Coconut-based Food Processing Plant

KSIDC

PROJECT PROFILE

ON

COCONUT-BASED FOOD PROCESSING PLANT

Prepared by:

Kerala State Industrial Development Corporation

Coconut-based Food Processing Plant

KSIDC

PROJECT PROFILE FOR COCONUT-BASED FOOD PROCESSING PLANT

INTRODUCTION India is the third largest coconut producing country in the world. Copra and coconut oil are the two major products of the coconut processing industry. Nearly 60% of the total production of nuts is utilized for food purposes and the rest goes for oil extraction. In spite of the fact that our country has the necessary raw material to launch new product lines, minimal progress has taken place in the application of modern technology for full utilisation of various coconut products such as desiccated coconut and its powder, packed coconut milk, coconut cream, coconut milk powder, tender coconut water, vinegar, nata-de-coco, etc. Institutions like the Coconut Development Board, Kochi, have developed the required technologies for production of value-added food products from coconut, which have good commercial potential, both in domestic as well as export market. The Coconut-based Food Processing Plant would be an integrated type delivering multiple products having great export potential. The following products are proposed to be manufactured in the Plant: i) ii) iii) iv) v) Virgin Coconut Oil Spray Dried Coconut Milk Powder Desiccated Coconut Powder Coconut Vinegar Nata-de-coco

Besides, the same plant is also capable of processing other coconut-based food products as per demand, like Coconut Milk Cream, Packed Tender Coconut Water and Ordinary Coconut Oil with no further addition of machinery. MARKET Being mass consumption items worldwide, the products listed above have a good export market. For instance, about 40000 tonnes of desiccated coconut is manufactured annually and used mainly by confectionery and biscuit industry. Similarly Virgin Coconut Oil (both ordinary as well as organic) has a large global market in multiple sectors like food industry, healthcare & cosmetics industry, etc. Similarly, being a non-synthetic food product, Coconut Vinegar is widely preferred as table seasoning, or as ingredient in food processing.

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KSIDC

Nata-de-coco is most commonly sweetened as a candy or dessert, and can accompany many things including pickles, drinks, ice cream, puddings and fruit mixes. Spray Dried Coconut Milk Powder, though not very familiar to the Indian consumers, is a premium product in the world market. It is used in place of fresh coconut milk for food preparation / beverages in household and food industries. It can be reconstituted into coconut milk by diluting with water. Besides their nutritional qualities and multiple-usability, all the above products offer additional advantages such as enhanced shelf life, less storage space and reduced packaging costs. MANUFACTURING PROCESS 1) Virgin Coconut Oil Virgin Coconut Oil (VCO), said to be the mother of all oils, is extracted from fresh coconut meat without any chemical processing. Coconut kernels are first disintegrated into small pieces in a Disintegrator and then fed into a screw press for milk extraction. The oil is then separated from the water using a mechanical centrifuge. The result is a clear coconut oil that retains the distinct scent and taste of coconuts. Laboratory tests show that VCO is a very high quality coconut oil, with a Lauric acid (having qualities similar to mothers milk) content of 47 - 52%. Besides, it is also rich in minerals, vitamins, antioxidants and is an excellent nutraceutical. 2) Spray Dried Coconut Milk Powder Coconuts are first de-husked and broken into halves. The split nuts are de-shelled to separate the kernel. These two operations usually are done manually. Kernel is washed and then blanched by immersing in hot water at 80C for 10 minutes. The next step is comminuting of kernel into small gratings using a hammer mill. The gratings are subjected to pressing using continuous screw press to extract the milk. The coconut milk thus obtained is filtered by passing through a vibrating screen. The milk is then homogenised and mixed with maltodextrins and other emulsifiers in an additive mixing tank. The resultant mixture is then spray dried into a fine milk powder using a spray drier. The product is then packed in Aluminum foil packets in various sizes as per customer requirement. 3) Desiccated Coconut Powder The coconuts are de-husked and de-shelled. The brown portion of nuts, called Testa, is removed by scrapping it off. About 10-15% of the kernel goes as paring by this process. The de-shelled coconuts are then broken into pieces, washed properly and disintegrated into powders of various grades. The powder is then dried in a drier. When powder is dried, it is cooled and passed through a vibratory screen of various sieve sizes. The segregated material

Coconut-based Food Processing Plant

KSIDC

is packed in oil-proof, moisture-proof polythene lined plywood boxes of 25 Kg or packed in poly bags of 250 gm, 500 gm, etc for retail sale. 4) Coconut Vinegar Mature coconut water consisting of about 3% sugar is concentrated to 10% level by fortifying with sugar. The fortified coconut water is then fermented by inoculating the solution with yeast -- Saccharomyces cerviseae. After alcoholic fermentation for about 4 - 5 days, the clear liquid is siphoned off and inoculated with mother vinegar containing Acetobacter bacteria. The alcoholic ferment obtained is then fed into a vinegar generator where the feed is uniformly sprayed over the surface of the porous packing medium (corn cobs). Here the alcoholic ferment is oxidized to acetic acid. The product is run out from the packing medium by gravity flow into the receiving vat from where it is recycled into the vinegar generator and the process of acetification is repeated until a strength of 4% is attained. This acetified vinegar is then aged before bottling. 5) Nata-de-coco Nata-de-coco a cellulosic white to creamy yellow substance formed by the bacteria Xylinium (a subspecies of Acetobacter Aceti), on the surface of sugar-enriched coconut water. Coconut water is first strained and mixed with sugar and glacial acetic acid in stipulated proportions. It is then boiled for 10 minutes and then cooled. The culture solution is then added and the resultant mixture distributed in wide mouthed glass or plastic jars. The jars are covered with a paper or a thin cloth to protect from dust. It is then kept aside undisturbed for 2 - 3 weeks. After this period, the white jelly-like thick surface growth is harvested, washed thoroughly to remove all the acids and sliced into cubes. It is then immersed in flavoured sugar solution, again boiled and packed in glass jars or retortable pouches, sterilized and sealed. PROJECT PARAMETERS Capacity The processing capacity of the Coconut-based Food Processing Plant would be 50,000 nuts and 200 Litres of mature coconut water per day (15 million coconuts/year). Land An extent of around 1 acre of dry land is required for setting up a Coconut-based Food Processing Plant. Location The project is proposed to be located at KSIDCs Industrial Growth Centre at Kinalur, Kozhikode District.

Coconut-based Food Processing Plant

KSIDC

Raw Material & Utilities The Raw materials for the Plant are Green coconut and mature coconut water. Since coconut water will be available from the nuts itself, there is no need to source it separately. Plant & Machinery The machinery required for the Coconut-based Food Processing Plant is listed below: Sl. No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 Name of Machine Hammer mill Storage tanks for Coconut Oil, Milk and coconut water Additive mixing tanks Pasteurizer Can seaming machine Agro waste vertical boiler Elevators Vibrating sieving machine Emulsifier Volumetric filling machine Horizontal rotary retort Sterilization tank Screw press Coconut residue mixer Homogenizer Exhaust box Spray drier Storage bins Screw Conveyor Micro filter Centrifuge Feed Trough Vinegar Acetifier Receiving Trough Wooden Storage Drum Glass vessels & Jars Sterilised bottles Measuring Cups Water bath Refrigerator Dehusking, Deshelling & Paring tools Washing Tank with spray

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KSIDC

33 34 35 36

Hot dip Blanching Tank Disintegrator with screens & Al trays Hot air dryer with blower Heat Sealing Machine

The total cost of machinery for a Plant processing 15 million coconuts/year is around Rs.212 Lakhs. Besides, technology support and details of machinery manufacturers are available from the Coconut Development Board, Kochi. Manpower The total manpower requirement for the Plant would be around 40 numbers, including technical personnel. Cost of the Project The total cost for setting up a Coconut-based Food Processing Plant having processing capacity of 15 million coconuts/year, would be around Rs.500 Lakhs. This includes the cost of 1 acre land. The project implementation period would be 12 months. Project Components Land (1 acre) & Land Devpt Building & Civil works (10,000 sq. ft factory) Plant & Machinery Utilities Technical Know how Misc. Fixed Assets Preliminary & Pre-operative expenses Contingencies Margin money Total Project Cost Means of Finance Cost (Rs. Lakhs) 50.00 87.00 212.00 5.00 5.00 12.00 26.00 16.00 87.00 500.00

The proposed means of Finance for the Project is given below: Equity Promoters contribution Subsidy from CDB/other agency Unsecured Loan Term Loan KSIDC/KFC/Banks/FIs Total Project Cost

150.00 50.00 50.00 250.00 500.00

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KSIDC

The Debt-Equity ratio is 1:1. Sales Turnover The Revenue at optimum utilisation (80% from the 3rd year onwards) would be around Rs. 1541 Lakhs. FINANCIAL INDICATORS The Profit after Tax is Rs.89 Lakhs. The Break Even Point (BEP) for the project is 55%. The Debt Equity Ratio (DER) for the project is 1:1 Average Debt Service Coverage Ratio (DSCR) is 2.47 The average Internal Rate of Return (IRR) for the project is 18%.

CONCLUSION The Indian coconut industry has not been able to unleash its true potential mainly because of its oil driven market. However by realizing the imperative need to become competitive, the industry is now undergoing modernization, product diversification and byproduct utilization and restructuring process. New vistas are being opened up in value addition and product development due to the timely interventions and concerted efforts of organizations like Coconut Development Board, Central Plantation Crops Research Institute, Central Food Technological Research Institute, Defence Food Research Laboratory, National Institute for Interdisciplinary Science & Technology (formerly Regional Research Laboratory). As a result of these interventions, consumer demands for varied high value coconut products are tremendously increasing and hence the domestic industries have become vibrant. This in turn would help make the industry in becoming globally competitive.

For further details please contact Kerala State Industrial Development Corporation Ltd.

Disclaimer:
The findings contained in this Project Profile are based on the initial information collated through primary and secondary research, which is indicative in nature. Reference herein to any specific commercial product, process, service by trade name, trademark, manufacturer, or otherwise, does not constitute or imply its endorsement, recommendation, or favoring by KSIDC or any entities thereof.