DETAILED PROJECT REPORT OF SOYA MILK PLANT IN INDIA
Soya Milk is the most economical and affordable edible item, versatile high protein food made from soybeans. It is a white liquid made out of the seed. Unlike most other protein food, soya milk is entirely free from cholesterol and low in fat. The protein is as high as found in chicken, eggs, etc. It is also suitable for diet conscious people as it contains low calories. It is an excellent food for children, older people, and pregnant women as it contains vegetable protein very nutritious and easy to digest.
Soya milk and its derivatives are some of the cheapest sources of protein. One of the healthy products of the soya bean is “Soya milk.” Its nutritional benefits are attracting many people at large. Soya milk is one of the best alternatives for cow’s milk. Soy milk, also called soya milk and sometimes referred to as soy drink/beverage, is a healthy beverage. Soya milk contains about the same level of protein as cow’s milk.
Nowadays, agri-business is running at a peak because of the health-conscious crowds around us. These days’ people prefer to go vegan because of the religious sentiments attached and health benefits. Due to this, the demand for agri-products is rising immensely and hence, people have started preparing soya milk business plan in India.
Market Potential concerning Soya Milk Business Plan in India
The market potential concerning soya milk business plan in India is something that one must consider. With the increasing health consciousness among the general people, soya milk is getting acceptance in the form of soya milk, Tofu, and Soya curd, etc. Being mainly the country of vegetarians, India has a broad scope for Soya milk, paneer/Tofu, and curd. Experts have already predicted that the Soya food industry will grow 20% annually over the next few years.
- High Demand– Due to health benefits and its advantages, soya milk has always been in good consumption by the people of India and across.
- Easily Accessible Business– Soya milk business is one of the most comfortable places to start in the current scenario with minimum capital and workforce. It does not require complicated tools/equipment and machinery to start the business.
- Easy to Sell– Due to its rising demand, it is easy to put soya milk on platforms easily accessible by all. Nowadays, soya milk and its derivatives are sold on various online portals like Grofers, Bigbasket, Dunzo, Amazon pantry, and multiple dairies and milk booths.
- Less Investment– Budding entrepreneurs can commence the Soya milk business in India with minimum capital as a means of earning to meet the livelihood requirements and can even take their business to another level by composing the soya milk business plan in India.
- Profitable Business– Soya Milk business in India has turned out to be one of the most profitable companies that these budding entrepreneurs can take up. Dedicated entrepreneurs can produce up to 1 lakh 75 thousand liters of soya milk, sold at Rs 80 per liter. It can earn up to 50 Lakh rupees per month. However, by extracting all the expenses, you can make huge profits from the business of Soya milk making.
SOYMILK
Soybean is very rich in protein and soluble fiber. Soymilk produced from beans is rich in protein equal to cow milk. It has many health advantages. The Isoflavones in soymilk help in fighting heart disease, cancer, menopause, and arthritis. It is a low fat high protein product now recommended by Doctors. It is formulated with different flavors to suppress beany odor. The normal flavors used are vanilla, chocolate, cardamom and sometimes ginger. This depends on local taste. In some places mango and pineapple are also popular. It is packed in 200 ml glass bottle.
- PRODUCTS AND ITS APPLICATION
Soymilk and tofu are not so popular in India. However, due to health benefits of these products gradually awareness is created and medical fraternity is recommended to consume for certain disease to the patients. Flavored Soymilk with sugar is marketed as beverage in some parts of the country. The market needs to be developed in the local area by creating awareness and setting distribution channel. Soymilk is also used to make tofu which in turn used as replacement of dairy paneer.
- DESIRED QUALIFICATION FOR PROMOTER
Marketing and creating awareness in local area are key elements for success in this business. Therefore, promoter with marketing background and contacts with local food distributors, hospitals, parlors & institutions is important to sell this product.
- INDUSTRY OUTLOOK/ TREND
The size of Indian food processing industry is estimated to be at around rupees 12 lakh crores. It contributes 9% of country GDP and growing at about 10% per annum. With encouragement to setup food processing parks and incentives from Government, Food processing sector is growing rapidly. The newer products in the market are being introduced with advanced technology, packaging and enhanced shelf-life.
- MARKET POTENTIAL AND MARKETING ISSUES, IF ANY
Market for soymilk is growing in urban areas. Awareness needs to be created at a specific location by organizing seminars and talk in different forms. Potential market for soymilk is mainly in urban areas where people health conscious and try new products. At present, there are units in main cities like Delhi, Mumbai, Calcutta, Bangalore, Ahmedabad, Jaipur, etc. However, the growth rate is good and there is scope for new entrant. The product is packed in glass bottle which in turn sterilized to increase the shelf life. For small volumes, glass bottles will be economical and appropriate compared to tetra pack and other packaging materials.
Tofu is now well accepted in Indian market to replace dairy milk paneer. It is widely used by hotels and restaurants in place of paneer. For salad and starter roasted tofu is served due to health benefit to replace traditional paneer. In household kitchen tofu is used for making vegetables.
- RAW MATERIAL REQUIREMENTS
The main raw material required is soybean. It is an agricultural product widely grown in India. Soymilk production activity will require very small quantity of soybean. India is a leading producer of soybean. However, one needs specific variety of soybean suitable for milk production. Such varieties are available in the market.
In addition to soybean, synthetic or natural flavors, sugar and sometime food color are required in the formulation. For packaging, glass bottles and crown cork are used to preserve the milk for six months. All raw materials and packing products are available in local market.
- MANUFACTURING PROCESS
Soybeans are first cleaned to remove dirt, stone and foreign material. It is then soaked in water for about 4 hours. After this water is removed and soaked beans are fed to grinding machine where hot water is added during grinding. This process is done at about 80 degree centigrade and in absence of air so that formation of beany odor is prevented in the final product. Soymilk is collected from outlet and filtered to remove solid material called okra.
One kg of soybean produces 6.5 liters of milk containing about 3% protein and 2% fat. It is then formulated with flavor, sugar and other additives. Glass bottles of 200 ml are filled with the formulated milk; crown cork is fitted and sterilized at 118 degree centigrade for 15 minutes. This process gives the self-life of 6 months.
Tofu is made from soymilk by adding potash salt and watering out to get solid end product.
It is vacuum pack to extend shelf life.
- MANPOWER REQUIREMENT
For the production of Soymilk and Tofu following category of manpower will be required for day to day production. Annual wages are also worked out.
Manpower Requirement
| Sr. No | Particulars | No. of Employees | Salary Per Month |
| 1 | Plant Operator | 1 | 10,000 |
| 2 | Skilled Worker | 2 | 6,000 |
| 3 | Unskilled Workers | 2 | 4,000 |
| 4 | Total | 5 | 20000 |
- IMPLEMENTATION SCHEDULE
The project can be commissioned within four months of tying up of finance. All equipment are available in India. There are no complicated machinery and requirement of space is also small. Therefore, implementation time required is very short.
- COST OF PROJECT
The cost of project as per market rate of factory building, machinery, miscellaneous items, working capital margin and preliminary and pre-operative expenses works out as under:
| Cost of Project | ||
| Sr. No. | Particulars | ₹ in Lacs |
| 1 | Land | 12.00 |
| 2 | Building | 12.00 |
| 3 | Plant & Machinery | 4.65 |
| 4 | Furniture, Electrical Installations | 0.75 |
| 5 | Other Assets including Preliminary / Pre-operative expenses | 0.25 |
| 6 | Margin for Working Capital | 1.72 |
| Total | 31.37 | |
- MEANS OF FINANCE
Based on the present norms of the bank, means of finance is worked out as under.
| Means of Finance | ||
| Sr. No. | Particulars | ₹ in Lacs |
| 1 | Promoter’s contribution | 9.41 |
| 2 | Bank Finance | 21.96 |
| Total | 31.37 | |
- WORKING CAPITAL CALCULATION
Working capital required for storage of raw materials and finished goods, monthly overheads, goods in process, receivables and trade credit is worked out based on the present norms of the bank as under.
| Working Capital Calculations | |||||
| Sr. No. | Particulars | Gross Amt. | Margin % | Margin Amt. | Bank Finance |
| 1 | Inventories | 0.35 | 30% | 0.11 | 0.25 |
| 2 | Receivables | 3.54 | 30% | 1.06 | 2.48 |
| 3 | Overheads | 0.55 | 100% | 0.55 | – |
| 4 | Creditors | – | 0% | – | – |
| Total | 4.44 | 1.72 | 2.73 | ||
- LIST OF MACHINERY AND THEIR MANUFACTURERS
It is proposed to have installed capacity 1, 20,000 litters of Soymilk per year based on 8 hours working per day and 300 days in a year. The capacity utilization is considered at 80% which will result in the production of 96,000 liters of Soymilk per year. This capacity is based on the standard equipment available for soymilk production.
For the above capacity machinery like Soymilk Production Kettle, Deodorizer, Filter Unit, Soaking pan, Milk Storage Tank, Milk Formulation Tank, Liquid Filling Machine, Crown Cork Fixing Machine, Bottle Sterilization Unit, Vacuum Packing Machine, Tofu Making Machine, Water Storage Tank, LPG Gas Unit, SS Pipe fittings and Laboratory Apparatus will be required in the soymilk production facility.
- SSP Pvt Limited
13, Milestone,
Mathura Road,
Next to Crown Interiorz Mall,
Ashoka Enclave 3,
Sector 35,
Faridabad,
Haryana
- Haryana agro industry
SCO 6-7,
Sai Market,
Opp. PNB Bank,
Radour Road,
camp,
Yamunanagar – 135001,
Haryana
- PROFITABILITY CALCULATIONS
The profitability is worked out as under after taking into account all variable and fixed expenses as under.
Profitability Calculations
| Sr. No. | Particulars | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
| 1 | Sales | 29.771 | 34.024 | 38.277 | 38.277 | 38.277 |
| 2 | Raw Materials & Other direct inputs | 15.876 | 18.144 | 20.412 | 20.412 | 20.412 |
| 3 | Gross Margin | 13.888 | 15.872 | 17.856 | 17.856 | 17.856 |
| 4 | Overheads except interest | 4.62 | 5.28 | 5.94 | 5.94 | 5.94 |
| 5 | Interest | 1.848 | 2.112 | 2.376 | 2.376 | 2.376 |
| 6 | Depreciation | 0.707 | 0.808 | 0.909 | 0.909 | 0.909 |
| 7 | Net Profit before tax | 6.713 | 7.672 | 8.631 | 8.631 | 8.631 |
The proposed unit will have the production capacity of 1,80,000 liters and for tofu it is 13,500 kg per year. The unit cost of power is taken at Rs. 8. The depreciation on building is taken at the rate of 5% whereas for plant and machinery it is at 10%.
The sales price of soymilk bottle is taken at the rate of Rs. 15 per bottle of 200ml each whereas for tofu it is taken at the rate of Rs. 115 per kg.
- BREAKEVEN ANALYSIS
The Break-Even point as percentage of targeted sales works out as under.
| Cash Break-Even (as % of Targeted sales) | |||
| Sr. No. | Particulars | UOM | Value |
| 1 | Sales Realization | ₹. In Lacs | 42.53 |
| 2 | Variable costs | ₹. In Lacs | 22.68 |
| 3 | Fixed costs incl. interest | ₹. In Lacs | 9.24 |
| 4 | BEP = FC/SR-VC x 100 = | % of sales | 46.59% |
- STATUTORY/ GOVERNMENT APPROVALS
There is statutory requirement of FSSAI license for setting up of food processing industry. Moreover, MSME & GST registration, IEC Code for Export of end products and local authority clearance may be required for Shops and Establishment, for Fire and Safety requirement and registration for ESI, PF and Labour laws may be required if applicable. Entrepreneur may contact State Pollution Control Board where ever it is applicable.
- BACKWARD AND FORWARD INTEGRATION
As forward integration to soy milk manufacturing, promotor may think of going for the production of soy milk products such as ice-cream, sweets, chocolate etc.
- TRAINING CENTERS/COURSES
For food processing industry training and short term courses are available at Indian Institute of Food Processing Technology, Thanjavur, Tamil Nadu and Central Food Technological Institute, Mysore, Karnataka. For soymilk and tofu production, promoter may like to have training at Soybean Research Institute, Indore, Madhya Pradesh.
