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Start Coconut Oil Production Business

Are you planning to invest in coconut oil business? or want to start a coconut oil manufacturing plant / factory? This article helps you to start coconut oil production business.

Coconut oil is an oil which is extracted from copra, which is commonly referred to as “cocos nucifera”. Extraction is done with the help of a coconut oil expeller machine.

For thousands of years coconut oil has been consumed in most parts of the world. Studies have also shown that those who consume coconut oil always have good health. Although you can say that coconut oil is about 90 percent saturated fat, still remember that not all saturated fats are formed equal.

Lauric acid is found in coconut oil, which is saturated fat. This acid is known to have a more neutral and beneficial effect on heart health compared to other long-chain saturated fats, which can be found in dairy products or meats. It goes to prove the fact that countries like Sri Lanka which are mostly dependent on coconut oil, have less rates of cardiovascular diseases compared to people from other countries who do not eat coconut oil.

Start Coconut Oil Production Business in Sri Lanka

Considering that Coconut is widely produced in Sri Lanka and all population use coconut byproducts, it seems to be profitable to build and operate coconut oil extraction plants.

Things to consider before starting your enterprise

There are a few things to consider before starting your business. You need enough money to buy agricultural land and factory equipment.

Some money goes to labour cost, maintenance and security. Another major issue is leaning oil extraction, production process and business aspects.

Register your business

Register your business as a legal entity and apply for a business permit. You can start with a sole proprietorship and expand it into a partnership company because the business increases in the future.

Your coconut sourcing

You need to decide to grow your own coconut or buy from wholesalers or farms. Coconut trees take many years to grow and these are seasonal plants.

The good news is that a tree can create a huge bunch of coconut throughout your life. Your coconut source from your farm, farmers or wholesalers

Production process

Step 1 – Dried copra cut into small chips in a copra cutter.

Step 2 – Then, feed the pieces into steam kettles and cook. It cooked mildly at a temperature of 735°C to 50°C for 6 hours.

Step 3 – After proper cooking, feed the cooked copra into the oil expeller which continuously presses. Then, collect the crude oil from the first and the second pressing in a tank.

Step 4 – Finally, oil filter press can remove the foots from the crude oil and it send for packaging.

Step 5 – Generally, you can pack the oil in bulk packaging in tin containers. In addition, you can use HDPE container and polymeric nylon barrier pouch for small consumer packing. And the oilcake which is also contain while pressing, it send to market in the production of a cattle feed and in the production of mixed cattle fodder. You can also extract the remaining oil in oilcake by solvent extraction method.

Read more : Process & Machinery required to start Coconut Oil Mill Plant

Study your competitors

It depends on the type of coconut oil you want to produce. To determine whether to compete and market their strategies, study your rivals.

In addition to oil, you need an attractive packaging and branding. Coconut oil is used in cooking and industrial applications.


Coconut oil has different flavors depending on soil structure, geographical location and coconut type. Other things that affect the taste of coconut oil are the cultivation and extraction method.


To sell your product, you can network with wholesalers and retailers in your area. Use electronic and print media to reach potential customers.

Sell your product to big restaurants and hotels. Through your website or paid category