Innovative Technologies in

Coconut Processing

Sree Kumar P
Sr Processing Engineer

Coconut Development Board

(Ministry of Agriculture, GoI)
Kochi
1

Coconut - A Versatile Crop

Used as
crop

food crop, oilseed, fibre

medicinal crop &
beverage crop

Coconut leaves Coconut shell Coconut trunk -

Coconut

inflorescence
Coconut fruit

for roof and fencing

for industrial products,
handicraft items
for building materials,
flooring materials and
handicrafts
yield coconut toddy
inevitable item in cultural
and social use
2

Coconut Production and Productivity

Country

Area
(in hectres)

Production
(in million
nuts)

Productivity
nuts / ha

India

1903190

14744

7747

Indonesia

3860000

15196

3937

Philippines

3355000

12327

3674

Source: DES, GOI, NEW DELHI

3

Value
added
coconut
products

Size of the Inland market: Rs 83000 million

Size of the Export Market: Rs 3000 million (Coconut products)
and Rs 6400 million (Coir products)
CAGR : 8%
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PROCESSING OF MATURE NUT

Coir Industry

Coir pith Compost

HUSK

KERNEL
WATER
Milk /
Cream
Concentrate
Edible Skimmed Virgin
copra
milk Coconut oil
Packed
powder
water
Oil
Jam
Vinegar / Nata-deSHELL
Desiccated
coco
Honey
coconut
Shell powder
Chips
Chutney Biscuits
Shell
Activated
Handicrafts
powder
/burfi Dairy foods
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charcoal
carbon
Copra

PROCESSING OF TENDER NUT

Packed
tender
nut water

Soft kernel

Pudding
Ice cream

Snow ball
6

Consumption Pattern of Coconut

Mature Nut

50%
Industrial

90%

10%

10%

Tender Nut
Copra
Seed & Others

Domestic

35%
5%
7

Coconut Products
Copra
Copra is the dried kernel of coconut. It is from copra that coconut oil is
produced. Copra contains the highest percentage of oil as compared to
other oil seeds.
The two broad varieties of copra are milling copra and edible copra. Milling
copra is used for extracting oil whereas edible copra is used in condiments
and in religious and social functions. India producing about 6.5 lakh MT of
milling copra and 2 lakhs MT of Ball copra. The major exports of copra is to
Bangladesh and Nepal.

Coconut Oil
Coconut oil is used for, both edible and non edible purposes. It is also
consumed in various industrial applications, soap, shampoo, detergents,
etc. A portion of coconut is also used in the making of ice creams and
biscuits, chocolates which can be described as industrial purposes though
the finished products are edible.
Around 10,000 tonnes of Coconut oil is exported mostly to the Gulf Region
Consumed by Ethnic Population
Contrary to misconceptions, coconut oil does not elevate total blood
cholesterol. Instead, it increases HDL or the friendly cholesterol, lowers
harmful LDL cholesterol and serum triglycerides. .
Annual production of Coconut Oil is 4.85 lakh tonnes.

Virgin Coconut Oil

Virgin Coconut Oil (VCO), extracted from fresh coconut meat
without chemical processes is said to be the mother of all
oils.
It is rich in medium chain fatty acids, particularly lauric acid
and is a treasure trove of minerals, vitamins, antioxidants and
is an excellent nutraceutical. It has about 50% lauric acids,
having qualities similar to mothers milk, thus confirming its
disease fighting ability. Virgin Coconut Oil finds application as
skin oil, massage oil, baby oil and consumed in USA / Europe
for reducing obesity.

10

Desiccated Coconut
Coconut has been the staple food of people in many parts of
Asia and Pacific Islands. The dehydrated shredded flesh of
coconut known as desiccated coconut is often used as a
substitute to grated coconut in food preparations such as
curries, cakes, sweets and chutneys. Confectionery and
bakery units are the main consumers of desiccated coconut.
Total production of DCP is about 50,000 MT mainly
concentrated in Karnataka and Tamil Nadu. Exports amout to
about 2000 Tones

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Spray Dried Coconut Milk Powder

The Spray Dried Coconut Milk Powder is now available in
convenient and ready-to-use packs with the same freshness of
a fresh coconut milk. It has longer a shelf life and is convenient
to use.

12

Tender Coconut Water

The water of Tender Coconut is a sterile, nutritious, thirst
quenching health drink. The pure and sweet tender coconut
possesses enormous therapeutic properties and is a thirst
quenching refreshing health drink for all age groups. It is
loaded with natural sugars, salts, and vitamins and is low in
fat, calories and has no cholesterol. It's a highly rejuvenating
tonic that can ward off fatigue in an instant. Tender coconut
water has the same level of electrolytic balance as we see in
our blood.Technology available for packing & preserving TCW.
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Activated Carbon
Coconut Shell is used for manufacturing a variety of products
of commercial importance including activated carbon. Shell
based activated carbon is extensively used in the process of
refining and bleaching of vegetable oils and chemical
solutions, water purification, recovery of solvents, recovery of
gold etc. It is used in gas masks and a wide range of filters for
war gases and nuclear fall outs. Coconut shell based activated
carbons units adopt steam activation process to produce good
quality activated carbon.
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Activated Carbon is made both by the organized and unorganized industry

There are 18 medium sized Companies in India who make

activated Carbon using state-of-the-art machines. The
other manufacturers are tiny manufacturers in the unorganized sector. The total production of Activated Carbon
is 45000 MT / annum.

The present exports is directed at United states, UK,

Germany, Japan, France, and averages around Rs 1500
million. There is an enlarged market potential for activated
Carbon because of its unique natural properties.

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Coconut Based Handicrafts

Coconut Handicrafts made out of the wood shell, fibre/husk
and leaves of the coconut tree have high decorative value and
serve as a value addition bringing with it the aesthetic touch
and exquisiteness wherever it is used
The timber can be converted into doors, windows, wall panels,
banisters. Coconut fibre is used to make coir products such as
bags, table mats, sandals, wall hangings etc. Coir mats and
carpets are also made out of the coconut fibre.

16

Export potential

Coconut oil has an excellent potential in Gulf, Europe, and America, the
user being the ethnic population;

Activated Carbon has been increasing its market share and demand
from USA, United Kingdom, Germany, France, Japan etc.

Processed and packaged tender coconut water has been bagging

orders from Gulf and UK.

China, is a growing market for coconut and its various products,

Russia is emerging as one of the major buyers of Coconut oil and
Virgin Coconut oil, Germany is an emerging market particularly for
desiccated Coconut powder, coconut milk powder etc.

Handicrafts, Ice cream cups spoons etc made from coconut shell is
exported to European countries

Indian Coconut products are rated as premiium quality products.

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Coconut growing countries like Malaysia, Philippines, and other

ASEAN countries are concentrating on manufacturing Palm oil, other
Coconut value added products with new technology, Government
support, high level R&D Intervention.

Their brands have premium clientele.

India can outreach them only by increasing the present range of

products, increasing its value addition, look at new markets, penetrate
and establish a niche presence, with cost effective pricing.

Indian products should be visible in the Retail stores with attractive

packing, and should match the pricing of competitive products from
ASEAN, Sri Lanka and other Coconut value-added product
manufacturing countries.

India should record presence by participating in the world renowned

international trade fairs across the globe by utilizing the Market
Development Assistance and Market Access Initiative Scheme of the
Foreign Trade Policy enumerated in Para 3.2 of the FTP.
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Strengths of the Indian Coconut Sector

One of the largest producers of coconut in the world Sufficient
raw material surplus.
Quality of Indian coconut product enjoys good reputation.
Access to good technologies (Virgin Coconut Oil, Packed Tender
Nut Water, minimally processed Tender Coconuts, Activated
Carbon)
Dominant ethnic population in the Gulf, UK and US
Being a natural and eco friendly product, coconut has a future and
potential for earning carbon credit

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Weakness
Lack of big players from the coconut sector in the international market
Lack of exposure to the international market and its specific requirements
The weak financial status of the small and tiny exporters who cannot take
up effective export promotion programmes
Price disadvantages Cost of production is high. INR appreciation vis--vis
SLR.
Lack of market penetration
Competing countries of South East Asia have already an established
presence in important international markets and have cost advantages
Supply side is highly disorganized and fragmented
Coconut products occupy large volume and has low unit value (.) Tariff
freight is against volume.

20

Opportunities


Coconut shell based Activated Carbon is an agricultural and environmentally friendly

products. Its classification under ITC Code under Miscellaneous Chemical Products
deprives this product of the benefits due for an environmentally friendly product.

Board has proposed to the Ministry of Finance to reclassify it under Chapter 44 as an

Agriculture product.

Since coconut industry is labour intensive and generates rural employment coconut and
its value added products should be provided benefits under Vishesh Krishi Udyog
Yojana, FPS, Duty draw back

Increased exposure to international markets through regular participation in important

fairs and exhibition

Restore DEPB Scheme for Copra

Allowing exports of Coconut Oil from all southern ports in India

Harmonising national standards with international standards for coconut products

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Threats


Rupee appreciation vis--vis the dollar

Freight disadvantages

Geographical distance from end markets

Competitive advantages of South East Asian

Countries in the world market

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Activated

Carbon

Activated carbon is widely used in the refining

and bleaching of vegetable oils and chemical
solutions.
At present five units are functioning.
Total production estimated at 5000 MT.
Anticipated growth is 20%

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MANUFACTURING PROCESS
The manufacturing process involves the following steps
Breaking of coconut shells in a Coconut shell breaker.
Broken Coconut shells are then fed into a carbonization retort.
Carbonized coconut shells are brought down to the desired size
using either a hammer mill or a roller crusher.
Crushed charcoal is then screened using a rotary
screener.Oversized product retained on the inner mesh is recycled
to the crusher/hammer mill and the undersized particles passing
through the outer mesh are used for other applications.
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The next step is the most important one- the activation process
involving the reaction between charcoal and steam carried out
in a rotary kiln at temperatures between 850C and 1000C.
The activated charcoal is then cooled at the discharge of the
kiln through serpentine cooling tubes.
The cooled product is screened in a rotary screener. The
oversized particles are crushed in a roller crusher and
recycled to the screener and the undersized particles
are used for other appropriate applications.
.
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The cooled product is screened in a destoner and screener.

The oversized particles are crushed in a roller crusher and
recycled to the screener and the undersized particles are used
for other appropriate applications.
The finished product is finally stored in large silos and packed
in high density polypropylene bags in various consumer packing
depending on the customer requirements.

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PROJECT COST
Capacity 5 MT per day

Land Requirement-

Building -10000 sq ft

Rs.70 lakhs

Plant & machinery

Rs. 200 lakhs

Electrification

Rs.30 lakhs

Preliminary & pre

operative expenses

Rs. 20 lakhs

Rs. 25 lakhs

Working capital
(Margin money)

2.0-2.5 acres

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Preservation and Packing of

Coconut Milk / Cream
PRODUCT AT A GLANCE

Ready to use product for households
recipes, beverages, ice
creams,sweets, desserts etc.

Fresh taste of coconut without the
bother

Very convenient for
households,hotels,
bakeries.

Blends easily with food preparation.

Keeps fresh for a period of 6 months
with all nutrients in tact.
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PROJECT COST
Capacity 10000 nuts per day

Land requirement
Building 6000 sq ft Plant & machinery
Preliminary and
pre - operative expensesElectrification
Margin money for
working capital
-

60 cents-1acre
Rs 55 lakhs
Rs.65 lakhs.
Rs. 15 lakhs.
Rs. 20 lakhs.
Rs. 25 lakhs.

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Spray Dried Coconut Milk

Powder
PRODUCT AT A GLANCE

Highly convenient to use for

households / hotels,bakeries
and ice cream parlours.

Reconstitute quickly with

water for instant use.

Occupies less storage space.

Highly economical for bulk

consumer.

Keeps fresh for a period up

to 1 year.
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PROJECT AT A GLANCE

Land Requirement-

1.5-2.0 acres

Building 8000 sq ft

Rs.70 lakhs

Plant & machinery

Rs. 200 lakhs

Contingencies

Rs.10 lakhs

Preliminary & pre

operative expenses

Rs. 15 lakhs

Rs. 25 lakhs

Working capital
(Margin money)

33

PRESERVATION AND PACKING OF TENDER

COCONUT WATER

34

PROJECT COST
10000 tender nuts per day

Land Requirement-

Building 6000 sq ft-

Rs. 55 lakhs

Plant & machinery -

Rs. 60 lakhs

Preliminary & pre - operative expenses-

Rs. 10 lakhs

Electrification

Rs. 10 lakhs

Working capital
(Margin money)

35

60 cents-1 acre

Rs. 20 lakhs

CHARCOAL

PRODUCT AT A GLANCE
Superior in quality when
compared to wood charcoal.
Ideal raw material for high
quality activated carbon.
Better calorific value than
other agro waste and hence
ideal for use as fuel in
smitheries, bakeries and
foundries.
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PROJECT COST
Capacity 3 MT per day

Land requirement
Building 3000 sq ft
Plant & machinery
Preliminary &

50 cents
Rs 15 lakhs
Rs.30 lakhs

pre - operative expenses. - Rs. 5.0 lakhs

Electrification
Margin money forworking capital

Rs. 5.0 lakhs

Rs..20 lakhs

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VIRGIN COCONUT OIL

PRODUCT AT A GLANCE

A Premium Grade Oil

extracted directly from fresh
coconut through wet
processing

White in Color

Extensive Medicinal uses

Keeps fresh for a period up

to 1 year.

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PROJECT AT A GLANCE

Land Requirement-

1.5-2.0 acres

Building 8000 sq ft

Rs.70 lakhs

Plant & machinery

Rs. 200 lakhs

Contingencies

Rs.10 lakhs

Preliminary & pre

operative expenses

Rs. 15 lakhs

Rs. 25 lakhs

Working capital
(Margin money)

39

Conclusion
o

So far adequate attention has not been given to

promoting exports from the coconut sector

The strength of being a natural product has not

been properly leveraged.

Coconut Sector needs to be supported with

incentives and tax exemptions for the overall
growth of coocnut industry.

If proper stimulus is given to coconut which is an

agricultural product generating employment in
rural area there is a distinct possibility of taking
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exports to a high level.

Coconut Oil, [Crude, refined]

Virgin Coconut Oil

Coconut [Fresh, dried]

Copra, Oil Cake

Coconut shell (raw), Shell Charcoal,

Shell hookah,
Coconut handicrafts

Processed tender
coconut water,
Coconut milk powder
Desiccated
Coconut powder

Activated Carbon

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