Nata de coco is a natural dietary fibre food product obtained by static fermentation of any sugar rich substrate using Gluconacetobacter xylinum. Nata producing microorganism has been isolated from sugarcane juice and was used to produce nata. The yield of nata was about 250 gL-1 in coconut water medium. G. xylinum (sju-1) produced more quantity of nata with thickness accounting to 13 mm and 15 mm in HS medium and mature coconut water medium, respectively. The water holding capacity, hardness and crude fibre content of nata produced from coconut water medium were found to be 87.14%, 41 N and 11.25g respectively. The developed nata was formulated successfully in sugar syrup base using natural colorant obtained from beet root pigment. It could be concluded that the mature coconut water can very well be exploited for the development of nata-a value added fibre food, using G. xylinum (sju-1).