Make money from Cocopeat manufacturing | Fusion - WeRIndia

Nowadays, many people are opting for eco-friendly and organic products. Besides, most of them are preferring to grow their own vegetables and fruits as the pandemic changed their food habits. They use organic manure and herbal pesticides.  Cocopeat is widely used in this process as a growing medium.

Cocopeat is a byproduct derived from the extraction of coconut fibre. It was considered as waste once. But, now it has great value.

Cocopeat is used as a potting mix with fertilisers and other nutrients for growing mushrooms, generating seeds, tissue culturing of plants etc.

Cocopeat is an excellent sowing and rooting medium. Besides, it is used in hydroponic farming. It can be reused several times as a growing medium. It has a shelf life of around 4 years.

If you want to start a cocopeat business, you should have the following licenses or permits:

• Registration under the Coir Industry
• Trade license
• Udyog Aadhar MSME registration
• GST registration, IEC code (for exports)
• Other prescribed licenses, if any.

If you want to start the business on a small scale, you need to buy equipment worth ₹5 lakhs. An additional amount of ₹3 lakhs is required for other costs. These include the cost of registration and licenses, packaging cots, purchasing of raw materials. The total cost for starting a cocopeat business is ₹8 lakhs. If you want to start a cocopeat block making business, you need to spend around ₹25 lakhs.

The retail price of cocopeat is ₹80 per kg. You have to sell for cheaper prices in the wholesale market to sell it in the bulk. You can expect a profit margin of 20%. Your profits will be around ₹8 to ₹10 lakhs per annum if you start the business on a small scale. On the other hand, if you start a cocopeat block making business, your profits will be around ₹20-₹25 lakhs per year.

Image from Pxhere (Free for commercial use / CC0 Public Domain)

Image Reference: https://pxhere.com/en/photo/1190015