The Cashew business in Kollam is based in the eponymous city, which is known as the Cashew Capital of the World. Kollam is the largest processed cashew exporter in the world. As of 2011 there were more than 600 cashew processing units in the city. About 800,000 tonnes of raw cashews are imported to the city for processing every year. 80% of India's export quality cashew kernels were prepared in Kollam. Kollam has remained the cashew capital of the world since the 1930s.

Kollam, also known by its former name Quilon, is an ancient seaport and city on the Malabar Coast of India bordering the Laccadive Sea, which is a part of the Arabian Sea. It is 71 km (44 mi) north of the state capital Thiruvananthapuram. The city is on the banks of Ashtamudi Lake and the Kallada river. Kollam is the fourth largest city in Kerala and is known for cashew processing and coir manufacturing. It is the southern gateway to the Backwaters of Kerala and is a prominent tourist destination. Kollam is one of the most historic cities with continuous settlements in India. Geographically, Quilon formation seen around coastal cliffs of Ashtamudi Lake, represent sediments laid down in the Kerala basin that existed during Mio-Pliocene times.