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Setting Up Packaged Coconut Water Plant in India

India packaged coconut water market

Consumer Goods and Retail | Oct, 2018

Coconut water is consumed as a refreshing drink across the country. Rising health concerns due to hectic and stressful lifestyle and increasing consumer spending on wellness products to prevent signs of ageing.

Coconut water has been used for re-hydration, as a well-being in the country. It is low in fat and calories, contains no cholesterol, has a natural balance of sodium, potassium, calcium and magnesium giving it a solid electrolyte drink.

Moreover, surging demand for packaged coconut water can be attributed to growing awareness about potential health benefits of drinking coconut water, natural and healthy drinks over high calorie carbonated drinks.

All the above stated factors are likely to propel demand for India packaged coconut water market over the next five years.

Why the demand is increasing for packaged coconut water across the country?

Consumption is already high: The unorganised sector sells over a billion tender coconuts each year as a beverage in India. Therefore, it is giving a way to organised players and retailers to enter the segment by looking at the potential that the segment offers.

It’s all about being natural: Coconut water is one of the most nourishing, nutrient rich, hydrating liquids that you can find in the natural world. As awareness grows about the goodness of coconut water for health, beauty, concentration and a host of other health benefits, the demand has started to increase. Several brands have started entering this space because they believe, as we do, that coconut water will become the biggest beverage growth story over the next few years.

Food safety is major concern: Food safety has become a major concern in India especially after Maggie’s case. Not only people but government is also very active in meeting the parameters attached to food safety in the country. There is increasing awareness about food safety and packaged coconut water is perceived to be safer than drinking straight from a cart.

Healthy is trendy: Health has become a buzz word and the health drink category has seen important growth over the last few years. Consumers no longer select drinks purely based on the taste, but health has become supreme. Drinks without any added sugar or preservatives are extremely difficult to find in the market and there is an intense demand for products like packaged coconut water.

Let’s have a look on how coconut water is processed?

This segment has enjoyed exponential growth in the recent years thanks to its health-giving properties. However, it is one of the hardest raw materials to work with. Rapid processing is vital to stop product waste. There are various steps involved in packaging of coconut water.

 

The following are the basic steps in processing coconut water 

  • Select young coconut which are not defective i.e. with no cracks, holes, etc.
  • Wash them with tap water and after that sanitize with chlorinated water
  • Allow these coconuts for their further processing like cutting through machines and after that collect coconut water in clean containers
  • Pour in Polyethylene Terephthalate (PET) bottles and seal.
  • Store in coolers or refrigerate. 

What are the major factors that impacts coconut water quality?

Pre-harvest factors

•   Contamination by pesticide residues

- These result from the use of pesticides during production of the coconut.

• Contamination with heavy metals

- Heavy metals could enter coconut water through soil or water contamination and can cause illness.

Post-harvest factors

•   Contamination by microorganisms

- Microorganisms could enter coconut water through improper post-harvest handling and processing techniques.

Packaged Coconut Water Business Plan

Coconut water has become a surprisingly exciting business opportunity these days, but you still need a coconut water business plan to create a profitable operation. While celebrities like Madonna have not only been seen drinking coconut water, but investing it in, the drink is highly popular. However, with the increasing competition in the market, it is important to create a coconut water business plan that will help differentiate you from other businesses in the industry and that will help you create a profitable model. To help figure out how you will accomplish this, begin by asking yourself the following questions:

What major points one should think/know before starting a coconut water production company?

  •           Learn more about the business

When starting a business, the shortest route to failure is to skip the research aspect. You need to find out all the relevant information about the business before taking a plunge.

If there are coconut juice production companies in your locality, I recommend that you visit one of them and meet with the owner or manager. Tell them about your plans to start your own coconut juice production company. They will most likely be willing to help by giving all the important information you will need to get started successfully.

If there are no production companies around you, and you are planning to produce and export coconut juice to countries where it is in high demand, then you can resort to search the web for relevant information on how to get started.

  •           Craft your business plan

Using the information gathered during your research, you should write your business plan. This plan will include important details about your business such as the name of your business, your goals and objectives, required start-up and running costs, market analysis and competition, marketing strategy, unique selling points, and so on.

You will need your business plan to guide you through each phase of the start-up process as well as after launching your business. In addition, your business guide will come in handy should you need to procure start-up funding from third parties such as investors and lenders.

  •         Register your business and fulfil legal requirements

It is important that you visit the appropriate local agency in charge of business name registration. Find out the requirements and steps involved in registering your business and follow all directives you are given.

In addition, you should obtain the necessary licenses and permits that apply to new businesses. The requirements for these vary from country to country, so you need to visit the designated agency to find out what obtains in your state or country.

Other paperwork that you must complete includes tax requirements and insurance. If you don’t know how to go about this step, you can involve a seasoned attorney or business consultant. Spending a bit more to get professional advice will keep you from running into problems in the future.

  •          Find a good location

After the government has given the nod to your coconut juice production business, you need to find a good location. A place where their utilities such as electricity and water are abundant is best. Another factor to consider when choosing your location is the distance from coconut farms. The closer your company is to a coconut farm, the better.

  •          Buy & install equipment

Having secured a good location for your coconut juice production business, you should acquire the necessary equipment. Your major equipment is the coconut juice producer, a machine that extracts the juice out of coconut palms. This machine can be either bought locally or imported from China, where you can get high quality ones at good prices.

When buying your equipment, you must ensure that they are of high quality. This will save you a lot of maintenance and repair costs in the long run. If you cannot afford a brand new machine, you can buy a used one from a business that is going out of market. However, be sure to have the machine tested and confirmed to be in good working condition before buying it.

Overview of packaged coconut water production:

Beverages and refreshment drinks trend is increasing day by day with changing life style, disposable income and GDP growth of the country. The growth rate of the industry is about 10% per annum. Moreover, increased production of tender coconut and health benefits of coconut water will drive demand in medium to long term.

Raw material requirements:

  • Fresh coconut fruits are needed per day around 10,000 nos. to yield 3500 lit (approx.) coconut water per day.
  • Preservative, natural or artificial sweeteners (if one wish to add) and carbon dioxide generator for making sparkling coconut water (if wish to add in a product-mix).
  • You can go for different mode of packing the coconut water, e.g., multi-layer poly pouch or PET/Glass Bottles, Tetra Pak packing for packing for coconut water.
  • Here, 200 ml PET bottles are considered for packing coconut water and such 24 bottles will be shrink wrapped.

Manufacturing process:

  • Fresh coconut fruits received from suppliers are store properly either in heavy duty plastic crates or drum to carry them into processing area by trolley or otherwise need to install a conveyor from unloading dock to coconut washer machine or tank.
  • Coconut fruits are washed thoroughly to remove adhering dirt, dust or any foreign material in potable water.
  • Washed fruits are sanitized by using chlorinated water for 15 min., and then subject to air drying.
  • Coconuts are cut either manually using sanitized knives or board or otherwise mechanically supported by high drain conveyor.
  • Extracted coconut water is sieved, filtered and pasteurized. (also, in alternative process: coconut water chilled to 4° C, sanitized, filled rapidly in sanitized bottles and stored at 4° C.).
  • The pasteurization follows by cooling and packing into pre-cleaned and sanitized PET bottles which are then either shrink wrapped or cartooned for dispatch.

Manpower requirement:

S.No.-

Categories

Nos.

1

Technical Staff

10

2

Administrative Staff

4

3

Marketing Staff

6

4

Labor

20

5

Total

40

 

Implementation schedule:

Project

Months

 

1

2

3

4

5

6

7

Purchase of Land

 

 

 

 

 

 

 

Completion of Building

 

 

 

 

 

 

 

Ordering of Machinery

 

 

 

 

 

 

 

Delivery of Machinery

 

 

 

 

 

 

 

Loan Sanction

 

 

 

 

 

 

 

Installation of Machinery

 

 

 

 

 

 

 

Commissioning of Plant

 

 

 

 

 

 

 

Inputs Procurement

 

 

 

 

 

 

 

Manpower Appointments

 

 

 

 

 

 

 

Commercial Production

 

 

 

 

 

 

 


Cost of Project (Approximate)

S.No.-

Costing Heads

In Lakhs (Approx.)

1

Land

10

2

Building

45

3

Plant & Machinery

55

4

Contingency

10

 

Total Cost

120


List of Machinery Required:

S. No-

Machine

Quantity

1

Mechanical washing system with conveyor

1

2

Automatic boring and sucking system

2

3

SS filter

2

4

Treatment tank

1

5

Boiler and other accessories

2

6

Shrink wrapping machine

2

7

Air compressor

1

8

Coding machine

4


Companies, for packaged coconut water plant machinery in India:


Essar Engineers

Contact Details:

Mr. K.Rajarathinam

#519/1 A, Athipalayam Road,

Chinnavedampatti, Coimbatore-641049

Tamil Nadu, INDIA.

Ace Pack Machines

Contact Details:

No. 23, V. N. Industrial Estate, Bharathi Colony, Pellamedu

Coimbatore- 641004

Tamil Nadu, India

Statutory/ Government Approvals: Before setting a manufacturing plant of packaged coconut water, stringent measures/norms/regulations should be executed. There are a few affirmations one should obtain before setting out on manufacturing plant which includes:

  • Requirement of FSSAI license for setting up of food processing industry
  • IEC Code for Export of end products
  • MSME& GST registration
  • Fire and Safety requirement
  • Registration for ESI, PF and Labour laws
  • State Pollution Control Board approval

Why coconut water segment could be a great biz opportunity in India?

As per TechSci Research’s recently published, India Packaged Coconut Water Market By Type (Natural & Blended), By Sales Type (Grocery/Convenience Stores, Online & Others), By Packaging Type (Plastic Bottles & Others), By Distribution Channel, Competition Forecast & Opportunities, 2013-2023, India packaged coconut water market stood at $ 9.2 million in 2017 and is projected to grow at a CAGR of 18.4% during 2018-2023 to reach $ 25.4 million by 2023, on the back of increasing health concerns among consumers due to hectic and stressful lifestyle.