You are on page 1of 21

SOYAFRESH

Project Report
Feasibility Study of Soya Product
(Milk, Curd & Paneer)
Arvinder

2013

ARVINDER KUMAR CUHP12MBA35


Feasibility Study Of
Soya Product
(Milk, Curd & Paneer)

SOYAFRESH
ACKNOWLEDGEMENT

With a sense of gratitude and respect I would like extend my heartiest thanks to all who
provided help and guidance to make successful completion of this project. Without those
people help and guidance it is not possible to complete this project. I make special mention of
some of personalities and acknowledge my sincere indebtness to them.

I extend my special thanks to my Dr. Manpreet Arora who provide stimulating suggestions and
encouragement to complete this project
Executive summary
Study of management will be immaterial if it is not coupled with practical aspect of the
management. After studying the theoretical aspect of project management it is required to did
it in actual world. This project report is prepared for the feasibility study of soya milk and soya
product like curd, cheese. Today milk market is grow very rapid rate in coming years demand
for milk is increases but the supply of milk is not increases as the demand increases. Soya milk is
used as substitute of dairy milk. Soya milk contains low fat and high protein as compared to the
dairy milk. Soya milk has cheaper cost as compared to the dairy milk.

In this project report market analysis is done for the soya milk and its other products. Soya milk
demand is increases in the youth segment due to high protein in this milk and it is also very
much useful for heart patient because of low fat. Soya products also demanded in hotel &
restaurants because of its cheaper cost health benefit. In future demand will be increased
because of people are becoming more conscious about their health. Soya product like flavored
soya milk demand increases it is very much popular in the western countries.

Technical analysis of the soya milk plant is also done in this project report. In the technical
analysis quality assurance quality control availability of raw material and utilities arrangement is
done. Finance is very much important for every type of business financial analysis is also done
for this project.

Soya milk is cheaper substitute of dairy milk and its Nutrition value as compared to dairy milk this
thing provide competitive edge to the soya milk industry. India is developing country and urbanization is
at its growth stage it will provide greater opportunity for soya product industry in future.
Content
 Introduction
 Introduction of dairy milk sector
 Introduction of soya milk
 Basic idea
 Unique features of product

 Market analysis
 Market potential
 Factor affecting demand of soya milk product
 Target market

 Technical feasibility
 Manufacturing process
 Quality control & standard
 Pollution control
 Plant layout
 Plant location
 Requirement of personnel

 Financial feasibility
 Fixed capital requirement
 Working capital requirement
 Raw material cost estimates
 Cost of production and turnover
Introduction OF Dairy Sector in India

Agriculture along with animal husbandry has been and will continue to be the lifeline of Indian
economy. India is the largest and one of the most economical milk producers in the world
(estimated production of 105 MT).It is the most important sector of the Indian economy
particularly in poverty alleviation and employment generation. This sector contributes close to
one-fourth of India’s National income and total work force engaged in agriculture is about 60
per cent.At global level, milk has been identified as an integral part of food for centuries. The
success of White Revolution in India has largely been written by millions of small holders. About
70 million dairy farmers produce more than 50 per cent of the milk in the country. Milk and
milk products are one of the important components of the Indian food industry. Consumption
of milk and milk products is deeply rooted in our tradition and it is an essential item during
rituals, festivals and other auspicious events.

Dairy is currently the top-ranking commodity in India, with the value of output in 2004 at 1.179
billion rupees (US$39 million), which is almost equal to the combined output value of rice and
wheat. Despite the importance of the dairy sector in overall GDP, it receives less government
budgeting than the agriculture sector. Further, there has been no concentrated investment in
the development of value-added or innovative products, nor any serious effort to support and
modernize the informal sector.

In light of the increasing demand driven by the growing population, higher incomes and more
health consciousness, the slowdown in dairy industry growth is severely worrisome. Based on
estimates by the National Dairy Development Board (NDDB), the demand for milk is likely to
reach 180 million tonnes by 2022. To supply the market, an average incremental increase of 5
million tonnes per annum over the next 15 years is required – a doubling of the average
incremental rate achieved over the past 15 years. In the absence of sufficient increased
production, India will need to rely on the world market for imports. And because of the huge
volume required, it will affect global milk prices. Thus, focusing on areas for local dairy
development is critical. According to the chairperson of National Dairy Development Board
(NDDB). India is set to face milk shortage soon due to rising consumption in both rural and
urban areas while productivity remains low despite the country being the world’s largest
producer “We will without doubt start facing milk shortage as demand is increasing at a much
faster rate than production due to rising consumption in village households and demographic
dividend in urban areas,”.
Basic idea
As stated in the earlier paragraph the demand of the milk 180 million in 2022. But the supply is
not increases as the demand increases. So soya milk and its product like milk powder, soya
paneer etc, business is best in coming years. Soya milk powder is easy to store for 180 days.

Introduction
Soya milk (called soymilk in America) is made from soya beans. Essentially, it is an aqueous extract that
is prepared by grinding soya beans that have been soaked in water. The process of making soya milk was
discovered in China where soya beans were originally cultivated and consumed. It was mainly used in
the process of making tofu or bean curd. By 1931, calcium-fortified soya milk was being produced in
America by Madison Foods in Tennessee.

Soymilk and its related food products are getting popular throughout the world due to their
nutritional and medicinal qualities. Soymilk is high in protein and low in fat and carbohydrate
and contains no cholesterol. Soymilk is an excellent food for babies, children and the elderly
people including pregnant and lactating women as it contains vegetable protein that is very
easy to digest.

Soya Milk is an inexpensive and remarkably versatile high protein food made from soya beans. It is a
white liquid made from the seed. Unlike most other protein foods, milk is entirely free from cholesterol
and low in fat (specially saturated fats). The quality of protein is as high as that found in chicken. It is
also good for dieters as this contain low calories. It is an excellent food for babies, children, elderly
people and pregnant and lactating women since it contains vegetable protein which is very nutritious
and easy to digest. Soya milk and its derivatives are the cheapest source of protein, its derivatives tofu
(soya paneer) makes testy dishes like matar paneer, palak paneer etc. and snacks like soya burger,
patties, sand witches, pakoras etc. and also used in desserts.

Unique Feature of Soya Milk

Nutritional

Nutritionally, soya milk is quite similar to dairy milk. Following are some of the reasons why it is
endorsed as a substitute to dairy milk.

 The protein content of soya milk is quite similar to that of dairy milk.
 The protein found in soya milk is vegetable in nature. Unlike animal protein found in dairy milk,
vegetable protein prevents loss of calcium through the kidneys. (Much of the calcium in soya
beans is lost during the process of extracting the milk through the residual pulp which is
discarded. However, commercial soya milk is adequately fortified with calcium.)

 Dairy milk has saturated fats, which can lead to high cholesterol. Soya milk, on the other hand,
contains very little saturated fat.

 Commercial soya milk is also fortified with vitamins such as B12. This makes soya
milk a substitute for dairy milk for vegans. Vegans are people who prefer not to consume or use
any products of animal origin.

 Soya milk has no lactose and can be easily digested by people who arelactose intolerant.

 Allergies due to dairy milk are quite common among children. Compared to this, very few
children are allergic to soya milk. Before switching children to soya milk, however, consult their
doctor.

 Soya milk contains prebiotic sugars such as stachyose and raffinose. These play a role in
improving immunity and removing toxins in the body.

 Dairy milk may contain harmful synthetic hormones such as rBGH (recombinant bovine growth
hormone) that are used to increase milk production in cattle.

 Certain studies have linked dairy milk in childhood to the development of insulin-
dependent diabetes in later life, though this has not been conclusively proved. With soya
milk there is no such risk.

 Soya milk is exceptionally rich in isoflavones such as genistein and daidzein. These confer certain
health benefits such as reducing cholesterol levels, controlling osteoporosis, and reducing
cancers of the prostrate and breast. Isoflavones also protect body cells from oxidation.

Ecological

Apart from its nutritional benefits, widespread use of soya milk may have ecological advantages. This is
because soya beans grown on an area of land can produce more soya milk than if the same amount of
land is used to grow fodder for cattle. However, as the quality of land required for cultivating soya beans
differs from that used to grow fodder, this is a debated issue.
Market & Demand Analysis

Market Potential
With the increasing health consciousness among the general people, the use of soya milk
getting acceptance in the form of textured vegetable protein (popularly known as soya badi)
soya milk, soya curd & paneer. Being mainly county of vegetation, India indeed has a great
market potential for soya milk, curd & paneer. Expert predicts that soya food industry will grow
at 20% annually over the next few years.

Reason of buying of soya product


Soya products have actually been shown to benefit people suffering from heart disease, an
increasing health concern in India. The World Health Organization predicts that deaths caused
by heart disease will double in India by 2015. Research attributes this expected rise to India's
increased consumption of dairy and meat and adoption of a high-fat "cheeseburger" lifestyle.

The soya cow's products, including soya milk, tofu (soya paneer), soya shakes will be given to
heart patients and others who are undergoing training and therapy and the yoga institute, as
well as to patients and staff and AIIMS. Both institutions believe that soya milk promotes good
health, while dairy products are linked to deadly disease, including heart disease and cancer.

Scientific research shows they are right to be concerned. Since the 1980's, study after study has
linked dairy consumption to a high incidence of breast and other cancers. The American
Dietetic Association, for example, reports that breast cancer is most prevalent in countries
where women consume high-fat, animal-based diets. In east Asia, where milk consumption is
extremely rare, breast cancer is almost unheard of. International renowned nutrition expert Dr.
T. Colin Campbell points to China, a basically non-milk-drinking country, where cancer deaths
among women aged 35 to 64 averaged less than 9 per 100,000, as opposed to 44 per 100,000
in the U.S.
Target market – Target market firstly urban areas and small towns of the Himachal Pradesh
medical store for selling of milk powder on later stage. Flavored milk will also sell to children of
urban and town area. This milk is also help to maintain a healthy body due to low fat. People
who want to develop their body are also included in the target market.

Hotel restaurants in the Himachal Pradesh will be second in the list of target market for soya
milk, soya curd and soya paneer. Firstly hotels in the district Bilaspur will on the target. There is
more than 100 registered hotels in Bilaspur district.
TECHNICAL ASPECTS:

Process of Manufacture
The initial stage involves the cleaning, sorting of the Soyabean followed by dehulling and
soaking at room temperature in 0.5 – 1% sodium bicarbonate solution in 1:3 ratio (soya:
solution). After soaking the weight of original soyabean becomes double, the split (dehulled
beans) are ground in hot water in1:7 ratio and filtered to get milk. The residue is known as okra.
The milk is then cooled to 700 C and 0.1 molar calcium sulphate/magnesium chloride or 2%
citric acid solution is added with slow stirring. These chemicals precipitate/coagulate the
proteins of soya milk. The muslin cloth containing Soya protein is pressed in paneer making
boxes for 3 to 5 mts. And then cut into pieces of approx. desired size and put in cold water for
another 30 minutes. Vacuum packed tofu should always be kept in the fridge and after
unpacking, immersed in water. The various products which can be manufactured are
mentioned in the Chart below

Clean and Soak Soyabeans

1 kg. Beans 3.3 ltr Water

Airless grind and cook

5.2 litre water and 1.3 kg

steam.
Extract Soya milk Base 7.5

litre Soya milk 1.4 kg Okara

Add Water Sweetene Add coagulant or Add Sweetener Salt Okra Add salts, spices,
flavour salt etc. citric and yoghhut culture Flour Vegetables

flavour salt etc.


Homogenize or Mix Extract Curd pressin flavour
Incubatesalt etc.
Yughhut flavour
Bake orsalt
Fryetc.
or add to
well Soya milk gaflavour
forming Box Tofu optionally and fruits foods and Cook
salt etc.
(Paneer)
flavour salt etc.
(2) Quality Control and Standards
Product should conform to the PFA (Prevention of Food Adulteration), Act, 1955

Soybeans are stored and transported under various humidity and temperature conditions.
Soymilk and tofu are two of the most important foods made from whole soybeans. The
objective of this study was to investigate the influence of storage conditions on soybean quality
as related to soymilk and tofu-making properties. Soybeans of 3 different genotypes (Proto,
IA2032, and Vinton 81) were stored in varying conditions: temperature ranging from 4 to 50
degrees C, relative humidity from 55% to 80%, initial moisture content from 6% to 14%, and
storage time up to 15 mo depending upon storage conditions. The effects of different storage
conditions on soybean color, solids and protein extractability, soymilk pH, tofu yield, tofu solids
and protein contents, tofu color, and texture were investigated. While no significant changes
occurred for the soybeans stored at 4 degrees C, the soybeans stored at high temperatures (30
to 50 degrees C) exhibited significant quality loss (P < 0.05).

The degradation of soybean lightness (Hunter L), color difference (Delta E), and solid
extractability exhibited a linear relationship with time. Soak weight decreased at high
temperature and relative humidity, but increased at mild storage conditions. Several
combinations of storage conditions at temperatures exceeding 30 degrees C produced a drastic
loss in tofu yield. Storage also affected the tofu making process by reducing optimum mixing
time to produce the highest tofu yield. Varietal difference in soybean storability was observed.
The results provided useful information for the soybean processing industry to store soybeans
using the optimal storage conditions and to estimate soybean quality after storage.

(3) Production Capacity (Per Annum):


Item Qty. (Kg.) Value (Rs.)
Flavoured Soya Milk 60,000
Tofu (Soya Paneer) 6,000 19,80,000
Soya Curd 12,000

(4) Pollution Control:


Though no industrial effluent is released in the manufacturing process even then a NOC from
State Pollution Control Board is to be obtained before commercial production.

(5) Energy Conservation:

Suitable measures should be adopted to use appropriate amount of fuel and electricity.
Plant Layout for Soya Milk and Its Product
Location for pant.
Plant is located where raw material and resources are easily available. Transportation facility is
also taken in account for the selection of site or location for production.

Plant site is village kuthera in district Bilaspur.

Registration with DIC


In each district one agency to deal with all requirements of small and village Industries.
Business is registered with this .This is called “District Industries Centre” The District Industries
Centers have undertaken various programs for investment promotion at the grassroot level
such as a organizing seminars workshops, extending support for trade fairs and exhibitions
organized by various Industries associations.

All the services and support required by for MSME units under the single roof of the District
Industries Centre. The Centre has a separate wing to look-after the special needs of cottage and
house-hold industries as district from small industries. Registration of the business is beneficial
to avail the benefit provided by the Govt. under the scheme of MSME.

Recruitment of Manpower
Manpower requirement for soya milk production plant only one skilled person is required for
operating machinery of the soya milk .other works can be done by unskilled persons.

Post No. of person


Manager 1

Skilled worker 1

Unskilled worker 2

Total 4
Arrangement of raw and packaging material
Raw material is purchased from Una in bulk packaging material is purchased from Baddi district
solan from HP Only.

Raw material includes

1) Soya bean 2) packaging material

Arrangement of utilities
Utilities includes water, electricity and power/fuel these things are very much important to run
any manufacturing business. Water is taken from bore well and electricity clearance is taken
from Himachal Pradesh state electricity board (HPSEB). LPG/fuel is purchased from local
market.

Form of ownership
Ownership is very crucial thing because of risk of failure of business is totally related with the
owner of the business. In this particular business ownership is sole proprietorship. Profit and
loss is shared by single person only.

Source of finance
Finance is blood of any business to run its operations efficiently it is also important to procure
finance from cheaper source. There is requirement of Rs 7, 48, 000 as fixed capital and Rs.2,
24,000. As working capital for two months.

Sources of Finance Amount


Personal Finance 2,50,000
Laon from bank 7,50,000
Total 10,00,000

Loan is taken from under the Government approved Credit Guarantee Fund Scheme for Small
Industries this scheme has been started with effect from 1st Jan 2001 with the objective of
making available credit to SSI units, particularly tiny units, for loans up to Rs. 10 lakhs without
collateral/third party guarantees. The Scheme is being operated by the Credit Guarantee Trust
Fund for Small Industries (CGTSI) set-up by Government of India and SIDBI.
BASIS & PRESUMPTIONS

This project is based on single shift basis and 300 working days in a year.

The costs of machinery & equipment /materials indicated refer to a particular make and the
prices are approximate to those prevailing at the time of preparation of this profile.

The cost of packaging, forwarding tax etc and installation electrification of machinery is
taken @ 25% and non-refundable deposits, project cost, trial

production, fees etc are considered under pre-operative expenses.

Depreciation has been taken as an –

a) On building @ 5%

b ) On machinery & equipment @ 10%

c) On office furniture & fixture @ 20%

Interest on total capital investment has been taken @ 14% per annum.

Minimum 40% of the total investment is required as margin money.

Pay back period of the project will be 7 years, with half yearly installments.

Break even point has been calculated at the full capacity utilization.

It is presumed that that 1 kg of soya bean may yield 7.5 litre of soya milk and

1litre soya milk can be converted into 200 gm. of soya paneer
Financial aspect

Sl. Particulars of Machines Qty. Amount


No. (Nos.) (Rs.)

1. Soya Machine for soya milk and paneer (Tofu) 1 2,25,000/-


consisting of grinder cooker, Manual Boiler, Filter
Press, Tofu Box, Tofu Press, Tools, Flushing Chamber

2. Deodorizer 1 1,00,000/-

3. Vacuum Packaging Machine 1 1,25,000/-

4. Freezer @ 25,000/- 2 50,000/-


5. Pouch Sealing Machine 1 10,000/-

6. Tables with AL Top @ 10,000/- 3 30,000/-

7. Plastic Trays/Tubes and other misc. items. LS 15,000/-

8. Water Storage Tank 1 10,000/-

Total: 5,65,000/-

iii) Packaging, forwarding, Tax etc. 56,500/-

iv) Electrification and installation @ 10% 56,500/-


v) Office Furniture and Equipments 50,000/-
vi) Pre-operative Expenses 20,000/-
Total Fixed Investment (ii to vi): 7,48,000/-

B) Working Capital (Per Month):

(i) Personnel (Salary & Wages):

Sl. No. Designation No. Rate Total (Rs.)

Manager 1 10000/- 10,000/-

Skilled Workers 1 6000/- 6,000/-

Unskilled Workers 1 4000/- 4,000/-

Sweeper 1 3000/- 3,000/-

Total: 23,000/-

Perquisites @ 10% 2,300/-

Total: 25,300/-
Raw Material:

Sl. Item Qty. Rate (Rs.) Value (Rs.)


No.
1. Soyabean 1100 Kgs 30/-Kg. 33,000/-

2. Chemical s, flavours, colour and other LS - 15,000/-


material etc.
3. Packaging material for milk and paneer LS - 8,000/-

Total: 56,000/-

(iii) Utilities:

1. Power 4,500/-

2. Fuel/LPG 10,000/-
3. Water 1,500/-
Total: 16,000/-

(iv) Other Contingent Expenses (P.M.):

1 Rent 6,000/-
2 Postage & Stationery 500/-

3 Consumable Store 1,000/-


4 Repairs and Maintenance 500/-
5 Advertisement & Publicity 2,000/-
6 Sales Expenses 2,000/-

7 Telephone/Mobile 1,000/-

8 Miscellaneous Expenses 2,000/-


Total: 15,000/-

(v) Working Capital / Total Recurring Expenditure (P.M.):

1. Salary & Wages 25,300/-

2. Raw Materials 56,000/-

3. Utilities 16,000/-

4. Other Contingent Expenses 15,000/-

Total: 112,300/-

(vi) Total working capital for 2 months 112,300 X 2 = Rs. 2,24,600/-


TOTAL CAPITAL INVESTMENT:
(Rs. In Lakhs)

I. Fixed Capital 7,48,000/-

II. Working Capital for 2 months 2, 24,600/-

Total: 9,72,600/-

FINANCIAL ANALYSIS:

i) Cost of Production (Per annum)

Sl. No. Particulars Value (Rs. In Lakhs)

1. Total Recurring Expenditure /Cost 13,47,600/-

2. Depreciation on machinery and equipment @ 10% 56,500/-

3. Depreciation on Furniture @ 20% 10,000/-

4. Interest on Total Capital Investment @ 14% 1,36,164/-

Total: - 15,50,264/-

ii) Turnover (Per Annum)

Item Value (Rs. In Lakhs)

Flavoured Soya milk 60,000 Ltrs. @ Rs.25/- Ltr 15,00,000/-


Tofu (Paneer) 6000 Kgs @ Rs. 80/-Kg 4,80,000/-

Soya Curd 12000 Kgs @ Rs. 25/-Kg 3,00,000/-

Total: 22,80,000/-
Less marketing Expenses (-) 3,00,000/-
Net Turn over: 19,80,000/-

iii) NET PROFIT (Per annum) Before Taxation:

Turn Over (-) Cost of Production


=4, 29,636
19,80,000/- (-) 15,50,264/-
NET PROFIT RATIO: (Per Annum):
21.70%

vi) RATE OF RETURN (Per Annum): 44%

Fixed Cost:

i. Depreciation on machinery 56,500/-


ii. Depreciation on furniture 10,000/-
iii. Rent 72,000/-
iv. 40% of other expenses 43,200/-
v. 40% of Salary & Wages 1,21,440/-
vi. Interest on total investment @ 14% per annum 1,36,164/-
Total: 4,39,304/-