Economic Analysis of the Lauric Acid Factory

Oct 13, 2025 by thesweetdesigns.com 135 views

PRA Factory Design: Making Lauric Acid from Coconut Oil Raw Materials (Cocos nucifera) with a Hydrolysis Process Continuous Fat Splitting Production Capacity of 4,000 Tons/Year and Special Task: Design of Engineering Reactor Detailed Hydrolysis

Introduction

Lauric acid is a saturated fatty acid found in pure coconut oil, dominating with a proportion of around 53%, while caprytic acid is around 7%. This valuable compound has various benefits, especially in the cosmetic industry, where it functions as a moisturizer and softener. In addition, lauric acid is also used in making soap and shampoo, as well as an energy source and antimicrobial agent in food. At present, the need for lauric acid in Indonesia is still dependent on imports, which causes the price to be relatively expensive. Therefore, the expansion of domestic acid production is an important step to reduce dependence on external products.

In this context, the lauric acid manufacturing factory from coconut oil through the fat splitting hydrolysis process is designed with a production capacity of 4,000 tons per year, operating for 330 days a year. This factory is planned to use 1,196,2220 kg/hour coconut oil as raw material, which will produce around 505,0505 kg/hour of lauric acid. With the results of economic analysis that shows positive prospects, this factory is considered worthy of being established.

Economic Analysis of the Lauric Acid Factory

The economic analysis of the lauric acid factory from coconut oil has yielded promising results. Here are some important data related to the lauric acid plant from coconut oil:

Total capital investment: IDR 436,862,936,573.63
Total production costs: IDR 217,793,382,992.29
Sales Revenue: IDR 704,547,439,068.75
Net profit: IDR 339,080,200,057.25
Profit Margin (PM): 80%
Break point (BEP): 12.39%
Investment Return (ROI): 27%
Return time (pot): 3.7 years
Network returns (RON): 29.36%
Internal Returning Rate (IRR): 24,4963%

From the data above, it can be concluded that this lauric acid factory has good potential. With a high profit margin, this factory can provide significant benefits for investors. In addition, the break-even point recorded at 12.39% shows that the factory can begin to generate profits in a relatively fast time after operation.

The Importance of Domestic Lauric Acid Production

Increasing the production of lauric acid in Indonesia will not only meet domestic needs but also has the potential to export products to other countries. By owning this factory, Indonesia can reduce dependence on imported products and create job opportunities and support the local economy.

Pre-Factory Design: Making Lauric Acid from Coconut Oil Raw Materials with Continuous Fat Splitting Hydrolysis Process

The lauric acid manufacturing factory from coconut oil through the fat splitting hydrolysis process is designed with a production capacity of 4,000 tons per year, operating for 330 days a year. This factory is planned to use 1,196,2220 kg/hour coconut oil as raw material, which will produce around 505,0505 kg/hour of lauric acid.

Engineering Design of the Lauric Acid Factory

The engineering design of the lauric acid factory involves several key components, including:

Raw Material Storage: The raw material storage area is designed to store 1,196,2220 kg/hour of coconut oil.
Fat Splitting Hydrolysis Process: The fat splitting hydrolysis process is designed to produce around 505,0505 kg/hour of lauric acid.
Purification System: The purification system is designed to remove impurities and produce high-quality lauric acid.
Storage and Packaging: The storage and packaging area is designed to store and package the lauric acid for distribution.

Special Task: Design of Engineering Reactor Detailed Hydrolysis

The design of the engineering reactor detailed hydrolysis is a critical component of the lauric acid factory. The reactor is designed to optimize the hydrolysis process, ensuring that the lauric acid is produced with high quality and purity.

Conclusion

In conclusion, the lauric acid manufacturing factory from coconut oil through the fat splitting hydrolysis process is a viable and profitable business venture. With a production capacity of 4,000 tons per year, operating for 330 days a year, this factory has the potential to meet domestic needs and export products to other countries. The economic analysis of the factory shows positive prospects, with a high profit margin and a break-even point recorded at 12.39%. The design of the engineering reactor detailed hydrolysis is a critical component of the factory, ensuring that the lauric acid is produced with high quality and purity.
PRA Factory Design: Making Lauric Acid from Coconut Oil Raw Materials (Cocos nucifera) with a Hydrolysis Process Continuous Fat Splitting Production Capacity of 4,000 Tons/Year and Special Task: Design of Engineering Reactor Detailed Hydrolysis

Q&A: Lauric Acid Factory Design and Production

Q: What is the purpose of the lauric acid factory? A: The purpose of the lauric acid factory is to produce high-quality lauric acid from coconut oil through the fat splitting hydrolysis process, with a production capacity of 4,000 tons per year.

Q: What are the benefits of domestic lauric acid production? A: The benefits of domestic lauric acid production include reducing dependence on imported products, creating job opportunities, and supporting the local economy.

Q: What is the break-even point of the lauric acid factory? A: The break-even point of the lauric acid factory is 12.39%, which means that the factory can begin to generate profits in a relatively fast time after operation.

Q: What is the profit margin of the lauric acid factory? A: The profit margin of the lauric acid factory is 80%, which indicates that the factory can provide significant benefits for investors.

Q: What is the investment return of the lauric acid factory? A: The investment return of the lauric acid factory is 27%, which indicates that the factory can provide a good return on investment.

Q: What is the return time of the lauric acid factory? A: The return time of the lauric acid factory is 3.7 years, which indicates that the factory can pay off its investment in a relatively short period of time.

Q: What is the network return of the lauric acid factory? A: The network return of the lauric acid factory is 29.36%, which indicates that the factory can provide a good return on investment and support the local economy.

Q: What is the internal returning rate of the lauric acid factory? A: The internal returning rate of the lauric acid factory is 24,4963%, which indicates that the factory can provide a good return on investment and support the local economy.

Q: What is the design of the engineering reactor detailed hydrolysis? A: The design of the engineering reactor detailed hydrolysis is a critical component of the lauric acid factory, and it is designed to optimize the hydrolysis process, ensuring that the lauric acid is produced with high quality and purity.

Q: What is the production capacity of the lauric acid factory? A: The production capacity of the lauric acid factory is 4,000 tons per year, operating for 330 days a year.

Q: What is the raw material storage area of the lauric acid factory? A: The raw material storage area of the lauric acid factory is designed to store 1,196,2220 kg/hour of coconut oil.

Q: What is the purification system of the lauric acid factory? A: The purification system of the lauric acid factory is designed to remove impurities and produce high-quality lauric acid.

Q: What is the storage and packaging area of the lauric acid factory? A: The storage and packaging area of the lauric acid factory is designed to store and package the lauric acid for distribution.