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How is Cocoguru coconut oil different from Parachute?

by Keshava Ram Bonanthaya 11 Apr 2010

When I ask random people about the coconut oil brands they are aware of, most of them mention Parachute—and in many cases, only Parachute. The name "Parachute" has become synonymous with coconut hair oil. Marico deserves credit for successfully branding a commodity and capturing over 50% of the Indian organized coconut oil market. They have also been a boon to the Indian coconut industry by consuming 7% of India’s coconut production.

Now that we’ve launched the Cocoguru brand of coconut oil, a common question arises: “Parachute is already available everywhere, so why Cocoguru?” I would like to address that in this post.

1. Brand Positioning

Parachute represents hair care, with coconut oil being one of the ways they nourish your hair. That’s why the brand also offers products like hair cream, jasmine oil, and non-stick hair oil. Cocoguru, on the other hand, stands for delivering the natural goodness of coconut oil in all its forms. We currently offer organic coconut oil, oil cake, and edible copra. In the future, we plan to introduce virgin coconut oil, desiccated coconut powder, coconut milk, and more.

2. Cooking Oil vs Hair Oil

While both brands offer 100% pure coconut oil that adheres to PFA (Prevention of Food Adulteration Act) guidelines and is therefore edible, Parachute is widely used as a hair oil across India and abroad. It enjoys a mainstream market presence. Cocoguru, however, is primarily used as a cooking oil in coastal Karnataka and has a niche market. We believe the true benefits of coconut oil are best realized when it's part of your diet, though it also excels as a hair oil. Parachute is sold in small quantities—usually up to 1 litre—in blue HDPE bottles. In contrast, edible oils like Cocoguru are typically packaged in pouches, cans, and tins above 1 litre.

3. Cold Press vs Heat Press Process

Parachute is mass-manufactured using a heat press process. Copra is roasted to remove moisture and then crushed at high temperature and pressure. This method produces oil with a stronger smell, longer shelf life, and higher yield.

Cocoguru uses a cold press (Ghani) process. Sun-dried copra is directly crushed without applying high heat or pressure, thus retaining the natural goodness of coconut. Cold-pressed oil has a milder aroma and appears clear, almost like water, while heat-pressed oil tends to look yellowish.

4. Quality of Raw Material (Copra)

In cold press processing, the quality of coconut oil is highly dependent on the quality of the copra. Even a single bad copra can spoil an entire batch. Therefore, we meticulously sort copra to ensure only good quality is used. Heat press processing, on the other hand, masks the use of poor-quality copra. Since Parachute processes millions of tons of copra, ensuring uniform quality becomes impractical. Interestingly, the lower-quality copra we reject is often sold by traders to Marico for Parachute production in Kasargod. That’s how we know even substandard copra gets used.

5. Job Work Service

Parachute operates five factories across Maharashtra, Goa, Tamil Nadu, and Kerala, catering to the national market. In contrast, we are closely connected to our local customer base. Farmers can bring their copra to our facility, have it crushed, and take back oil and oil cake for a nominal processing fee.

6. Cost and Price

A 500 ml Parachute bottle retails at ₹90, whereas Cocoguru’s 500 ml pouch sells for ₹30. That’s one-third the price for what we believe is a superior product! This price difference stems from cost structure. Parachute bears the overheads of running a listed company, maintaining a nationwide distribution network, and investing heavily in brand awareness. Cocoguru is a closely held family business that operates locally, sources copra directly from farmers, and avoids such overheads. Additionally, Parachute attracts higher taxes—13.5% VAT and 8% excise duty—because it is categorized as a cosmetic product, while Cocoguru, being an edible oil, incurs only 5% VAT and no excise duty.

7. Brand Awareness, Availability, and Packaging

While Cocoguru has several advantages over Parachute, we acknowledge Parachute’s strength in brand recognition, national distribution, and innovative packaging—from ₹1 sachets to 1-litre bottles.

Conclusion

Is Cocoguru threatened by Parachute? No. Cocoguru focuses on a small but loyal market in coastal Karnataka and Kerala, where coconut oil is used for cooking. This market is highly price-sensitive and too niche to attract large national players like Parachute. Still, given Parachute’s influence, we wish they had done more to promote the health benefits of coconut oil as an edible oil. Instead, they’ve chosen to expand into other edible oils with brands like Saffola and Sweekar.

So, who is the biggest threat to Cocoguru? The real threats are cheap substitutes like refined palm oil and sunflower oil, as well as the widespread misconception that coconut oil is harmful to heart health due to its saturated fat content. Changing this perception and educating consumers remains our greatest challenge.

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