PROJECT PROFILE
“COCOCRAFT”: EDIBLE NUT & SEED OIL PROCESSING

M R Processing & Packaging Industry

Office: Mostafa Center, 1102/A Agrabad C/A, Chattogram. Factory: Bhatiyari, Shitakundo, Chattogram

TABLE OF CONTENTS

Model Detailed Project Report 1

1. Executive Summary 4

2. Objective Of The Project 6

3. Project Profile 7

4. General overview of Coconut production, clusters, phm and value addition in India 8

   1. Introduction 8

   2. Origin, Distribution and Production Of Coconut 8

   3. Health Benefits And Nutritional Importance 9

   4. Cultivation, Bearing And Post-Harvest Managements 10

   5. Processing And Value Addition In India 11

5. Model Coconut Oil Processing Under FME Scheme 12

   1. Location Of Proposed Project And Land 12

   2. Installed Capacity Of Coconut Oil Processing Plant 12

   3. Raw Material Requirements For The Unit 12

   4. Manufacturing Process 12

   5. Market Demand And Supply For Coconut Oil 15

   6. Marketing Strategy For Coconut Products 15

   7. Detail Project Assumptions 16

   8. Machinery Suppliers 16

1. Machinery suppliers 24

6. Limitations of Model DPR and guidelines for entrepreneurs 25

   1. Limitations Of Model DPR 25

1. 
   EXECUTIVE SUMMARY

Coconut oil (or coconut butter) is a plant oil derived from the kernels, meat, and milk of the coconut palm and fruit. It is used as a food oil, and in industrial applications. The fatty acids in coconut oil can encourage your body to burn fat, and they provide quick energy to your body and brain. They also raise HDL (good) cholesterol in your blood, which may help reduce heart disease risk.

Edible oils have become a hot topic in the consumer goods industry especially due to the global shortage. Coconut oil, one of the well-known oils is known globally thanks to its inclusion in fragrances, cosmetic oil, and other industries. They are available in two major formats - refined and virgin. The coconut oil market is headed for a meteoric growth thanks to the leaning of consumers towards health and wellness and is currently being used in bakery, hair oil, cosmetic oil, ice cream manufacturing and high end soap manufacturing industry.

Marico Bangladesh Limited dominates the local market with a market share of almost 70% with their brand “Parachute” bottle. The rest 30% market share is shared between brands like “Jui” of Square Toiletries Ltd, “Bajaj Almond Drops” of Bajaj Consumer Care, “Dabur Amla Hair Oil” of Dabur Consumer Care and other small local brands like “Cute” & “Kumarika”. Most of these brands import their Refined Bleached Deodorized (RBD) Coconut Oil and Virgin Coconut Oil from India, Vietnam & Indonesia.

It is also noteworthy, that in Bangladesh due to the increase in E-Commerce Sale and Facebook Market Sales, small micro industries emerged with old traditional wood expellers and regular filtration. However, they do not have the ability to import good quality Coconut Copra with high oil content. They do not know the right source and their product do not have long time shelf life as their filtration system is not modern and they do not have access to a refinery who can convert their Crude Coconut Oil into RBD Coconut Oil (Refined Bleached Deodorized)

“M R Processing & Packaging Industry” was set up with a modern Copra & Other Vegetable Oil Seeds crushing plant in Bhatiyari Chittagong with a capacity of crushing 800kg/hour to supply the RBD and Virgin Coconut Oil to the above mentioned blenders and producers under the brand name “ CocoCraft ”. M R Processing & Packaging Industry has the strongest advantage of having a refinery contract with M Oil Products Ltd which has a state of the art German Edible Oil Refinery with a capacity of refining 300 Metric Tons of crude edible oil per day.

TABLE 1 PROJECT AT GLANCE

2. 
   OBJECTIVE OF THE PROJECT

The Prime Objective of the Report is to highlight the benefits of a “Coconut Oil Manufacturing Unit” through adoption of appropriate technology, utilization of resources, quality production and suitable market strategy.

Some important objective and advantages of M R Processing & Packaging Industry are :

• The prime objective is to setup this factory to produce & make quality product in most hygienic conditions with good packaging, untouched & with very less human interference during entire operations till the buyers.

• To produce & market safe, quality-assured products with highest nutrient value than existing one.

• Improve customer’s nutrition by allowing them to consume quality processed product.

• Empowering the lifestyle of promoter by adopting proper techniques in production and marketing of final product.

• Proper utilization of land location, water treatment plant in location for pure water, labor & most importantly the refinery contract between M R Processing and Packaging Industry & Edible Oil Refinery of Mostafa Oil Industries Ltd for better plant economics.

• Employment generation for women mainly in surrounding areas as this project was envisaged by a women entrepreneur and the entire work force of M R Processing & Packaging Industry are women .

LOCATION OF PROJECT AND LAND

M R Processing & Packaging Industry has been set up in Bhatiyari Shitakundu. The company has leased a 10,000 Square feet empty plot of land for 20 years and has built a new 6500 Square Feet Shed, 650 Metric Ton of underground and over ground Heated Oil Tank in its premises. The factory is fully equipped with gas, boiler and electricity connection required for the production.

INSTALLED CAPACITY OF COCONUT OIL PROCESSING PLANT

The installed capacity of the manufacturing unit in the project is (800kgs/hour) or 19 Tons per day on a 24-hour shift. Depending on the quality of the Coconut Copra we expect a 58% oil extraction per ton of Crude Coconut Oil (CCNO).

RAW MATERIAL REQURIMENT FOR THE UNIT

A sustainable food processing unit must ensure maximum capacity utilization and thus require an operation of minimum 300 days per year to get reasonable profit. M R Processing & Packaging would require (800kg x 24 hours x 300 days= 5760 MT) of Copra per Annum to run its operations smoothly and without any interruption. From the 5760 MT of Copra M R Processing & Packaging is expected to produce 3340 Metric Tons of Crude Coconut Oil (CCNO) per year & 2420 Metric Tons of Premium De Oiled Copra Meal.

COCONUT OIL :

World production of coconut oil (CCNO) is about 6.4M tones, about half of which is traded internationally. The main producing countries are India, Indonesia, Papua New Guinea, the Philippines, Sri Lanka, Thailand and West Malaysia. The Philippines and Indonesia are major exporters, while the EU countries and USA are major importers. Bangladesh also produces little amount of aged dry coconut locally for commercial sales in Khulna, Rongpur, Rajshahi regions. These are mostly used for home cooking and bakery items. The process of making copra from aged coconut is not yet vastly known or practiced in Bangladesh. However, as Bangladesh is a hot climated country with sunshine 80% of the year, Copra business can rapidly grow for coconut oil extraction saving the economy millions of foreign currency. .

FIGURE 1 COCONUT OIL PRCOESS FLOWCHART

TABLE 5 PROJECT SUMMARY

TABLE 6

FIXED CAPITAL INVESTMENT

WORKING CAPITAL REQUIRMENTS

Total Working Capital Requirement : BDT 15,49,25,000 x 2 Months = BDT 30,98,50,000 .

To keep the factory running at its optimum, the copra needs to be always in the pipelineas 70% of it is imported. As copra is considered as Dangerous Goods ( DG) under the international shipping law, it requires quarantine time and usually takes 15 days from shipping date to arrive at the factory premises. The local traders also pay the rural farmers in advance to get the aged dried coconuts, hence we also need to advance the traders in advance of one month before the coconuts arrive at the factory premises .

TABLE 10

EXPENDITURE, REVENUE AND PROFITABILITY

TABLE 12 ASSETS DEPRECIATION

TABLE 13 FINANCIAL ASSESSMENT OF PROJECT

TABLE 14 BREAK EVEN ANALYSIS

FIGURE 2 PLANT LAYOUT

Contact Us

National Institute of Food Technology,

Entrepreneurship and Management (NIFTEM) - Thanjavur

(an Institute of National Importance under Ministry of Food Processing Industries, Government of India)

Pudukkottai Road, Thanjavur – 613005, Tamil Nadu,India Ph: 04362-228155, Fax:04362-227971

Email: director@iifpt.edu.in Web: https://niftem-t.ac.in/