Dessicated Coconut

Uploaded on : August 2019


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 uses and the rest goes in 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 utilization of various coconut products such as desiccated coconut, coconut cream powder, partially defatted coconut gratings, bottled coconut water, etc., Desiccated coconut is widely used in the preparation of sweets, confectionery, curry preparation etc. At present about 4000 tonnes of desiccated coconut is produced annually. The main concentration of units producing desiccated coconut are in Kerala, Tamil Nadu, Andhra Pradesh, Karnataka, Orissa and Maharashtra. Desiccated coconut is not only a value added product but it being a labour intensive industry will also generate a large number of employment opportunities.

 

Market Potential

 

Being a mass consumption item, desiccated coconut has a good market. At present about 4000 tonnes of desiccated coconut is manufactured annually and used mainly by confectionery and biscuit industry. Desiccated coconut may find good market in areas where coconuts are not produced particularly in Northern India. Now-a-days food habits of our people are changing very fast and a number of food items are being introduced every day where desiccated coconut may also find use. So there is a good scope for new small scale units to come up in this line of manufacture.

 

Basis and Presumptions

 

The Project Profile is based on the following presumptions:

 

Working hours/shift

8 hrs.

No. of shift/day

1

Working days

300

Total number of working hrs

2400 hrs.

Working efficiency

75%

Time period for achieving maximum capacity utilization

2 years

Labour charges

As per State Government's Minimum Wages Act.

Margin money of capital investment

25%

Rate of interest

15%

Operative period of the project

10 years

Value of machinery and equipments

Taken on the basis of a particular supplier of machinery and equipments

Value of raw material

As per local market Packing material/others rate on wholesale basis

Land

@Rs. 100 per sq. m

Construction charge

@Rs. 1,500 per sq.m

Break-even Point

Calculated on full capacity utilization basis

Pay-back period

6 to 7 years

 

Implementation Schedule

 

The project implementation schedule will be as follows:

 

Project preparation

0-1 month

Site selection, acquisition of land and land development

1-2 months

Sanction of loan

1-3 months

Construction of building

3-4 months

Sanction of electric power, water and telephone connection

4-5 months

 

The project could yield result by the end of the 12th month.

 

Technical Aspects

Process of Manufacture

 

First step in the manufacture of desiccated coconut is the selection of coconuts. The quality of desiccated coconut depends upon the quality of coconuts used. Fully matured coconuts of about 12 months are used for the preparation of desiccated coconut. Fully matured nuts are stored with the husk for about one month so that the water inside the kernels is absorbed. This also facilitates coconut kernels to get separated from shell walls. The coconuts are dehusked and their shells are removed. The brown portion of nuts called tasta is removed by scrapping it off. About 10-15% of the kernel goes as paring by this process. These parings can be pressed out after drying to get oil which can be used for soap making. Deshelled coconuts are broken into pieces, washed properly and disintegrated into powders of various grades. The powder is then dried in a drier by spreading it out uniformly in trays. The temperature in the drying chamber is maintained at about 180O F and the powder is stirred occasionally during the drying process to ensure uniform drying. Great care should be taken during drying. When powder is dried, it is cooled and passed through a vibratory screen having different sizes (12, 14 and 16 mesh). The segregated material is packed in oil proof, moisture proof polythene lined plywood boxes of 25 kgs. It may also be packed in polybags of 250 gms, 500 gms for retail sale. During the process of manufacturing desiccated coconut, a number of byproducts such as coconut shell, parings, and husks are obtained which may be converted into various items of great importance. It has been worked out that 100 kgs of desiccated coconut is obtained from 1000 coconuts.

 

Quality Control and Standards

 

The Bureau of Indian Standards specification for desiccated coconut is IS 966:1962. Product should also conform to PFA Act, specifications.

 

Production Capacity (per annum)

 

Quantity

Amount (Rs. in lakhs)

1,80,000 kg desiccated coconut

162.00

27,000 kg coconut parings

9.45

54,000 kg coconut shell

0.37

Total

171.82

 

Motive Power 12 K.W.

 

Pollution Control

 

The main effluent produced in the process of desiccated coconut is the after wash water having dissolved solids and coconut oil. The level of dissolved solids and oil is not significant and the effluent water could be safely used for irrigation purpose or drained out after traping solids and oils. The water having detergent used for cleaning equipments should be disposed off separately. Proper disposal facility should be made available for dumping refuge and perishable spoiled products and a separate pit constructed for this purpose. Proper hygiene and sanitation will ensure environment free of pollution. However, a no objection certificate is required to be obtained from State Pollution Control Board and care should be taken to control pollution. Energy Conservation Electrical energy is the main energy source in the process of desiccated coconut manufacturing. Efforts should be made to keep power load at the minimum at a time. Capacitors should be fitted for motors to keep power factor to its maximum. Improved designs of tube light with electronic choke should be fitted for lighting purposes for getting efficient light with less electric energy consumption. Factory shed should be constructed in such a way that natural light could be utilized, optimum temp. should be maintained in the drying chamber to get desired product with less energy. Proper maintenance of electrical equipments and machinery will further ensure energy conservation. Proper monitoring should be done in the operation of machinery and equipment particularly drier and when not required, it should be switched off.

 

Financial Aspects

Fixed Capital

 

Land and Building

 

Particulars

Amount (Rs. in lakhs)

Land 500 sq. m.

0.50

Land development

0.20

Boundary wall/fencing, etc.

0.20

Factory shed and office 200 sq. m. @ Rs. 1,500 per sq. m.

3.00

Store 60 sq. m. @ Rs. 1,000 per sq.m.

0.60

Overhead Tank

0.40

Total

4.90

 

Machinery and Equipments

 

Particulars

Qty.

Amount (Rs. in lakhs)

Cabinet type hot air drier with blower, motor and other accessories

1

1.85

Disintegrator 12" size with 10 H.P. Motor and accessories

1

1.05

Vibratory sifting machine fitted with G.I. wire mesh and 2 H.P motor

1

0.50

Al Trays

20

0.30

Platform weighing balance

1

0.15

Polythene sealing machine

2

0.05

Other Misc. equipments like scrapping Knives, Al vessel, trolleys etc.

LS

0.10

Working tables

LS

0.20

Laboratory testing equipments

LS

0.20

Office equipments and furniture

LS

0.50

Electrification and installation

LS

0.50

Total

 

5.40

Pre-operative Expenses

 

0.60

Total Fixed Capital

10.90

 

Machinery Utilisation

 

The machinery utilization in this project has been worked out to be 60% in the first year and 75% in the second year.

 

Financial Analysis

Cost of Production (per year)

 

Sl. No.

Description

Amount (Rs. in lakhs)

i)

Total recurring expenditure

147.60

ii)

Depreciation on building and other civil works @ 5%

0.21

iii)

Depreciation on machinery and equipments @ 10%

0.39

iv)

Depreciation on hand tools @ 15% per annum and other misc. equipments

0.05

v)

Depreciation on office equipments and furniture @ 20%

0.14

vi)

Interest on capital investment @ 15%

5.33

Total

153.72

 

 

Turnover (per year)

(Rs. in lakhs)

Desiccated coconut 180 M.T @ Rs 86,000 M.T.

154.80

Coconut paring 27 M.T @ Rs 35,000 M.T.

9.45

Coconut shell 54 M.T. @ Rs 700 M.T.

0.37

Total

164.62

 

•  Net Profit (per year) (Before Income Tax) 11.00

•  Net Profit Ratio 7%

•  Rate of Return 31%

 

Break-even Point

 

Fixed Cost

Amount (Rs. in lakhs)

Depreciation on machinery and equipments

0.39

Depreciation on hand tools/ other misc. equipments

0.05

Depreciation on office equipments and furniture

0.14

Depreciation on building and other civil works

0.21

Interest on total investment

5.33

40% of salary and wages

2.83

40% of other contingent expenses

0.96

Total

9.91

 

Net Profit (per year) 11.00

B.E.P. = F.C × 100 F.C. + profit

= 9.91 × 100 20.91 (9.91+11) = 47%

 

Additional Information

 

The entrepreneur may contact Director, Central Food Technological Research Institute, Mysore (Karnataka) for more technical details and process know-how.

 

Addresses of Machinery and Equipment Suppliers

 

•  Disintegrator

 

1) M/s. D.P.Pulversier Works 12, Nagindas Master Road Extn. (Opp Maharashtra State Co-op. Bank Ltd.) Fort, Mumbai - 400 023.

2) M/s. Monarch Engineering Works 13, Kharwa Lane, Kumbharwada, Mumbai - 400 004. ) M/s. Batliboi Co. Narsimha Raja Road, Bangalore - 560 002.

 

•  Drier

 

1) M/s. Andrew Yule and Co. Ltd. Kalyani Unit Engg. Division, Yule House, 8 Clive Row, Kolkata - 700 001.

2) M/s. MaCneill and Mager Ltd. Unity Building, J.C.Road, Bangalore - 110002.

3) M/s. Shanthi Engineering Works Liquire of 8 Road, Canoor - 643 101.

 

•  Vibratory Screen

 

1) M/s. Frederick Herbert and Co. 10 Second Pasta Lane, Mumbai.

2) M/s. Gladwyin and Co. Poonawala Building, 251, Dr. Dadabhai Nauroji Road, Mumbai - 110001.

 

•  Platform Weighing Balance

 

1) M/s. Avery India Ltd. Falnir Road Cross, Mangalore - 1.

2) M/s. Ganapathi Bhandarkar and Company Azizuddin Road, Mangalore - 1.

 

Source

 

Ministry of Micro, Small & Medium Enterprises
Government of India
Nirman Bhavan, New Delhi - 110011


For further information please contact

Information Manager
TIMEIS Project
E-mail: timeis@ficci.com