Coconut handling equipments
India is the largest producer of coconuts today, but do we know what to do with all of them. Our major failure today as farmers is our inability to process the produce we cultivate. May it be rice, tomatoes or coconut, we fail to process the produce effectively. for instance, tomatoes is one of the largest produce in india and its a perishable. Most farmers are known to dump excess tomatoes which they cannot sell. All that effort that they put to cultivating the produce goes to waste.
Coconut though not wasted entirely, the profit that can be earned by processing them is completely overlooked. Today Virgin coconut oil sells for Rs.300 upwards. regular Coconut oil sells for Rs.100 plus. coconut milk costs Rs.200 Upwards and Coconut flour a good Rs.400. Then there is Coco Peat Coir and other products which come from the husk. the products which can be prcessed from coconut is very huge. From coconut water, neera and a lot more can be produced from coconut and the price for these produces are huge. With a bit of initial investment, the chances of profiting from coconut is 4-8 times higher than what you can make by selling normal coconuts.
But there are concerns and some work involved which may be out of most farmers reach. Getting government approvals to setup a small unit may be intimidating if not impossible. The process and the legal works, including the registration process takes time. While all these may deter the farmer from setting up a processing unit for processing coconuts, its important to consider the benefits, which surely outweigh the hassle.
Produces from Coconut Processing
Lets First take a small study today. Check out which are the major coconut products available in the market today. Coconut oil, Virgin coconut oil, Coconut flour, Coconut water, Coco peat, coir products like mats and ropes. For this example lets assume that we take coconut oil as an example. Find out how many brands of coconut oil you can find in your locality. You may be amazed to find that you will see no more than 3-4 brands. for hair oil, parachute is considered the de facto. For cooking oil, there are no branded companies which have a brand recognition all over the country. They are all regional. Coconut oil is rarely used in the north. As a matter of fact, kerala is the only state which still uses coconut oil as a staple cooking oil, and there is no Big brands for coconut oil!
For virgin coconut oil, there are even fewer brands. This may be because there is no market for coconut oil in most other parts of the country but is that really true? has anyone ever tried? and even if there was no market all over the country, You should not be worried or deterred. your focus should be to sell your produce first and then make a profit but processing coconut from other vendors.
Your chances of making a brand is high without competition. Your product will sell in the local market and if not, the market is wide open today with the internet. Today you could sell your produce all over india with a few clicks. there are sources like amazon and flipkart which will pick your produce and deliver it to your customers at a price. There should not be a reason to stop you from processing your produce at any point of time.
Virgin Coconut oil
- Retail Price For branded product : Rs. 400 Upwards
- Manufacturing unit Price : 4,00,00 – 30,00,000
- Processing Capacity : 40KG per hour to 2000 Litres per day
- By products : Coconut flour,
- Suppliers: Essar Engineers – Coimbatore, Micro fab engineers
At first sight virgin Coconut oil may seem superficial. The prices are exorbitant. The values are not clearly known to most customers and customers are just beginning to be educated about the benefits of virgin coconut oil. Considering all these factors, you should be reasonably worried about putting a huge investment into processing coconuts to produce virgin coconut oil.
But wait a minute. Lets simply take a product. Maxcare Virgin Coconut oil, Manufactured in india and priced at ₹ 616.00 has been on amazon for 5 plus years, first seen on amazon on 17 August 2015. The total reviews on the product is 2634 as of today, february, 2021. Thats 65 months. An average of 40 sales a month. Clearly not worth an investment of 3 lakhs to produce 40 bottles of oil a month. But do you know less than 10% of the people actually review a product on amazon? The sale for that product could be anywhere between 400-500 sales per month.
And thats only the sale on amazon. If you were to sell your produce locally and through wholesalers and retailers, though your profit margin may take a hit, you can expect to sell 10-20 times more than that. Thats a minimum of 4000 Litres per month in sales. You are looking at a turnover of ₹24,00,000 per month in sales. Now i think you can see how much profit you can make, even if you take a 6-7% in profit from a bottle. Even with an investment of 30 Lakhs, chances are you will cover up the investment in no more than 3 years.
Check out the Google trends for Virgin Coconut oil in india and you would be amazed by how many people are searching for it. This is clearly an indication about people who are interested in the product. Clearly thats no indication of good sale or profit. This is only interest. You will need to create a brand and a good marketing strategy to reach these customers. Its possible today with a range of sources online!
When starting a new venture, especially where you do not know about and you are still in the learning phase, consider starting small. Invest as little as you can and analyze the risks. Minimal risk even if it means minimal returns and profit is more important. Big investments mean big risk, bigger losses. Don’t make the mistake. Invest your money elsewhere for the time being. If you find your venture profitable, you will need that money to take your business to a new level. This may take a few months to a year, but you will have learned a lot about the market and the entire business by then. Even if you lose out on your business, the investment would have been small which you could repay.
For more information on the Machinery used for Virgin coconut oil Production check the related articles!
Coconut Oil Extraction Machine
Coconut oil is one of the most commonly used by product of Coconut. Its widely used as a hair oil but its gaining popularity as one of the best cooking oils too. Coconut oils can be categorized as virgin coconut oil , cold pressed and regular coconut oil. Virgin coconut oil is extracted from the milk of the coconut. Cold pressed coconut oil is extracted from copra. Coconut oil extraction machchine for cold pressed coconut oil is different from the regular coconut oil extraction machine. The prices vary from 1 Lakh to 10 Lakh and even more and it all depends on the capacity of the machine. While the lower end machines can process about 100 Kilos per hour, the larger units have the ability to process up to 3-4 tonnes a day. The cold pressed machine will average around 4 Lakh rupees and can process approximately 200 Kilos per hour.
While cold pressed coconut oil extraction machines are less expensive than Virgin coconut oil machines, it also has to do with the process involved. The process of extracting virgin coconut oil is far more tedious than extracting coconut oil from copra. Virgin coconut oil are extracted from the milk and this requires more time and processing. The time to extract oil from copra is also much lesser.
the cost of Cold pressed coconut oil could range anywhere from 300-400 rs per litre.