§1What this business is
Dried, mature copra is cleaned and crushed in power ghanis with a little water until the oil comes out slowly; the oil is filtered, weighed and filled, and the cake is sold as cattle feed. Coconut oil is a cooking oil in the south and a base for hair oils. The KVIC profile plans 10 power ghanis and one expeller.
Capacity: 900 quintals of coconut oil and 1,250 quintals of oil cake a year.
§2Is it right for you?
Who it is for
A copra trader or coconut-belt entrepreneur who can buy copra well and sell loose or branded oil locally.
Who it is not for
Someone who cannot manage large raw-material buying on thin margins.
Advantages
- Two products to sell — oil and cake
- Steady demand for cooking and hair-oil use
- Simple, well-known process
Drawbacks
- Very thin margin — about ₹1.96 L on ₹57.50 L of sales
- Copra price swings decide profit
- Big branded oils dominate retail shelves
Skills you need
- Copra buying and moisture checks
- Ghani and expeller operation
- Filtering and packing
- Local wholesale selling
Why difficulty 3/5: Easy process, but profit depends on buying copra right on a thin margin.
§3Market
Who buys
- Households in the south and coconut belts
- Hair-oil makers
- Cattle owners and feed dealers (oil cake)
How it sells
- Kirana and oil shops
- Wholesale oil traders
- Feed dealers for the cake
Good to know
- The profile says coconut oil is widely used for cooking in the southern region and is a main base oil for hair oils.
- It says coconut is plentiful in the southern region and Goa.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Power ghani | 10 | — |
| 6-bolt expeller | 1 | — |
| Semi-automatic packing machine | 1 | — |
| Filter press with accessories | 1 | — |
| Weighing balance (platform and table models) | 2 | — |
| SS/aluminium-top working table (3' x 2½' x 6') | 2 | — |
| Exhaust fans and water tanks | 2 fans + tanks | — |
| All equipment together | 1 lot | ₹8.50 lakh |
From: KVIC Project Profile — Coconut Oil and Oil Cake Manufacturing (PMEGP)
- Dried, mature coconut (copra)raw material cost ₹45.00 L a year at full use
- Labels and packing material₹2.50 L a year
From: KVIC Project Profile — Coconut Oil and Oil Cake Manufacturing (PMEGP)
§5Licences & registration
- FSSAI licence
- Udyam
- GST
- Legal metrology registration for packed oil
- Pollution consent from the state board
- Trade licence
§6Schemes & subsidies
- PMEGPCentralActive15–35% subsidy
- PMFMECentralUnclear35% subsidy, up to ₹10 lakh
- MudraCentralActiveLoan up to ₹20 lakh, no collateral
- CGTMSECentralActiveNo collateral, up to ₹10 crore
PMEGP (KVIC profile) and PMFME (edible-oil processing) fit; at ₹19.50 L it is also within MUDRA's ₹20 L limit; CGTMSE covers the guarantee.
§7Money
How the investment is worked out: Work shed 3,000 sq ft ₹6,00,000 + equipment ₹8,50,000 = capital ₹14,50,000; working capital ₹5,00,000; total ₹19,50,000. Land own.
Working capital: Working capital ₹5.00 L in the cost; the profile works out ₹9,06,500 needed per cycle — copra buying ties up cash.
Year not printed on the KVIC profile — check current machinery prices.
§8Export potential
Confirm the HS code in the DGFT ITC(HS) lookup before you export
Export council / board: Coconut Development Board
- HS codes are from the WCO HS 2022 list; confirm the 8-digit ITC(HS) line with DGFT or your customs broker.
- Edible-oil exports can face policy limits from time to time; check the current DGFT export policy.
- You need an Import Export Code (IEC) from DGFT before the first shipment.
§9Risks — where people fail
- Copra price spikes
- Adulteration complaints
- Working capital shortage
§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 oil and oil cake unit (ghani) unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
- Days 31–60: Udyam and the licences you need (FSSAI licence, Udyam), 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 Coconut Oil and Oil Cake Unit (Ghani)?
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.