Investment Opportunity in Halal Certified Virgin Coconut Oil - Green Field Project in India

Introduction

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 ( MFA) , 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 mother's milk, thus confirming its disease-fighting ability. When lauric acid enters human body it gets converted to Monolaurin, which has the ability to enhance immunity. Several studies have confirmed that this compound has the ability to kill viruses including herpes and numerous other bacteria. Its antiviral effect has the ability to considerably reduce the viral load of HIV patients.

VCO is not subjected to high temperatures, solvents or refinement procedures and therefore retains the fresh scent and taste of coconuts. It is rich in vitamin E, is non-greasy, non-staining and is widely used in soaps, lotions, creams and lip balms. The health benefits of VCO are second to none; ranging from speeding up body metabolic system and providing immunity against a horde of commonly prevalent diseases.

Our market study indicates that VCO is generating huge demand in US and EU Markets due to its inherent beneficial properties and health advantages over conventional vegetable oils . VCO end use markets include Food, food ingredients, functional foods, cosmetics, pharmaceuticals etc. We will obtain USFDA , EU and Halal Certification also for our product

Process

Coconut Kernels are first disintegrated into small pieces in a Disintegrator and then fed into a screw press for milk extraction. The oil is then separated from the water using a mechanical centrifuge. The result is a clear coconut oil that retains the distinct scent and taste of coconuts. Laboratory tests show that this is a very high quality coconut oil, with the lauric acid content being 47 to 52%

Project Cost for 20,000 coconuts /day capacity) – In Indian Rupees

Land (cost variable) 50 cents
Building 6000 sq.ft. Rs.50 lakhs*
Plant and Machinery Rs.100 lakhs*
Preliminary and preparative expenses Rs.20 lakhs
Contingencies Rs.10 lakhs
Working capital (Margin Money) Rs.30 lakhs

Total Project Cost : Rs. 210 lakhs

* 10 lakhs = 1 million
+ Exchange Rate : US $ ~ Indian Rupees : 1 US $ = Rs.49.10 ( as on 12/10/2011)

Project Location

The green field project will be located in the coconut heartland of southern Tamilnadu in India , namely Kanyakumari District where there is abundant and regular supply of the basic raw material namely fresh coconuts through out the year .

This is a good opportunity in invest in the fast growing health and wellness industry which is having the best growth prospects in the current economic scenario.