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    1

    Innovative Technologies inCoconut Processing

    Coconut Development Board

    2

    Coconut - A Versatile Crop

    Used as - food crop, oilseed, fibrecrop

    medicinal crop &beverage crop

    Coconut leaves - for roof and fencing

    Coconut shell - for industrial products,handicraft items

    Coconut trunk - for building materials,flooring materials andhandicrafts

    Coconut - yield coconut toddy

    inflorescence

    Coconut fruit - inevitable item in culturaland social use

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    3

    Coconut Production and Productivity

    Country Area

    (in hectres)

    Production

    (in millionnuts)

    Productivity

    nuts / ha

    India 1903190 14744 7747

    Indonesia 3860000 15196 3937

    Philippines 3355000 12327 3674

    Source: DES, GOI, NEW DELHI

    4

    Valueadded

    coconutproducts

    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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    5

    PROCESSING OF MATURE NUT

    WATER

    Concentrate

    Packedwater

    KERNEL

    Milk /Cream

    Skimmedmilk

    powder

    Desiccatedcoconut

    SHELL

    Shell powderActivated

    carbon

    Shellcharcoal

    Vinegar

    HUSK

    Coir Industry Coir pith Compost

    VirginCoconut oil

    / Nata-de-coco

    Jam

    Honey

    Chips

    Dairy foods

    Biscuits/burfi Handicrafts

    Copra

    Ediblecopra

    Oil

    Chutneypowder

    6

    PROCESSING OF TENDER NUT

    Packedtender

    nut water

    Snow ball

    Soft kernel

    Pudding

    Ice cream

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    Seed & Others

    Copra

    50%

    10%

    35%

    Industrial

    10%Domestic

    90%

    Consumption Pattern of Coconut

    Mature Nut

    Tender Nut

    5%

    8

    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 toother 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 Products

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    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.

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    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.

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    Desiccated Coconut

    Coconut has been the staple food of people in many parts of

    Asia and Pacific Islands. The dehydrated shredded flesh ofcoconut 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 convenientto use.

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    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 un-

    organized industry

    There are 18 medium sized Companies in India who makeactivated Carbon using state-of-the-art machines. The

    other manufacturers are tiny manufacturers in the un-

    organized 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.

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    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.

    18

    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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    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.

    Weakness

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    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

    Opportunities

    22

    Rupee appreciation vis--vis the dollar

    Freight disadvantages Geographical distance from end markets

    Competitive advantages of South East Asian

    Countries in the world market

    Threats

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    PROJECT PROFILES OFPOTENTIAL VALUE ADDED

    COCONUT PRODUCTS

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    ACTIVATED CARBON

    Activated carbon manufactured fromcoconut shell is considered superior to

    those obtained from other sources mainlybecause of small macro pore structure,which renders it more effective for theadsorption of gas/vapor, and for the

    removal of color and odour of

    compounds.

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    Activated Carbon

    Activated carbon is widely used in the refiningand bleaching of vegetable oils and chemicalsolutions.

    At present five units are functioning.

    Total production estimated at 5000 MT.

    Anticipated growth is 20%

    26

    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.

    .

    28

    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 COSTCapacity 5 MT per day

    Land Requirement- 2.0-2.5 acres

    Building -10000 sq ft - Rs.70 lakhs

    Plant & machinery - Rs. 200 lakhs

    Electrification - Rs.30 lakhs

    Preliminary & pre operative expenses - Rs. 20 lakhs

    Working capital - Rs. 25 lakhs(Margin money)

    30

    Preservation and Packing ofCoconut Milk / Cream

    PRODUCT AT A GLANCE

    Ready to use product for households

    recipes, beverages, icecreams,sweets, desserts etc.

    Fresh taste of coconut without thebother

    Very convenient forhouseholds,hotels,

    bakeries.

    Blends easily with food preparation.

    Keeps fresh for a period of 6 monthswith all nutrients in tact.

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    PROJECT COSTCapacity 10000 nuts per day Land requirement - 60 cents-1acre

    Building 6000 sq ft - Rs 55 lakhs

    Plant & machinery - Rs.65 lakhs.

    Preliminary and

    pre - operative expenses- Rs. 15 lakhs.

    Electrification - Rs. 20 lakhs.

    Margin money for

    working capital - Rs. 25 lakhs.

    32

    Spray Dried Coconut MilkPowder

    PRODUCT AT A GLANCE

    Highly convenient to use for

    households / hotels,bakeriesand ice cream parlours.

    Reconstitute quickly withwater for instant use.

    Occupies less storage space.

    Highly economical for bulkconsumer.

    Keeps fresh for a period upto 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

    Working capital - Rs. 25 lakhs(Margin money)

    34

    PRESERVATION AND PACKING OF TENDERCOCONUT WATER

    PRODUCT AT A GLANCE

    Natural, nutritious and thirstquenching health drink.

    Possess therapeutic propertieswith vitamins,minerals andprotein.

    Good rehydration medium forpatients suffering fromgastroenteritis and intestinaldisturbances.

    Keeps fresh for a period of six

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    PROJECT COST10000 tender nuts per day

    Land Requirement- 60 cents-1 acre 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 - Rs. 20 lakhs(Margin money)

    36

    CHARCOAL

    PRODUCT AT A GLANCE

    Superior in quality whencompared to wood charcoal.

    Ideal raw material for highquality activated carbon.

    Better calorific value thanother agro waste and henceideal for use as fuel insmitheries, bakeries andfoundries.

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    PROJECT COSTCapacity 3 MT per day

    Land requirement - 50 cents

    Building 3000 sq ft Rs 15 lakhs

    Plant & machinery - Rs.30 lakhs

    Preliminary &

    pre - operative expenses. - Rs. 5.0 lakhs

    Electrification - Rs. 5.0 lakhs

    Margin money for-

    working capital - Rs..20 lakhs

    38

    VIRGIN COCONUT OIL

    PRODUCT AT A GLANCE

    A Premium Grade Oil

    extracted directly from freshcoconut through wetprocessing

    White in Color

    Extensive Medicinal uses

    Keeps fresh for a period upto 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

    Working capital - Rs. 25 lakhs(Margin money)

    40

    o So far adequate attention has not been given to

    promoting exports from the coconut sector

    o The strength of being a natural product has notbeen properly leveraged.

    o Coconut Sector needs to be supported with

    incentives and tax exemptions for the overall

    growth of coocnut industry.

    o If proper stimulus is given to coconut which is an

    agricultural product generating employment in

    rural area there is a distinct possibility of taking

    exports to a high level.

    Conclusion

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    Coconut Oil, [Crude, refined]

    Virgin Coconut Oil

    Processed tender

    coconut water,

    Coconut milk powder

    Desiccated

    Coconut powder

    Activated CarbonCoconut shell (raw), Shell Charcoal,

    Shell hookah,

    Coconut handicrafts

    Coconut [Fresh, dried]

    Copra, Oil Cake