§1What this business is
Coconuts 8–10 months old are dehusked, deshelled and pared to take off the brown skin. The white kernel is blanched for 15 minutes, drained and cut into very thin slices. The slices sit in a 50° Brix sugar syrup for 1 hour with a little salt and flavour, and are then dried at 70–80°C for 4–5 hours. The chips are cooled and packed in metallised film or foil pouches, usually with nitrogen, and keep for up to 6 months. 420 kg of coconut (1,000 nuts) gives 100 kg of chips.
Capacity: 100 kg of chips per shift, 1 shift a day, 300 working days a year. At 80% capacity the unit needs 1,00,800 kg of coconut a year.
§2Is it right for you?
Who it is for
A small food entrepreneur in a coconut-growing area who can sell a packed snack through shops and online.
Who it is not for
Someone far from coconut supply, or with no plan for branding and retail distribution.
Advantages
- Not fried and no preservatives, which sets it apart from other chips
- Simple process with machinery of only ₹9.40 lakh
- Flavours and masalas give many variants from one line
- Husk and shell can be sold as by-products
Drawbacks
- Chips absorb moisture quickly, so costly foil packing is needed
- Thin slices break in transport without nitrogen-filled pouches
- Net profit is only 6.76% of sales in the profile
- A new snack; shops and buyers have to be won one by one
Skills you need
- Choosing nuts of the right age (8–10 months)
- Controlling syrup strength and drying temperature
- Hygienic food handling and packing
- Selling to retailers and distributors
Why difficulty 2/5: Easy process and small outlay; the hard part is packing quality and selling a new snack.
§3Market
Who buys
- Households buying packed snacks
- Supermarkets, bakeries and kirana shops
- Tourist and gift shops in coconut-growing states
How it sells
- Distributors to retail shops
- Own brand sold online
- Direct supply to supermarkets
Good to know
- The profile takes a selling price of ₹13 for a 20 g pouch.
- By-products named in the profile are husk, shell and vinegar.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| De-husker | 2 | ₹1.40 lakh |
| Deshelling machine | 2 | ₹1.20 lakh |
| Paring unit | 1 | ₹0.55 lakh |
| Blanching vessel | 1 | ₹0.50 lakh |
| Slicer | 1 | ₹0.50 lakh |
| Mixing vessel | 1 | ₹0.75 lakh |
| Hot air oven | 1 | ₹3.00 lakh |
| Packing equipment | 1 | ₹1.50 lakh |
From: Coconut Development Board project profile — Coconut chips
- Mature coconuts, 8–10 months oldtaken at ₹20 per kg; 1,00,800 kg a year at 80% capacity
- Sugar for 50° Brix syrup, salt and flavour essencesthe slices soak in the syrup for 1 hour
- Potassium metabisulphite0.05% in the blanching water
- Metallised film or aluminium foil laminate pouchesthe chips absorb moisture; pouches are nitrogen flushed
From: Coconut Development Board project profile — Coconut chips
§5Licences & registration
- Udyam registration
- GST registration
- FSSAI licence or registration
- Trade licence from the local body
- Legal Metrology registration for packed goods
Start it in your state
Pick your state: today’s cost, central + state subsidy, raw material, land and help, on one page.
§6Schemes & subsidies
- PMFMECentralUnclear35% subsidy, up to ₹10 lakh
- PMEGPCentralActive15–35% subsidy
- MudraCentralActiveLoan up to ₹20 lakh, no collateral
- CGTMSECentralActiveNo collateral, up to ₹10 crore
At ₹25.75 lakh the unit is within PMEGP's ₹50 lakh ceiling for manufacturing. PMFME supports micro food processing units, and a MUDRA or CGTMSE-backed loan can cover the bank finance. Also ask the Coconut Development Board about help under its Technology Mission on Coconut.
§7Money
How the investment is worked out: Building of 1,000 sq ft ₹10.00 lakh + other civil works ₹2.00 lakh + machinery and equipment ₹9.40 lakh + electrification ₹1.00 lakh + preliminary and pre-operative expenses ₹0.75 lakh + working capital margin ₹2.6 lakh = ₹25.75 lakh. Land (10 cents) is taken on lease and is not in the total.
Working capital: Working capital margin ₹2.6 lakh. Coconut at ₹20 per kg costs ₹20,16,000 a year at 80% capacity.
Year not printed on the Coconut Development Board profile — check current machinery prices.
§8Export potential
Export council / board: Coconut Development Board
- The profile gives no HS code for coconut chips; confirm the code with a customs broker before exporting.
- The Coconut Development Board acts as the export promotion council for coconut products other than coir.
§9Risks — where people fail
- Coconut price moving above the ₹20 per kg assumed
- Chips turning soft or rancid if packing is weak
- Uneven slicing or drying giving burnt or chewy chips
- Slow sales of a product many buyers do not know
§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 coconut chips unit 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
§12Watch
There is no episode on this business yet. Shows are coming soon on the Podcast page.
Want to start Coconut Chips Unit?
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.