Equity: includes the sums invested by the shareholders or business owners and the profits and losses accumulated by the business to date (which are called retained earnings). It is a proxy for the value of the owner's stake in the business.

projected balance sheet in a coconut farm business plan example

Analysing your coconut farm projected balance sheet provides an understanding of your coconut farm's working capital structure, investment and financing policies.

In particular, the readers of your plan can compare the level of financial debt on the balance sheet to the equity value to measure the level of financial risk (equity doesn't need to be reimbursed, while financial debt must be repaid, making it riskier).

They can also use your balance sheet to assess your coconut farm's liquidity and solvency:

  • A liquidity analysis: focuses on whether or not your business has sufficient cash and short-term assets to cover its liabilities due in the next 12 months.
  • A solvency analysis: takes and longer view to assess whether or not your business has the capacity to repay its debts over the medium-term.

The cash flow forecast

A projected cash flow statement for a coconut farm is used to show how much cash the business is generating or consuming.

cash flow forecast in a coconut farm business plan example

The cash flow forecast is usually organized by nature to show three key metrics:

  • The operating cash flow: do the core business activities generate or consume cash?
  • The investing cash flow: how much is the business investing in long-term assets (this is usually compared to the level of fixed assets on the balance sheet to assess whether the business is regularly maintaining and renewing its equipment)?
  • The financing cash flow: is the business raising new financing or repaying financiers (debt repayment, dividends)?

As we discussed earlier, cash is king and keeping an eye on future cash flows an imperative for running a successful business. Therefore, you can expect the reader of your coconut farm business plan to pay close attention to your cash flow forecast.

Also, note that it is customary to provide both yearly and monthly cash flow forecasts in a business plan - so that the reader can analyze seasonal variation and ensure the coconut farm is appropriately funded.

The initial financing plan

The sources and uses table or initial financing plan is a key component of your business plan when starting a coconut farm.

It shows where the capital needed to set up the business will come from (sources) and how it will be spent (uses).

sources and uses table in a coconut farm business plan

This table helps size the investment required to set up the coconut farm, and understand how risks will be distributed between the business owners, and the financiers.

The sources and uses table also highlights what the starting cash position will be. This is key for startups as the business needs to have sufficient funding to sustain operations until the break-even point is reached.

Now that you have a clear understanding of what will go into the financial forecast of your coconut farm business plan, let's have a look at the written part of the plan.

The written part of a coconut farm business plan

The written part of the business plan is where you will explain what your business does and how it operates, what your target market is, whom you compete against, and what strategy you will put in place to seize the commercial opportunity you've identified.

Having this context is key for the reader to form a view on whether or not they believe that your plan is achievable and the numbers in your forecast realistic.

The written part of a coconut farm business plan is composed of 7 main sections:

  • The executive summary
  • The presentation of the company
  • The products and services
  • The market analysis
  • The strategy
  • The operations
  • The financial plan

Let's go through the content of each section in more detail!

1. The executive summary

In your coconut farm's business plan, the first section is the executive summary — a captivating overview of your plan that aims to pique the reader's interest and leave them eager to learn more about your business.

When crafting the executive summary, start with an introduction to your business, including its name, concept, location, how long it has been running, and what sets it apart. Briefly mention the products and services you plan to offer and your target customer profile.

Following that, provide an overview of the addressable market for your coconut farm, current trends, and potential growth opportunities.

Next, include a summary of key financial figures like projected revenues, profits, and cash flows.

Finally, in the "ask" section, detail any funding requirements you may have.

2. The presentation of the company

The second section in your coconut farm's business plan should focus on the structure and ownership, location, and management team of the company.

The structure and ownership part provides an overview of the legal structure of the business, who the owners are and how much each has invested and owns. If you are seeking financing it is important that the reader gets a clear picture of which legal entity is receiving the funds, and who controls the business.

The location part should give an overview of the premises from which the company is operating, and why that location is of particular interest (catchment area, accessibility, amenities nearby, etc.).

When describing the location of your coconut farm, you could emphasize its potential for success due to its access to excellent growing conditions. It may be located in a region with a suitable climate, ample sunlight, and the necessary soil nutrients to ensure a successful coconut yield. Furthermore, it could feature easy access to transportation networks to aid in the distribution of the coconuts. Additionally, it might be situated near a large population of potential consumers, allowing for a greater opportunity to reach more buyers.

Finally, you should introduce the management team. Explain each member's role, background, and experience.

It is also important to emphasize any past successes that the members of the management team have achieved, and how long they've been working together, as this will help potential lenders or investors understand why they should trust in their leadership.

3. The products and services section

The products and services section of your business plan should include a detailed description of what your company offers, who are the target customers, and what distribution channels are part of your go-to-market. 

For example, your coconut farm might offer fresh coconuts, coconut water, and coconut oil to its customers. Fresh coconuts can be used to make a variety of dishes and drinks, while coconut water has a refreshing and hydrating taste. Coconut oil can be used for cooking, as a skin moisturizer, and as a hair treatment. All of these products provide customers with natural, delicious, and healthy options for their daily lives.

4. The market analysis

When you present your market analysis in your coconut farm business plan, it's crucial to include detailed information about customers' demographics and segmentation, target market, competition, barriers to entry, and any relevant regulations.

The main objective of this section is to help the reader understand the size and attractiveness of the market while demonstrating your solid understanding of the industry.

Begin with the demographics and segmentation subsection, providing an overview of the addressable market for your coconut farm, the key trends in the marketplace, and introducing different customer segments along with their preferences in terms of purchasing habits and budgets.

Next, focus on your target market, zooming in on the specific customer segments your coconut farm aims to serve and explaining how your products and services fulfil their distinct needs.

For example, your target market might include health-conscious individuals. These are people who are looking for natural, healthy, and organic food products. They are willing to pay extra for quality ingredients and prioritize the health of their family and themselves.

Then proceed to the competition subsection, where you introduce your main competitors and highlight what sets you apart from them.

Finally, conclude your market analysis with an overview of the key regulations applicable to your coconut farm.

5. The strategy section

When you write the strategy section of your coconut farm business plan, remember to cover key elements such as your competitive edge, pricing strategy, sales & marketing plan, milestones, and risks and mitigants.

In the competitive edge subsection, elaborate on what makes your company stand out from competitors. This becomes especially important if you're a startup, aiming to carve a place for yourself amidst established players in the marketplace.

The pricing strategy subsection should demonstrate how you plan to maintain profitability while offering competitive prices to attract customers.

Outline your sales & marketing plan, detailing how you'll reach out to new customers and retain existing ones through loyalty programs or special offers.

For the milestones subsection, outline your company's achievements to date and your main objectives for the future, complete with specific dates to set clear expectations for progress.

Lastly, the risks and mitigants subsection should address the main risks that could affect your plan's execution. Explain the measures you've put in place to minimize these risks, assuring potential investors or lenders.

Your coconut farm faces a variety of risks. For one, the weather could have an impact on the growth of the coconuts. If there is an extended period of drought, the lack of water could negatively affect the crop. Additionally, pests and diseases may be a risk to the farm. Insects and other critters could eat away at the coconuts, and certain diseases could spread and cause a decrease in yield. It is important to be aware of these risks and take the necessary steps to reduce their impact.

6. The operations section

The operations of your coconut farm must be presented in detail in your business plan.

The first thing you should cover in this section is your staffing team, the main roles, and the overall recruitment plan to support the growth expected in your business plan. You should also outline the qualifications and experience necessary to fulfil each role, and how you intend to recruit (using job boards, referrals, or headhunters).

You should then state the operating hours of your coconut farm - so that the reader can check the adequacy of your staffing levels - and any plans for varying opening times during peak season. Additionally, the plan should include details on how you will handle customer queries outside of normal operating hours.

The next part of this section should focus on the key assets and IP required to operate your business. If you depend on any licenses or trademarks, physical structures (equipment or property) or lease agreements, these should all go in there.

You could have the land and the coconut trees as key assets, as well as any intellectual property you may have developed in the process of running the farm. This may include things like unique farming methods, specific techniques for harvesting coconuts, or recipes for coconut-based products. All of these could be valuable IP for your business.

Finally, you should include a list of suppliers that you plan to work with and a breakdown of their services and main commercial terms (price, payment terms, contract duration, etc.). Investors are always keen to know if there is a particular reason why you have chosen to work with a specific supplier (higher-quality products or past relationships for example).

7. The presentation of the financial plan

The financial plan section is where we will present the financial forecast we talked about earlier in this guide.

Now that you have a clear idea of what goes in your coconut farm business plan, let's look at the solutions you can use to draft yours.

What tool should I use to write my coconut farm's business plan?

There are two main ways of creating your coconut farm business plan:

  • Using specialized business planning software,
  • Hiring a business plan writer.

Using an online business plan software for your coconut farm's business plan

Using online business planning software is the most efficient and modern way to write a coconut farm business plan.

There are several advantages to using specialized software:

  • You can easily create your financial forecast by letting the software take care of the financial calculations for you without errors
  • You are guided through the writing process by detailed instructions and examples for each part of the plan
  • You can access a library of dozens of complete business plan samples and templates for inspiration
  • You get a professional business plan, formatted and ready to be sent to your bank or investors
  • You can easily track your actual financial performance against your financial forecast
  • You can create scenarios to stress test your forecast's main assumptions
  • You can easily update your forecast as time goes by to maintain visibility on future cash flows
  • You have a friendly support team on standby to assist you when you are stuck

If you're interested in using this type of solution, you can try The Business Plan Shop for free by signing up here .

Hiring a business plan writer to write your coconut farm's business plan

Outsourcing your coconut farm business plan to a business plan writer can also be a viable option.

Business plan writers are skilled in creating error-free business plans and accurate financial forecasts. Moreover, hiring a consultant can save you valuable time, allowing you to focus on day-to-day business operations.

However, it's essential to be aware that hiring business plan writers will be expensive, as you're not only paying for their time but also the software they use and their profit margin.

Based on experience, you should budget at least £1.5k ($2.0k) excluding tax for a comprehensive business plan, and more if you require changes after initial discussions with lenders or investors.

Also, exercise caution when seeking investment. Investors prefer their funds to be directed towards business growth rather than spent on consulting fees. Therefore, the amount you spend on business plan writing services and other consulting services should be insignificant compared to the amount raised.

Keep in mind that one drawback is that you usually don't own the business plan itself; you only receive the output, while the actual document is saved in the consultant's business planning software. This can make it challenging to update the document without retaining the consultant's services.

For these reasons, carefully consider outsourcing your coconut farm business plan to a business plan writer, weighing the advantages and disadvantages of seeking outside assistance.

Why not create your coconut farm's business plan using Word or Excel?

I must advise against using Microsoft Excel and Word (or their Google, Apple, or open-source equivalents) to write your coconut farm business plan. Let me explain why.

Firstly, creating an accurate and error-free financial forecast on Excel (or any spreadsheet) is highly technical and requires a strong grasp of accounting principles and financial modelling skills. It is, therefore, unlikely that anyone will fully trust your numbers unless you have both a degree in finance and accounting and significant financial modelling experience, like us at The Business Plan Shop.

Secondly, relying on spreadsheets is inefficient. While it may have been the only option in the past, technology has advanced significantly, and software can now perform these tasks much faster and with greater accuracy. With the rise of AI, software can even help us detect mistakes in forecasts and analyze the numbers for better decision-making.

And with the rise of AI, software is also becoming smarter at helping us detect mistakes in our forecasts and helping us analyse the numbers to make better decisions.

Moreover, software makes it easier to compare actuals versus forecasts and maintain up-to-date forecasts to keep visibility on future cash flows, as we discussed earlier in this guide. This task is cumbersome when using spreadsheets.

Now, let's talk about the written part of your coconut farm business plan. While it may be less error-prone, using software can bring tremendous gains in productivity. Word processors, for example, lack instructions and examples for each part of your business plan. They also won't automatically update your numbers when changes occur in your forecast, and they don't handle formatting for you.

Overall, while Word or Excel may seem viable for some entrepreneurs to create a business plan, it's by far becoming an antiquated way of doing things.

  • Using business plan software is a modern and cost-effective way of writing and maintaining business plans.
  • A business plan is not a one-shot exercise as maintaining it current is the only way to keep visibility on your future cash flows.
  • A business plan has 2 main parts: a financial forecast outlining the funding requirements of your coconut farm and the expected growth, profits and cash flows for the next 3 to 5 years; and a written part which gives the reader the information needed to decide if they believe the forecast is achievable.

We hope that this in-depth guide met your expectations and that you now have a clear understanding of how to write your coconut farm business plan. Do not hesitate to contact our friendly team if you have questions additional questions we haven't addressed here.

Also on The Business Plan Shop

  • How to write a business plan to secure a bank loan?
  • How investors analyse business plan
  • Executive summary in a business plan
  • What is a business plan?
  • Key steps to write a business plan?
  • Top mistakes to avoid in your business plan

Do you know entrepreneurs interested in starting or growing a coconut farm? Share this article with them!

Guillaume Le Brouster

Founder & CEO at The Business Plan Shop Ltd

Guillaume Le Brouster is a seasoned entrepreneur and financier.

Guillaume has been an entrepreneur for more than a decade and has first-hand experience of starting, running, and growing a successful business.

Prior to being a business owner, Guillaume worked in investment banking and private equity, where he spent most of his time creating complex financial forecasts, writing business plans, and analysing financial statements to make financing and investment decisions.

Guillaume holds a Master's Degree in Finance from ESCP Business School and a Bachelor of Science in Business & Management from Paris Dauphine University.

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  • Other Reports

Coconut Oil Manufacturing Plant Project Report

Coconut oil manufacturing plant project report 2024: industry trends, plant setup, machinery, raw materials, investment opportunities, cost and revenue.

  • Report Description
  • Table of Contents
  • Methodology
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IMARC Group’s report, titled “Coconut Oil Manufacturing Plant Project Report 2024: Industry Trends, Plant Setup, Machinery, Raw Materials, Investment Opportunities, Cost and Revenue” provides a complete roadmap for setting up a coconut oil manufacturing plant. It covers a comprehensive market overview to micro-level information such as unit operations involved, raw material requirements, utility requirements, infrastructure requirements, machinery and technology requirements, manpower requirements, packaging requirements, transportation requirements, etc. The coconut oil project report provides detailed insights into project economics, including capital investments, project funding, operating expenses, income and expenditure projections, fixed costs vs. variable costs, direct and indirect costs, expected ROI and net present value (NPV), profit and loss account, financial analysis, etc.

Coconut Oil Manufacturing Plant

Coconut oil, derived from the kernels of mature coconuts, has emerged as a versatile and popular natural product with a wide array of applications. Revered for its unique composition and numerous benefits, coconut oil has found widespread use in various industries, including food, cosmetics, and healthcare. Packed with lauric acid and medium-chain fatty acids, this tropical oil possesses antimicrobial and anti-inflammatory properties, making it a valuable ingredient in skincare products and traditional medicine. Beyond its culinary uses, coconut oil's rising popularity as a healthier substitute to other cooking oils has driven consumer interest and exploration of its potential health benefits. As a result, coconut oil has become an essential staple in both traditional practices and modern lifestyles.

This lubricant offers numerous advantages and boasts diverse applications in various industries. Firstly, its unique composition, rich in medium-chain triglycerides (MCTs) and lauric acid, contributes to its antimicrobial and anti-inflammatory properties, making it beneficial for skincare and haircare products. Secondly, coconut oil's high smoke point and stability make it an ideal cooking oil, suitable for high-heat cooking methods. Additionally, its use as a natural moisturizer and massage oil has gained popularity in the cosmetics industry. Moreover, coconut oil has found applications in traditional medicine for its potential health benefits, including immune support and improved digestion.

The market for coconut oil has been driven by several factors and evolving trends in recent years. Firstly, the increasing consumer awareness and preference for natural and organic products have significantly contributed to the demand for coconut oil. Its reputation as a natural, plant-based oil with various health and skincare benefits has attracted health-conscious consumers seeking alternatives to synthetic and chemical-laden products. Secondly, with the rising popularity of healthy cooking oils, coconut oil's unique composition, including MCTs and lauric acid, has positioned it as a favored choice for health-conscious consumers and chefs alike. Furthermore, the growing interest in traditional and alternative medicine has led to the incorporation of coconut oil into various herbal remedies and natural health practices, further driving its market growth. Moreover, the increasing popularity of coconut-based products, such as coconut milk, coconut water, and coconut-based snacks, has contributed to the overall demand for coconut oil as a key ingredient. Additionally, the emergence of sustainable and eco-friendly sourcing practices has become a crucial trend in the coconut oil market.

The following aspects have been covered in the coconut oil manufacturing plant report:

  • Market Trends
  • Market Breakup by Segment
  • Market Breakup by Region
  • Price Analysis
  • Impact of COVID-19
  • Market Forecast  

The report provides insights into the landscape of the coconut oil industry at the global level. The report also provides a segment-wise and region-wise breakup of the global coconut oil industry. Additionally, it also provides the price analysis of feedstocks used in the manufacturing of coconut oil, along with the industry profit margins.

  • Product Overview
  • Unit Operations Involved
  • Mass Balance and Raw Material Requirements
  • Quality Assurance Criteria
  • Technical Tests  

The report also provides detailed information related to the coconut oil manufacturing process flow and various unit operations involved in a manufacturing plant. Furthermore, information related to mass balance and raw material requirements has also been provided in the report with a list of necessary quality assurance criteria and technical tests.

  • Land, Location and Site Development
  • Plant Layout
  • Machinery Requirements and Costs
  • Raw Material Requirements and Costs
  • Packaging Requirements and Costs
  • Transportation Requirements and Costs
  • Utility Requirements and Costs
  • Human Resource Requirements and Costs  

The report provides a detailed location analysis covering insights into the land location, selection criteria, location significance, environmental impact, expenditure, and other coconut oil manufacturing plant costs . Additionally, the report provides information related to plant layout and factors influencing the same. Furthermore, other requirements and expenditures related to machinery, raw materials, packaging, transportation, utilities, and human resources have also been covered in the report.

  • Capital Investments
  • Operating Costs
  • Expenditure Projections
  • Revenue Projections
  • Taxation and Depreciation
  • Profit Projections
  • Financial Analysis  

The report also covers a detailed analysis of the project economics for setting up a coconut oil manufacturing plant. This includes the analysis and detailed understanding of capital expenditure (CapEx), operating expenditure (OpEx), income projections, taxation, depreciation, liquidity analysis, profitability analysis, payback period, NPV, uncertainty analysis, and sensitivity analysis. Furthermore, the report also provides a detailed analysis of the regulatory procedures and approvals, information related to financial assistance, along with a comprehensive list of certifications required for setting up a coconut oil manufacturing plant.  

Report Coverage:

Key questions answered in this report:.

  • How has the coconut oil market performed so far and how will it perform in the coming years?
  • What is the market segmentation of the global coconut oil market?
  • What is the regional breakup of the global coconut oil market?
  • What are the price trends of various feedstocks in the coconut oil industry?
  • What is the structure of the coconut oil industry and who are the key players?
  • What are the various unit operations involved in a coconut oil manufacturing plant?
  • What is the total size of land required for setting up a coconut oil manufacturing plant?
  • What is the layout of a coconut oil manufacturing plant?
  • What are the machinery requirements for setting up a coconut oil manufacturing plant?
  • What are the raw material requirements for setting up a coconut oil manufacturing plant?
  • What are the packaging requirements for setting up a coconut oil manufacturing plant?
  • What are the transportation requirements for setting up a coconut oil manufacturing plant?
  • What are the utility requirements for setting up a coconut oil manufacturing plant?
  • What are the human resource requirements for setting up a coconut oil manufacturing plant?
  • What are the infrastructure costs for setting up a coconut oil manufacturing plant?
  • What are the capital costs for setting up a coconut oil manufacturing plant?
  • What are the operating costs for setting up a coconut oil manufacturing plant?
  • What should be the pricing mechanism of the final product?
  • What will be the income and expenditures for a coconut oil manufacturing plant?
  • What is the time required to break even?
  • What are the profit projections for setting up a coconut oil manufacturing plant?
  • What are the key success and risk factors in the coconut oil industry?
  • What are the key regulatory procedures and requirements for setting up a coconut oil manufacturing plant?
  • What are the key certifications required for setting up a coconut oil manufacturing plant?

Report Customization

While we have aimed to create an all-encompassing coconut oil plant project report , we acknowledge that individual stakeholders may have unique demands. Thus, we offer customized report options that cater to your specific requirements. Our consultants are available to discuss your business requirements, and we can tailor the report's scope accordingly. Some of the common customizations that we are frequently requested to make by our clients include:

  • The report can be customized based on the location (country/region) of your plant.
  • The plant’s capacity can be customized based on your requirements.
  • Plant machinery and costs can be customized based on your requirements.
  • Any additions to the current scope can also be provided based on your requirements.

Why Buy IMARC Reports?

  • The insights provided in our reports enable stakeholders to make informed business decisions by assessing the feasibility of a business venture.
  • Our extensive network of consultants, raw material suppliers, machinery suppliers and subject matter experts spans over 100+ countries across North America, Europe, Asia Pacific, South America, Africa, and the Middle East.
  • Our cost modeling team can assist you in understanding the most complex materials. With domain experts across numerous categories, we can assist you in determining how sensitive each component of the cost model is and how it can affect the final cost and prices.
  • We keep a constant track of land costs, construction costs, utility costs, and labor costs across 100+ countries and update them regularly.
  • Our client base consists of over 3000 organizations, including prominent corporations, governments, and institutions, who rely on us as their trusted business partners. Our clientele varies from small and start-up businesses to Fortune 500 companies.
  • Our strong in-house team of engineers, statisticians, modeling experts, chartered accountants, architects, etc. has played a crucial role in constructing, expanding, and optimizing sustainable manufacturing plants worldwide. 

India Dairy Market Report Snapshots Source:

Statistics for the 2022 India Dairy market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. 

  • India Dairy Market Size Source
  • --> India Dairy Market Share Source
  • India Dairy Market Trends Source
  • India Dairy Companies Source

Need more help?

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  • Include additional segments and countries to customize the report as per your requirement.
  • Gain an unparalleled competitive advantage in your domain by understanding how to utilize the report and positively impacting your operations and revenue.
  • For further assistance, please connect with our analysts.

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Virgin Coconut Oil Project Report (VCO), Plan

Table of contents, uses of virgin coconut oil, essential composition of virgin coconut oil, business plan for starting virgin coconut oil production plant in india, basis and presumptions of virgin coconut oil manufacturing business, implementation schedule of virgin coconut oil manufacturing business, list of approvals/licenses required to start virgin coconut oil manufacturing business in india, raw materials required to start virgin coconut oil manufacturing business, the manufacturing process of virgin coconut oil, virgin coconut oil project report (voc)/economics of virgin coconut oil manufacturing business in india, important points to consider while manufacturing virgin coconut oil.

Introduction to Virgin Coconut Oil Project Report (VCO), Manufacturing Business Plan : Hello friends, are you planning to start a virgin coconut oil business in India? Well, you are in right place. Virgin Coconut Oil (VCO) is gaining popularity as a functional food and people are getting awareness every day. It is estimated that VCO will experience tremendous growth in the market. Virgin coconut oil is naturally processed, without chemicals and additive-free item from fresh coconut meat or using the derivatives, which has not been processed under chemical methods after extraction. It is the cleanest form of coconut oil, water-white, comprises natural vitamin E, and has not experienced hydrolytic or atmospheric oxidation as attested by its very low free fatty acid percent and peroxide value. It has a mild to intense fresh coconut fragrance based on the type of process used for production.

A guide to Virgin Coconut Oil Project Report(VCO), Extraction Process and Manufacturing Business Plan

Virgin Coconut Oil Business Plan

Virgin Coconut Oil (VCO) is extracted using fresh coconut milk sourced from matured coconut of 12 months old. VCO can be consumed in natural form without the need for further refining. Virgin coconut oil is popular for its MCTs (Medium Chain Triglycerides). The most important medium-chain fatty acid found in VCO is lauric acid. It comprises 48 % of VCO. Lauric acid has powerful anti-microbial characteristics capable of terminating disease-causing bacteria, fungi, viruses, and parasites. Researchers reported that the presence of medium-chain fatty acids in mother’s milk could be the primary ingredient that defends newborn children from infections for the first few months of their birth, while their immune system is still taking shape.

VCO has considerable advantages for therapeutic purposes such as antimicrobial, anti-HIV/AIDS drugs, for the treatment of Alzheimer’s disease, and anti-cancer therapy.

  • Moisture: Maximum 0.1%
  • Volatility: Maximum 0.2% at 120°C
  • Free Fatty Acid: Maximum 0.2%
  • Peroxide Value: Maximum 3 meq/kg
  • Relative density: 0.915 – 0.920
  • Refractive index: 1.4480 – 1.4492 at 40°C
  • Insoluble impurities: Maximum 0.05 by mass
  • Saponification Value: 250 – 260 mins.
  • Iodine Value: 4.1 -11
  • Unsaponifiable matter: Maximum 0.2-0.5 by mass
  • Specific gravity: 0.915 – 0.920 at 30 °C/30 °C
  • Polenske Value: Minimum 13
  • Total Plate Count: < 0.5
  • Color Water: clean
  • Odor and Taste: Smells natural with a fresh coconut scent, free of sediments, and is free from rancid odor and taste.

To start a small-scale Virgin Coconut Oil Manufacturing Business in India, you need to first draft a perfect business plan by considering the following points:

  • Implementation schedule
  • List of approvals required to start Virgin Coconut Oil Manufacturing Business
  • Raw materials required for Virgin Coconut Oil Manufacturing Business
  • List of machinery and equipment for extracting Virgin Coconut Oil
  • Manufacturing process of Virgin Coconut Oil
  • Project economics of Virgin Coconut Oil Manufacturing Business
  • The Virgin Coconut oil plant can be operated in three shifts. About 8 hours daily day and 300 working days for a year.
  • The interest rate for the business will be 12% per annum on the investment borrowed. 
  • The expenses regarding acquiring licenses, raw materials, packing materials, machinery and considered based on the scalability of the project profile that differs from place to place.
  • The rental expenses of the production shed and land are considered as per the prevailing rates and may differ from place to place.
  • The unit capacity utilization could be around 75% since the unit is operated continuously.

The project execution will need around nine to ten months. The estimated break-up of

activities and the duration for each activity are stated below:

  • Project preparation and permissions: 0 – 2months
  • Registration under MSME Act 2006 and loan sanction: 2 – 4 months
  • Machinery and equipment purchase and installation: 4– 5months
  • PFA License: 5– 7months
  • Power connection setup: 5– 7months
  • Machinery installation: 7 – 8months
  • Recruiting staff and test run: 8 – 9 months
  • Commercial production can be presumed to begin: 10 th month

The next step is to acquire the below list of licenses, permissions, and registrations for starting Virgin Coconut Oil Manufacturing Business in India-

  • MSME registration
  • GST registration
  • Registration of firm
  • Shop Act License
  • FSSAI License
  • Export License
  • Fire and Safety
  • No Objection Certificate from pollution board
  • Trade license from local municipal authority
  • You need to maintain BIS standards IS 966:1962

In case if you miss this: Clove Oil Project Report .

Coconuts for Vergin Coconut Oil Manufacturing

It is analyzed that to get 1 liter of VCO, 7 kg of dehusked coconut is needed that is about 17 coconuts.

Below are the steps in Manufacturing Virgin Coconut Oil. 

  • Dehusking: Husk is removed either by coconut dehusking machine or manually.
  • Deshelling : This is performed to remove the shell of the coconut. This is performed without breaking the kernel.
  • Paring : It is done to peel the brown skin of the kernel using a paring machine.
  • Blanching : Pared coconuts will be submerged in boiling water for some time with blanching tank.
  • Draining : It can be performed by a vibratory screener. This will avoid the excess water existing in the blanched coconuts.
  • Disintegration : Pared coconuts are added into a disintegrator where pared nuts are sliced into small pieces and will be prepared for extraction.
  • Milk extraction : Shredded coconuts are placed into a milk extractor and coconut milk comes out of the extractor. Extracted milk is gathered in collecting vessels. Extracted coconut milk is next sent for filtration to avoid the presence of any solids. The residue obtained after extraction is dried using the oven and packed with a defatted desiccated coconut.
  • Centrifugation : This process is best to separate two immiscible entities. After centrifugation, oil and skim milk gets separated. Coconut oil is therefore separated from coconut milk.
  • Filtration : The oil is sent through the filter and sent for packing. Vacuum dehydration of oils will avoid the excess moisture in oils.

You may also check this: Flaxseed Oil Manufacturing Project Report .

Virgin Coconut Oil Manufacturing Process

Land and building construction on a rental basis per month: Rs.2,500.

  • Cast iron pan 1000 lit. capacity (200 kg. wt): Rs. 1,20,000
  • Rotor cum screener to expel oil Rs. 4,000
  • Decorticator: Rs. 500
  • Aluminium Disc 500 lit. capacity: Rs. 20,000
  • Stirrer with motor 1 HP (for blending purpose): Rs. 10,000
  • Other necessary equipments for cooking: Rs. 5,000
  • Automatic filling machine for liquid: Rs. 70,000
  • Office furniture: Rs. 10,000
  • Total: Rs. 2,39,500 

Pre-operative expenditure:

  • Wooden chulla four nos.: Rs. 2,000
  • Project profile: Rs. 200
  • Travel: Rs. 2,000
  • Regn. With Sales tax: Rs. 2,000
  • Packing advance for plastic containers, cartons: Rs. 15,000
  • Stationery: Rs. 300
  • Telephone connection: Rs. 3,000
  • Other misc. exp.: Rs. 5,000
  • Total: Rs. 29,500

Fixed capital investment:

  • Machinery: Rs. 2,39,500
  • Pre-operative expr.: Rs. 29,500
  • Total: Rs. 2,69,000

Working capital analysis

  • Raw coconuts 60 tons @ Rs.2000/Ton: Rs. 1,20,000
  • Scented coconut oil 500 lit. @ 60/lit.: Rs. 30,000
  • Packing materials (plastic containers, cartons,etc.): Rs. 20,000
  • Total: Rs. 1,70,000
  • Wood 30 quintals @ Rs.120/qtl.: Rs. 3600
  • Electricity 300 KWH @ Rs.3.00: Rs. 900
  • Total: Rs. 4,500

Staff and Labour:

  • Skilled labour: Rs. 10,000
  • Unskilled labour: Rs. 7,500
  • Salesman: Rs. 3,000
  • Accountant: Rs. 2,500
  • Peon: Rs. 2,000
  • Total: Rs. 25,000

Other expenses

  • Rent: Rs. 2,500
  • Transport and travel: Rs. 2,000
  • Telephone: Rs. 400
  • Stationery: Rs. 100
  • Publicity: Rs. 1,000
  • Sale tips: Rs. 1,000
  • Other misc. expr.: Rs. 2,000
  • Taxes and levies: Rs. 500
  • Total: Rs. 9,500

Total working capital per month = 1,70,000 + 4500 + 25,000 + 9,500 = Rs.2,09,000.

Total Capital Investment:

  • Fixed capital: Rs. 2,69,000
  • Working capital: Rs. 2,09,000
  • Total: Rs. 4,78,000

Cost of production (per annum):

  • Depreciation on machinery and equipments @ 10%: Rs. 22,950
  • Depreciation on furniture @ 20%: Rs. 2,000
  • Recurring expenditure (per annum): Rs. 25,08,000
  • Interest on total cap. Investment @ 14%: Rs. 66,920
  • Total: Rs. 25,99,870

Turnover of Virgin Coconut Oil production

Coconut oil turnover 92.4 MT @ Rs.30,500/ton: Rs. 28,18,200 (Say Rs. 28,20,000)

Profit in Virgin Coconut oil production

Profit = Rs. 28,20,000 – Rs. 25,99,870 = Rs. 2,20,130

Net profit ratio = Profit x 100/Turnover = 7.8%.

Break even analysis:

Fixed cost (per annum):

Total depreciation: Rs. 24,950

Interest @ 14%: Rs. 66,920

40% salary: Rs. 1,20,000

40% other exp. Except rent: Rs. 33,600

Rent: Rs. 30,000

Total: Rs. 2,75,470

B.E.P. = FC x 100 / FC + profit = 55%.

Coconut selection

The maturity of coconut is a very significant aspect of the quality and recovery of VCO particularly in processes having the coconut milk route. Coconut kernels from fully mature coconut have the greatest oil percentage and are comparatively less protein quantity.

Coconut milk is an emulsion of oil and water soothed by protein. To obtain the oil from coconut milk, the protein bond must be disrupted to recover much oil if the kernel from which the coconut milk is extracted has high oil content and lower protein content. To identify the maturity of nut, shell and husk must be brown and gives a sloshing sound when it is shaken.

Always note that nuts when it is fully mature do not have haustorium. As the oil content of the kernel and quality of the oil begins declining once the haustorium is developed.

Handling of equipment in Virgin Coconut Oil Manufacturing Business

Coconut meat/kernel and coconut milk contain low acid content so they are very prone to microbial infection. Because of this, strict sanitation in the unit location, people, and machinery should be practiced regularly. For manufacturing Virgin Coconut Oil, food-grade stainless steel is mainly recommended to use for making all the parts of machinery. Because it will be in touch with all the raw materials like coconut kernel or coconut milk. Water to be used as a diluent or rehydrating agent must be of good quality, free from pathogens and too many mineral constituents.

Packaging of Virgin Coconut Oil product

The presence of water in the oil will ensure the product’s shelf life less i.e., water in the oil will lead to rancidity while storage. An important note is that you need to maintain water content in the virgin coconut oil should be less than 0.1%. The oil should be properly dried and cleaned before packaging the final product of Virgin Coconut Oil.

By-products in Virgin Coconut Oil Manufacturing Business

Chief by-products in VCO units are brown skin, shell, and defatted desiccated coconut powder.

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Thesiswire

Coconut Oil Production Business Plan

  • Executive Summary

1.1 USER Coconut Oil Production Company is a licensed and standard coconut oil production company that will be located in an industrial area in Port Harcourt.

We are in the coconut oil production line of business to produce coconut oil in commercial quantities for manufacturing companies that are into the production of soaps, skin products, hair products and repellants et al. We are also in business to make profits at the same to give our customers value for their money; we want to give people and businesses who patronize our coconut oil the opportunity to be part of the success story of User Coconut Oil Production Company.

We are aware that there are several big scale and small scale coconut oil production companies scattered all around Nigeria whose products can be found in every nooks and crannies of Nigeria, which is why we spent time and resources to conduct our feasibility studies and market survey so as to enable us locate the business in an area that will support the growth of the business and also for us to be able offer much more than our competitors will be offering.

We ensured that our facility is easy to locate and we have mapped out plans to develop a wide distribution network for wholesalers all around Nigeria.

Much more than producing quality coconut oil in commercial quantities, our customer care is going to be second to none. We know that our customers are the reason why we are in business which is why we will go the extra mile to get them satisfied when they visit or purchase our product and also to become our loyal customers and ambassadors.

USER Coconut Oil Production Company will ensure that all our customers (wholesale distributors) are given first class treatment whenever they visit our Depot / Plant. We have a CRM software that will enable us manage a one on one relationship with our customers (wholesale distributors) no matter how large the numbers of our customer base may grow to. We will ensure that we get our customers involved when making some business decisions that will directly or indirectly affect them.

  •  Objective

USER Coconut Oil Production Company is going to operate a standard and licensed coconut oil production company whose product will not only be sold in Sout South but  also throughout  Nigeria. We are in the coconut oil production line of business to make profits and also to give our customers value for their money and we are going to do all that is permitted by the law of  Nigeria to achieve our corporate goals.

Our product is simply coconut oil; we are in the coconut oil production line of business to produce coconut oil in commercial quantities for manufacturing companies that are into the production of soaps, skin products, hair products and repellants et al.

1.3 Our Vision Statement

Our vision is to establish a standard Coconut Oil Production Company whose product will  not only be sold in South South, but also throughout Nigeria, and in other parts of the world.

  • 1.4 Success Indicators

Our mission is to establish a standard and world class Coconut Oil Production Company that in our own capacity will favorably compete with leaders in the industry. We want to build a coconut oil production business that will be listed amongst the top 10 coconut oil brands in  Nigeria and West Africa sub region

2.0 Description of the Company

USER Coconut Oil Production Company is a business that is established with the aim of competing favorably with other leading coconut oil brands in the industry. This is why we will ensure that we put the right structure in place that will support the kind of growth that we have in mind while setting up the business.

We will ensure that we only hire people that are qualified, honest, hardworking, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders (the owners, workforce, and customers).

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A Sample Coconut Oil Production Business Plan Template

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  1. (PDF) A Sample Coconut Oil Production Business Plan Template

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  2. Coconut Oil Market Size, Share, Growth

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  3. VIRGIN COCONUT OIL PROCESSING

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  4. Business plan for coconut oil production

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  5. Business plan for coconut oil production

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  6. Marketing Plan of Coconut Oil in Indones

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  1. COCONUT OIL

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  4. cat coconut oil business 🤠

  5. How To Make Coconut Oil

  6. How Virgin Coconut Oil Made? A

COMMENTS

  1. Coconut Oil Production Business Plan [Sample Template]

    Cost for payment of rent for 12 month at $1.76 per square feet in the total amount of $105,600. Cost for construction of a standard coconut oil production plant - $100,000. Other start-up expenses including stationery ( $500) and phone and utility deposits ( $2,500 ).

  2. How to Start Coconut Oil Manufacturing Business in 10 Steps

    Grating the Coconut Meat. Soaking the Coconut Meat. Extracting the Oil. However, if you are planning to produce coconut oil commercially, the steps to be followed are mentioned below: Step 1: Dried copra cut into small chips in a copra cutter. Step 2: Then, feed the chips into steam-jacketed kettles and cook.

  3. Starting a Coconut Oil Business

    Then break the coconut and cut the fleshy part of the white coconut; cut into small pieces and place in a blender. Stir the nuts until they turn into creamy white water, then take a sieve or cloth and separate the fiber from the milk water. Put the water in a container and let it sit overnight. The next morning, you will notice that the water ...

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  6. How to write a business plan for a coconut farm?

    A business plan has 2 main parts: a financial forecast outlining the funding requirements of your coconut farm and the expected growth, profits and cash flows for the next 3 to 5 years; and a written part which gives the reader the information needed to decide if they believe the forecast is achievable.

  7. PDF Training Curriculum on Coconut Farming as a Business

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  9. (PDF) Virgin Coconut Oil production manual for micro-and village-scale

    Village-scale enterprises include all those with coconut processing capacities of 1,000 to 5,000 nuts per day. Process operation is semi-mechanised and uses a combination of single- Virgin coconut oil: production manual for micro- and village-scale production 12 Figure 1. Virgin coconut oil phase and three-phase motorised machines.

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  11. PDF Detailed Project Report (DPR) : Coconut

    7. Lay out plan of the project 18 8. Conversion of Land Use (CLU) 18 9. Whether project site is part of production belt / cluster / hub 18 10. Rationale for the location of the project 19 11. Compliance of project site for food safety 20 12. Components / Activities of the Project with justification 21-23 13. Operations planning 24 14.

  12. Coconut Oil Manufacturing Plant Project Report

    IMARC Group's report, titled "Coconut Oil Manufacturing Plant Project Report 2024: Industry Trends, Plant Setup, Machinery, Raw Materials, Investment Opportunities, Cost and Revenue" provides a complete roadmap for setting up a coconut oil manufacturing plant. It covers a comprehensive market overview to micro-level information such as unit operations involved, raw material requirements ...

  13. PDF Setting up and running a small-scale cooking oil business

    Setting up and running a small-scale cooking oil business - 10 - Finally, we gratefully acknowledge the following companies, organisations ... Screw press and 4.12. Small hand coconut grater, from Practical Action Publishing, The Schumacher Centre for Technology and Development, Bourton on Dunsmore, Rugby, CV23 9QZ, UK., Tel: +44 (0)1926 634501 ...

  14. Virgin Coconut Oil Project Report (VCO), Plan

    VCO has considerable advantages for therapeutic purposes such as antimicrobial, anti-HIV/AIDS drugs, for the treatment of Alzheimer's disease, and anti-cancer therapy. Essential composition of Virgin Coconut Oil. Moisture: Maximum 0.1%. Volatility: Maximum 0.2% at 120°C.

  15. Coconut Business Plan

    Coconut Business Plan - Free download as PDF File (.pdf), Text File (.txt) or read online for free. Desiccated coconut Business Plan

  16. PDF COCONUT

    Coconut Oil Processing - The Dry Process Coconut oil is one of the main traditional products derived from the meat or kernel. It is a mixture of chemical compounds called glycerides containing fatty acids and glycerol. The different fatty acids present in coconut range from C6-C18 carbon atom chains. Coconut oil processing methods or ...

  17. Coconut Oil Production Business Plan

    Coconut Oil Production Business Plan. Executive Summary. 1.1 USER Coconut Oil Production Company is a licensed and standard coconut oil production company that will be located in an industrial area in Port Harcourt. We are in the coconut oil production line of business to produce coconut oil in commercial quantities for manufacturing companies ...

  18. A Sample Coconut Oil Production Business Plan Template

    Cost for hiring Business Consultant - $2,500. Insurance (general liability, workers' compensation and property casualty) coverage at a total premium - $2,400. Cost for payment of rent for 12 month at $1.76 per square feet in the total amount of $105,600. Cost for construction of a standard coconut oil production plant - $100,000.

  19. (PDF) Virgin Coconut Oil (VCO): Production, Advantages, and Potential

    This process causes the lauric acid content of VCO to be the highest compared to the other 2 oils, which is 53.70-54.06 %, while ordinary coconut oil is 2.81% and palm oil is 0.45%.

  20. PDF Marketing Strategies for coconut and its value added products

    Farmer Producer Organizations (FPO) in coconut sector need to plan their future strategies in accordance with these information. Copra and coconut oil are moving away slowly from the main stream and new products have made their entry. During the last one decade, tender coconut and tender coconut water have made a

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    Business Plan (1) - Free download as Word Doc (.doc / .docx), PDF File (.pdf), Text File (.txt) or read online for free.

  22. PDF Coconut Marketing strategies

    Marketing strategy for coconut value added products Objective. Promote diversification to the multitude of value added products in coconut and promotion of processing units. Introduce premium quality value added products of coconut to the consumers in major cities at affordable cost. Develop a stable market for the products with steady demand.