§1What this business is
Washed cashew apples are crushed and pressed; the juice ferments for 2–3 days. 50 litres of fermented juice give 35 litres of arrack at 40% alcohol. Arrack mixed with fermented juice (1:2) is distilled again into feni. The report says 12–15 kg of cashew apple make a litre of arrack and 30–35 kg a litre of feni. Coconut toddy is distilled in the off-season. Licences from central and state governments are needed.
Capacity: 65,000 bottles a year at ₹130 = ₹84.50 L; single shift.
§2Is it right for you?
Who it is for
A cashew or coconut grower or processor in Goa, Konkan, Kerala or Karnataka who can get an excise licence.
Who it is not for
Anyone in a state where distilling such spirits is not licensed.
Advantages
- Uses cashew apples that are otherwise mostly wasted, as the report notes
- Coconut toddy keeps the still running off-season
- Feni is a known Goan product with export interest
Drawbacks
- Liquor licensing and excise rules are strict and vary by state
- Cashew apple is seasonal and perishable
- Many government loan schemes exclude liquor
Skills you need
- Fermentation and distillation control
- Excise record-keeping
- Bottling and sealing
Why difficulty 4/5: Excise licensing and a seasonal, perishable raw material.
§3Market
Who buys
- Licensed liquor wholesalers and retailers
- Bars, hotels and tourists in licensed states
How it sells
- State excise-regulated distribution
- Export through licensed exporters
Good to know
- The report estimates about 22 lakh tonnes of cashew apples are available in India, mostly wasted outside Goa.
- It calls cashew feni a foreign-exchange earner in Goa.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Distillation still, 750 kg, with condenser | 2 | ₹3,00,000 |
| Steam generator (coal or wood fired) | 1 | ₹1,00,000 |
| Stainless-steel juice storage tank, 500 litres | 3 | ₹90,000 |
| Tubular heat exchanger | 1 | ₹50,000 |
| Bottle washing machine with tanks | 3 | ₹48,000 |
| Fruit mill with 3 HP motor | 1 | ₹40,000 |
| Wooden fermentation tanks | 15 | ₹30,000 |
| Pilfer-proof cap sealing machine | 2 | ₹24,000 |
| Stainless-steel juice pump | 1 | ₹24,000 |
| HDPE barrels, 200 litres | 3 | ₹24,000 |
| Hydraulic press | 1 | ₹20,000 |
| Platform balance, 300 kg | 1 | ₹12,000 |
From: DC-MSME project profile — Coconut/Cashew Feni (2003)
- Cashew apple100 tonnes a month at ₹2,000 a tonne in the report
- Coconut toddy / coconut water100 tonnes a month at ₹2,000 a tonne
- Jaggery5 tonnes a month at ₹12,000 a tonne
- 750 ml bottles (second-hand), caps, labels, cartons13,000 bottles a month at ₹2
- Yeast and chemicals₹10,000 a month
From: DC-MSME project profile — Coconut/Cashew Feni (2003)
Suppliers in Building Business Bazaar
H and P Industries · Thrissur →Jyothi Industries · Bengaluru →Gladwyn and Co · Mumbai →Hilden Packaging Machine Pvt. Ltd · Mumbai →Motwane Manufacturing Co Pvt. Ltd · Mumbai →
In our raw material database
§5Licences & registration
- Udyam registration
- GST registration
- State excise licence to distil and bottle spirits
- Central and state government licences for alcoholic drinks, as the report states
- FSSAI licence (state or central, by turnover)
- State Pollution Control Board consent to establish and operate
§6Schemes & subsidies
Check with your bank: CGTMSE may cover a collateral-free loan, but many schemes (including PMEGP's negative list) exclude intoxicants.
§7Money
How the investment is worked out: Fixed capital ₹9.90 L (building development ₹65,000 + machinery and equipment ₹9.05 L incl. two 750-kg stills ₹3.00 L + pre-operative) + working capital for 3 months ₹17.47 L = ₹27.37 L. Building rented (₹8,000 a month).
Working capital: Working capital for 3 months ₹17.47 L; cashew apple, coconut toddy, jaggery and bottles ₹5.19 L a month.
Prices from 2003 — machinery, material and selling prices will be much higher now.
§8Export potential
Confirm the HS code in the DGFT ITC(HS) lookup before you export
Export council / board: APEDA (Agricultural and Processed Food Products Export Development Authority)
- Confirm the 8-digit ITC(HS) line with DGFT or your customs broker before shipping.
- Export of liquor also needs state excise permission for removal from the distillery.
- You need an Import Export Code (IEC) from DGFT before the first shipment.
§9Risks — where people fail
- Licence refusal or cancellation
- Spoilt juice before fermentation
- Excise duty and price controls squeezing margin
§1030 / 60 / 90-day plan
A general plan that applies to any business. A plan for this business will be added after research.
- Days 1–30: Visit a working cashew and coconut feni distillery unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
- Days 31–60: Udyam and the licences you need (Udyam registration, GST registration), a project report (DPR), and the scheme or loan file.
- Days 61–90: Space and machines, trial production, and first deliveries to 10 customers.
§11Who to connect with
Associations, clusters and training institutes — the directory is being built. Connect
§12Watch
There is no episode on this business yet. Shows are coming soon on the Podcast page.
Want to start Cashew and Coconut Feni Distillery?
DPR, loan file or registration — ask us on WhatsApp.
¶Sources
Data review: 6 October 2026. Spotted a mistake? Report it. For information only — not legal or financial advice.