Virgin Coconut Oil Project Report



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Virgin Coconut Oil Project Report (VCO), Plan

Introduction to the Project Report on Virgin Coconut Oil (VCO), Manufacturing Business Plan: Virgin Coconut Oil is gaining appeal as a functional food, and people are becoming more aware of it daily. It is anticipated that the VCO market will experience tremendous growth. Virgin coconut oil is made organically, without chemicals, and with additive-free ingredients or derivatives generated from fresh coconut meat that has not been chemically treated after extraction.

It is the finest type of coconut oil available, with a natural vitamin E, water-white colour, and no hydrolytic or atmospheric oxidation, as proven by its extremely low free fatty acid percentage and peroxide value. Depending on the method of manufacturing, it has a mild to robust fresh coconut aroma.

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The Virgin Coconut Oil Project Report (VCO), Manufacturing Business, and Extraction Process Plan are thoroughly discussed.

Virgin Coconut Oil (VCO) is extracted using fresh coconut milk from 12 months old mature coconuts. VCO can be consumed in its natural form without the need for further purification. Virgin coconut oil is popular for its Medium Chain Triglycerides (MCTs). The essential medium-chain fatty acid found in VCO is lauric acid.

It comprises 48% of VCO. Lauric acid has powerful anti-microbial properties capable of eliminating disease-causing bacteria, fungi, viruses and parasites. Researchers report that the presence of medium-chain fatty acids in breast milk may be the primary component that protects newborns from infection for the first few months after birth while their immune systems are still taking shape.

Uses of Virgin Coconut Oil

There are considerable advantages of VCOs for therapeutic purposes such as anti-microbials, HIV/AIDS drugs for the treatment of Alzheimer’s disease, and anticancer therapy.

Essential composition of Virgin Coconut Oil

  • Moisture: Maximum 0.1%
  • Volatility: Maximum 0.2% at 120°C
  • Free Fatty Acid: Maximum 0.2%
  • Peroxide Value: Maximum 3 meq/kg
  • Relative density: 0.915 – 0.920
  • Refractive index: 1.4480 – 1.4492 at 40°C
  • Insoluble impurities: Maximum 0.05 by mass
  • Saponification Value: 250 – 260 mins.
  • Iodine Value: 4.1 -11
  • Unsaponifiable matter: Maximum 0.2-0.5 by mass
  • Specific gravity: 0.915 – 0.920 at 30 °C/30 °C
  • Polenske Value: Minimum 13
  • Total Plate Count: < 0.5
  • Color Water: clean
  • Odour and Taste: Smells natural with a fresh coconut scent, is free of sediments and is free from rancid odour and taste.

Business plan for starting Virgin Coconut Oil Production Plant in India

To start a small scale virgin coconut oil manufacturing business in India, you must first prepare an ideal business plan by considering the following points:

  • Virgin Coconut Oil Manufacturing Business Basis and Estimates
  • Implementation schedule
  • List of Approvals Required to start a Virgin Coconut Oil Manufacturing Company
  • Raw Material Required for Virgin Coconut Oil Manufacturing Business
  • List of machinery and equipment for virgin coconut oil extraction
  • Manufacturing Process of Virgin Coconut Oil
  • The Business Economics of Manufacturing Virgin Coconut Oil

The Basis and Assumptions of the Virgin Coconut Oil Manufacturing Business

  • The Virgin Coconut Oil Plant can be run in three shifts. About 8 hours a day and 300 working days for a year.
  • The interest rate for the business on the investment borrowed will be 12% p.a.
  • Expenses related to obtaining a license, raw material, packing material, machinery and are considered based on the scalability of the project profile, which varies from place to place.
  • The cost of rental of production shed and land is considered per prevailing rates and may vary from place to place.
  • Unit capacity utilisation can be around 75% as the unit is operated continuously.

Schedule for Implementation of the Virgin Coconut Oil Manufacturing Business

The execution of the project will take around nine to ten months. An approximate description of the activities and the duration of each activity is given below:

  • 0 – 2 months for project planning and permits
  • Udyam Registration and loan sanction : 2 – 3 months
  • Machinery and equipment purchase and installation: 5 – 6 months
  • PFA License: 6 -7 months
  • Electricity connection setup: 7 – 8 months
  • Machinery Installation: 8 – 10 Months
  • Test Run and Recruiting Staff: 10 – 12 Months
  • Commencement of commercial production can be estimated: 12th month

Licenses and approvals required to start a Virgin Coconut Oil Manufacturing Business in India

The next step is to get the list of licenses, permissions and registration to start Virgin Coconut Oil Manufacturing Business in India-

  • First, you need to think about the management design of your business. And then plan to register under Firm/Company Registration of Firm accordingly.
  • Next, apply for Udyam Registration, which can be done online with the Udyam Online Registration Portal
  • Again, the required business license must be obtained from the local municipality.
  • Trade License from the local authorities
  • At present, it is mandatory to apply for GST Goods and Services Tax registration for tax purposes.
  • Trade Mark Registration
  • Open a current account with nearby banks.
  • Fire and Safety
  • ESI (Employee State Insurance)
  • PF No. (Employees Provident Fund)
  • Shop Act License
  • The business is classified under the Food Processing category, and thus the consent of FSSAI should be obtained, and the same can be accessed online.
  • State Pollution Control Board Certificate (if required)
  • IEC code if you want to export your product
  • AGMARK (if required)
  • Then it is necessary to apply for BIS certification. IS 966:1962 is the Bureau of Indian Standards specification for this item. The product must comply with the PFA Act, Guidelines
  • In addition, it is essential to verify the tax liabilities for this business as well.

Materials required to begin a Virgin Coconut Oil Manufacturing Business

It is analysed that 7 kg of peeled coconut is needed to get 1 litre of VCO, i.e. about 17 coconuts.

The manufacturing process of Virgin Coconut Oil

The steps to manufacture virgin coconut oil are given below.

  • Dehusking: The husk is extracted either by machine or by hand.
  • Deshelling: This is done to get the coconut shell off. This is done without causing breaking to the kernel.
  • Paring: This is done by using a paring machine to peel off the brown skin of the kernel.
  • Blanching: The parade coconut will be immersed in boiling water for some time, along with the blanching tank.
  • Draining: This can be done by a vibratory screener. This will avoid excess water present in the blanched coconut.
  • Disintegration: The shredded coconut is mixed in a disintegrator, where the parade nuts are chopped into small pieces and ready for extraction.
  • Milk extraction: The shredded coconut is placed in the milk dispenser, and the coconut milk comes out of the extractor. The extracted milk is collected in pots. The extracted milk is sent for filtration to avoid the presence of any solids. The residue obtained after extraction is dried using an oven and packed with a fat-free dried coconut.
  • Centrifugation: This process is best for separating two immiscible entities. After centrifugation, the oil and skim milk are separated. That’s why coconut oil is separated from coconut milk.
  • Filtration: The oil is sent through the filter and sent for packing. Vacuum dehydrating the oils will avoid excess moisture in oils.

Important Factors to Consider When Producing Virgin Coconut Oil

Coconut selection

Coconut maturation is critical to VCO quality and recovery, particularly in procedures employing coconut milk. The coconut kernels of a fully mature coconut have the highest oil percentage and comparatively low protein content.

Coconut milk is an emulsion of oil and water that is softened by proteins. To obtain oil from coconut milk, protein binding must be disrupted to recover excess oil if the kernel extracted from coconut milk has a high oil content and a low protein content. To identify the ripeness of a nut, the shell and husk should be brown and make a soft sound when shaken.

Always keep in mind that when the nuts are fully ripe, they do not contain haustorium. As the haustorium develops, the oil content and oil quality in the kernel begin to decline.

Handling of equipment in Production of  Virgin Coconut Oil

Coconut meat/kernels and coconut milk have low acid content, so they are highly susceptible to microbial infections. For this reason, strict hygiene at the unit location, people and machinery should be practised regularly.

For the manufacture of virgin coconut oil, food-grade stainless steel is primarily recommended to be used for manufacturing all parts of machinery. Because it will be in contact with all raw materials like coconut kernel or coconut milk, water used as a diluent or rehydration agent should be of good quality, free from pathogens and free from many mineral constituents.

Packaging of Virgin Coconut Oil product

The presence of water in the oil will ensure a short shelf life of the product, i.e. water in the oil will spoil during storage. An important note is that you should have less than 0.1% of the water content in virgin coconut oil. The oil must be thoroughly dried and cleaned before the final product of virgin coconut oil is packaged.

By-products in Virgin Coconut Oil Manufacturing Business

Shell, brown skin, and defatted desiccated coconut powder are the most common by-products in VCO units.

Sample Project Report Format


In our project report format, we cover technology details, its diagrams, flow chart etc. as and when required or deemed fit to include. Also, prepare in-depth financial calculations which is necessary for the Investor/bank.


You will get the data Manufacturing of Virgin Coconut Oil in MS excel worksheet or MS word / PDF. Which you can use easily. You can also modify the information according to your need. You will be able to access the data easily according to/ the your requirement. In addition, the data are well in MS Excel / Word worksheet. Additionally you can easily convert the data to PDF format.

Key Points Cover in Detailed Sample Project Report


1Project at Glance
3Objective, Promoters Management & Background
4Market Demand Potential
5Location of Project
6Business Process
7Means of Finance
9Revenue Model
10Mfg. Process Chart
11Planning for Human Resources
12Expenses Details
13Fixed Assets Details
14Plant & Machinery Details
15Debt – Service Coverage Ratio
16Projected Profitability Statement
17Projected Balance Sheet
18Projected Cash Flow Statement
19Statement of Depreciation
20Term Loan Repayment Schedule
21Ratio Analysis
22Break – Even Analysis

In addition to the above, other information which can help in preparing the project report.

For whom are these formats useful?

1) CA Chartered Accountants 

2) Tax Consultants

3) Small Business Owners

4) Students

In addition to those who want to prepare project reports themselves.

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