Kerala is an excellent market. All kinds of products are welcome in the state yet the conscious consumers show no mercy when a product is found to be adulterated.
Harping on this demand for unadulterated food products, the third idea in our series of small-scale businesses is an oil press.
Oil presses were a common feature of all the villages in Kerala. With the advent of industrial scale oil production mills went into disuse. The recent times have witnessed a return to the old ways.
Coconut oil made in traditional presses has become a sought-after commodity. The interest has paved the way for a unique business opportunity.
As people move away from processed and packaged food, they do not mind spending a little extra for quality food products. Oil mills go a long way in this aspect. All you need is a small room with a small mill. Consumers can even witness the process and test the quality. Transparency and simplicity of the process make it more endearing.
The manufacture does not have to go in search of a market. He just have to sell 50 litres of coconut oil to make a profit. Even the byproduct is a profitable product.
“Whatever I produce here is bought by customers who come to the mill. I am able to produce about 200 litres of oil per day. I sell a litre of oil for Rs 200 on average. The only problem I find is the shortage of dried coconut, the raw material,” said Jain Mathew, who runs an oil mill at Kolencherry.
Manufacturers can either buy coconut and dry them or procure dried coconut as such. About 20 kilograms of dried coconuts have to be loaded to the mill after cleaning the mill properly. About 60 percent of the oil is extracted within 20 minutes. The oil is kept in a barrel for two days to clear it of any sediments. This can be sold to customers in vessels or in packets.
The state industries department gives a subsidy to set up an oil mill in proportion with the investment. Entrepreneurs have to obtain a license from the food safety department in addition to other licences.
(This story is the third from a series on easily doable business ideas, watch this space for the next one on starting an Idli/Dosa batter business)
