§1What this business is
Fully mature coconuts are stored in the husk for about a month, then dehusked and deshelled; the brown skin (paring) is scraped off. The white kernel is washed, disintegrated, dried in trays in a hot-air drier at about 180 °F, cooled and sieved into 12, 14 and 16 mesh grades. It is packed in 25 kg lined boxes or 250 g and 500 g retail packs. Shells, parings (for oil) and husk are by-products.
Capacity: 300 kg a day, 90,000 kg a year; use 45% in year 1 rising to 65% in year 5.
§2Is it right for you?
Who it is for
Someone in a coconut-growing belt with buyers among bakeries and sweet makers.
Who it is not for
Someone far from coconut supply who would pay freight on whole nuts.
Advantages
- Steady demand from biscuit, confectionery and sweet makers
- Good market in North India where coconuts do not grow
- By-products (shell, paring oil, husk) also earn
- Small machinery cost (₹4.50 L)
Drawbacks
- Coconut prices swing with the crop
- Low capacity use in the plan (45–65%)
- Drying needs care to avoid browning or rancidity
- Competes with large Kerala and Tamil Nadu units
Skills you need
- Selecting mature nuts
- Drying temperature control
- Food hygiene
- Selling to bakeries and sweet shops
Why difficulty 2/5: Simple process with small machines; buying coconuts well and steady buyers matter most.
§3Market
Who buys
- Confectionery and biscuit industry
- Sweet makers and bakeries (cookies, cakes, pastries, puddings)
- Households, especially in North India
How it sells
- Bulk supply to biscuit and confectionery units
- Retail packs through grocers
Good to know
- About 4,000 tonnes of desiccated coconut are made in India each year, mainly for 3 confectionery and biscuit makers (report).
- Kerala produced 5,798.04 million nuts in 2013-14 (Coconut Development Board survey cited in the report).
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Cabinet-type hot-air drier with blower and motor | 1 | ₹1.85 lakh |
| Disintegrator, 12-inch, with 10 HP motor | 1 | ₹1.05 lakh |
| Vibratory sifting machine with GI wire mesh and 2 HP motor | 1 | ₹50,000 |
| Aluminium trays | 10 | ₹15,000 |
| Platform weighing balance | 1 | ₹20,000 |
| Polythene sealing machine | 2 | ₹50,000 |
| Scraping knives, trolleys and other items | 1 lot | ₹25,000 |
From: PMEGP sample project report — Desiccated Coconut Powder (prepared by Udyami/Samadhan)
- Mature coconuts with husk (about 12 months old)9,00,000 nuts a year at ₹10 each at full capacity (₹90.00 L)
- Packing material₹1.50 L a year; 25 kg lined boxes and 250 g / 500 g polybags
From: PMEGP sample project report — Desiccated Coconut Powder (prepared by Udyami/Samadhan)
Suppliers in Building Business Bazaar
Andrew Yule and Co. Ltd · Kolkata →Avery India Ltd · Mangaluru →Batliboi Co · Bengaluru →D.P.Pulversier Works · Mumbai →Frederick Herbert and Co · Mumbai →Ganapathi Bhandarkar and Company · Mangaluru →Gladwyin and Co · Mumbai →MaCneill and Mager Ltd · Bengaluru →Monarch Engineering Works · Mumbai →Shanthi Engineering Works · Canoor →
In our raw material database
§5Licences & registration
- FSSAI licence/registration
- Udyam
- GST
- Legal Metrology packaged commodity registration
§6Schemes & subsidies
- PMFMECentralUnclear35% subsidy, up to ₹10 lakh
- PMEGPCentralActive15–35% subsidy
- MudraCentralActiveLoan up to ₹20 lakh, no collateral
- CGTMSECentralActiveNo collateral, up to ₹10 crore
PMFME fits (coconut products are an ODOP item in several districts); PMEGP, MUDRA and CGTMSE for the ₹14.44 L loan.
§7Money
How the investment is worked out: Samadhan report: shed 1,000 sq ft ₹4.00 L + plant & machinery ₹4.50 L + furniture ₹1.50 L + working capital ₹4.44 L = ₹14.44 L.
Working capital: Working capital ₹4.44 L (bank ₹4.00 L) — 15 days of coconuts and 10 days of finished stock.
Year not printed on the sample report — 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.
- You need an Import Export Code (IEC) from DGFT before the first shipment.
§9Risks — where people fail
- Coconut price spikes
- Moisture pick-up and rancidity
- FSSAI compliance
- Buyer concentration in biscuit makers
§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 desiccated coconut powder 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/registration, 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 Desiccated Coconut Powder?
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.