VIRGIN COCONUT

OIL
What is VCO?
• VIRGIN COCONUT OIL may be defined as the naturally processed,
chemically-free and additive-free product from fresh coconut meat or
its derivative (coconut milk and coconut milk residue) which has not
undergone any further chemical processing after extraction.
• It is the purest form of coconut oil, water white in color, contains
natural Vitamin E and with very low free fatty acid content (even
without refining) and low peroxide value.
• It has a mild to intense fresh coconut aroma . The intensity of the
scent depends on the process used for producing the oil.
Uses of VCO
• For Cooking
• Body Health- it contains saturated fatty acid so it can increase the
body`s metabolism system. There are contents that can help to kill
harmful bacteria so it makes your body immune to diseases.
• Heart Health- The lauric acid contained in the virgin coconut oil can
help to take care of heart health. Lauric acid is able to help lower bad
cholesterol in the body. It will turn bad cholesterol into good
cholesterol.
 Uses of VCO- External Application for Skin
and Hair
• Hair Nourishing- For those who have dry and dull hair, or hair loss, you can apply
a little bit of coconut oil to all parts of the hair or to the dry parts only. It can be
used daily or weekly by making it as a hair mask. You can put it a lot and let it for
an hour, then rinse it. If you do it regularly, the hair will become soft and
untangled.
• Skincare- Coconut oil also serves as a moisturizer, especially for dry skin. You can
apply it to all over the body, especially in dry and rough parts, such as elbows,
heels, and neck. You can also use it as a scrub by adding sugar or make it as a face
mask by adding honey or aloe vera gel.
• Makeup Remover- Coconut oil can remove waterproof makeup and makeup that
is difficult to remove. The trick is easy; pour a few drops of coconut oil on
a cotton pad then wipe it to the face and then rinse.
Uses of VCO- Industrial Raw Product

• Toilet Soap

• Laundry Soap

• Cosmetics and Health Care

Market Potential
• Huge demand for the cosmetic and Healthcare Industry

• Pharmaceutical Industry

• Export Opportunity

• Small and local players has huge share of VCO manufacturing

MACHINERY
• There are different range of machinery based on the capacity and
automation of the production

• There are some mill on lease which will save the cost of capital
investment initially.
 LOCATION

• Location is a very important factor in the

business. Coconut as raw materials
happens only in some parts of the
country.
• Nearest Available coconut province is
Laguna. But there are to many
competitors to raw materials.
• Viable site is Leyte, Samar and Masbate.
Target Customers
• Toilet Soap manufacturers

• Laundry Soap manufacturers

• Cosmetics Manufacturers

• Health Care Products Manufacturers

• Pharmaceutical Industry
Business Model and Growth

• The business is based on coconut availability. It is important to build a

strong network to source it. It is imperative therefore to find a plant
location with less competitor in sourcing the coconut.
• Start with small quantity and grow on the experience and demand.
• Supplying to traders may be done to avoid over stocking.
• List with VIRGIN COCONUT OIL PRODUCERS AND TRADERS
ASSOCIATION OF THE PHILIPPINES, INC. (VCOP)
Business Model and Growth
• Look for export opportunities as Business Grows.
• The worldwide market for Virgin Coconut Oil is expected to grow at a
CAGR of roughly 2.5% over the next five years, will reach 750 million
US$ in 2024, from 650 million US$ in 2019.
 INVESTMENT
Process Investment Manpower Recovery

Dry Process ₱30 Million 40 12.5%

Wet Process ₱70 Million 40 7%

Fermentation ₱10-15 Million 15

Investment
Machine ₱2.5 to 5 Million depending on size
Generators and Vehicles ₱3 Million
Buildings ₱3 to 10 Million for FDA Approved Building
Land ₱?
CO/Networking ₱?

-Koko Engineering
 Key Activities Value Proposition Customer Relationships Customers
Key Partners
The Business • Who are our key
partners?
• What key activities do our
value propositions require?
• What value do we deliver to
the customer?
• How do we get, keep and
grow customers?
• How do we get, keep and
grow customers?
• Which customer
Model Canvas • Our distribution channels? • Which one of our customers’ • Which customer relationships
• Who are our key
• Customer relationships? problems are we helping to have we established? relationships have we
suppliers?
• Revenue streams? solve? • How are they integrated with established?
• Which key resources are
• What bundles of products the rest of our business • How are they integrated
we acquiring from our
and services are we offering model? with the rest of our
partners?
to each segment? • How costly are they? business model?
• Which key activities do
• Which customer needs are • How costly are they?
partners perform?
we satisfying?
Coordination with
Produce- • What is the minimum viable business entities that
Market-Sell. product? have VCO
Promote requirement.
Coconut farmers, through expos Target customers are
regulators, target and other primarily
market, and fellow events. Industry- - industries that have
millers/producers. standard VCO a use of VCO-
at (Toilet and laundry
competitive Skin and beauty Care,
Key Resources
• What key resources do our value cost for you. Channels Pharmaceutical) -
propositions require? • Through which channels do though it can also be
• Our distribution channels? our customer segments want
to be reached?
sold on retail ( health
• Customer relationships?
• Revenue streams Events, Expos, conscious, senior
Networks, citizens, patients) .
Coconut, milling
facility, human On-line and
resources, specialty
fundings. shops

Cost Structure Revenue Streams

• What are the most important costs inherent to our business model?
• For what value are our customers really willing to pay?
• Which key resources are most expensive?
• For what do they currently pay?
• Which key activities are most expensive?
• What is the revenue model?
> Capital Expenditures for the milling facilities. > Cost of coconuts. > • What are the pricing tactics?
Operational expenses to run the facility, source coconuts, marketing
activities, etc. > Salaries of people > Financing costs > Dividends to > Sale of VCO
investors.
Market Segmentation

Research report categorizes the global virgin coconut oil market into
the following segments:

By Type
Inorganic and Organic
By Treatment Type
Baby care, Moisturizer, Anti-viral and Others
By Distribution Channel
Hypermarkets/supermarkets, Convenience store, Online store and
Others
Market Segmentation

By Region

Global virgin coconut oil Market is further classified on the basis of region as follows:
- North America (United States, Canada)

- Latin America (Brazil, Mexico, Argentina, Rest of LATAM

- Europe (U.K., Germany, France, Italy, Spain, Hungary, BENELUX (Belgium, Netherlands,
Luxembourg), NORDIC (Norway, Denmark, Sweden, Finland), Poland, Russia, Rest of
Europe

- Asia-Pacific (China, India, Japan, South Korea, Malaysia, Indonesia, Taiwan, Hong Kong,
Australia, New Zealand, Rest of Asia-Pacific)

- Middle East and Africa (Israel, GCC (Saudi Arabia, UAE, Bahrain, Kuwait, Qatar, Oman),
North Africa, South Africa, Rest of Middle East and Africa
Market Forecast
• By distribution channel, the online segment is anticipated to achieve
higher market value over the forecast period due to rising internet
penetration and availability of large variety of products at a
discounted price.
-Research Nester