Detailed Project Report on Virgin Coconut Oil Manufacturing Plant (Cap: 1200 Ltr/Day)

VIRGIN COCONUT OIL MANUFACTURING PLANT (CAP: 1200 LTR/DAY)

[EDPR/0545/EIRI] J.C. 9138

INTRODUCTION

Copra is prepared from ripe or nearly ripe nuts. The stage and period at which the nuts are harvested influence the quality of the copra and the yield, Nuts harvested during dry summer months give a higher yield than those harvested during rainy months. Coconuts take generally 12 months to ripen, nuts harvested earlier than 10 months yield copra of poor oil content. Fully mature nuts give high yields of copra of good quality.

Two types of copra are made milling copra and edible copra. Nearly 4/5th of the copra produced in India is of the former class.

The quality of copra is judged from the amount of oil it contains. Recorded oil percentages of copra from various producing countries range from 57-75%.

It has been pointed out that copra which is partially deteriorated through mould attack gives an abnormally high yield of oil. Similarly, copra from the kernel still remaining in 7 months old seeding has oil content as high as 77%.

The yield of oil from copra depends on the moisture content of the copra and on the efficiency of the milling equipment.

Coconut palms are grown widely in the coastal tracts of the country. Copra, the dried kernel is the chief commercial product from coconut, which is mainly used for oil extraction. Copra normally has an oil content varying from 65 to 72 per cent.

Coconut oil is an important cooking medium in Southern parts of the country especially in Kerala State. Besides, the oil has varied industrial applications. It is used in the manufacture of toilet soaps, laundry soaps, surface active agents and detergents, hair tonics, cosmetics etc. It is used throughout the country as a hair oil as it helps growth of the hair. As a massage oil it has a cooling effect on the body. Owing to these qualities coconut oil has a potential market in the country.

Since the price of coconut oil in the international market is very much lower than the domestic price, the quality and attractiveness of consumer packs are important factors to compete in the world market. While the demand for coconut oil for cooking purpose is elastic, its demand as hair oil is inelastic.

For the extraction of oil from copra the common method still prevailing in our country is by using rotary chucks. But the efficient system of extraction of oil is by the use of expellers.

COST ESTIMATION

Plant Capacity            1200 Ltr./Day

Land & Building    Rs. 20.00 Lac

Plant & Machinery                    Rs. 1.74 Cr

Working Capital for 3 Months    Rs. 59.13 Lac

Total Capital Investment          Rs. 2.61 Cr

Rate of Return                          92%

Break Even Point                      28%

CONTENTS

1. INTRODUCTION

2. PHYSICAL PROPERTIES OF COCONUT OIL

3. CHEMICAL COMPOSITION OF COCONUT OIL

4. USES & APPLICATION

5. ADULTERANTS

6. USES OF COCONUT OIL

7. B.I.S SPECIFICATION

8. VIRGIN COCONUT OIL

9. MARKET SURVEY

10. STATISTICS

11. COCONUT

12. PRESENT MANUFACTURERS

13. PROCESS OF MANUFACTURE

14. PROCESS FLOW SHEET FOR THE MANUFACTURE OF COCONUT OIL

15. PROCESS DESCRIPTION

16. GENERAL DATA OF COCONUT

17. PRINCIPLES OF PLANT LAYOUT

18. PLANT LOCATION FACTORS

19. EXPLANATION OF TERMS USED IN THE PROJECT REPORT

20. PLANT LAYOUT

21. MANUFACTURER & SUPPLIERS OF PLANT & MACHINERY

22. COMPLETE PLANT SUPPLIERS OF VIRGIN COCONUT OIL

23. SUPPLIERS OF RAW MATERIAL

APPENDIX – A:

01. PLANT ECONOMICS

02. LAND & BUILDING

03. PLANT AND MACHINERY

04. OTHER FIXED ASSESTS

05. FIXED CAPITAL

06. RAW MATERIAL

07. SALARY AND WAGES

08. UTILITIES AND OVERHEADS

09. TOTAL WORKING CAPITAL

10. TOTAL CAPITAL INVESTMENT

11. COST OF PRODUCTION

12. TURN OVER/ANNUM

13. BREAK EVEN POINT

14. RESOURCES FOR FINANCE

15. INSTALMENT PAYABLE IN 5 YEARS

16. DEPRECIATION CHART FOR 5 YEARS

17. PROFIT ANALYSIS FOR 5 YEARS

18. PROJECTED BALANCE SHEET FOR (5 YEARS)