§1What this business is

Dry coconuts are de-husked, de-shelled and pared, blanched, ground, and the milk is pressed out, filtered through a fine screen, pasteurised at 70 °C for 15 minutes and hot-filled. Aseptic cartons keep for over six months without a fridge; pouches and bottles need freezing. The extractor also gives low-fat desiccated coconut powder.

Capacity: 280 kg of coconut milk a day (semi-automatic plant); 40% use in year 1 rising to 60% in year 5.

§2Is it right for you?

Who it is for

Someone in or near a coconut belt with links to hotels, caterers or retail chains.

Who it is not for

Someone without access to a cold chain or aseptic packing.

Advantages

  • Dairy-free milk for vegan and lactose-intolerant buyers
  • A by-product (low-fat coconut powder) adds income
  • Used widely in South Indian and other tropical cooking
  • Small team of 8

Drawbacks

  • Perishable unless aseptically packed or frozen
  • Coconut price moves with the season
  • Big brands already sell canned and carton coconut milk

Skills you need

  • Food hygiene and pasteurisation
  • Coconut buying and grading
  • Packaging and shelf-life control
  • Selling to HoReCa and retail

Why difficulty 3/5: Perishable product that needs strict hygiene and packing.

§3Market

Who buys

  • Households, including vegan and lactose-intolerant buyers
  • Hotels, restaurants and caterers
  • Food and bakery units

How it sells

  • Supermarkets and grocery stores
  • Online grocery
  • Direct supply to HoReCa

Good to know

  • The report says coconut milk is a common ingredient in tropical cooking and is used as a dairy-milk substitute in tea and coffee.
  • Laminated aseptic cartons are the main pack for long shelf life.

§4Raw material & machinery

ItemQtyCost
Coconut husk peeling (de-husking) machine1—
Coconut de-shelling machine1—
Coconut paring machine1—
Coconut blanching machine1—
Disintegrator / milk extraction and pasteurisation machine1—
Coconut milk filling and sealing machine1—

From: PMEGP sample project report — Coconut Milk Processing Unit (prepared by Udyami/Samadhan)

  • Dry whole coconuts with husksorted and checked against quality standards on arrival
  • Preservatives and packing materialcartons, pouches or bottles

From: PMEGP sample project report — Coconut Milk Processing Unit (prepared by Udyami/Samadhan)

In our raw material database

Coconut →

§5Licences & registration

  1. FSSAI licence
  2. Udyam
  3. GST
  4. Pollution consent from the state board (wash water)
  5. Trademark registration for the brand
  6. Trade licence

We can do this registration for you

§6Schemes & subsidies

PMEGP (the report was made for it) and PMFME (food processing) fit; CGTMSE covers the guarantee.

§7Money

How the investment is worked out: Plant & machinery ₹17.00 L + other assets ₹1.00 L + working capital ₹4.44 L = ₹22.44 L. Land and building rented. Finance: working capital loan ₹4.00 L, own margin ₹2.24 L, term loan ₹16.20 L (repayment table).

Working capital: Working capital ₹4.44 L in the cost (bank ₹4.00 L).

Year not printed on the report — check current machinery prices.

How to prepare a loan file

§8Export potential

Export council / board: Coconut Development Board

  • The report gives no HS code; confirm the right line for coconut milk with DGFT or a customs broker.
  • You need an Import Export Code (IEC) from DGFT before the first shipment.

§9Risks — where people fail

  • Spoilage of unsold stock
  • Coconut price spikes
  • Failed food-safety tests

§1030 / 60 / 90-day plan

A general plan that applies to any business. A plan for this business will be added after research.

  1. Days 1–30: Visit a working coconut milk processing unit unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
  2. Days 31–60: Udyam and the licences you need (FSSAI licence, Udyam), a project report (DPR), and the scheme or loan file.
  3. Days 61–90: Space and machines, trial production, and first deliveries to 10 customers.

§11Who to connect with

Not verified yet

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 Coconut Milk Processing Unit?

DPR, loan file or registration — ask us on WhatsApp.

Get a DPR / loan file made

Sources

  1. PMEGP sample project report — Coconut Milk Processing Unit (prepared by Udyami/Samadhan)

Data review: 6 October 2026. Spotted a mistake? Report it. For information only — not legal or financial advice.