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RAJASTHAN AGRICULTURAL

COMPETITIVENESS PROJECT

Detailed Project Report on Soy milk


Processing Plant

Prepared by:

AGRI BUSINESS PROMOTION FACILITY


Contents

Page

Executive Summary 2

Chapter 1: Introduction-Soybean 9

Chapter 2: Technology advances and circumstances in Soy Milk Processing 23

Chapter 3: Production and processing hubs/ clusters in Rajasthan 35

Chapter 4: Manufacturing process and technology benchmarking 36

Chapter 5: Appropriate technology options 49

Chapter 6: SWOT of technology 58

Chapter 7: Indicative project profile for Rajasthan 61

Chapter 8: Method of technology dissemination and adoption 90

References 92

Rajasthan Agricultural Competitiveness Project 1


Executive Summary

The development objective of Rajasthan Agriculture Competitiveness Project (RACP) is to sustainably


increase agriculture productivity and farmers’ incomes in several selected locations of Rajasthan. As a
part of this approach, several Farmer Producer Companies (FPCs) are being developed and supported
under the project. Each of these companies will have primary and/or secondary (value adding)
processing infrastructure (Farmer Common Services Centers (FCSCs)), services of which will be availed
by farmers of their cluster region. Broadly, these companies will aggregate produce of farmers,
process/value add and directly sell in bulk to processors/consumers. This, in turn, will enable farmers to
realize higher remuneration for their produce. In a nutshell, the envisaged FCSCs will have micro or
small scale milling/processing and packaging units to facilitate services to farmers.

Existing and upcoming agro and food processing units in the state play a highly important role in the
scheme of things, i.e. forward linkages in agriculture. Evidently, higher investments in such
agribusinesses will bolster development and sustainability of FPCs and farmers thereto. In line with the
approach, RACP, through its Agri-Business Promotion Facility (ABPF), aims at:

 Promoting agribusiness investments in the state


 Providing incubation facilities to foster innovation & entrepreneurship

The objective of this report is “scouting of technologies and suitable replicable models” in Soymilk and
derivative products processing. Broadly, the report aims to provide some insights, to prospective
entrepreneurs and existing unit holders in the state - on technological gaps identified in existing units,
on several technological advances in the industry, on benchmarking technology and efficiency vis-à-vis
industry bests in other parts of the country and providing suitable replicable models for micro, small and
medium/large scale investors.

Soymilk and Soy beverages are consumed because of the increased availability of soy, and the scientific
facts that prove the many health benefits of the beans; including lowering blood cholesterol and
reducing the risk of certain cancers. Additionally, soy beverages are consumed as a replacement for
lesser-healthy drinks because of higher nutrition content. Unlike in Western countries where soymilk is
becoming popular, with Australia claiming a 6 per cent penetration into the total dairy milk production,
India with a 45 million litre production in the unorganized sector alone still has less than 1 per cent
production of the conventional bovine milk. More importantly, there are unique challenges that
accompany soymilk production, especially related to cleaning, grinding and separating, homogenizing,
sterilization, packaging, testing and storage. The present thesis provides some important suggestions on
the adoption of new technologies to overcome such challenges.

Rajasthan Agricultural Competitiveness Project 2


The soybean (Glycine max) is known as the “Golden Bean” of the 20th century. The processed soybean
is the largest source of protein feed and second largest source of vegetable oil in the world. US, Brazil,
Argentina, China and India are the major soybean producing countries. Major importing countries
include Ukraine followed by Benin, Germany, India and USA. USA also tops in soybean exports and is
followed by France, Canada, UK and South Korea. Indore, Ujjain, Dewas, Mandsore in Madhya
Pradesh, Akola, Sangli, Nagpur in Maharashtra and Kota in Rajasthan are major trading centers in India.

Rajasthan is the third largest soybean producing state in India after Madhya Pradesh and Maharashtra.
Baran is the highest soybean cultivating district in Rajasthan with a production of 155787 MT. Among
the pool of varieties, the highest yielding early variety of soybean grown is JS95-60 which yields around
2000-3000 kg/ha. It is followed by the variety JS93-05 which yields around 2500-3000 kg/ha.

In 2015, the global sales volume of soy milk amounted to some 13.48 billion liters. It is estimated that
the production will rise by about 3 billion liters by 2018. The global soy milk market is segmented on the
basis of form, flavor, distribution channel, application and region. The soy milk market is segmented on
the basis of form such as plain unsweetened form and plain sweetened form or on the basis of flavor
such as chocolate and vanilla or on the basis of distribution channel such as online stores,
supermarket/hypermarket, retail stores, and others or on the basis of application where soy milk is used
in application in food products such as cheese, desserts, and snacks and beverages such as cold-pressed
milks and others. Hence, the global soy milk market is expected to significantly increase the revenue
contribution over the forecast period. Some Global leaders in the segment include:

USA: DuPont, Kraft, SunOpta, Twin Oaks, Vermont Soy, White Wave, Biodyn
Europe: Unilever, TofuTown, Kalma, Assoy
Canada: Earth’s Own, Yeliv
Israel: Tnuva
India: Hershey, Life Health Foods
Iran: Soya Sun
South Korea: Namyang
Latin America: Compania de Alimentos, Café Soluble, Toni S.A.
Africa: Health Life, Relish

The soya milk industry in India is estimated at Rs 50 crore and has a CAGR at 50 per cent. The major
share of soybean production in India comes from Madhya Pradesh, Maharashtra and Rajasthan. So
majority of soya processing units are situated in these states. It has been estimated that nearly 85 % of
soybean produced in the country is processed to obtain value added products and nearly 20 % is
processed in Rajasthan alone. Therefore, soybean processing is an important sector in Rajasthan. There
are an estimated more than 60 soybean processing units in Rajasthan, but most of them are engaged in
processing soybean for oil, deoiled cake (DOC) and lecithin. Only a few are engaged in making value
added products indicating apprehensions on viability of investments in soybean value added products.
With the increasing level of awareness of the people with regard to the soybean value added products,
the demand for the products is also on the rise.

Soy milk and Derivatives Products

 Soymilk
 Tofu

Rajasthan Agricultural Competitiveness Project 3


 Soy Yogurt
 Okara
The State being the third largest producer of Soybean in India offers investment opportunities in soya-
based food processing like Soymilk plants, Soy snacks and other soy foods and value addition plants like
Soy-protein isolates plants. However, very few small organizations have ventured into this and hence
this is a niche segment. Edible oil, de-oiled cakes, animal feed and soy-meal processing, on the other
hand, do exist which are being operated by relatively larger sized firms in the state. Notably, the few
existing soymilk processing units in the State are mostly using low capacity, traditional or semi-
automated technology.

Notably, packaging in most units is done manually. Bottle filling operations are manually handled,
increasing risk of contamination during filling process. Crown capping of bottle is done through simple
machines. Tofu and yogurt are packed in food grade shrink wrap and plastic bags at the time of delivery.
Some stores simply sell tofu in bulk from a vessel with a cold water bath. Packaging of tofu in modern
units is otherwise done in plastic container (tub) including a water bath and plastic film-sealed top, or in
a vacuum-sealed plastic wrap.

A process diagram of manufacturing soymilk is shown below.

Benchmarking the Soymilk products manufacturing process in key clusters at Rajasthan

Rajasthan Agricultural Competitiveness Project 4


# Process Traditional method (especially in Modern Method/s in more advanced units
micro units)
1. Raw  in own or other private godowns  Galvanized Silos Storage
Material  processors follow shorter/
Soybean smaller inventory holding
Storage strategy
2. Raw  Inadequate and outdated  Complete cleaning line - modern pre-cleaner
Soybean technology (drum sieve), magnet separators, separator
Cleaning classifiers, gravity separators, de-stoners, and
and sorting color sorters.
3. Soymilk  Lack of hulling systems  Modern Hullers
Section  Traditional soaking tanks  Dry Soybean tank with elevator
 Outdated Grinding and Milk  Modern Soybean Soaking and Washing
Separation Machine
 Inadequate or outdated systems  Modern Grinding and Milk Separation
for Milk Sterilization,  Modern Milk Sterilization, Homogenization,
Homogenization, Mixing and Mixing and Deodorizing
Deodorizing
4. Tofu and  Outdated method of tofu and  Modern Tofu and Soy Yogurt making
Yogurt yogurt production equipments
Production  Muslin cloth or manual filter  Pneumatic press and mould, with precision
Section press and manually cutting and high speed and pneumatic tofu cutters
 Yogurt making process is  Digitally controlled incubator chambers, etc
without the use of any
scientific incubation.
5. Soymilk,  Non Shelf Stable Packaging of  Modern Multi-Head Automatic Liquid Filling
Tofu and soymilk Machines with Crown capping system and
Yogurt  Manual Bottle Packaging Automatic Bottle Labeling and Printing
Packaging  Manual packaging of Tofu and system
Curd in basic packaging  Modern Sterilization system
 Modern Aseptic Shelf Stable Packaging of
soymilk
 Modern Packing and Sealing system for
Tofu and Yogurt Packing
6. Testing and  Lack of even basic testing  Testing equipment comprising of Spectro
other equipment Colorimeter, pH meter, moisture meter,
support Digital Viscometer, Refractometer, Universal
activities Testing Machine, Kjheldal Apparatus, hot air
oven, ashing oven/muffle furnace, vortex
stirrer, sedimentation shaker, NIR grain
analyzer, precision weighing scales, milk
samplers, glassware and chemicals, etc
7. Support  Inadequate cleaning  CIP system and control: Modern units use
Equipment, systems- Cleaning is mostly CIP systems, i.e. “Cleaning in Place”
Engineering “cleaning out of place”, or  Based on size, capacity and milling
and COP; i.e. all equipment are engineering the support structure and
Automation opened / dismantled and equipments need to be installed; should be
cleaned manually. robust and shock absorbent.
 Sub-standard quality support  The plant layout should present a smooth,
equipments and system orderly flow of raw materials or ingredients
which leads to leakages, through each manufacturing phase on to the
clogging, breakdowns and storage of the finished product.
other related problems.  Process optimization refers to operate plant
 Majority units have manual or optimally with economic performance in
semi-automatic processes. terms of productivity and yields. It also
avoids human errors. Scada systems are
now integral part of flour mill industry.

Rajasthan Agricultural Competitiveness Project 5


This section of the report outlines three project profiles that could be referred by entrepreneurs to select
their most suitable option. Broadly, one micro scale, one small scale (relatively low investment) and one
small scale (relatively high investment) option of set-ups have been showcased primarily to suit the
investment capabilities of the entrepreneurs. Section 7.1, 7.2 and 7.3 of this chapter individually
showcase the financial feasibility of these projects.

a. Profile 1 showcases a micro scale model, which can be pursued as guiding model by small
farmers or individual entrepreneurs, farmer groups, farmer producer association/companies.
The technology proposed for this segment involves Mini Semi-Automatic 150 Litres per hour
capacity Soymilk Processing unit which comprises of Soya Bean Grinder and Milk Separator,
Soya milk Sterilizer, Soya Milk boiling Equipment, Soya Milk Transfer Pump with fitting, SS
Balance tank, SS Machine Frame, Accessories Kit, Mixing Tank SS, Manual Tofu Press, Liquid
Filling Machine, Glass Bottle Sterilizer, Crown Capping Machine, Tofu Coagulation Tank, Tofu
Cutter, Tofu Table - Alloy top, Pouch Sealing Machine for Yogurt and tofu, Deep Freezer,
Basic Testing Machines, Water Softener and filter, Weighing scales and Electrification. The total
cost of the complete set of Main P&M, on basis of some referred quotations of leading
suppliers in the segment, is Rs. 7.37 Lakhs. This is inclusive of taxes, transportation, installation
and commissioning charges.
b. Profile 2 showcases a small scale (relatively low investment) model, which can be pursued as
guiding model by small scale entrepreneurs or farmer producer association/companies. The
technology proposed for this segment involves Semi-Automatic 250 Litres per hour capacity
Soymilk Processing unit which comprises of Soya Bean Grinder and Milk Separator, Soya milk
Sterilizer, Soya Milk boiling Equipment, with LPG fired, Soya Milk Transfer Pump with
fitting, SS Balance tank, SS Machine Frame, Accessories Kit, Belt Press for okara, Mixing Tank
SS, Soymilk Homogenizer, Deodorizer, Soymilk Plate Heat Exchanger Machine, SS
Balance/Buffer Tanks, Pneumatic Tofu Press, Liquid Filling Machine, Glass Bottle Sterilizer,
Crown Capping Machine, Bottle Labeling and Printing System, Tofu Coagulation Tank, Tofu
Cutter, Tofu Table - Alloy top, Curd Making Unit-Digitally controlled with fan & timer.-
Incubation Chamber, Pouch Sealing Machine for Yogurt, Vacuum Packing Machine, Deep
Freezer, Compressor for Pneumatics and packing machines, Basic Testing Machines, Water
Softener and filter, Weighing scales, SS Pipeline and Electrification. The total cost of the
complete set of Main P&M, on basis of some referred quotations of leading suppliers in the
segment, is Rs. 20.59 Lakhs. This is inclusive of taxes, transportation, installation and
commissioning charges.
c. Profile 3 showcases a small scale fully automatic (relatively high investment) model, which can
be pursued as guiding model by some small scale entrepreneurs or institutions. The technology
proposed for this segment involves Fully Automatic 1000 Litres per hour capacity Soymilk
Processing unit which comprises of Dry Beans Tank with Elevator, Soaking and Washing
Machine, Soybean De-huller - complete set with aspirator, blowers, etc., Multi fuel Steam
Boiler, Soya Bean Grinder and Milk Separator, Centrifuge/Decanter, Belt Press for okara,
Transfer Pump with fittings, Soya milk Sterilizer, Flavor Milk Mixing Machine, Soymilk
Homogenizer, Deodorizer, Soymilk Plate Heat Exchanger Machine, Soymilk Storage Tank (SS)
cum Refrigerator Cum Agitator system, SS Balance/Buffer Tanks, SS Machine Frame,
Automatic Liquid Filling Machine (Double Head), Glass Bottle Sterilizer/Autoclave with boiler,
Crown Capping Machine, Automatic Bottle Labeling and Printing System, Tofu Coagulation

Rajasthan Agricultural Competitiveness Project 6


Tank, Tofu Press - Pneumatic (with compressor) cum mould, Tofu Cutter, Tofu Table - Alloy
top, Curd Making - Digitally controlled with fan & timer- Incubation Chamber, Pouch Sealing
Machine for Yogurt, Cup filling Machine, Cup Sealer, Vacuum Packing Machine, Deep Freezer,
Compressor for Pneumatics and packing machines, Testing Equipments, Automation with
PLC, Water Softener and Purifier, Weighing Scales (of various weight capacities), Generator, SS
Pipeline, CIP Cleaning Mechanism (complete SS) and Electrification. The total cost of the
complete set of Main P&M, on basis of some referred quotations of leading suppliers in the
segment, is Rs. 72.92 Lakhs. This is inclusive of taxes, transportation, installation and
commissioning charges.
RACP-ABPF shall undertake a mix of some or several initiatives to disseminate the suggested
technologies and models, which may broadly include:

 Workshops for prospective entrepreneurs/groups, existing industry owners and BoDs of FPCs
 Facilitate technology benchmarking exposure visits within and outside state for prospective
entrepreneurs/groups, existing industry owners and BoDs of FPCs
 Seminars and Workshops in association with Industry Associations, Technical Institutes and
R&D Institutions
 Technology Meets and Tie-ups with Technology Suppliers, Technical Institutes and experts
 Facilitate through consultancy and business development services
 Dissemination of success stories of units facilitated by ABPF through appropriate media
 Dissemination through web portals and mobile applications

The models and business plans suggested in this report are broadly generic in nature, however involve:
 technology profile
 civil works requirement
 raw material sourcing and logistic costs for sourcing raw material
 capacity utilization for different scenarios
 realistic assessment of investment and working capital needs
 possible sources of funding
 financial analysis

The suggested models and business plans are for optimal capacities which can be fine-tuned to the scale,
investment, technology needs of the entrepreneur. ABPF will further guide entrepreneurs on statutory
clearances needed for operating the business, required licenses, ways of leveraging various government
schemes/subsidies and several other aspects for effective technology adoption. In order to increase the
scale and potential adoption, ABPF shall pursue some or mix of several initiatives, which may broadly
include:

 Investor road shows


 B2B Meets
 Establishing Mentor Network
 Mentor-Mentee Workshops
 Facilitating Access to Finance

Rajasthan Agricultural Competitiveness Project 7


 Creating a robust knowledge base
 Preparation of business plans
 Review of business plans for funding through RACP

Rajasthan Agricultural Competitiveness Project 8


Chapter 1: Introduction-Soybean

The soybean (Glycine max) is known as the “Golden Bean” of the 20th century. The processed soybean
is the largest source of protein feed and second largest source of vegetable oil in the world. Soybean oil
is widely used as edible oil whereas its meal is mainly used in animal feed industry. It contains about 43
per cent of good quality protein, 21 per cent carbohydrates, 5 per cent minerals, 8 per cent moisture, 20
per cent fat, 4 per cent fiber and reasonable amounts of vitamins. Besides utilization of soybean as
vegetable, it is also used in oil industry where it occupies first place in the world oil production. With 43
per cent protein and 20 per cent oil, it has tremendous potential to meet the protein-calorie malnutrition
of the ever increasing Indian population. Soy based food products are also suitable to diabetic patients
as they contain less carbohydrates and low cholesterol. Soy protein is also good to people who are
allergic to animal protein. Therefore, it is one of the most economical protein sources in the world. Due
to its popularity, it is also being imported to supplement the domestic requirement for human
consumption and cattle feed while soy meal/Deoiled cake is being exported to many countries.

Table 1: Nutritional Value of Soybean

Sr. No. Components Percentage


1 Proteins 40
2 Carbohydrates 30
3 Fiber 5
4 Lecithin 0.5
5 Saponin 4
6 Oil 18-20
The commodity has commercial utility as edible oil and animal feed. On crushing the mature beans,
around 18% oil could be obtained, remaining being the oil cake/meal, which forms the prime source of
protein in animal feeds. Of late, the commodity is being highly utilized for manufacturing of various
snack foods like edible grade soy meal, soya milk, tofu, nuggets, flour, extruded proteins, etc.

1.1. Global Scenario

1.1.1 Continent Wise Production, Area and Yield of Soybean


Soybean is an important global crop and processed soybean is the largest source of protein feed and
second largest source of vegetable oil in the world. The major portion of the global and domestic crop is
solvent-extracted with hexane to yield soy oil and obtain soymeal, which is widely used in the animal
feed industry. It is estimated that above 85% of the output is crushed worldwide. Even though, a very
small proportion of the crop is consumed directly by humans, soybean products appear in a large variety
of processed foods.

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The cultivation of soybean is successful in climates with hot summers, with temperatures between 20°C
to 30°C being optimum. Temperatures below 20°C and over 40°C are found to retard growth
significantly. It can grow in a wide range of soils, with optimum growth in moist alluvial soils with a
good organic content. Modern soybean varieties generally reach a height of around 1 m (3 ft), and take
80-120 days from sowing to harvesting. The annual global soybean production has been in the range of
278-342 million tonnes in the recent years (2013-14 to 2015-16), accounting for 55-58% of total global
oilseed output of around 390-400 million tonnes. US, Brazil, Argentina, China and India are the major
soybean producing countries with production in order of 91-117, 82-107, 49-56, 12-13 and 10-12
million tonnes in the recent couple of years. Weather, acreage under other competitive crops like corn
andcotton and pests & diseases are the major factors influencing production. While in US, India and
China crop starts arriving from Aug-Sept, it starts from Jan-Feb in the U.S.

1.1.2 World Soybean Production1


As per recent SOPA statistics, it has been observed that USA is the global leader in Soybean production
with a production quantity of 116 Million MT for the year 2016-17. USA has been the consistent leader
since past 5 years followed by Brazil and Argentina. Other major producers are China, India, Paraguay,
Canada, Mexico and other EU countries. The following table shows the exact figures of the Global
Production of Soybean country wise.

Table 2: World Soybean Production (in Million MT)


Year US Brazil Argentina China India Paraguay Canada Other Total
2016-17 117 107 57 13 10 9 6 20 333
2015-16 107 97 57 12 7 9 6 18 313
2014-15 107 97 61 12 9 8 6 19 320
2013-14 91 87 53 12 9 8 5 16 282
2012-13 83 82 49 13 12 8 5 16 269
Source http://www.sopa.org/statistics/

1.1.3 Important World Soy Markets


Chicago Mercantile Exchange, which acquired Chicago Board of Trade that is the world's oldest soy
futures market, Dalian Commodity Exchange - trades the most liquid soybean contracts in the world
and Argentina and Brazil FOB determine the physical prices.

1.1.4 Major Imports of Soybean in World (Million MT)2


As per reports of January 2014 to November 2016, the global leader in imports of Soybean was Ukraine
with an import value of USD 5,492,361 followed by Benin, Germany, India and USA. The detailed
numerical of the global import value of the top 5 countries and their share percentage have been given
in the table below. Ukraine, being the leader, accounts for 33.6% of the total value of global soybean
imports for the period January 2014 to November 2016. The figure given below represents the share of
the top 5 countries which lead in total value of global soybean imports

Table 3: Major Imports of Soybean (2014-2016)


Country Total Value of Imports (USD) Total Share in Imports Value (In %)
Ukraine 5,492,361 33.6
Benin 2,166,897 15.2

1http://www.sopa.org/statistics/world-soybean-production/ (Retrieved on 10th April 2017)


2Zauba technologies & data search( https://www.zauba.com/import-soybean-hs-code.html)(Retrieved on 11th
April 2017)

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Germany 1,966,517 13.8
India 1,693,583 11.9
USA 1,012,393 7.1
Others 1,889,922 18.4
Figure 1: Total value of Imports by the countries

Value of Import
Ukraine
18% Benin
34%
7% Germany
India
12%
15% USA
14%
Others

With respect to the country’s leading in terms of quantity of global Soybean imports, Saudi Arabia
topped the list and forms 18% of the global share with export value of 12,419,930 MT. It is followed by
Benin and further by India and so on. The following table shows the top 5 countries in terms of total
quantity of global imports of Soybean and their global share. It is observed that Ukraine, being the
global leader, accounts for 55.3% share in the total quantity of global soybean imports. It is succeeded
by Benin with 20.1% share and further by India with 12.5% share. The figure below also highlights the
distribution of the top 5 countries with respect to the quantity of global Soybean imports during the
period January 2014 to November 2016:

Table 4: Total quantity of Imports by the country


Country Total Quantity of Imports (In MT) Total Share in Imports Quantity (In %)
Ukraine 12,419,930 55.3
Benin 4,519,825 20.1
India 2,802,912 12.5
Ethiopia 1,168,000 5.2
USA 805,522 3.6
Others 731,298 3.3

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Figure 2 Total quantities of Imports by the country

Quantity of Import
5% 4% 3% Ukarine
Benin
13% India

55% Ethiopia
20%
USA
Others

1.1.5 Major Exporters of Soybean in World (Million MT)3


As per reports of January 2014 to November 2016, the global leader in exports of soybean was USA
with an export value of USD 66,329,577. USA is followed by France, Canada, UK and South Korea.
The detailed numerical of the global export value of the top 5 countries and their share percentage have
been given in the table below. USA, being the leader, accounts for 18.8% of the total value of global
soybean exports for the period January 2014 to November 2016. The figure given below represents the
share of the top 5 countries which lead in total value of global soybean exports.

Table 5: Major Exports of Soybean in the world


Country Total Value of Exports (USD) Total Share in Exports Value (In %)

USA 66,329,577 18.8


France 38,590,505 10.9
Canada 36,568,234 10.4
UK 28,967,464 8.2
South Korea 25,035,971 7.1
Others 157,100,826 44.6

3 Zauba technologies & data search(https://www.zauba.com/export-indian+soybean+meal-hs-code.html) (


Retrieved on 11th April 2017)

Rajasthan Agricultural Competitiveness Project 12


Figure 3: Major Exporters of Soybean in World (Million MT)

Value of Export
USA
19%
France
45%
11%
Canada
UK
10%
South Korea
7% 8%
Others

With respect to the country’s leading in terms of quantity of global soybean exports, USA tops the list
and forms 16.4% of the global share with export value of 91,872,507 MT. It is followed by France and
further by Canada and others. The following table shows the top 5 countries in terms of total quantity
of global exports of soybean and their global percent share. USA is succeeded by France with 11.8%
share and further by Canada with 9.3% share. The following figure shows the distribution of the top 5
countries with respect to the quantity of global soybean exports during the period January 2014 to
November 2016:

Table 6: Total Quantity of Exports in the world


Country Total Quantity of Exports Total Share in Exports Quantity (In %)
USA 91,872,507 16.4
France 66,368,273 11.8
Canada 52,115,169 9.3
South Korea 48,939,580 8.7
UK 41,070,256 7.3
Others 261,111,779 46.5
Figure 4: Total quantity of exports in the world

Quantity of Export

16% USA
France
48% 12% Canada
South Korea
9% UK

9% Others
7%

Source http://www.sopa.org/statistics/

Rajasthan Agricultural Competitiveness Project 13


Considering the world Soy oil production data for the past 5 years, it can be observed that the year
2011-2012 witnessed the highest quantity of soy oil production with a total production quantity of 21.03
Million MT. Since 2011-2012, the soy oil production has seen a declining trend as the production
quantity has been decreasing gradually. The exact figures for the past 5 years have been given in the
table below.

Table 7: Soy oil production data


Oil Year Soybean Crushed (In Extraction Produced (In Oil Produced (In Million Total
Million Metric Ton) Million Metric Ton) Metric Ton)
2015-16 5.75 4.715 1.035 11.5
2014-15 6.8 5.576 1.224 13.6
2013-14 8.126 6.664 1.462 16.25
2012-13 10.121 8.299 1.822 20.24
2011-12 10.516 8.623 1.893 21.03
Source: http://www.sopa.org/statistics/

1.2. Indian Scenario

1.2.1. Major Trading Centers


Indore, Ujjain, Dewas, Mandsore in Madhya Pradesh, Akola, Sangli, Nagpur in Maharashtra and Kota in
Rajasthan are major trading centers in India.

1.2.2. State Wise Production of Soybean in India4


Table 8: State Wise Production of Soybean in India (Million MT)
Name of State 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17
Madhya 6.41 5.6 6 5.7 5.24 6.35 3.41 5.72
Pradesh
Maharashtra 2.2 2.7 3.75 4.65 4.75 2.38 2.2 3.95
Rajasthan 0.91 1.1 0.65 1.01 0.97 0.96 0.79 0.95
Andhra 0.13 0.16 0.15 0.34 0.4 0.26 0.16 0.24
Pradesh
Karnataka 0.08 0.18 0.18 0.3 0.27 0.19 0.18 0.25
Others 0.24 0.06 0.06 0.24 0.23 0.23 1.83 3.01
All India 9.96 9.5 11.5 12.24 11.86 10.37 8.57 14.12
Source: Directorate of Economics and Statistics, Department of Agriculture and Cooperation5

With 14.12 million tonnes of production, soybean is one of the fastest growing crops in India. The top
three largest soybean growing states are Madhya Pradesh, Maharashtra and Rajasthan. Soybean is
recognized as one of the premier crops around the world. It’s a major source of vegetable oil, protein
and animal feed.

1.2.3. Major Indian Markets


Indore, Ujjain, Dewas, Mandsore in Madhya Pradesh, Nagpur in Maharashtra, Kota in Rajasthan are the
major trading centers. India’s main growing areas are Madhya Pradesh and Maharashtra that account for
80% percent of production.

Table 9: Ranking of India in World Soy Industry


India (In Million tonnes) World (In Million tonnes) % Share
Annual Seed Production 6 180 3
Annual Oil Production 1 30 3.3
Annual Oil Imports 1.5 9 16.7

4 Directorate of Economics and Statistics, Department of Agriculture and Cooperation

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Annual Oil Consumption 2.5 30 8.3
Annual Meal Production 3.5 130 3.5
Annual Meal Exports 2.5 43 5.8
Annual Meal Consumption 1 130 0.7
1.2.4. Imports of Soybean 5
As per statistics from January 2014 to November 2016, the total value of global soybean imports has
been calculated to be USD 14,221,673. With the rise in imports globally, the soybean market has seen
huge chances. During the year 2016, the prices have drastically increased above previous levels. The
following figure shows the total values (in USD) of global soybean imports month wise for the period
January 2014 to November 2016. The total quantity of global soybean imports for the period January
2014 to November 2016 amounts to 22,447,487 MT. The year 2016 has witnessed an increase in the
quantity metric tonnes of global soybean import. Compared to the previous years, the year 2016 has
seen the highest quantity of global soybean imports. The details of global imports of soybean in terms
of quantity for the period January 2014 to November 2016 have been given in the figure below:

Figure 5: Imports of Soybean

5000000
4500000
4000000
3500000
3000000
2500000
Total Value USD
2000000
1500000 Total Quantity
1000000
500000
0

1.2.5. Export of Soybean6


It has been observed that global prices trend for soybean export have not improved much as there are
no significant increases in the value of global soybean exports over the past few months.

Instead, the year 2014 proved to be good in terms of value of global soybean exports. During the year
2016, the prices have more or less remained at normal levels as compared to the previous years though
there has been some value addition towards the end of the year. The following figure shows the total
values (in USD) of global soybean exports month wise for the period January 2014 to November 2016.
The total quantity of global Soybean exports for the period January 2014 to November 2016 amounts to
561477564 MT. The year 2016 was initially stable in terms of quantity of global soybean export but
increased during the period of October-November 2016. The details of global exports of soybean in
terms of quantity for the period January 2014 to November 2016 have been given in the figure below:

5 Source: Directorate of Economics and Statistics, Department of Agriculture and Cooperation


6 Zauba technologies & data search(https://www.zauba.com/export-indian+soybean+meal-hs-code.html) (

Retrieved on 11th April 2017)

Rajasthan Agricultural Competitiveness Project 15


Figure 6: Export of Soybean

140000000

120000000

100000000

80000000 Total Value USD

60000000 Total Quantity

40000000

20000000

Figure 7: Average Prices of Soybean

60
Average Price

40

20

Months

The average price of global soybean exports during the period January 2014 to November 2016 was
INR 43.6 Average prices have more or less remained in the range of INR 35-48 throughout the years.
But in June 2016, prices were the highest and reached INR 53.6. The monthly average prices of global
soybean exports have been given in the figure above.

1.3. State Scenario: Rajasthan


The country's third largest soybean producing state Rajasthan after Madhya Pradesh and Maharashtra
has drastically lowered the soybean production estimates. During the first advance estimates of kharif
crop in September 2015, the Rajasthan Department of Agriculture estimated soybean production of
15.40 million tonnes. As per the second advance estimates for kharif 2015- 16, Rajasthan Department of
Agriculture estimated that soybean production was estimated to be down to 8.38 million tons. The
comparison between first and second advance estimates indicates that soybean production estimates has
been cut down by 46.55%. The major reason for this cut down was because the beginning of the kharif
season saw Rajasthan receiving strong rains ultimately raising the prospect of a bumper output. But in
September, drought conditions of Rajasthan affected the crop productivity which resulted in low
production.

Rajasthan Agricultural Competitiveness Project 16


Table 10: Area, Production, Yield of Major Soybean in Rajasthan during 2014-15
Area Production Yield
Crop Kharif Rabi Total Kharif Rabi Total Kharif Rabi Total
Soybean 923135 - 923135 973342 - 973342 1054 - 1054

1.3. Global scenario – Soy beverages and products market


Soy beverages are consumed because of the increased availability of soy, and the scientific facts that
prove the many health benefits of the beans; including lowering blood cholesterol and reducing the risk
of certain cancers. Additionally, soy beverages are consumed as a replacement for lesser-healthy drinks
because of higher nutrition content.

Soybean-based foods, apart from being a complete source of protein, also contain other important
nutrients, such as fiber, vitamin B and omega3 fatty acids. All these nutrients play an important role in
the growth of infants, fetal growth in pregnant women, and provide various other benefits for children
and adults alike. The rising health consciousness in the developing and developed regions is driving
the soy beverages market. It is a healthy alternative to meat and other animal products and hence, is a
good source of protein for vegetarians..

The statistics below depict sales volume of soy milk worldwide in 2015 and a forecast for 2018.7

Source: Statista- Sales volume of soy milk worldwide in 2015 and 2018 (in billion liters)

In 2015, the global sales volume of soy milk amounted to some 13.48 billion liters. It is estimated that
the production will rise by about 3 billion liters by 2018. The global soy milk market is segmented on the
basis of form, flavor, distribution channel, application and region. It is segmented on the basis of form
such as plain unsweetened form and plain sweetened form or on the basis of flavor such as chocolate
and vanilla or on the basis of distribution channel such as online stores, supermarket/hypermarket, retail
stores, and others or on the basis of application where soy milk is used in application in food products

7 https://www.statista.com/statistics/645662/soy-milk-sales-volume-worldwide/

Rajasthan Agricultural Competitiveness Project 17


such as cheese, desserts, and snacks and beverages such as cold-pressed milks and others. Hence, the
global soy milk market is expected to significantly increase the revenue contribution over the forecast
period.8

Arushi Thakur, an industry expert for food research at Technavio, says, ‘Despite the challenge from
other plant-based dairy alternatives, the outlook for the global soy milk and cream market is positive due
to the increasing consumption from countries in APAC. The market is growing at a CAGR of around
15%, due to new product launches in India, Malaysia, and Indonesia. The players in the market are also
targeting key consumer segments and are launching products especially for them. As per Mordor
Intelligence, another leading global technology research and advisory company, Asia-Pacific has highest
demand for soy beverages due to the rising disposable incomes and higher demand for processed foods.
It is followed by fast-growing markets like North America and Europe. The demand for soy
beverages is also increasing in the developing regions of South America and Africa because of rising
health concerns. The growing demand for soy-based products in the developing regions of South
America and Africa provide a huge incentive for existing players to increase their presence in these
regions and thus, increase their market share.

Highlights- Recent Global developments in the Soy Beverages Market


2017- Danone has completed the acquisition of WhiteWave, which will add and expand the plant-based
category along with its soy milk brand ‘Silk’.
2017- Want Want China holdings Ltd., a processed food company is expanding its business for soy and
other plant based products. The company targets to launch soy and oat milk to cater to the demand of
consumers.

Global Leaders
USA: DuPont, Kraft, SunOpta, Twin Oaks, Vermont Soy, White Wave, Biodyn
Europe: Unilever, TofuTown, Kalma, Assoy
Canada: Earth’s Own, Yeliv
Israel: Tnuva
India: Hershey, Life Health Foods
Iran: Soya Sun
South Korea: Namyang
Latin America: Compania de Alimentos, Café Soluble, Toni S.A.
Africa: Health Life, Relish

Some other key players include Northern Soy Inc., Whole Soy & Co., ADM Inc. Solbar Ltd., Cargill
Inc., The Scoular Company, and Linyi Shansong Biological Products Co. Ltd.

1.4. National scenario– Soy beverages and products market


The soya milk industry in India is estimated at Rs 50 crore and
has a CAGR at 50 per cent. Currently, the soya milk category is
dominated by international brands such as Silk and Soyfresh as
well as indigenous brands such as Sofit (Hershey Foods) and
Staeta Soy Milk (ProSoya Foods). Even Hindustan Unilever had

8 Top 4 Trends Impacting the Global Soy Milk and Cream Market through 2020- by Technavio Research

Rajasthan Agricultural Competitiveness Project 18


made a splash into the category under Kissan Soya Milk in 2011.

Being a non-dairy product, soya milk targets lactose intolerant consumers but the taste has been the
biggest hindrance for the acceptability of the product. Even big players such as HUL are struggling to
get volumes for its Kissan soya milk despite extensive research and development on the product.
Masking the taste is the biggest challenge for soya milk brands. However, Indians are getting more
aware about the benefits of soya and this should lead in making these soya milk brands more acceptable
going forward. Mumbai-based ProSoya Foods which has been selling one of the first indigenous brands
Staeta for the past eight years has recently roped in Australian fast bowler Brett Lee to endorse its brand
and help in growing the category in India.

FMCG player Ruchi Soya Industries also plans to re-enter the soya milk category with a modified
offering and possibly a new brand. The maker of Nutrela brand of soya nuggets and edible oil had
entered the soya milk category under the N’rich brand in 2008 and subsequently pulled out. Later, it had
also introduced another brand Soya fresh in glass bottles. But due to issues like packaging, Ruchi Soya
had to keep a low profile with the brand and also exit the category. It is now planning to reformulate its
soya drink offering to re-enter the still nascent category.

1.5. State scenario– Soy beverages and products market


The major share of soybean production in India comes from Madhya Pradesh, Maharashtra and
Rajasthan and hence majority of soya processing units are situated in these states. It has been estimated
that nearly 85 per cent of soybean produced in the country is processed and nearly 20 per cent is
processed in Rajasthan alone. Therefore, soybean processing is an important sector in Rajasthan. There
are an estimated more than 60 soybean processing units in Rajasthan, but most of them are engaged in
processing soybean for oil, deoiled cake (DOC) and lecithin.9 Only a few are engaged in making value
added products indicating apprehensions on viability of investments in soybean value added products.
With the increasing level of awareness of the people with regard to the soybean value added products,
the demand for the products is also on the rise. In this regard, there is need to understand the financial
implications of processing of various value added products of soybean, especially Soy milk and
connected products. Therefore, in the present study, attempt is made to find out the profitability of
processing such soybean value added products.

Notably, Rajasthan is also the second largest producer of milk in India, with the fifth-largest cattle
population and some of the finest breeds of milch and draught cattle. The milk production in the state
was around 17,000 mn tonnes (12% of India's total milk produce) in 2015. This milk produce is
facilitated by a pool of about 13,000 cooperative societies headed by a state level apex organization,
RCDF (Rajasthan Co-Operative Dairy Federation or "Saras"). Notably, in terms of organic milk
production, Rajasthan's seven types of indigenous cattle are rich in A2 type of beta-casein protein in
comparison to A1 protein commonly found in regular milk. The commercial venture of this milk
popularly known as A2 milk is proving to be a great success. This segment in itself is an entry concern
for new entrepreneurs, primarily since the general public traditionally has been consuming animal milk
as against vegetable source milk like soymilk. With popularity of organic dairy options on a rise,
aggressive marketing strategy and product positioning by soymilk manufacturers will be the key to
success.

9Source: http://krishikosh.egranth.ac.in/bitstream/1/67798/1/D9455.pdf

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None the less, in some food retail outlets in shopping malls, more prominent brands of soymilk like
Sofit (Hershey’s), SoyMilky (Stateta), Silk and Soyfresh are more visible on shelves, along with some
other alternative health drinks like Almond Milk, etc. In this context, both original (i.e. without sugar or
any flavor) and flavored products are available. Products (mostly flavored) of some regional players are
also being promoted by small outlets like kirana shops or dairy products outlets. As a beverage, flavored
soymilk also faces stiff competition from packaged flavored milk brands like Amul Kool. In this
context, persuasive labeling and media promotion has helped even in ‘impulse purchase’.

Tofu (also known as Soy-paneer) and soy yogurt consumption has dramatically risen in the last ten years
or so. Several consumers are now turning to tofu to make recipes like palak paneer, matar paneer, etc
and this trend has been aggressively tapped by restaurants especially those serving Indian, Chinese or
Thai cuisine. This Tofu and Soy yogurt (or curd) demand is generally met directly by regional processors
(sometimes through small local dairy outlets). Without a doubt, even with several competing dairy and
substitute products, soy products (also including soy nuggets, soy flour, etc) have gained a good market
share.
1.6. Soy milk and Derivatives Products and Applications-A brief note
1.6.1. Soy Milk:
Soy milk is made by soaking soybeans, grinding them with water. The fluid
which results after straining is called soy milk. One can make soy milk at
home with basic kitchen tools or with a soy milk machine. Soy milk is most
commonly found in aseptic cartons. Most of the soy milk available in the
market is flavored and fortified with extra calcium or vitamins. The most
popular flavors are vanilla and chocolate. Some producers also add
thickeners to their soy milk to give it a mouth feel of cow's milk.

Traditionally, soy milk has a beany taste which is well accepted by the
Chinese, but less by the Western palate. Recently, with the recognition of its health benefits and with its
improved flavor and texture, soy milk has now a high and rising acceptance.

Plain soy milk is very nutritive. It's an excellent source of high quality proteins, isoflavones and vitamin
B. Soy milk is free of the milk sugar (lactose) and is a good choice for people who are lactose intolerant.
It is also a good alternative to those who are allergic the proteins in cow's milk. Soy milk also contains
isoflavones which may help to reduce osteoporosis risk. Several studies have suggested that soy
isoflavones may be a factor that helps to prevent bone loss. The isoflavone genistein seems to enable
bone breakdown and may have similar effects as estrogens in maintaining bone tissue. Diets which are
high in animal protein cause more calcium to be excreted in the urine. Replacing animal protein with soy
protein may help to prevent calcium loss from the bones. Epidemiological data show that Asian women
suffer less from hot flashes and night sweats compared to Western women. These symptoms of
menopause are caused by low estrogen levels. Estrogens play a role in the body temperature control.
Soy isoflavones can through their estrogen-like effect control these menopausal symptoms. Notably, in
countries where soy products are ingested regularly, the rates of cardiovascular diseases are low.
Research suggests that soy may help to prevent heart disease by reducing total cholesterol, low density
lipoprotein cholesterol and preventing plaque buildup in the arteries, which could lead to stroke or heart
attack. These health benefits are also mainly attributes of the soy isoflavones. The soy isoflavone
genistein may also increase the flexibility of blood vessels. Several studies have also indicated that a

Rajasthan Agricultural Competitiveness Project 20


regular intake of soy foods may help to prevent hormone related cancers such as breast cancer, prostate
cancer and colon cancer.

Soy milk is very rich in protein. This protein is of very high quality because it contains all essential
amino acids. The amino acids of soy combine very well with the amino acids of cereals. The soy protein
is therefore very important for vegans. Soy is a good source of lecithin and vitamin E. These natural
antioxidants prevent oxidation of LDL cholesterol. It is also rich in magnesium, which plays an
important function for the bones, heart and arteries.

1.6.2. Tofu:

A staple in Asia for 2,000 years, Tofu is known for its extraordinary
nutritional benefits as well as for its versatility. Tofu is a soft cheese-like
food made by curdling soya milk with a coagulant. Tofu is a rather bland
tasting product that easily absorbs the flavors of the other ingredients. Tofu
is sold in water-filled packs or in aseptic cartons. Fresh tofu is usually
packaged in water and should be refrigerated and kept in water until used.
If the water is drained and changed daily, the tofu should last for one week.
Tofu can be frozen for up to three months. However freezing will change
its texture; it will make the tofu slightly chewier.

An additional benefit of tofu is that it is extremely easy to digest. This is because the soybean's fiber is
removed during the manufacturing process. As most other soy foods, tofu reduces heart disease by
lowering the level of the "bad" LDL cholesterol and by maintaining the level of "good" HDL
cholesterol.

Tofu too is rich in isoflavones. When making tofu, the soy isoflavones, genistein and daidzein, remain
bound to the soy protein. Isoflavones reduce the risk of osteoporosis; a disease associated with reduced
bone density and increased bone fractures. Isoflavones also lower rates of breast cancer and prostate
cancer, and reduce menopausal symptoms including mood swings and hot flushes.

1.6.3. Soy Yogurt

Soy yogurts or sogurt are becoming more and more popular because of their low
levels of cholesterol and saturated fat, and the fact that they are lactose-free.
Fermentation has the additional advantage of reducing the bean flavour of soy
foods. In general, soy yogurts aim at providing a vegetarian/vegan alternative to
regular (probiotic) yogurt and are not developed specifically as carriers for
probiotics. Nevertheless, the stability of probiotics in a fermented soy matrix is
usually good and is very similar to that in yogurt.

1.6.4. Okara

Rajasthan Agricultural Competitiveness Project 21


Okara is a food by-product from tofu and soy milk production. Most okara
worldwide is used as feed for livestock — especially dairy cows. The rest of it
is used as a natural fertilizer or compost, which is fairly rich in nitrogen. A
small amount is used in cookery. Due to its high fiber content and low
production costs, okara is a good raw material and a rich source for preparing
fiber and could also be used as a dietary supplement to prevent diabetes,
obesity, and hyperlipidemia.

Rajasthan Agricultural Competitiveness Project 22


Chapter 2: Technology advances and
circumstances in Soy Milk Processing

2.1. Evolution of Soy Milk and Dairy-like Soy Milk Derivatives Processing
10Soymilk is an aqueous extraction of the soybean resembling milk. The nutritional composition,

appearance, and flavor of good quality soymilk are remarkably similar to that of cow's milk. All
traditional soymilks were filtered and the ‘okara’ (insoluble soybean pulp) was removed. Some modern
soymilks are suspended, containing the entire original soybean except its hull, while others are made
from soy protein isolates.

The spread in popularity of soymilk from its home in China to the rest of the world is a recent
phenomenon, which can be divided into four major periods:

1. Ancient times to 1900: Soymilk was made in small soymilk or tofu shops and consumed only in
China;
2. 1900-1949: Scientific interest developed in soymilk, its nutritional value, and its use for feeding
infants in China or those allergic to cow's milk in the West. A few small soy dairies were started,
both in China and the West;
3. 1950-1969: The success of Hong Kong's Vitasoy that was introduced as the first soymilk soft
drink, inspired many companies in East Asia to introduce similar products, which became very
popular;
4. 1970-1981: In the early 1970s new methods were developed, mostly in the United States (such
as the soy protein isolate, hot grind, cotyledon pre-blanch, and defatted soy meal methods) that
led to major improvements in soymilk flavor by largely eliminating the so-called beany flavors,
which had been a major obstacle in the introduction of soymilk outside of China. It was also
realized that soymilk, even at relatively low volume production, could be retailed for 15-25%
less than cow's milk, which had always been relatively expensive in densely populated East Asia.
The introduction of the Tetra Pak and Tetra Brik containers in the early 1970s made it possible
to market soymilk in a colorful, disposable container that gave a shelf life of at least 6 months
without refrigeration.

All of these factors led a number of East Asia's and the world's largest food companies to make a strong
commitment to manufacturing and marketing soymilk. Excellent products, reasonable pricing and
extensive advertisement fueled the soymilk boom in East Asia. Soymilk began to be popular outside of

10 History of Soymilk and Dairy-like Soymilk Products- Soya Info Center

Rajasthan Agricultural Competitiveness Project 23


Chinese-speaking Asia too. Regional marketing in East Asia started rising by Nestle’s efforts around
1979. Soymilk popularity, at the same time, also began to catch up in Latin America, starting with Brazil.

Most people in East Asia have not traditionally consumed animal milks or dairy products, despite an
abundance of milk-producing animals such as cows, buffaloes, and goats. The non-milking zone
embraces all of Southeast Asia from Burma eastwards to China, Korea, and Japan. Nearby dairying
people were the Mongols to the north and the Tibetans and Indians to the west. There are various
sound reasons that animal milks have not been used in East Asia;
1. Physiological: Around 85% of the people in the non-milking zone above the age of three years
have low levels of the intestinal enzyme lactase that breaks down the lactose in animal milks
into glucose and galactose, which can then be readily absorbed by the body. Like the majority of
people in the world, East Asians are lactose intolerant, and when they consume animal milk
they often feel bloated and gaseous, and experience diarrhea, indigestion, stomach pains or
cramps, general discomfort, and even vomiting. Other Asian peoples have circumvented this
problem by simply fermenting the dairy milk (as with Lactobacillus to make yogurt), which
breaks down the lactose;
2. Ecological: The densely populated portions of East Asia have never had much pasture land for
grazing cattle or other milk animals, nor have they been able or willing to afford the luxury of
feeding a milk cow 4 pounds of grains and soy protein to get 1 pound of milk protein in return.
In contrast, the soybean produces more protein (as in the form of soymilk) per unit area of land
than any other conventional farm crop. Thus soymilk provides more nutrition from less land at
lower cost than dairy milk;
3. Cultural and Economic: The Chinese first encountered dairy products in the culture of the
nomadic Mongolians, whom they considered barbarians and who later partially conquered
China under Genghis Khan. The Chinese chose, by not adopting the dairy habit, to differentiate
their culture from that of the barbarians.
4. Culinary: Many, if not most, Chinese dislike the taste of milk from cows or other animals. They
describe it as having a dominant "animal-like" flavor just as many Westerners describe soymilk
as having a "beany" flavor.
In the basic Chinese method for making soymilk, the soybeans were
washed, soaked overnight, and ground to a thick puree using a
vertical-axis hand turned stone mill. The puree was mixed with
(usually cold) water, and then placed in a cloth-lined bamboo
colander to allow the uncooked soymilk to filter through. The
okara (insoluble residue) remaining in the cloth was washed several
times with cold water, then the ends of the cloth were folded over
the okara and it was pressed with a large rock to extract more
soymilk. Finally, the soymilk was boiled for 10-20 minutes before serving. The Japanese later modified
this method in two basic ways:

1. the slurry was boiled before extraction of the soymilk, a few drops of shell ash mixed with
vegetable oil were added to prevent boiling over; and
2. the okara was pressed using a lever press or other mechanic press to extract the soymilk.

Rajasthan Agricultural Competitiveness Project 24


During the Japanese invasion of China, soymilk was used extensively in refugee camps, especially for
feeding infants and children. It saved many lives, and offered a unique opportunity for further
observing its nutritional value. Several studies showed that children receiving soymilk gained more
weight than those not receiving it. After the War, the Chinese government took more interest in soymilk
and commissioned Willis Miller to build them a soymilk plant in Shanghai, patterned after Dr. Miller's
plant in the US (Smith 1949).

Interest in modern soymilks, packaged and sold like soft drinks or in other new forms, began to increase
rapidly during the early 1980s and by 1983 was one of the "hottest" food subjects in China. Reasons for
this growth of interest include the success of Vitasoy in Hong Kong and Yeo Hiap Send in Singapore,
the spectacular rise of soymilk consumption in Japan, the great need for a low cost and nutritious
beverage in China, promotional efforts by foreign companies selling soymilk equipment and technology
and the growing recognition by decision makers in China that the soybean will be one of the key protein
sources of the future. Indeed during this period, the image of soymilk in China, at least among
government officials, was dramatically upgraded from that of a traditional, often poor quality product,
to that of a modern, healthful, economical, and nutritious beverage that could play a key role in China's
modernization program by improving the diet and health of people of all ages.

Soymilk was introduced to India in about 1933-36, when Mr. F.S. Kale and the Maharajah of Baroda
introduced it at various exhibitions and restaurants in West India. A plan to open soymilk centers for
children of the poor was proposed, but failed to materialize. In 1936 when Kale's magnum opus Soya
Bean was published in Baroda, it contained a long chapter on soymilk, and urged its use for feeding
infants and children who could not obtain enough mother's or cow's milk.

Starting in 1935, Mahatma Gandhi, a vegetarian, began to take a strong interest in soyfoods. Although
he was apparently unaware of soymilk, he was looking for such a product. He wrote: "I believe that in
the limitless vegetable kingdom there is an effective substitute for milk, which, every medical man
admits, has its drawbacks and which is designed by Nature not for man, but for babies and young ones
of lower animals. I should count no cost too dear for making a search.”

Soymilk was largely unknown in India prior to 1943, the year of the great Bengal famine. That year
Sasanka S. De (one of India's soyfoods pioneers) and Dr. B.C. Guha of Calcutta University worked
together, making soymilk on a small scale and feeding it to several hundred starting infants. In 1944,
systematic research on soymilk began at the Indian Institute of Science in Bangalore, where De went to
work. A bland soymilk was developed using a new technique: the soybeans were first sprouted for 2
days, dehulled, heated for 10 minutes at 70ºC in a dilute solution (0.08%) baking soda, drained, ground,
mixed with water, simmered for 15 minutes, and served flavored with a little invert sugar and salt.

Systematic research on soybean utilization started in 1971 at G.B. Pant University of Agriculture and
Technology in Pantnagar, Uttar Pradesh, with the joint collaboration of the University of Illinois and the
Nave Technical Institute, Shahjahanpur. A small soymilk plant, Pantnagar Soya Milk Products Ltd., was
set up inside the university and by 1978 had produced nearly 1,000,000 bottles of soymilk (made by the
University of Illinois’ whole-bean method) which had been sold to the students and test marketed. A
New Delhi plant was established in 1979; it produced Sipso soymilk in 200-ml bottles and had a capacity
of 50,000 bottles a day. Soy ice cream, yogurt, and cheese were also produced on a small scale.

Rajasthan Agricultural Competitiveness Project 25


Soymilk based products have a short shelf life. However, today’s consumers, and the modern lifestyle,
request products with a longer shelf-life and which remain safe and stable during the complete storage
period. For production of such soy milks and beverages, utilization of the UHT technology is necessary.
Hereby shelf-life from several months and up to a year can be obtained, depending on the composition
of the product. Further, the right choice of emulsifiers and stabilizers is necessary for ensuring a
homogeneous product without creaming and sedimentation during the entire shelf-life.

2.2. Key Advances in each step and process of Soy Milk and derivatives processing
The process of converting soybean into milk and further into other value added products has three
fundamental steps – Soybean cleaning, grinding and filtering to obtain soymilk base, and Packaging of
milk to ensure shelf life or further processing to value added products like tofu and yogurt.

Advances in Soybean cleaning and optical sorting11: The production of quality soymilk begins with
effective cleaning of soybean. Critical quality characteristics of soymilk like sensory properties, odour,
nuttiness/consistency, color, etc are impacted by the cleanliness of the soybean grains. Consistency and
texture of the soymilk base depends on effectively removing dust, foreign grains and other impurities
from the raw material.

The soybean processing industry continues to develop and incorporate new technology to improve soy
products’ quality and consistency and to maximize equipment utilization by reducing downtime and
improved energy utilization. Recent advances in the process to remove the unwanted impurities from
the raw soybeans reflect the industry’s desire to become more efficient at producing consistent, quality
products.

Screening or sieving to separate good quality soybean from foreign grains, sand, stones and many other
types of coarse and fine impurities has been the principal method of cleaning soybean from the
beginning of soymilk and derivatives processing history. Over time, various machines have been
introduced and improved upon to increase sieving efficiencies. Sifters and sifting reels to remove
impurities and classify soybean by size were commonly used as primary cleaning equipment when the
importance of cleaning and grading grain developed.

As the operating capacities of mills increased, the use of oscillating or vibratory screeners expanded to
keep up with the increased capacity requirements. Aspiration was incorporated into these designs to
remove the dust and light impurities before the screening to improve effectiveness of the sieving as
well. As grain cleaning technology continued to advance, machines that combined multiple cleaning
principles were introduced that incorporated sieving, density separation and aspiration into one
machine. Combination machines allowed higher cleaning capacity to be installed in a smaller space,
helping to reduce the capital cost of new mills and mill expansions. New innovations in grain cleaning
reintroduced the advantages of sifting and grading soybean by size while removing impurities. These
more recent advancements in soybean cleaning integrate modern technology and materials to meet the

11 This report largely focuses on soymilk processing technology which is a milling procedure undertaken post
soybean is primary processed to obtain cleaned grains. Hence, only some limited and relevant information with
reference to cleaning and grading is considered in this report. Detailed description of various technologies in
cleaning and grading of food grains and advances in the sector are presented in similar report on cleaning and
grading technology, prepared under the aegis of Rajasthan Agricultural Competitiveness Project.

Rajasthan Agricultural Competitiveness Project 26


growing demand for higher operating capacity, improved cleaning efficiency and lowering the cost of
operation and maintenance.

Soybean hulls contain unwanted substances and the same are also an obstruction to processing,
especially in the decanter. Soil bacteria are present in the soybean hulls and therefore hulls should be
removed to reduce bacteria count in the soymilk, resulting in better flavor and shelf-life. Soybean hulls
contain polysaccharides that should be removed to avoid off-flavors and processing problems caused
by foaming. Notably, the holding time for heat treatment of the soybeans to inactivate undesired
enzymes can be shortened when using de-hulled soybeans. This will decrease protein denaturation and
browning of the soymilk. Further, dehulled soybeans produce a white, attractive and appetizing soymilk.

For dehulling, traditional stone chakki design was used as a template for the attrition-type mills as
commercial-scale dehulling of soybean emerged. The two-stone principle was retained and the much
larger stones were rotated using the energy of harnessed animals (such as bullocks) or running water
(such as in the flour mills of Europe). The mills were adapted as electricity became an available power
source, and automation increased. Now, the stones are artificial and coated with carborundum (derived
from silicon carbide) of various abrasive grades (grit size). These new improved attrition-type mills are
often called under runner disk shellers (URD Shellers). The orientation of the stones can be either
horizontal (as in the original chakkis) or vertical, and the gap between the stones can be adjusted to the
seed size to optimize dehulled seed yields. The other modern mill type is a carborundum roller mill. It
has a cylindrical carborundum stone that is tapered and rotates inside a perforated metal casing so that
the gap between the roller and casing decreases from the inlet to the outlet. The stone or casing can
sometimes be moved to adjust the gap depending on the seed size. These mills are often mounted
horizontally or on a slight downward angle to facilitate passage of the seed. A lot of work is being done
on de-husking of seed coat. New Generation de-hullers in market are able to scratch seed coat more
effectively with a proper control on emery Speed, Pressure, and Appropriate selection of emery grit size
vis-à-vis typical soybean variety. New hullers are capable of handling all types of seeds with equal ease.
Efficient De-husking means removal of seed-coat with minimum damage which in turn helps to
increase yield.

Drying technology was another technological gap where milling industry was struggling to get food safe
solution and efficient de-hulling. Dryers introduced in the food grain industry efficiently remove surface
moisture and core moisture of seed. This makes seed coat scratching easy. Drying technology helps in
getting higher yield and higher productivity. New drying technologies are helping processors to avoid
sun drying process which was not food safe. Dryers with better temperature and process controls help
soybean seed to retain its original properties.

With ever increasing focus on color properties of products, naturally the demand for the color
consistent product has increased even in the soymilk market. Hence, color sorting (i.e. surface and color
grading) of soybean before processing for milk base has become a standard practice. The technology in
color sorters has advanced from basic monochromatic versions to bi-chromatic and now to the
advanced Tri-chromatic/RGBS models.

Advances in Grinding and other processes:


The soymilk processing, after raw material is cleaned, includes: dehulling, boiling, draining, grinding,
homogenization, enzymatic treatment, and heat treatment. The sensory attributes, beany flavor,

Rajasthan Agricultural Competitiveness Project 27


chalkiness, and flavor, etc are evaluated before final packaging. The composition of soymilk depends on
different factors, such as the bean composition and parameters that depend on the type of process being
used, such as dilution level during the process.

There are several different methods for soymilk processing. The traditional method involves soaking
the beans, followed by wet grinding (cold water grinding), filtering and cooking. The traditional process
results in a typical oriental soymilk with an intense characteristic of the "beany" flavor, which is not
generally accepted by the western consumers. Such off-flavor characteristic results from the reaction
catalyzed by soybean enzyme lypoxigenase that acts almost immediately upon wet grinding. The use of
hot water (80-100°C) to inactivate the lypoxigenase either previously or during the grinding is the basis
of other methods of the soymilk processing. The referred methods avoid the reaction of the enzyme
and the formation of the attribute ‘beany’ flavor. Some of those methods involve, like the traditional
one, the grinding of the beans and the discharge of the solid residue retained in the filtration. In other
methods the bean is ground with hot water and the remaining slurry is neither filtered nor centrifuged.
These methods have the advantage of avoiding generating solid residue. In one of these methods the
slurry is homogenized in two stages. One negative aspect of the methods that use the whole grain to
produce soymilk, without generating solid residue by filtration or centrifugation, is the presence of
another flavor attribute in the product named "chalkiness". The resulting products are also, sometimes,
physically unstable, i.e., phase separation occurs during the product storage, depending on the pressure
of homogenization.

In Asian countries, fresh soymilk is often sold in plastic bags with a straw, other manufacturers sterilize
soymilk in cans, while UHT processing coupled with aseptic packaging into Tetra Pak or combiblock
aseptic containers is very popular.

Modern Systems: Modern airless grinding processes have been developed which prevent denaturation
of protein and eliminate oxygen which permits grinding of beans in cold/warm water. Low oxidation
attained in these machines allow easy to formulate low pH juice soy blends, carbonated and cultured
products. Resultant products can have upto 15% higher protein yield with lower calories. The new
modern systems are developed to provide flexibility for producing both beany and non beany flavors.
Most modern plants ensure low power and utility consumption leading to lower production cost.
Quality Assurance: Quality assurance and food safety is another area where food sector is looking
beyond just legal standards and providing the whole food industry with a scientific basis which
ultimately leads to new approaches in technology. Food assurance and food safety standards such as
ISO 9000, ISO22000, HACCP, GMP, GHP are now becoming integral part of food industry thus
keeping food industry technologically abreast to global practices.

The quality of soy products can be measured using both sensory and instrumental techniques. Sensory
measures are useful for identifying the product attributes that consumers like, while instrumental
measures provide more objective measures. Soy based breakfasts and snacks are expected to have a
crisp texture and grain taste, soy based meat analogues are expected to have a chewy texture and savory
taste, while soymilk is expected to be similar in texture and taste to bovine milk. Sensory testing can be
applied to all soyfoods, however some of the instrumental measures can be very specialized. For
example to measure the mechanical properties of soymilks, a rotational viscometer is used. Some of the

Rajasthan Agricultural Competitiveness Project 28


quality measures that are important for developing product specifications and for statistical process
control are described below:
 Sensory techniques usually involve the use of a trained panel to measure the color texture and
flavor of the soy products. Panelists may describe the off-flavors of soymilk as: ‘beany’, ‘green’,
‘bitter’, ‘grassy’, ‘painty’ and ‘astringent’. They may describe poor texture as: ‘gritty’, ‘floury’, ‘chalky’.
 Nutritional profile requires measurement of protein, fat, minerals, vitamins photochemical and
anti-nutrients (trypsin inhibitor). This information is needed for nutrition labeling.
 Color can be measured using a Chroma meter, with measurement based on the CIE system.
 Viscosity of soymilk is similar to milk, and is measured with a rotational viscometer.
 Particle Size: Soymilk contains colloidal fat and protein and in some cases cellular particles. The
size and distribution of these particles, which affects mouth-feel, can be measured with a particle
size analyzer.
 Particle stability: Creaming and sedimentation of soymilk is undesirable, and potential particle
instability in soymilk can be identified using turbidity measurements, based on changes over time of
the back-scattering of light.
 Volatiles or aroma chemicals effect taste, and are identified and measured using gas chromatography
(GC).
 Microbiological safety: It is essential that soy products be safe to consume, so microbial testing
must be carried out in relation with storage conditions and the expected shelf life.

Larger Capacities of Machines: The principle emphasis in this area has been on improving the
effectiveness of existing machines rather than on new types of machine. The so-called ‘short surface
mill’ is now the norm. Typically grinders are operated at double the speed and three times the feed rate
that would have been the norm in the 1950s. The advent of new ‘high speed’ grinders has taken this
evolution one step further with speeds and loadings double than those of today’s norms. The efficiency
of sifting has also been increased significantly. Similarly, capacities of all other functions vis-à-vis
cooking, homogenization, packaging, etc have considerably increased even in terms of speed of
operations.

Safe, Scientific and Food Grade Machine Construction: In recent years, significant changes have
been made in the way machines are built. In general, all surface contact parts are suitably built of food
grade materials like stainless steel. Also, minor supports and fixtures like screws and bolts have been
largely eliminated inside the process sections to avoid any contamination. Modern machines are now
designed to have compact structure and small footprint. Advanced mills are now designed to deliver
high capacity, increase productivity and plant efficiency while providing the flexibility of producing a
range of products from the same mill. In a nutshell, modern plants are designed to replace multiple
smaller machines used in conventional milling, leading to a reduction in power consumption per ton.
Moreover, the simplified operation results in lower maintenance and manpower costs. This has become
increasingly important where processing plants are expected to run for extended periods between
maintenance shutdowns. In addition, hygiene considerations are now being taken into account in all new
machine generations. Features are being incorporated that minimize stock hold up and ease cleaning,
thereby reducing contamination and infestation problems.

Advanced Engineering and design, Efficient Aspiration and Material Movement: Material
handling systems like elevators, conveyors, etc and the engineering design behind the same is now
executed to ensure reduced material travel between machines enabling leaner manufacturing which also

Rajasthan Agricultural Competitiveness Project 29


aids in reduction of power costs and unnecessary instances of human intervention at various stages.
Modern designs of soybean cleaning plants with controls at multi-level or even at central plant location
(with PLC) have now become the standard norm. The aspiration system (in the grain cleaning sections)
that includes cyclones, fans, airlocks, etc. and the engineering behind the same is done to ensure
compact design eliminating leakages/wastages and resultant dust discharge in shop floor air. This has
increased overall safety and efficiency of the mills.

Process Optimization: All processes in soybean cleaning and soymilk processing can be optimized and
controlled through control panel i.e. automation. Process optimization refers to operating the plant
optimally with economic performance in terms of productivity and yields. It also avoids human errors.
Scada systems are now integral part of cleaning industry. Electro-Pneumatics and PLC have significantly
changed the way plants are operated. Automation ultimately leads to higher productivity and ease of
operation. Automation, as such monitors system, diagnoses problems and provides actionable
information which in turn helps prevent problems both on Grain and Equipment side. It allows
operator to identify problems before theyhappen and take diagnostic action. Milling and food
processing industry is now changing from plant control to process control and even beyond that.

2.3. Recent Global Technology Advances


The global soymilk processing industry and service suppliers that support it are continually searching to
improve technology and methods to process soybean into milk base and further value added products.
Some of the most recent technological advances in the industry offer breakthroughs in areas such as
sanitation, safety and quality control; same are presented below:

a. 12Testing and Research Findings: Recent research has identified the three soybean lipoxygenase
isozymes, the activity of which contributes to hexanal formation and soy flavor. The chemicals that
contribute to soy odors have been identified. It was found that removal of the lipoxygenase
enzymes did reduce the hexanal level; however, improvement in the sensory properties was
disappointingly minimal. On the other hand, more traditional approaches where soy flour was
extracted with ethanol, was more effective in reducing the off-flavors.

Further, several novel techniques are now being applied to purifying soy proteins; these include the
use of physical separation techniques to remove fat, electro dialysis, supercritical carbon dioxide
extraction, ultra-filtration and membrane separation for the extraction, precipitation and isolation of
the soy proteins. Soy Protein fractions that include Glycinin and conglycinin have different gelling,
emulsification and foam properties. It is expected that over the next decade, more highly specified
soy protein ingredients will provide the basis for innovative food products and growth of the soy
food market.

b. Latest Color sorter technology:13 With eight individual models ranging from a 0.5 chute to a
high-capacity 7-chute unit, the Cymbria SEA Chrome offers the latest in sorting technology. The
system perfectly suits the needs of modern food processing systems that demand the optical sorters’

12Advances in soybean processing and utilisation- Dr Bob Hosken University of Newcastle


13Efficient color sorting has become an essential step in integrated soymilk processing plants. Processing to obtain
quality soymilk requires soybeans that are effectively clean from foreign impurities including color and surface
impurities.

Rajasthan Agricultural Competitiveness Project 30


ability to detect and reject products of similar colors but with different shades. Machine adjustment
can be carried out easily due to the real image setting, and as with all SEA sorters, the SEA Chrome
allows for Internet connection for remote control. Each unit features standard TRU color cameras
with 0.1 mm resolution and the ability to add NIR and InGaAs cameras, making it a very versatile
color sorter for milling applications. Key features of the new technology include:

• High capacity feeding chutes with robust in-house vibratory feeder design;
• Proprietary software for defect size analysis as well as for shape based on geometric characteristics;
• Program for storing of up to 16 families of defects; LED lighting for long life and low heat
dissipation;
• Versatile flow configuration with re-sort and reverse re-sort;
• Specially designed ejectors to prevent delays and pressure drops;
• Vortex pressurized optical boxes to purge dust;
• 15-inch color touch screen; and
• Rotating optical boxes to provide easy access for maintenance and service.
c. Loading spout: Vortex has made several design changes to its loading spout. Vortex’s outer sleeve
is now rivet free and utilizes cable guides rather than less durable plastic. Vortex also redesigned the
cone harness cable to eliminate the possibility of misaligned cones, drill shavings and broken
hardware, thus reducing the potential for contamination. These loading spouts are designed to
capture fugitive dust, prevent material waste, and ensure plant and environmental safety, with low
maintenance and service expenses. From the retractable loading spout attached to the bottom of a
silo/hopper or located at the end of an air conveying system, to the dust collecting filter system, to
the loading spout positioner, the company offers a complete line of versatile loading spout systems
for loading process.

Vortex loading spouts are unique for loading bulk materials into open and/or enclosed vessels
because of their four-cable lifting design that provides maximum stability, compared to the standard
2- or 3-cable systems. The in-line drive system also incorporates special 3-piece CNC-machined
pulleys that feature chamfered edges and precision cable grooves to significantly reduce cable wear
and back lashing as the loading spout extends and retracts, especially during the misalignment of the
hatch opening. Because the cables do not fray, cable failure is nearly eliminated and so is costly
downtime for repairs.

d. Wireless hazard monitoring: HazardPRO Wireless Hazard Monitoring System from Electro-
Sensors is a comprehensive solution to combining sensors, advanced technology, and intuitive
software at a lower installed cost than traditional wired systems. The goal is to protect facilities and
people by providing the fastest alerts when they happen and transmit the alerts via the most
convenient method. Consistent operation is ensured with self-diagnostics, transmission logging and
redundant receivers. It allows millers to invest this savings in more accurate sensors, better displays
and more intelligent controls that provide increased system reliability, ease of use and fewer false
alarms. On the HazardPRO status screen, an operator can quickly view the complete operation,
including what machines are running and the status of each. The operator can instantly spot a
problem and then touch the display screen to bring up specific information for that equipment.

Rajasthan Agricultural Competitiveness Project 31


Because the HazardPRO intelligent transmitter nodes send information when a change is detected,
there are no polling delays. When an event occurs, it is automatically logged. An operator can view a
graph of the event and, after investigating, can document the cause and resolution. With
HazardPRO, determining the condition of a rub block alignment sensor does not require shutting
down the belt and performing a visual inspection. A warning will be displayed at the control panel if
a block is wearing down to a point where it should be replaced.

e. Recent Innovations in Tofu: Recent research has focused on better utilization of the co-products
of tofu processing. These co-products contain healthy proteins and fats that taste good and can be
beneficial to human health. Methods to stabilize wet okara in an efficient manner are being studied,
as are value-added final product uses for okara in foods. Better utilization of soy permeate in foods
is also being explored. Finally, sprouted tofu is gaining popularity. This is tofu made from soybeans
that have germinated. Sprouted tofu has a less beany/grassy flavor and better aroma.

f. Aseptic Packaging: Aseptic is a major advance in packaging technology that has been embraced in
Europe, Asia and South America for decades. Because of difficulties in shipping cold products, and
limited cold storage in these markets, aseptic packages offer a convenience that has made them
instantly popular in these regions.

The aspect of technology advancement in processing sector discussed above gives us fairly good idea on
development of soy grain cleaning and soy milk processing industry globally and in India on background
of growing demands. Development in Machine capacities, Automation and End products are constantly
changing towards betterment to cope with consumer demands. External influence from market is
driving technological changes in machines and process and still trying to keep commercial viability.
Obviously, there is still lot of scope in the sector for technological development / improvement of
processes as well as for new innovative products.

2.4. State scenario– Technology circumstances


Baran, Kota, Jhalawar, Pratapgarh, Chittorgarh and Bundi are major soybean producing districts. The
major clusters in the RACP project where Soybean is cultivated are Kushalgarh, Palayatha, Orai Bassi,
Jakham and Sangod. The State being the third largest producer of Soybean in India offers investment
opportunities in soya-based food processing like Soymilk plants, Soy snacks and other soy foods and
value addition plants like Soy-protein isolates plants. However, very few small organizations have
ventured into this and hence it is a niche segment. Edible oil, de-oiled cakes, animal feed and soy-meal
processing, on the other hand, do exist which are being operated by relatively larger sized firms in the
state.

Notably, the few existing soymilk processing units in the State are mostly using low capacity, traditional
or semi-automated technology. Kumawat Soymilk Industries at Jaipur (operations closed now), Jain
Soya Foods at Alwar, Asha Soya Products at Jaipur (operations closed now), Navin Oil Ginning Factory
at Shriganganagar, Ramesh Oil Generan Mill at Shriganaganagar are few units involved in Soymilk and
Soy products manufacturing in the State. Typically, discussions with some processors and industry
experts pointed to below common technology gaps (in traditional set-ups):

1. Many units are micro units and their (manual) operations include processing very small
quantities.

Rajasthan Agricultural Competitiveness Project 32


2. Lack of advanced wet grinding in these units leads to inconsistent texture of milk base.
3. Most units are wary of high capital investment in the beginning phase and thus prefer cheaper
manual/semi-automatic technology, which often are relatively less efficient than modern
systems adopted worldwide.
4. As processing quantities are small, most units prefer buying cleaned soybean from market for
processing. Integrated units with complete cleaning mechanism are not even considered. Again,
the technology adopted by backward integrated suppliers of cleaned grains ultimately affects the
quality of soymilk. Several of these suppliers merely have reel machines, graders and destoners.
Use of gravity separators, magnetic separators, fine cleaners and advanced color sorters to get
superior product is limited with some large units who obviously charge higher for higher value
added grains.
5. Again, based on low capacity nature of their units, entrepreneurs prefer purchasing raw material
as and when required with some stock for continual operations. Obviously, scientific storage in
such units is inadequate. Consequentially, these unit holders are unable to purchase larger
quantities of raw material at favorable market price and are always subject to market speculation
effect on business.
6. For those who do purchase raw material in bulk, storage is largely done in conventional
government and private godowns.
7. Use of outdated technology in grinding and separation not only leads to quality aberrations but
also yields to loss during milk separation.
8. The quality of Soybean is the key for making quality tofu and soy bean milk. If the soybean is
not cleaned well, it would be grinding with bacteria and dust from soybean skin, affecting the
taste and quality of tofu and soymilk. Modern automated Soybean soaking & washing machines
help to achieve efficiency on this aspect in production line. However, most micro units have
not deployed such modern systems.
9. Cooking in most micro units is done in traditional way which is not very precise and often
entrepreneur does not have adequate process knowledge to inactivate microorganisms. In
comparison, in modern systems cooking is precisely monitored to ensure cooking and
inactivation of microorganisms. The modern machines also speed up the cooking process, and
often perform multiple activities (like cooking, grinding and separating soybeans from soymilk)
all in one vessel.
10. The cooking and steam boiler sections are generally use wood as fuel, as deploying electrical
system at such small capacities is unviable.
11. Despite proper filtration, and use of homogenizer and storage tanks with agitators (in some
small scle units), the ‘beany’ taste is still comparatively higher than that of established brands.
12. The cost of up gradation is often high.
13. There is absence of efficient metal detecting system in most units. Although risk of ferrous
material is practically reduced after milk separation, yet presence of same during the grinding
process may lead to shavings contaminating the final product.
14. Investment in testing equipments is negligible. Required tests are mostly outsourced from labs
in nearby locations.
15. Packaging of many types is used internationally to pack soymilk. The most common is the
higher-volume, long-life aseptic/UHT packages such as TetraPak. This is generally only cost-
effective at higher production volumes in the 1,000 to 2,000 liter / hour minimum or even

Rajasthan Agricultural Competitiveness Project 33


higher. Most units in the State have much small capacities (200 Ltrs/hr or even lower). In this
context, contract packing at an existing milk packaging facility may allow lower volumes to be
handled. Bottles are also used for extended, even non-refrigerated shelf-life, but not for as long
as the aseptic UHT.
Notably, packaging in most units is done manually. Bottle filling operations are manually
handled, increasing risk of contamination during filling process. Crown capping of bottle is
done through simple machines. Tofu and yogurt are packed in food grade shrink wrap and
plastic bags at the time of delivery. Some stores simply sell tofu in bulk from a vessel with a
cold water bath. Packaging of tofu in modern units is otherwise done in plastic container (tub)
including a water bath and plastic film-sealed top, or in a vacuum-sealed plastic wrap. However,
even vacuum packing machines are rarely adopted by processors in state.

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Chapter 3: Production and processing hubs/
clusters in Rajasthan

Rajasthan is major soybean producing state in India. Baran is the highest soybean cultivating district in
Rajasthan with a production of 155787 MT. Other major soybean producing districts are Kota,
Jhalawar, Pratapgarh, Chittorgarh and Bundi. The major clusters in the RACP project where Soybean is
cultivated are Kushalgarh, Palayatha, Orai Bassi, Jakham and Sangod. Among the pool of varieties, the
highest yielding early variety of soybean grown is JS95-60 which yields around 2000-3000 kg/ha. It is
followed by the variety JS93-05 which yields around 2500-3000 kg/ha.

3.1. Major Soybean producing districts


Sr. No. Districts Production in MT Rank of District in the catchment
1 Baran 155787 1
2 Kota 145442 2
3 Jhalawar 140961 3
4 Pratapgarh 109923 4
5 Bundi 80817 5
Total Production in Catchment Area 632930

It has been estimated that nearly 85 per cent of soybean produced in the country is processed into
various value added product and nearly 20 per cent is processed in Rajasthan alone. Therefore, soybean
processing is an important sector in Rajasthan. There are estimated more than 60 soybean processing
units in Rajasthan, but most of them are engaged in processing soybean for oil, deoiled cake (DOC) and
lecithin.14 Only a few are engaged in making value added products indicating apprehensions on viability
of investments in soybean value added products. Kumawat Soymilk Industries at Jaipur (closed now),
Jain Soya Foods at Alwar, Asha Soya Products at Jaipur (closed now), Navin Oil Ginning Factory at
Shriganganagar, Ramesh Oil Generan Mill at Shriganaganagar are few units involved in Soymilk and Soy
products manufacturing in the State. With the increasing level of awareness of the people with regard to
the soybean value added products, the demand for the products is also on the rise.

14Source: http://krishikosh.egranth.ac.in/bitstream/1/67798/1/D9455.pdf

Rajasthan Agricultural Competitiveness Project 35


Chapter 4: Manufacturing process and
technology benchmarking

Soymilk and its derivatives are an important value added processing opportunity for the soybean sector.
Strategic market assessment has prioritized several key markets that will be targeted in the future for
promotion of soymilk, tofu and other soy products. Moreover, in context of Rajasthan which has large
vegan population, with increase in health consciousness and higher awareness, the demand for soy food
products and beverages is expected to increase.

4.1. Manufacturing Process


Soymilk production has three stages of processing. The first stage involves proper pre-cleaning and
main cleaning of the raw material produce. The second stage involves production of soymilk base and
third stage involves conversion of soymilk base to tofu or yogurt or other value added foods.

In the first stage, raw material soybean from farm is transported to unit for processing. The material
passes through several cleaning machines like reel machines, gravity separators, destoners, etc. Cleaned
and graded material is later processed in a dehusker machine which is used for cracking the husk layer
and for scratching of clean soybean passing through it. This is done for loosening the husk from
sticking to the grains. During this operation soybean grains are de husked and often split which are
separated by sieving and the husk is aspirated off. For complete de-husking the whole process may also
be repeated. The grains are further moved to color sorting section to remove any color and surface level
defects.15

In the second stage, the cleaned grains are moved to soymilk processing section. The process details are
as under:

15Detailed process of cleaning and grading is presented in similar study report on technology for cleaning and
grading of grains prepared under the aegis of Rajasthan Agricultural Competitiveness Project.

Rajasthan Agricultural Competitiveness Project 36


Soymilk Manufacturing Process

Soymilk

Cleaned and graded soybean is required for processing and preparation of soya milk, and subsequently
to prepare flavored
soya milk, soya
yogurt and tofu. The
soybeans are steamed
and split in half. This
loosens the hull on
the bean. A vacuum
sucks off the hulls.
Next, soybeans must
be cooked in order to
invalidate, or
counteract, a specific
enzyme which makes
them indigestible to
humans. This
cooking occurs in the
Enzyme Invalidator,
in which the de-hulled
soybeans are cooked using high pressure, Water, and high temperature (creating very hot live steam) to

Rajasthan Agricultural Competitiveness Project 37


invalidate that enzyme. The cooked soybeans then are transferred to the first rough grinder or mill.
Water is added to the machine and the bean pieces are roughly ground in this first milling. Although
they have been ground once, the cooked soybeans are still rather coarse. Thus, the fine grinder further
pulverizes the bean pellets into small particles. The hot slurry is white in color with minuscule particles
of insoluble soybean particles.

A large centrifuge (or muslin cloth in micro units) is then used to extract the tiny bits of soybean that are
insoluble and cannot be included in the finished product. These particles are separated from the soy
milk slurry. A rubber roller presses the soy milk slurry against the surface of a drum within the
centrifuge, forcing the liquid inside the drum while the fibers remain on the outside of the drum. The
drum is then scraped off these fibers.16

These soybean fibers are physically removed from the production process at this time. This soy fiber is
called okara and almost resembles mashed potatoes. A separate process dries the okara for use other
than human consumption. The fiber-less soy liquid is raw soy milk at this point and is referred to in the
industry as jun.

The jun is injected into large tanks and flavorings, sugar, and vitamins are mixed separately in smaller
tanks. Ingredients of the smaller tank are infused into the larger tanks, thus blending the flavors with the
raw milk. At this point, it is essential that the jun be sealed within the equipment until the end of the
manufacturing process (including packaging) in order to keep out air and ambient bacteria and germs
that can grow in low-acid soy milk. Sterilization occurs with pressure and very hot temperatures within a
vacuum for a short period of time. From the sterilizer, the hot milk is sent to the homogenizer. This
breaks down the fat particles and prevents them from separating from the rest of the mixture. In the
homogenizer, which is essentially a high-pressure piston pump, the milk is blended as it is drawn into
the pump cylinder and then forced back out in a repetitive motion. Next, the hot milk is piped to the
cooling tank. Here, the hot milk passes next to cold plates that lower the temperature of the soy milk to
room temperature. The cooled milk is sent to the aseptic (sealed) tanks and held here in preparation for
packaging. Here, the soy milk is refrigerated, pressurized, and sealed to ensure no bacteria thrive in the
milk.

A very important part of the production is the aseptic packaging of the product. Packaging machines
have been developed for soymilk and similar liquid products that are able to mechanically package the
product without exposing it to air. The cooled milk is sent to this packaging machine which has a ribbon
of flat packaging (cardboard) threaded into it. As the milk runs through the machine, the packaging
surrounds the milk and a cutter cuts through the cardboard packaging and the milk, simultaneously
folding the package and sealing the milk within it. A machine glues a plastic spout onto the sealed
package. From here, the product is sent to an automatic sorter that packs a case and places it on a pallet.
Alternatively, soymilk is also filled in bottles (generally of 200 ml capacity) and crown caps are fixed on
bottles. Bottles are then fed in Autoclave unit and treated (retorted- controlled method to reduce
microbial load) for 15 minutes at 121 Degree Celsius. Packaged soymilk is also often kept in cold
storage for enhanced shelf life.

16 Various types of flavors like Vanilla, Chocolate, Coffee, Fruits & Nuts, Pista, Mango, Orange, Pineapple,
Strawberry, etc may be used to flavor the soymilk now. According to flavor, colors too are added to give look as
per flavor. In addition, sugar is added for taste.

Rajasthan Agricultural Competitiveness Project 38


Tofu (Soy Paneer)

Once the soymilk base is extracted, it is pumped into curding vats. A coagulating agent is mixed in, such
as calcium sulfate, magnesium chloride, etc. The coagulant alters the pH and curds the soymilk much
like the process for making cottage cheese. This step takes about 20 minutes. Traditionally the obtained
curd like output is pressed with hand-turned screw presses or simple lever presses. The tofu may be
pressed in cheesecloth-lined boxes. Modern systems use centrifuges or hydraulic presses. The (residual)
water in pressing is drained off, leaving soft blocks of pressed curds. Tofu can be produced in a variety
of textures, from a dense cheese-like texture to a softer or liquid form.

Automated cutters slice the cake tofu into desired weight blocks. The tofu blocks are washed in vats of
water where they firm up and are stored until they are
ready to be processed further. Tofu may be packaged
into shrink-wrapped blocks or continuous thermo-form
packages. Water may be added to the packages, or tubs,
and then they are sealed, weighed, and dated.

The packaged tofu is pasteurized at about 180°F


(82°C). Pasteurization extends the shelf life of tofu to
about 30 days. The tofu is then chilled in water until it
is ready to be placed into boxes and shipped to
distributors. Tofu must be refrigerated at below 45°F
(7°C) to keep it fresh.

Formulation is also possible with tofu. The addition of herbs and spices and other ingredients can make
the product more ready to eat and easier to prepare at home. The addition of other ingredients, before
coagulation, requires careful testing since some ingredients will negatively affect the coagulation or
pressing. Silken tofu, which is very soft and pudding-like, is made without removing the whey water or
pressing.

Soy Yogurt

After obtaining the soymilk base, the same is allowed to cool down to a lower temperature (though
keeping it warm). Later, curd/yogurt culture (curd/yogurt bacteria ) is added and the same is incubated
for few hours to make yogurt. Once the yogurt is ready, it is kept in cool temperature and packed in
transparent food grade pouch at the time of sale. Cup filling systems are also used in some modern soy
yogurt plants. Alternatively, some further value added products like yogurt desserts, flavored curds, etc
are prepared for sale.

Yogurt and its derivative foods and drinks are some of the easiest products to understand and produce
for people with dairy food experience. The processing of soy yogurt is almost identical to that made of
cow milk, but with some very important differences. Formulation is required, primarily to add a simple
carbohydrate such as sugar, to compensate for the missing lactose found in cow milk. The bacterial
culture, which can be of the same type as for cow milk, as well as others, needs the additional
carbohydrate to feed and develop. Another ingredient may be required to reduce the surface separation
of water, which occurs somewhat more than that with cow milk.

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Flavored yogurt and drinks are easily formulated and processed for packing the same way that
traditional yogurt products are packed. The flavored products, when properly produced, are almost
identical in taste to cow milk versions. Incubation time and temperature are also adjusted compared to
traditional yogurt. Soy yogurt can require 6-10 hours or more of incubation at temperatures near 40º C.
This is also partly determined by the type of finished yogurt and the desired or neutral taste.

It is important to note that the soymilk base for making soy yogurt products, does not have to be
absolutely bland tasting and that vacuum deodorization may not be necessary. This allows a less
complex system and also one with a medium or lower production volume. Nevertheless, a good quality
soymilk base is a must.

Testing: Quality control begins with acquiring high quality soybean for the production of soymilk. The
beans considered most desirable for the process are called clear hylem, with a white (or colorless) hylem
on the body of the bean. While the soybean is generally bland, the clear hylem variety is considered
more flavorful. A number of global soymilk producers market their product as organic and beans
purchased from farmers for soymilk must be certified organic in order to be utilized.

The production of soy milk must be meticulously monitored to ensure that no bacteria grow in the low
acid medium. Thus, many global factories include several quality control checkpoints in this production.
Temperatures of water, steam, and the monitoring of pressure is essential in this process. In addition,
the product is constantly analyzed as a sample of the product is taken off the line every 10 minutes and
checked for pH, temperature, and bacterial growth (many samples are cultured). Because the product is
sealed off from the workers for most of the production, visual checks occur primarily as the product
comes off the line. Here, workers check to ensure packages are properly sealed.
4.2. Technology constraints and Benchmarking
The global food industry is becoming ever more aware of the potential offered by soybean to deliver
innovative food products, with strong consumer attributes. A significant advantage of this is that new
techniques often reduce the amount of waste, enable hygiene and standardize process, so can add
significantly to the overall efficiency of value added products (especially soymilk and derivatives)
manufacturing.
Soy milk is a water extract from whole soy beans. It is an emulsion containing water soluble proteins,
carbohydrate and oil droplets. Soy milk was traditional produced in small shops where the soy beans
were soaked, grinded, filtered and cooked. These products have a short shelf life. However, today’s
consumers, and the modern lifestyle, request products with a longer shelf-life and which remain safe and
stable during the complete storage period.
Historically, traditional processing of soymilk was started by the Chinese, as long as 2,000 years ago.
Today the same methods, or modern variations of the same basic process, are still used in Asia and by
many tofu producers in the rest of the world. This traditional method, which is also the simplest and
least expensive, can be done both manually, in a simple kitchen, or by commercial equipment in a
modern plant. This process has four steps:
1) Soak soybeans (4-12 hours depending on water temperature)
2) Grind soaked soybeans into a mash or pulp (Stone/manual grinding, electric blending etc.) with
the addition of water.

Rajasthan Agricultural Competitiveness Project 40


3) Cook the resulting slurry (Stove top or commercial steam injected vessels).
4) Separate the cooked soymilk from the remaining "Okara" fiber. (Filter press or centrifuge.)
Modern Processing methods have evolved for a number of reasons; the main one being to eliminate or
reduce the "beany" off-flavor, present with traditional processing. This taste has proven to be
unacceptable to most consumers, particularly since their use of soymilk is as a replacement for cow milk
and hence a neutral and non-beany taste is preferred. The taste issue is largely due to the activity of the
lipoxygenase enzyme, and the inactivation of this is one of the major objectives of modern processing
systems.
Additionally, production capacity, sanitation and functional versatility (variety of flavors and other value-
added products) are other factors which have determined the configuration and capability of modern
systems.
Competing Methods are available for modern processing. Most modern technology is designed to:
a) eliminate or reduce the problem of "beany" off-flavor and,
b) optimize yield and functionality.
These competing technologies employ various methods and principles including: hot grinding of soaked
soybeans, cold grinding of soaked soybeans, hot blanching, dry bean grinding and others. With some
methods, the problem of flavor is controlled, but the product yield goes down. With others the result is
good flavor but poor "mouthfeel", or unsuitable functionality for other derivative foods. Finally, many
major processors design either hybrids or variations of these methods, with or without their own
innovations. For some consumer products, the final soymilk is "deodorized" with vacuum systems, prior
to formulation and packaging.
The complexity of performance claims and the processing options are the greatest challenge to the new
soymilk processor or for the upgradation of existing facilities.
Traditional vs. Modern methods is a fundamental issue that processors are facing, particularly those who
begin production with a medium capacity in the range of approximately 200 to 300 Liters per hour. For
some products, such as tofu and yogurt, it is not necessary to eliminate the beany off-flavor and so the
processing line can be simpler and more cost-effective (essentially using the traditional method, with
modern equipment). Another factor is the kind of packaging that will be used for the finished product.
Ultimately there are a number of overlapping considerations that determine how complex a system
needs to be for any given processor. However, it is safe to conclude that a processor planning to
produce a "non-beany" soymilk drink, in a long-life consumer package, will have to acquire the more
complex (and more expensive) production technology. Yet, even for this category, there are cost-
effective solutions available.
Packaging of many types is used internationally. The most common is the higher-volume, long-life
aseptic/UHT packages such as TetraPak. This is generally only cost-effective at higher production
volumes in the 1,000 to 2,000 liter / hour minimum or even higher. However, contract packing at an
existing milk packaging facility may allow lower volumes to be handled. Newer milk carton packing is
also allowing extended shelf life (refrigerated) for about two months. Bottles can also be used for
extended, even non-refrigerated shelf-life, but not for as long as the aseptic UHT. Plastic bottles and
pouches / bags are used also for various products.

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Ultimately, local tastes and market considerations will determine not only the kind and variety of
soymilk and soya-dairy products that should be produced but also the type and complexity of equipment
and know-how required. For these reasons, a careful analysis is required that reflects the local market
and financial conditions.
Invariably, in the near future, automation will be increasingly used to ensure consistent quantity and
quality of throughput. There will also be technological solutions for reducing processing time,
improving hygiene, increasing productivity and enhancing nutrition. These developments can be
classified as improving existing techniques and systems but there is also considerable effort going into
creating true innovation, which will drive revolutionary new solutions into the industry and open up new
markets.
4.3. Benchmarking the Soymilk products manufacturing process in key clusters at
Rajasthan
Notably, Soymilk and derivatives processing technology in India is similar in most units across states (as
most being micro or small enterprises) characterized by several manual or semi-automatic processes.
Some more significant soymilk and soy foods industries in India are located at MP, Maharashtra and AP.
As matter of fact, some large and known brands like Life Health Foods (Staeta) and Hershey India Pvt.
Ltd. (Sofit brand) have their large setups in India. However, for benchmarking purpose, technology and
practices followed in some other countries like China, Japan, etc. are also studied.
These may be considered as reference cases for benchmarking purposes in terms of technology-levels.
Many of these firms constitute relatively higher capital intensive units that have pursued technology
upgrading and established semi/complete automatic systems procured from world and major Indian
leaders in equipment and technology such as Prosoya/Haryana Agro Industry/Pristine Plants India
(Pvt) Ltd., etc. Even in terms of micro and small scale units some of these technologies can be easily
incorporated to realize better yields and desired quality output.
Notably, some of the units in Rajasthan (or even in other parts of the country) have deployed these
machines, yet some micro and small mills (especially in the unorganized sector) use some outdated
technologies. To summarize, the process of soy milk and products processing by units in the soybean
clusters of Rajasthan involves various activities which may be benchmarked in terms of best practices in
other locations:

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Sr. No. Process Traditional method (especially in micro units) Modern Method/s in more advanced units

Modern technology involves raw material storage in silos made of


1. Raw Material Storage of raw material (cleaned and graded galvanized steel re-enforced exteriors. Galvanized Silos are used
Soybean Storage soybean grains) by processors in own or other for storage of grains in bulk for longer period. These silos are
private godowns leaves the raw material subjected to made in Galvanized Steel and bolted in construction. The main
infestation by rodents and pests. Modern and parts of the silos are made in corrugated sheets instead of plain
scientific warehousing systems like dehumidifiers, sheet, which increases its strength. These silos are generally
temperature monitors, grain handling equipment, etc equipped with accessories like Level Switches, Aeration System,
Temperature Monitoring, Ventilation and Sweep Augers. These
are non-existent in such facilities.
accessories help in monitoring the quality of stored grain inside
Often, lack of hygiene, pilferages, leakages, improper the silos.
handling of material, and various other factors lead to Galvanized Silo Storage System ensures zero wastage due to
moisture, fungus & rodents etc. This also enables units to target
losses in storage.
premium markets from quality-seeking consumers through direct
Several processors being micro millers follow retailing and export. In India, this system is adopted to some
shorter/ smaller inventory holding strategy, to suffice extent by private sector. Fowler Westrup, Rostfrie Steels, Westeel
Silos, Buhler, Milltec, Bansal Group etc. are some key supplier
raw material availability for few batches only. This
options of large silo storage systems.
strategy, often, leads to high procurement costs due
to speculative nature of markets.

2. Raw Soybean To the contrary, benchmarked cleaning equipment deployed in


Often grain processing firms (including soybean
Cleaning and larger firms at MP, Maharashtra and Rajasthan involve a complete
cleaning units; i.e. backward integrated suppliers to
sorting cleaning line. This includes modern pre-cleaner (drum sieve),
soymilk processors) use inadequate and outdated
magnet separators, separator classifiers, gravity separators, de-
technology in pre-cleaning, fine cleaning, drying and
stoners, and color sorters.
hulling operations. Some small and medium scale
units do deploy pre-cleaners, de-stoners and gravity In nutshell, applying the above modern and more efficient systems
separators; however, use of equipment like fine ensures better quality, safer, more consistent finished product for
cleaners, magnetic separators, advanced color the soymilk plant.17
sorters is limited to rather modern plants.

In context of soymilk processing, which is second


stage milling pursed after soybean cleaning, it is
important that unit receives efficiently cleaned and
color sorted raw material.

17Detailed study of gaps and technology benchmarking in grain cleaning process is presented in a similar study report on technology for cleaning and grading of
grains prepared under the aegis of Rajasthan Agricultural Competitiveness Project.

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 Lack of hulling systems: Some micro units
3. Soymilk Section In relative comparison, technology and equipment in some
process whole soya (i.e. without removal of husk
or seed coat) for soymilk production. However, modern units at MP and other parts of India as well as in some
early in process, soybeans need be dehulled to other countries considerably address the gaps associated with the
avoid any off flavors and to improve yields. Most traditional systems. The soymilk section with benchmarked
other units procure dehulled seeds from market. technologies comprises of:
 Traditional soaking tanks: If soybean grains are
not cleaned well, it would lead to grinding with  Modern Hullers: Most modern units use efficient hulling
bacteria and dust from soybean skin, influencing system; i.e. roll mill with supporting equipment like aspirator,
the taste and quality of soymilk. Most micro units cyclone, etc.
use only soaking tank, while some small units use  Dry Soybean tank with elevator: Often micro soymilk
upgraded equipments which have rinsing function.
processing units store dry soybean in jute bags (as received
Notably, even in such equipment, grains at bottom
do not get properly cleaned due to lack of proper from suppliers) and during processing operators open these
agitating motion. More importantly, time and bags to fill the soaking tank. In modern units, material
temperature monitoring in this operation is critical; handling equipment (like elevators) not only save labor cost,
if soybeans are soaked in water for too long it may but also increase production efficiency with fixed quantity
lead to rancidity. transfer to fit the production capacity for washing and
 Outdated Grinding and Milk Separation: Most grinding.
micro units generally have single pass cooking
 Modern Soybean Soaking and Washing Machine: Modern
and grinding operations. Although ground once,
the cooked soybeans are still rather coarse. This units deploy automated Soybean Soaking & Washing
leads to lower extraction rate later. Further most Machine which help efficient cleaning of grains and improve
micro units use muslin cloth for separation of efficiency of Soymilk Production Line. These machines not
okara. only feed and drain out water automatically, but also are
Partially soaked beans cannot be finely ground in designed with a special feature of agitating motion at the
most low cost grinders. Also, most mini systems
bottom. This design makes the soybean scroll up leading to
comprise poor flow control and inefficient okara
separation. As a result, soy extract does not efficient cleaning. Also, soak and wash time and temperature
represent the smoothness of larger systems. can be efficiently monitored.
 Modern Grinding and Milk Separation: Modern Grinding
 Inadequate or outdated systems for Milk systems are connected with automatic wet soybean
Sterilization, Homogenization, Mixing and suction/transfer system. This system not only helps save
Deodorizing: Most micro units have relatively labor cost, but also upgrades the efficiency of production
outdated technology to sterilize milk. Transfer of line. Several modern units also use highly efficient
separated milk is done manually in most small centrifugal separators/decanters which spin out most of the
units. Homogenizing is practically non-existent chunky insoluble fiber (i.e. okara) ensuring smoother, thinner
which leads to inconsistent texture of final liquid soymilk. Several modern systems ensure okara
product. Moreover most units do not deploy separation over 99.5%.
deodorizers for eliminating the beany smell and  Modern Milk Sterilization, Homogenization, Mixing and
flavor which comes in soy milk. Deodorizing: In modern units, extracted soymilk is passed

Rajasthan Agricultural Competitiveness Project 44


through steam heated pipes to cook the milk to kill any
bacteria, after which it is transferred to vacuum chamber to
enable ‘cool down’ of the sterilized milk. Most manufacturing
equipment is sealed to prevent any contamination from the
air. Thereafter, modern blenders/mixers with strong stirring
systems are used to blend sugar, food grade flavors and
colors, as well as vitamins and minerals. The well mixed
beverage is transferred in a refrigeration cum storage tank
where an agitator maintains the suspension of various
ingredients to keep them well mixed and preserved. The
soymilk is then again passed through steam heated pipes to
kill any microbes present in the same. After this the soymilk
is quickly cooled down with the help of modern Heat
Exchanger machine. A vacuum deodorizer is further used for
eliminating the beany smell and flavor which comes in soy
milk. Thereafter, it is passed through a Modern Homogenizer
which pushes the beverage through very small holes to
break down the fat, reducing the size of the particles. The
obtained soymilk beverage is then stored in a sterile tank
and is ready to be packaged.
Some of the leading suppliers and turnkey technology suppliers
for above machines include Prosoya (Canada), Takai Tofu and
Soymilk Company (Japan), Yung Soon Lih Food Machine
(Taiwan), Haryana Agro Industry (India), Pristine Plants India
(Pvt) Ltd. (India) and Pushpanjali Agro Tech (India) etc.
 Outdated method of tofu and yogurt
4. Tofu and Yogurt
production: Most micro units use Muslin cloth  Modern Tofu and Soy Yogurt making equipments:
Production or manual filter press to strain water after Advanced plants use pneumatic press and mould to prepare
Section coagulation of soymilk to obtain tofu. Thereafter tofu and mould shape, with precision and high speed. Often
obtained tofu is manually cut in desired shape in-built or separate pneumatic tofu cutters are used.
and immersed in water in vessel and often kept Similarly, modern and digitally controlled incubator
in a refrigerator. chambers are used by advanced plants to manufacture
Most micro units practice traditional domestic
yogurt in temperature monitored system.
dairy yogurt making process, without use of any
scientific incubation. Hence, often yogurt is a bit
‘runnier’ and less thicker than desired.
 Non Shelf Stable Packaging of soymilk: Some
5. Soymilk, Tofu and  Modern Multi-Head Automatic Liquid Filling Machines
micro units in the region practice manual filling of
Yogurt Packaging pouches and hand held pouch sealers to pack with Crown capping system and Automatic Bottle
not only curd and tofu, but also soymilk. Soymilk Labeling and Printing system: Modern large plants

Rajasthan Agricultural Competitiveness Project 45


sold in pouch needs proper refrigeration worldwide have deployed modern bottling system to ensure
throughout and generally the expiry period is zero human intervention. Multi-head liquid filling system
within 2-3 days of packaging. enables speedy filling before bottles move to crown capping,
 Manual Bottle Packaging: Other units generally labeling, printing stations and then to sterilization unit on an
pack soymilk in bottles, which is done either
automated conveyor system. Advanced semi-automatic
through a tap type system fitted with the finish
product tank or basic filling and crown capping versions of same are adopted by some small scale units in
system. Filled bottles are sterilized in India.
Autoclave/Sterilization system.
Some units, on order basis, also get job work (Pouch Form Fill Seal machines (used by several Dairy
done from service providers for modern dairy Companies) are generally not preferred even by large
plants. companies due to marketing constraints.)
 Manual packaging of Tofu and Curd in basic
packaging: Most micro units manufacture tofu  Modern Sterilization system: Modern sterilization devices
and curd on order basis and preserve same in advanced plants are built with most accurate monitoring
under refrigeration. Packaging is generally done systems, including temperature, pressure and time
with use of poly pouches or wraps. indication, so as to maintain security of the overall soybean
milk production line and plant.

 Modern Aseptic Shelf Stable Packaging of soymilk:


Modern Aseptic technologies enable and ensure safe,
nutritious and flavorsome soymilk. Aseptic technologies
ensure that both soymilk and packaging materials are free
from harmful bacteria. This means soymilk can be safely
kept for months without the need for preservatives or
refrigeration while retaining color, taste and nutrition.

 Modern Packing and Sealing system for Tofu and


Yogurt Packing: Water filled Tub Packing and Vacuum
packing for tofu is used by most advanced plants. Complete
automatic or semi-automatic systems are deployed. These
packaging machines enable tofu packing in strong and non-
permeable tubs. These sealed containers can be kept at
room temperature, until they are opened.

Modern cup fill and seal systems are used to pack yogurt
with precision in advanced plants. Several suppliers have
also developed complete automatic and semi-automatic
systems.
All the above packing machines enable speedy operations while
also ensuring complete food safety and accuracy. Some reputed

Rajasthan Agricultural Competitiveness Project 46


suppliers like Shanghai Precise Packaging Co. Limited (India),
HexaPack India Private Limited, Hassia Packaging, Nichrome
India Ltd., etc. could be considered for machinery selection.

6. Testing and other  Testing equipment comprising Spectro Colorimeter, pH


Most units do not have even basic testing equipment
support activities meter, moisture meter, Digital Viscometer, Refractometer,
for in-house quality check and control. On several
Universal Testing Machine, Kjheldal Apparatus, hot air
occasions, even such units are required to outsource
oven, ashing oven/muffle furnace, vortex stirrer,
certain tests from local as well as distant accredited
sedimentation shaker, NIR grain analyzer, precision
testing labs.
weighing scales, milk samplers, glassware and chemicals,
etc could be required by unit owner as per requirements.

 Some key tests like Moisture test (air oven method and IR),
protein content, Carbohydrate and Ash content test, pH
Content test, Fat content test, Viscosity test, Water
absorption test, Color test, etc may be conducted at shop
floor for effective quality control.
Dealers of some reputed manufacturers like Agilent and Presto
Testing could be considered for testing equipment.

7. Support  CIP system and control: Modern units use CIP systems,
 Inadequate cleaning systems: Most
Equipments, i.e. “Cleaning in Place”, in most parts of the unit where
mini/micro plants have poor cleaning systems
Engineering and soymilk is pumped and undergoes continuous processes.
to remove residue, soil and deposits from
Automation Some equipment still needs to be dismantled and manually
insides of the machines. Cleaning is mostly
cleaned, but wherever possible, CIP is the preferred choice.
“cleaning out of place”, or COP; i.e. all
In CIP, the equipment is not dismantled, but is cleaned in the
equipment is opened/dismantled and cleaned
same set-up as it was used during production. Cleaning
manually.
liquid is then circulated through the equipment in a cleaning
circuit.
 The support system majorly includes material
handling equipment (SS storage tanks and  The support structure and equipment play a highly important
frames, elevators, conveyors, etc.), aspiration role in the performance of the unit. Based on size and
system (aspirators, cyclone, airlock, fans, capacity, appropriate engineering with appropriate support
aspiration line and ducting, etc), machine structure and equipment need to be installed. Key suppliers
support structure, other mechanical fabricated like Prosoya (Canada), Takai Tofu and Soymilk Company
equipment and other support equipment (Japan), Yung Soon Lih Food Machine (Taiwan), Haryana
(compressors, water softeners, weighing Agro Industry (India), Pristine Plants India (Pvt) Ltd. (India),
scales, electrification, etc.). The quality of such Pushpanjali Agro Tech (India) etc. provide these systems on
equipment is highly critical for overall turnkey basis. Compressors of Atlas Copco, ELGI or of

Rajasthan Agricultural Competitiveness Project 47


performance of the units. However, in this similar repute make are highly preferred by modern units to
context many millers have sub-standard quality support packaging operations other pneumatic functions.
system which leads to leakages, clogging and
 Engineering of a soymilk plant depends on several factors
breakdowns and other related problems.
such as size/capacity, technology, type of raw material and
level of automation. The design decisions have a
 While some small soymilk plants have sound
tremendous impact on operational sanitation and
plant engineering, several others suffer from
maintenance. The plant layout should present a smooth,
improper set-up. On several occasions, wrong
orderly flow of raw materials or ingredients through each
engineering leads to unnecessary material
manufacturing phase on to the storage of the finished
travel also leading to high energy costs, low
product.
sanitation, low efficiency, additional manual
interventions, increased accident risks, low  All processes in soymilk plant can be optimized and
scope of expansion/modernization, etc. controlled through control panel i.e. automation. Process
optimization refers to operating plant optimally with economic
 Majority units have manual or semi-automatic performance in terms of productivity and yields. It also
processes. Though this has helped local avoids human errors. Scada and PLC systems are now
employment, yet several non-skill human integral part of soymilk industry. Key turnkey plant suppliers
interventions need up-scaling. Further, since like Prosoya (Canada), Takai Tofu and Soymilk Company
soymilk is highly sensitive to contamination, (Japan), Yung Soon Lih Food Machine (Taiwan), Haryana
high manual interventions lead to increased Agro Industry (India), Pristine Plants India (Pvt) Ltd. (India),
risks. Pushpanjali Agro Tech (India) etc. provide solutions on this
front as well.

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Chapter 5: Appropriate technology options

5.1. Appropriate technology options

5.1.1. Silo storage of soybean grains

Poor storage facility leads to infestation by pests


depending on various factors like moisture content of
soybean, relative humidity, temperature, storage,
structures, fumigation frequency etc. Silos play a
critical role in this context and may be considered as
an essential part of a pre-cleaning line.
The silo system for soybean (raw material for soymilk)
should ideally be built or configured according to DIN
1055 standards made in galvanized steel of 450 GSM
(grammas per cm square ft size coating). Galvanized
steel of 450 GSM will ensure longer life span of even 15-20 years of silos. Quality of raw material stored
in silos is stored in bulk directly in silos without use of gunny bags. This ensures reduced loss due to
rodents, wastage etc.
Typically, a 50 MT capacity silo comes with diameter of about 3.82 meters with height of over 11.03
meters and capacity of about 82.13 cu. meters. This volume can hold soybean of 50 MT based on bulk
density @ 600 kg/ m3 and 3% compaction. The silo comprises body of shallow corrugated panels,
galvanized outside stiffeners made from high tensile steel, hopper supporting and leg structure hot
dipped galvanized protection, vertical and roof ladder.
Silo accessories include sensors that are vibratory fork type high and low level indicators provided for
indicating the high and low levels of grain in a silo; and discharge gates in terms of manually operated
screw type discharge gates provided in the bottom of the silo for controlling the flow of grain. In
addition, accessories include catwalks, goal post and silo cap support ( for supporting the overhead
chain conveyor), receiving hopper, bucket elevator, supporting structure for elevator and holding bin for
cleaner; cyclone, rotary air lock, chain conveyors made of GI steel; transfer chutes, ducting, spouts and
waste product chutes. Equipment suppliers such as Fowler Westrup India Pvt. Ltd., Rostfrie Steels,
Westeel Silos, Buhler Group, Milltec Machinery, Bansal Group etc. have an established reputation in the
field of galvanized silos.

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5.1.2. Dry Soybean Tank
In smaller set-ups, where large GI steel silo is not a recommended
option, dry soybean tanks are essential. Dry soybean tank with
elevator or other transferring equipment ensures not only labor cost
savings, but also increased production efficiency with fixed transfer
quantity to fit the production capacity for de-hulling, washing and
grinding. The height of these tanks is around waist of operators, and
hence Soybean can be easily poured into the tank by the operator or
other material handling equipment. This, in a nutshell, reduces the risk associated with transportation
problems and occupational injuries.

5.1.3. Soybean De-huller (complete with aspiration and sifting system)


Soybean hulls are an obstruction to continued processing, especially in
decanter. Since soil bacteria are present in hulls, it is imperative to
remove hulls to ensure better shelf life and flavor. Further, soybean
hulls contain polysaccharides that not only cause off-flavors but are
also responsible for processing problems caused by foaming.
Additionally, the holding time of heat treatment of the soybeans to
inactivate undesired enzymes can be shortened when using dehulled
beans. This will decrease
protein denaturation and
browning of the soymilk, also leading to a white, attractive
and appetizing soymilk product. De-hulling (or
decortication) is the process of removing the hull of the
soybean seed. Typically, soymilk units need to decrease the
final fiber content in the end product to ensure removal of
any off colors and bitter taste, so de-hulling is the answer.
In the process, beans are passed through the roller mill, post which the beans are transfered to the
primary aspirator. The aspirator has a series of steps that the beans bounce on. The fan/cyclone
system is set to only vacuum off the hulls while the hulled beans fall through via gravity into the
conveyor. The cyclone picks up a combination of hulls as well as beans and deposits them into the
sifter/screener. The sifter/screener contains a series of screens that separates and classifies the
remaining hulls and hulled beans. The shaking action loosens everything and places them into various
streams, usually categorized as overs, unders, and discard. The overs/unders are conveyed to their own
aspiration systems complete with fans. They go through the same steps as primary aspiration but with
less aggressive settings to retrieve even more acceptable
quality beans.

5.1.4. Soybean Soaking and Washing Machine


Soybeans are required to be thoroughly washed and soaked
in three times their volume of water for a period to swell
them sufficiently. The soaking process softens the beans for
grinding and leaches out flatulence-causing oligosaccharides.
An advanced soybean cleaning and soaking system
comprises of a frame, a soybean soaking chamber, a drum-

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type cleaning machine and a screw feeder. The soybean cleaning and soaking system also includes a
material level sensor which detects the material level of soybeans in the soybean soaking chamber and
controllers which respectively controls the drum-type cleaning machine, the screw feeder and an
electrical control value. The beans are cleaned by the drum-type cleaning machine, and the cleaned
beans are transferred into the soaking chamber by the screw feeder. This system ensures that cleaning
efficiency is high, work intensity is low, and the cleaned soybeans contain little impurityso that the
quality of soymilk is greatly improved; in addition, the material level sensor arranged on the soybean
soaking chamber can accurately detect the added amount of soybeans in the soybean soaking chamber,
and hence the soaking quality is higher. Notably, if the beans are not cleaned well, bacteria and dust
from soybeans' skin will also enter the grinding section, and thus influence the taste and quality of
soymilk. The wet soybeans are then transferred to cooking and grinding section through an automatic
flow and suction system.

5.1.5. Soybean Cooking, Grinding and Milk Separating system


Soybeans must be cooked in order to invalidate or counteract a
specific enzyme that makes them indigestible to humans. This
cooking occurs in the Enzyme Invalidator in which the de-hulled
soybeans are cooked using high pressure, water, and high
temperature (creating very hot live steam) to invalidate that enzyme.
The cooked
soybeans then fall
into the first rough
grinder or mill.
Water is added to
the machine and the bean pieces are roughly ground in
this first milling. Although they have been ground once,
the cooked soybeans are still rather coarse. Thus, the fine
grinder further pulverizes the bean pellets into small
particles. The two stage grinding system generally uses
two type of grinding mills. The first one is a perforated
disc mill and the second one involves colloid mill system. The hot slurry is white in color with
minuscule particles of insoluble soybean particles.

A large centrifuge/decanter is then used to extract the tiny bits of


soybean that are insoluble and cannot be included in the finished
product. In a nutshell, in order to avoid chalkiness and obtain a good
mouth-feel of the soymilk, the insoluble fibres need be filtered. A
rubber roller presses the soy milk slurry
against the surface of a drum within
the centrifuge, forcing the liquid inside
the drum while the fibers remain on
the outside of the drum. Some modern decanters can achieve the highest
possible separation degrees, meaning that the residual sediment in the
soya milk is less than 0.5%. These soybean fibers are physically removed
from the production process at this time. Alternatively, an okara

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transportation machine is used to discharge okara. Okara, being adequately cooked, is also good source
of high quality protein with dietary fiber. Unless dried to a moisture level of 10% or lower, its shelf life
without refrigeration is rather limited. A separate process dries the okara for use other than human
consumption. It can further be dewatered using a belt press.

Some modern processes involve airless cold grinding of soybeans in water that keeps enzyme dormant
during the grinding phase to extract most soya solids in water. The enzyme is eventually inactivated
along with the trypsin inhibitors while cooking the soya-water slurry. The process thus prevents the
denaturing of soya protein and other solids and their adhesion to fibers in soybeans prior to or during
their extraction into water; the problem common to all processes employing hot grinding of raw beans
or cooked beans.

In several modern units, extracted soymilk is passed through steam heated pipes to further cook the
milk to kill any bacteria after which it is transferred to vacuum chamber to enable ‘cool down’ of the
sterilized milk. Most manufacturing equipment is sealed to prevent any contamination from the air. On
the other hand, some modern units also deploy separate cooking system, i.e. where cooking is not done
in same system of grinding and separation. Most modern soymilk cooking systems are designed with
highly precise and automatic temperature and pressure monitor.

5.1.6. Soymilk Blending/Mixing system (Flavoring and Formulation) and buffer tanks
One of the keys to increasing acceptance of soymilk is formulation,
using sweetening and flavoring agents suited for local tastes as well as
nutrients. The extracted soymilk is injected into large tanks and
flavorings, sugar, and vitamins are mixed separately in smaller tanks.
Ingredients of the smaller tank are infused into the larger tanks, thus
blending the flavors with the raw milk.

The well mixed beverage is transferred in refrigeration cum storage


tank where an agitator maintains the
suspension of various ingredients to
keep them well mixed and
preserved. These ‘buffer barrels’ are placed between head devices
and soluble sugar devices/blenders to avoid a great amount of
cooked soy milk to be poured into the next operation stage and thus
influence the quality of soymilk products. Therefore, they serve as
machines for temporary storage and transport the right amount of
soy milk to the next device in operation on the basis of device
capacity. Hence, the buffer barrels are the important mechanism for
soy milk production lines - a measure for quality management to
keep the lines in normal operation - and reduce the cost of maintenance and labor resources.

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5.1.7. Soymilk Homogenizer, ‘Cool down’ and Deodorizing system
The soymilk is again passed through steam
heated pipes to kill any microbes present in same.
After this the soymilk is quickly cooled down
with the help of modern Heat Exchanger
machine. A vacuum deodorizer is further used for
eliminating the beany smell and off flavor which
comes in soy milk. Thereafter, the same is passed
through a Modern Homogenizer which pushes
the beverage through very small holes to break
down the fat, reducing the size of the particles. Otherwise the fats will tend
to lump together, rise to the surface, and separate as distinct layer. Homogenization gives soymilk a
creamier appearance and taste and brings consistency to its composition. At the same time, soybean
milk is less prone to sedimentation and smoother to the taste. The obtained soymilk beverage is then
stored in a sterile tank and is ready to be packaged.

5.1.8. Tofu Press and Cutter


Once the soymilk is extracted (separated from okara), the milk is
pumped into coagulation tank. A coagulating agent is mixed in, such as
citric acid. The coagulant alters the pH and curds the milk much like
the process for making cottage cheese. This step takes about 20
minutes. Modern systems use
centrifuges or hydraulic presses to
drain off excess water, leaving soft
blocks of pressed curds. Tofu pressing
machine not only increases the
production's efficiency, but also
improves the production's sanitation. Automated cutters slice the cake
tofu into required weight blocks. The tofu blocks are washed in vats of
water where they firm up and are stored until they are ready to be packed.

5.1.9. Yogurt Incubator


Soy Yogurt Incubator follows a simple process to make yogurt wherein the
boiled soymilk is cooled to bring at room temperature. This cooled soymilk is
then mixed with bacterial culture which is used for the milk fermentation. After
the thorough mixing of the milk it is then filled in the plastic cups and incubated
to 30-35°C for about 2 to 4 hrs. Basically, the equipment helps in speeding up
the fermentation process.

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5.1.10. Soymilk, Tofu and Yogurt Packaging
Aseptic Packaging: A very important part of the production is the aseptic packaging of the product.
Packaging machines have been developed for this product that are able to mechanically package the
product without exposing it to air. The cooled milk is sent to this
packaging machine which has a ribbon of flat packaging
(cardboard) threaded into it. As the milk runs through the
machine, the packaging surrounds the milk and a cutter cuts
through the cardboard packaging and the milk, simultaneously
folding the package and sealing the milk within it. A machine
glues a plastic spout onto the sealed package. From here, the
product is sent to an automatic sorter that packs a case and
places it on a pallet.

Aseptic soymilk processing takes place before packaging with


very short heating and cooling times. The soymilk is heated to 275-300°F for 2-15 seconds. The product
is then cooled to filling temperature. Soymilk is now referred
to as UHT soymilk (Ultra High Temperature). Packaging
materials are sterilized through a heated hydrogen peroxide
bath. Hydrogen peroxide is then removed from the
packaging material using pressure rollers and hot, sterile air.
The filling and sealing machinery are also brought to and
maintained at a condition of commercial sterility before packaging occurs. This is achieved using hot air,
steam or hydrogen peroxide chemical sterilization. Post cooling, the UHT soymilk is packaged in a
special Tetra Pak aseptic container, sealing in the natural goodness of soymilk for many months. Aseptic
technologies ensure that the soymilk and packaging materials are free from harmful bacteria. This means
soymilk can be safely kept for months without the need for preservatives or refrigeration while retaining
color, taste and nutrition.

Modern Multi-Head Automatic Liquid Filling Machines, Crown capping system and
Automatic bottle Labeling and Printing system: Modern large plants worldwide have deployed
modern bottling system
to ensure zero human
intervention. Multi-head
liquid filling system
enable speedy filling
before bottles move to

crown capping,
labeling and printing stations and then to sterilization unit on a
automated conveyor system. Advanced semi-automatic versions of same
are adopted by some small scale units in India. Once bottles are packed,
they are then fed in Autoclave unit and treated (retorted- controlled
method to reduce microbial load) for 15 minutes at 121 Degree Celsius.

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Autoclave provides a physical method for disinfection and sterilization. It works with a combination of
steam, pressure and time. Autoclaves operate at high temperature and pressure in order to kill
microorganisms and spores. Autoclaved sterilized soymilk products have an expected shelf life of few
months or more with no refrigeration required. Packaging can also be done in plastic bottles specially
designed for autoclaving.

Tofu Vacuum Sealing and Tofu Tub Sealing Machines and Yogurt Cup Fillers and sealers: Tofu
may be packaged into shrink-wrapped blocks or
continuous thermo-form packages. Water may
be added to the packages, or tubs, and then they
are sealed,
weighed, and
dated. A Yogurt
Cup Filling and
Sealing Machine is
the technologically advanced line with smooth index or driven movement
of multi-positions rotary platform. These features make the machines the
best available solution for yogurt packaging. All the mentioned packaging
machines can be fitted with a CIP cleaning system and operated by a
computerized control system PLC.
Quality Control and Testing Equipments: Testing equipment comprising Spectro Colorimeter, pH
meter, moisture meter, Digital Viscometer, Refractometer, Universal Testing Machine, Kjheldal
Apparatus, hot air oven, ashing oven/muffle furnace, vortex stirrer, sedimentation shaker, NIR grain
analyzer, precision weighing scales, milk samplers, glassware and chemicals, etc could be required by unit
owner as per requirements.

Functionality and importance of some of these equipments: A Spectro Colorimeter is testing equipment
used to provide color measurements, comparisons, and reporting of soymilk
and tofu which makes testing and managing color consistency from product
lot to lot easy and reliable. A pH meter is a scientific instrument that
measures the hydrogen-ion activity in soymilk, indicating its acidity or
alkalinity expressed as pH. Digital Viscometers are used to determine the
viscosity of a soymilk under specific flow and atmospheric conditions. A
Refractometer is used to measure the percentage of soluble solids of
soymilk. A Universal Testing Machine is used for hardness determination of
Tofu.

Some key tests like Moisture test (air oven method and IR), protein content, Carbohydrate and Ash
content test, pH Content test, Fat content test, Viscosity test, Water absorption test, Color test, etc may

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be conducted at shop floor for effective quality control. Dealers of some reputed manufacturers like
Agilent and Presto Testing could be considered for testing equipments.

5.1.11. Support Equipments, Engineering and Automation


CIP system and control: Modern units use CIP systems, i.e. “Cleaning in Place”, in most parts of the
unit where soymilk is pumped and undergoes continuous processes.
Some equipment still needs to be dismantled and manually cleaned, but
wherever possible, CIP is the preferred choice. In CIP the equipment is
not dismantled, but is cleaned in the same set-up as it was used during
production. Cleaning liquid is then circulated through the equipment in
a cleaning circuit. CIP is an important component in guaranteeing food
safety in food processing plants. Successful cleaning between
production runs avoids potential contamination and products that don’t
meet quality standards. In a nutshell, by eliminating the repeated and unnecessary opening of equipment,
one can drastically reduce both spare parts consumption and the number of man-hours required for
cleaning.

Supporting Equipments and accessories: The support structure and equipments play a highly
important role in the performance of the unit. Based on size and capacity, appropriate engineering with
appropriate support structure and equipments need to be installed. Supporting equipments include
material flow and handling systems, Water softeners, Weighing Scales, Compressors, Deep Freezers,
motors and fittings. Key suppliers like Prosoya (Canada), Takai Tofu and Soymilk Company (Japan),
Yung Soon Lih Food Machine (Taiwan), Haryana Agro Industry (India), Pristine Plants India (Pvt) Ltd.
(India), Pushpanjali Agro Tech (India) etc. provide these systems on turnkey basis. Compressors of
Atlas Copco, ELGI or similar repute make are highly preferred by modern units to support packaging
operations other pneumatic functions.

Engineering: Engineering of a soymilk plant depends on several factors such as size/capacity,


technology, type of raw material and level of automation. The design decisions have a tremendous
impact on operational sanitation and maintenance. The plant layout should present a smooth, orderly
flow of raw materials or ingredients through each manufacturing phase on to the storage of the finished
product. Moreover, the key principles that govern benchmarking in material handling and support
equipments are: high efficiency, low power consumption, easy and minimum maintenance, durability
and long lifetime, smooth operation, movement direction control switch for safety precaution.

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Modern Soymilk Plant Engineering and Layout

Automation: All processes in soymilk plant can be optimized and controlled through control panel i.e.
automation. Process optimization refers to operating plant
optimally with economic performance in terms of productivity
and yields. It
also avoids
human errors.
Scada and PLC
systems are now
integral part of
soymilk industry. Automation ultimately leads to
productivity and ease of operation. New concept of
Internet of things (IoT) has a great potential to make
manufacturing process smarter and predictive. The
Internet of Things is also becoming a part of food
industry and it cannot be ignored that skilled/ technical workforce will be a challenge for future. IoT as
such monitors system, diagnoses problems and provides actionable information which in turn helps
prevent problems both on Material and Equipment side. It allows operator to identify problem before it
happens and take diagnostic action.

Key turnkey plant suppliers like Prosoya (Canada), Takai Tofu and Soymilk Company (Japan), Yung
Soon Lih Food Machine (Taiwan), Haryana Agro Industry (India), Pristine Plants India (Pvt) Ltd.
(India), Pushpanjali Agro Tech (India) etc. provide solutions on this front as well.

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Chapter 6: SWOT of technology

6.1. SWOT Analysis of the technology

The SWOT analysis of the modern technology in Soymilk technology proposed in the above chapter is
as under:

Strength Weakness
1. Modern technology facilitates higher 1. The adoption rate of latest technology
efficiency and productivity. innovation could be low among the
2. Use of modern storage systems will ensure entrepreneurs due to relatively high capital
proper hygiene and highly reduced investment involved.
incidences of leakages, improper handling of 2. Lack of awareness among the general public
material, and various other factors that lead belonging to all classes, ages and groups
to losses in storage. about the value and role of soybean and its
3. Use of modern CIP system eliminates products as indispensable part of daily diet,
impurities that pose a significant health and in providing vitamins, minerals and proteins,
safety risk. is a major challenge.
4. The use of modern technology may help 3. Rajasthan being rich in dairy also has
reduce the yield losses. consumer inclination towards consumption of
5. Use of modern decanters/centrifuge cow/buffalo milk.
eliminates impurities which impact 4. Majority Indians, who are lactose intolerant,
downstream machine efficiency. either are not aware that they are lactose
6. Modern separation methods facilitate intolerant or even if they know they do not
relatively higher separation of liquid soymilk, switch to dairy alternatives easily and avoid
thus ensuring higher recovery. all dairy/dairy substitutes.
7. Relatively low competition in micro and small 5. Advertising and promotional measures to
scale segment. increase the sales are also a weak point of
8. The use of modern technology will enable the industry.
production of premium quality soymilk, which 6. Modern technology with higher capacities
will help link with premium consumer also increases working capital requirements.
segment and may fetch better margins. 7. Mere adding of few recommended machines
9. New age machines, having small footprint, in an existing traditional unit may not yield
facilitate optimum space utilization for plant optimum results due to capacity
installation. mismatch/disequilibrium in complete process.
10. Use of two stage grinding with larger 8. Lack of awareness regarding the latest
throughput capacities ensure higher innovations in the soymilk production process
production and reduced breakdowns, as well is another reason for low rate of adoption
most precise grinding for maximum milk among entrepreneurs.
recovery. 9. Lack of proper backward integration or even
11. Soymilk machines are built of complete non- irregular supply of raw material discourages
corrosive material, i.e. stainless steel, which some entrepreneurs to invest in modern
further supports the food safety approach. technologies with large capacities.
12. Soymilk base lends itself to making several 10. The cost of other inputs like packaging
value added products like tofu, yogurt, soy- material, fuel, and transportation is high
cream, soy ice-cream and soymilk base making cost of production to rise.
chocolates, energy bars and sweets. 11. The period of soybean availability is very

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13. Modern packaging methods significantly short during season. Bulk procurement
reduce man hours spent on the activity, while during season means high working capital
considerably increasing the accuracy. requirement and large storage capacities.
14. Scientific design and engineering of modern Alternative model of purchase as per
soymilk plant facilitates optimum space requirement (i.e. Pest and quality problems in
utilization, reduced leakages, reduced power soybean apart from high prices problems in
consumption (by power saving in processes), procuring the raw material are also there.
better product output and manpower safety. 12. Existing micro scale millers have units set up
15. Automation in the plant can decrease the in limited spaces. Modernization may require
dependency on the labour contractors. It also larger area in some cases.
ensures minimum human handling of 13. New technologies require manpower to
products. upgrade their skills for handling operations. In
16. Automation can also help real-time some cases, such skilled labour may not be
identification of problems and immediate easily available locally or only higher
trouble shooting. remuneration could attract such manpower.
14. Initial high cost could be incurred in launching
soymilk product brands.
15. Introduction of household soymilk makers
and wider use by consumers will lead to
lowering of demand in markets.
Opportunity Threat
1. Scope for technology upgradation. 1. Automation does leads to fewer jobs
2. Large scope of tapping the “Protein rich- (especially for unskilled jobs).
lactose free-healthy” products market. 2. Some entrepreneurs in other states who had
3. Key schemes of Central Govt. (like Kisan set-up units have suffered losses and even
Sampada, etc) and State Govt. could be have closed down. One of the most major
utilized to set up most modern plants. problems being faced is/was poor capacity
4. Changes in lifestyle, such as longer work utilization which is often even below 40%.
hours, higher disposal incomes, growth in This often is even below to the break-even
online purchase, impulse purchase, working levels.
women, convenience lifestyle, etc have 3. Industry operates under high speculation
increased the demand for packaged mode due to numerous domestic and global
beverages. factors.
5. Branding offers huge potential for product 4. Branded products have high visibility and
promotion. acceptance due to their constant high cost
6. Increased interest in health and nutrition is marketing efforts. Even on shelf, consumers
creating demand for some properly often chose these brands due to familiarity
processed and packaged soymilk products. with these brands.
7. FPOs can invest in mini versions of 5. Competition with large players often also
recommended technologies, which are means thin margins in marketing of products.
developed by some Institutes like 6. Rapid developments in contemporary
CFTRI/KVKs and even other reputed private markets and requirements of the industry
players. may lead to fast obsolescence. Technology
8. FPOs who upgrade with mini mills will be once obsolete would require re-investment
able to produce quality products and directly for up-gradation.
penetrate in premium markets. 7. Technology breakdown for a longer period
9. FPOs can also tap opportunity of soymilk for may have much higher cost implications than
malnourished children programs or a labor intensive firm.
distribution in school programs.
10. Opportunity to penetrate the growing market
of packaged soymilk value added products.
11. Niche yet increasing market demand for
soymilk products with better quality
standards- with least contamination.
12. Higher value realization to units by way of
higher yields and production of premium
quality soymilk products.
13. Scope of large scale backward integration
with Farmers Groups/FPOs to integrate
procurement and production and marketing
operations.

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14. Opportunity to custom process for larger
players in market: Custom milling/processing
offers three specific advantages to the
soymilk products marketer (1) Ability to
customize products to the specific
requirement of a particular market (2)
Flexibility to upscale or downscale production
volumes in line with seasonal variations in
demand in the shortest possible time and (3)
a cost advantage due to differential labour
costs structure.
15. By using print and electronic media, attempt
could be undertaken to increase public
awareness of the health and nutritional
benefits of Soy, emphasizing in particular
that soy food is inexpensive and can help to
eliminate both malnutrition and chronic
diseases associated with over nutrition. Part
of this effort should be to assure the public
and medical communities that soy is safe
and concerns expressed by some segments
of society that soy adversely affects growth
and the reproductive life of men or women
are without scientific merit.
16. It could be (rather should be) publicized that
soy based beverages are most effective in
alleviating malnutrition among children,
lactating and expecting mothers and would
be of significant value in minimizing low birth
weight of children in the country.
17. Industries could club up and jointly advertise
and promote the soymilk and products in
international market.
18. Soymilk and products could be promoted as
generic products and their promotion could
emphasize on the health benefit of Soy
rather than the advertisement of a particular
company’s product.
19. Soymilk products could be made even more
available on the supermarkets shelves so as
to create awareness among the customers
regarding its uses.

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Chapter 7: Indicative project profile for
Rajasthan

Indicative project Profiles

This section of the report outlines three project profiles that could be referred by entrepreneurs to select
their most suitable option. Broadly, one micro scale, one small scale (relatively low investment) and one
small scale (relatively high investment) option have been showcased primarily to suit the investment
capabilities of the entrepreneurs. Section 7.1, 7.2 and 7.3 of this chapter individually showcase the
financial feasibility of these projects.

a. Section 7.1 highlights a micro scale model, which can be pursued as guiding model by small
farmers or individual entrepreneurs, farmer groups, farmer producer association/companies.
The technology proposed for this segment involves Mini Semi-Automatic 150 Litres per hour
capacity Soymilk Processing unit which comprises of Soya Bean Grinder and Milk Separator,
Soya milk Sterilizer, Soya Milk boiling Equipment, Soya Milk Transfer Pump with fitting, SS
Balance tank, SS Machine Frame, Accessories Kit, Mixing Tank SS, Manual Tofu Press, Liquid
Filling Machine, Glass Bottle Sterilizer, Crown Capping Machine, Tofu Coagulation Tank, Tofu
Cutter, Tofu Table - Alloy top, Pouch Sealing Machine for Yogurt and tofu, Deep Freezer,
Basic Testing Machines, Water Softener and filter, Weighing scales and Electrification. The total
cost of the complete set of Main P&M, on basis of some referred quotations of leading
suppliers in the segment, is Rs. 7.37 Lakhs. This cost is inclusive of taxes, transportation,
installation and commissioning charges.
b. Section 7.2 showcases a small scale (relatively low investment) model that can be pursued as
guiding model by small scale entrepreneurs, farmer producer association/companies. The
technology proposed for this segment involves Semi-Automatic 250 Litres per hour capacity
Soymilk Processing unit which comprises of Soya Bean Grinder and Milk Separator, Soya milk
Sterilizer, Soya Milk boiling Equipment, with LPG fired, Soya Milk Transfer Pump with
fitting, SS Balance tank, SS Machine Frame, Accessories Kit, Belt Press for okara, Mixing Tank
SS, Soymilk Homogenizer, Deodorizer, Soymilk Plate Heat Exchanger Machine, SS
Balance/Buffer Tanks, Pneumatic Tofu Press, Liquid Filling Machine, Glass Bottle Sterilizer,
Crown Capping Machine, Bottle Labeling and Printing System, Tofu Coagulation Tank, Tofu
Cutter, Tofu Table - Alloy top, Curd Making Unit-Digitally controlled with fan & timer.-
Incubation Chamber, Pouch Sealing Machine for Yogurt, Vacuum Packing Machine, Deep
Freezer, Compressor for Pneumatics and packing machines, Basic Testing Machines, Water

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Softener and filter, Weighing scales, SS Pipeline and Electrification. The total cost of the
complete set of Main P&M, on basis of some referred quotations of leading suppliers in the
segment, is Rs. 20.59 Lakhs. This is inclusive of taxes, transportation, installation and
commissioning charges.
c. Section 7.3 showcases a small scale fully automatic (relatively high investment) model, which
can be pursued as guiding model by some small scale entrepreneurs or institutions. The
technology proposed for this segment involves Fully Automatic 1000 Litres per hour capacity
Soymilk Processing unit which comprises of Dry Beans Tank with Elevator, Soaking and
Washing Machine, Soybean De-huller - complete set with aspirator, blowers, etc., Multi fuel
Steam Boiler, Soya Bean Grinder and Milk Separator, Centrifuge/Decanter, Belt Press for
okara, Transfer Pump with fittings, Soya milk Sterilizer, Flavor Milk Mixing Machine, Soymilk
Homogenizer, Deodorizer, Soymilk Plate Heat Exchanger Machine, Soymilk Storage Tank (SS)
cum Refrigerator Cum Agitator system, SS Balance/Buffer Tanks, SS Machine Frame,
Automatic Liquid Filling Machine (Double Head), Glass Bottle Sterilizer/Autoclave with boiler,
Crown Capping Machine, Automatic Bottle Labeling and Printing System, Tofu Coagulation
Tank, Tofu Press - Pneumatic (with compressor) cum mould, Tofu Cutter, Tofu Table - Alloy
top, Curd Making - Digitally controlled with fan & timer- Incubation Chamber, Pouch Sealing
Machine for Yogurt, Cup filling Machine, Cup Sealer, Vacuum Packing Machine, Deep Freezer,
Compressor for Pneumatics and packing machines, Testing Equipments, Automation with
PLC, Water Softener and Purifier, Weighing Scales (of various weight capacities), Generator, SS
Pipeline, CIP Cleaning Mechanism (complete SS) and Electrification. The total cost of the
complete set of Main P&M, on basis of some referred quotations of leading suppliers in the
segment, is Rs. 72.92 Lakhs. This is inclusive of taxes, transportation, installation and
commissioning charges.
7.1 Project Profile 1: Micro Scale Unit

7.1.1. Premises of Calculation- Suggested Model


(a) Details of Technical Civil Works/ Building Cost
Sr. No Particulars Plan Area- Rate/ sq. ft. Amount
Sq. Ft. (in Rupees)
1 Factory Civil and Shed Works 2000 700 1,400,000.00
2 Boundary chain link and minor civil work Lump sum 100,000.00
Total (in Rupees) 1,500,000.00
(a) Plant & Machinery Breakup
Sr. No. Item Capacity Amount
(in Rupees)
1 Main Plant & Machinery 150 LPH 737,400.00
Total INR 737,400.00
 The technology proposed for this segment involves Mini Semi-Automatic 150 Litres per hour
capacity Soymilk Processing unit which comprises of Soya Bean Grinder and Milk Separator,
Soya milk Sterilizer, Soya Milk boiling Equipment, Soya Milk Transfer Pump with fitting, SS
Balance tank, SS Machine Frame, Accessories Kit, Mixing Tank SS, Manual Tofu Press, Liquid
Filling Machine, Glass Bottle Sterilizer, Crown Capping Machine, Tofu Coagulation Tank, Tofu
Cutter, Tofu Table - Alloy top, Pouch Sealing Machine for Yogurt and tofu, Deep Freezer,
Basic Testing Machines, Water Softener and filter, Weighing scales and Electrification.

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 Other Assumptions
Assumptions
1 Working Hours per day 10 hours
2 Plant Capacity /Day 150 LPH Grinding capacity
(one batch of 150 Ltrs, with batch time of 2 hours)
3 No. of Working Days in a year 300
4 Power Requirement 25 KVA
5 Standard Packaging for Main Products Bottle with crown cap, seal and label for Flavored Soymilk, Pouch
& By-Products Packing for Tofu and Soy-Yogurt, pp/jute bag (used bags) for
Okara
6 Insurance Exp Considered on Plant & 0.5% of Capex
Mach, Building
7 Inflation assumed annually 5% annually
8 Debtors 10 Days of Sales
9 Stock of Finished Goods 10 Days for soymilk, 3 days for tofu and yogurt, 2 days for okara
10 Stock of Raw Material 15 days Consumption

7.1.2. Project Cost


Sr. No. Particulars Amt (in Rs .)
1 Land -
2 Building & other civil works 1,500,000.00
3 Plant & Machinery 737,400.00
4 Misc Fixed Assets 80,000.00
5 Preliminary & Pre operative 25,000.00
6 Working Capital 109,914.00
Total 2,452,314.00
 The Total Project Cost is Rs. 24.52 Lakhs
 It is assumed that upon considering the requirement by way of buildings and other civil works,
installation of machinery and provision for stocking material, it is perceived that a suitable plot
of land will be leased by entrepreneur.
 Miscellaneous fixed assets include Electrical fixtures, Safety Gear for operators and Shop-floor
Employees, Bottle Crates, furniture, etc which are pegged at Rs. 80,000.
 Preliminary expenses and Preoperative expenses are pegged at Rs. 25,000.
 The Total Working Capital requirement during the first year of operation is estimated at Rs.
4.40 Lakhs with margin money requirement of Rs. 1.10 Lakhs. Calculations of same are
presented in section 7.1.12.

7.1.3. Means of Finance


Sr. No. Particulars Amt (in Rs .)
1 Bank Term Loan 1,400,000.00
2 Promoter's Capital 1,052,314.00
3 RACP Grant -
Total 2,452,314.00
 It is assumed that Rs 14.00 Lakhs will be sought as Term Loan from Bank.
7.1.4. Product Schedule
Particulars Y1 Y2 Y3 Y4 Y5
Grinding Capacity (Ltrs/Hour) 150 150 150 150 150
No. of working hours per day 10 10 10 10 10
Working Days in Year 300 300 300 300 300

Rajasthan Agricultural Competitiveness Project 63


Batch time for one lot (in hours) 2 2 2 2 2
Soymilk base Produced in one 150 150 150 150 150
batch
Total Batches per day 5 5 5 5 5
Total Annual Capacity of production 225000 225000 225000 225000 225000
of Soymilk base in Ltrs (@ 100% CU)
Soybean in kg, required for 1 day 107 107 107 107 107
operations (@100% CU)
Annual Soybean Requirement (in Kg) 32100 32100 32100 32100 32100
@ 100% CU (with 1 kg required for 7
ltrs of soymilk base)
Capacity Utilization 75.00% 80.00% 85.00% 90.00% 95.00%
Total Input of Cleaned and Graded 24075 25680 27285 28890 30495
Soybean (in Kg)
Output (Ltrs/Kg)
Flavored Soymilk (Ltrs) 151875 162000 172125 182250 192375
Tofu (KG) 1205 1286 1366 1446 1527
Soy-Yogurt (Ltrs) 5653 6030 6407 6784 7161
Okara (KG) 24075 25680 27285 28890 30495
Soybean (in kg) processed / day 107 107 107 107 107
No. of days of operation 225 240 255 270 285

7.1.5. Purchase Schedule


Particulars Y1 Y2 Y3 Y4 Y5
Cleaned & Graded 25078 25747 27352 28957 30562
Soybean
Purchase Price (in 32 34 36 38 40
Rs./kg)
Soybean Purchases (in Rs.)
802,496.00 875,398.00 984,672.00 1,100,366.00 1,222,480.00
Total Purchases (in Rs.)
802,496.00 875,398.00 984,672.00 1,100,366.00 1,222,480.00

Rajasthan Agricultural Competitiveness Project 64


7.1.6. Consumables
a. Packaging Material
Packaging Material No. of units Cost of Units (in Rs.)
Size Type Product Rate Y1 Y2 Y3 Y4 Y5 Y1 Y2 Y3 Y4 Y5
/unit
200 ml Bottle with Flavored 4 759375 810000 860625 911250 961875 3037500 3240000 3442500 3645000 3847500
crown cap, Soymilk
seal and
label
1 kg Pouch Tofu 1 1205 1286 1366 1446 1527 1205 1286 1366 1446 1527
Packing
500 ml Pouch Soy-Yogurt 1 11306 12060 12814 13568 14322 11306 12060 12814 13568 14322
Packing
100 kg pp/jute bag Okara 30 241 257 273 289 305 7230 7710 8190 8670 9150
(used bags)
3057241 3261056 3464870 3668684 3872499

b. Other Consumables (in Rs.)


Consumable Y1 Y2 Y3 Y5 Y6
Sugar 15187.5 16200 17212.5 18225 19237.5
Flavor essence 303750 324000 344250 364500 384750
Flavor Color 151875 162000 172125 182250 192375
Citric Acid 5061 5401 5737 6073 6413
Gas for Boiler 101250 108000 114750 121500 128250
Total 577123.5 615601 654074.5 692548 731025.5
7.1.7. Power Requirement
The total requirement of the plant (including admin building power req.) is 25 kva.

7.1.8. Water Requirement


Water (for factory 5250 Liters/day
ops)
Human 1750 Liters/day
Consumption
total 7000 Liters/day
cost/kl= Rs. 10/kl i.e. Rs. 70 Daily

Rajasthan Agricultural Competitiveness Project 65


7.1.9. Manpower Requirement
# Particulars No. Monthly Salary Annual Income Dept.
1 Director/Miller 1 15,000.00 180,000.00 Admin
2 Plant Operators 1 8,000.00 96,000.00 factory
3 Fitters 1 6,000.00 72,000.00 factory
4 Accountant 1 8,000.00 96,000.00 Admin
5 Sales Executives 1 12,000.00 144,000.00 Admin
6 Admin Staff 1 8,000.00 96,000.00 Admin
7 Storekeeper 1 8,000.00 96,000.00 factory
8 Security Staff 1 8,000.00 96,000.00 Admin
Total 8 146,000.00 876,000.00
9 Helpers 3 300/day factory
Total Manpower 11

7.1.10. Depreciation Schedule


Particulars Building Plant & Machinery Misc Fixed assets Total Rs.
Rate of Depreciation 10% 15% 10%

Opening WDV 1,500,000.00 737,400.00 80,000.00 2,317,400.00


Total 1,500,000.00 737,400.00 80,000.00 2,317,400.00
Dep. For 1st Year 150,000.00 110,610.00 8,000.00 268,610.00
W.D.V. as on II Year 1,350,000.00 626,790.00 72,000.00 2,048,790.00
Dep. For 2st Year 135,000.00 94,020.00 7,200.00 236,220.00
W.D.V. as on III Year 1,215,000.00 532,770.00 64,800.00 1,812,570.00
Dep. For 3rd Year 121,500.00 79,920.00 6,480.00 207,900.00
W.D.V. as on IV Year 1,093,500.00 452,850.00 58,320.00 1,604,670.00
Dep. For 4th Year 109,350.00 67,930.00 5,830.00 183,110.00
W.D.V. as on V Year 984,150.00 384,920.00 52,490.00 1,421,560.00
Dep. For 5th Year 98,420.00 57,740.00 5,250.00 161,410.00
W.D.V. as on VI Year 885,730.00 327,180.00 47,240.00 1,260,150.00

7.1.11. TL Repayment Schedule


Loan Amount 1,400,000.00
Rate 11.00%

Monthly Loan amount Monthly Repayment' Interest Total Instl. Closing Bal

Rajasthan Agricultural Competitiveness Project 66


1 1,400,000.00 23,333.33 12,619.44 35,952.77 1,376,666.67
2 1,376,666.67 23,333.33 12,405.56 35,738.89 1,353,333.33
3 1,353,333.33 23,333.33 12,191.67 35,525.00 1,330,000.00
4 1,330,000.00 23,333.33 11,977.78 35,311.11 1,306,666.67
5 1,306,666.67 23,333.33 11,763.89 35,097.22 1,283,333.33
6 1,283,333.33 23,333.33 11,550.00 34,883.33 1,260,000.00
7 1,260,000.00 23,333.33 11,336.11 34,669.44 1,236,666.67
8 1,236,666.67 23,333.33 11,122.22 34,455.55 1,213,333.33
9 1,213,333.33 23,333.33 10,908.33 34,241.66 1,190,000.00
10 1,190,000.00 23,333.33 10,694.44 34,027.77 1,166,666.67
11 1,166,666.67 23,333.33 10,480.56 33,813.89 1,143,333.33
12 1,143,333.33 23,333.33 10,266.67 33,600.00 1,120,000.00
13 1,120,000.00 23,333.33 10,052.78 33,386.11 1,096,666.67
14 1,096,666.67 23,333.33 9,838.89 33,172.22 1,073,333.33
15 1,073,333.33 23,333.33 9,625.00 32,958.33 1,050,000.00
16 1,050,000.00 23,333.33 9,411.11 32,744.44 1,026,666.67
17 1,026,666.67 23,333.33 9,197.22 32,530.55 1,003,333.33
18 1,003,333.33 23,333.33 8,983.33 32,316.66 980,000.00
19 980,000.00 23,333.33 8,769.44 32,102.77 956,666.67
20 956,666.67 23,333.33 8,555.56 31,888.89 933,333.33
21 933,333.33 23,333.33 8,341.67 31,675.00 910,000.00
22 910,000.00 23,333.33 8,127.78 31,461.11 886,666.67
23 886,666.67 23,333.33 7,913.89 31,247.22 863,333.33
24 863,333.33 23,333.33 7,700.00 31,033.33 840,000.00
25 840,000.00 23,333.33 7,486.11 30,819.44 816,666.67
26 816,666.67 23,333.33 7,272.22 30,605.55 793,333.33
27 793,333.33 23,333.33 7,058.33 30,391.66 770,000.00
28 770,000.00 23,333.33 6,844.44 30,177.77 746,666.67
29 746,666.67 23,333.33 6,630.56 29,963.89 723,333.33
30 723,333.33 23,333.33 6,416.67 29,750.00 700,000.00
31 700,000.00 23,333.33 6,202.78 29,536.11 676,666.67
32 676,666.67 23,333.33 5,988.89 29,322.22 653,333.33
33 653,333.33 23,333.33 5,775.00 29,108.33 630,000.00
34 630,000.00 23,333.33 5,561.11 28,894.44 606,666.67
35 606,666.67 23,333.33 5,347.22 28,680.55 583,333.33
36 583,333.33 23,333.33 5,133.33 28,466.66 560,000.00
37 560,000.00 23,333.33 4,919.44 28,252.77 536,666.67
38 536,666.67 23,333.33 4,705.56 28,038.89 513,333.33

Rajasthan Agricultural Competitiveness Project 67


39 513,333.33 23,333.33 4,491.67 27,825.00 490,000.00
40 490,000.00 23,333.33 4,277.78 27,611.11 466,666.67
41 466,666.67 23,333.33 4,063.89 27,397.22 443,333.33
42 443,333.33 23,333.33 3,850.00 27,183.33 420,000.00
43 420,000.00 23,333.33 3,636.11 26,969.44 396,666.67
44 396,666.67 23,333.33 3,422.22 26,755.55 373,333.33
45 373,333.33 23,333.33 3,208.33 26,541.66 350,000.00
46 350,000.00 23,333.33 2,994.44 26,327.77 326,666.67
47 326,666.67 23,333.33 2,780.56 26,113.89 303,333.33
48 303,333.33 23,333.33 2,566.67 25,900.00 280,000.00
49 280,000.00 23,333.33 2,352.78 25,686.11 256,666.67
50 256,666.67 23,333.33 2,138.89 25,472.22 233,333.33
51 233,333.33 23,333.33 1,925.00 25,258.33 210,000.00
52 210,000.00 23,333.33 1,711.11 25,044.44 186,666.67
53 186,666.67 23,333.33 1,497.22 24,830.55 163,333.33
54 163,333.33 23,333.33 1,283.33 24,616.66 140,000.00
55 140,000.00 23,333.33 1,069.44 24,402.77 116,666.67
56 116,666.67 23,333.33 855.56 24,188.89 93,333.33
57 93,333.33 23,333.33 641.67 23,975.00 70,000.00
58 70,000.00 23,333.33 427.78 23,761.11 46,666.67
59 46,666.67 23,333.33 213.89 23,547.22 23,333.33
60 23,333.33 23,333.33 - 23,333.33 (0.00)
TOTAL - 676,666.67 279,125.00 955,791.67 -

7.1.12. Projected Working Capital Requirement


Particulars Y1 Y2 Y3 Y4 Y5
Debtors 229,767.00 264,839.00 294,964.00 326,699.00 360,071.00
Stock of F.G 211,230.00 236,574.00 263,462.00 291,471.00 321,180.00
Stock of R.M 32,096.00 36,380.00 40,932.00 45,752.00 50,840.00
Less Creditor 33,437.00 36,475.00 41,028.00 45,849.00 50,937.00
Total Working Cap Required 439,656.00 501,318.00 558,330.00 618,073.00 681,154.00
W.C Margin 109,914.00 125,330.00 139,583.00 154,518.00 170,289.00
W.C Loan 329,742.00 375,988.00 418,747.00 463,555.00 510,865.00

7.1.13. Sales Schedule


# Particulars Y1 Y2 Y3 Y4 Y5

Rajasthan Agricultural Competitiveness Project 68


1 Flavored Soymilk 146812 161663 171787 181913 192037
(Ltrs)
Sale Price (in Rs. Per 40 42 44 46 48
Ltr)
Flavored Soymilk 5,872,480.00 6,789,846.00 7,558,628.00 8,367,998.00 9,217,776.00
Sales
2 Tofu (KG) 1193 1285 1365 1446 1526
Sale Price (in Rs. Per 220 231 243 255 268
kg)
Tofu Sales 262,460.00 296,835.00 331,695.00 368,730.00 408,968.00
Soy-Yogurt (Ltrs) 5596 6027 6403 6780 7157
3 Sale Price (in Rs. Per 50 53 56 59 62
Ltr)
Soy-Yogurt Sales 279,800.00 319,431.00 358,568.00 400,020.00 443,734.00
4 Okara (KG) 23914 25670 27274 28879 30485
Sale Price (in Rs. Per 20 21 22 23 24
kg)
Okara Sales 478,280.00 539,070.00 600,028.00 664,217.00 731,640.00
Total Sales 6,893,020.00 7,945,182.00 8,848,919.00 9,800,965.00 10,802,118.00

7.1.14. Projected Balance Sheet


Particulars Y1 Y2 Y3 Y4 Y5
(A) LIABILITIES
Partner's Capital 1,052,314.00 1,052,314.00 1,052,314.00 1,052,314.00 1,052,314.00
Add: Addition During the Year - - - - -
Total Capital 1,052,314.00 1,052,314.00 1,052,314.00 1,052,314.00 1,052,314.00
Reserves & Surplus
RACP Grant - - - - -
Profit & Loss
Opening Balance - 516,336.51 1,380,908.16 2,603,898.83 4,209,197.11
Add: Profit after tax 516,336.51 864,571.65 1,222,990.67 1,605,298.28 2,012,911.68
Total 516,336.51 1,380,908.16 2,603,898.83 4,209,197.11 6,222,108.79
Secured Loan From Bank 1,400,000.00 1,400,000.00 1,400,000.00 1,400,000.00 1,400,000.00
W. Capital Loan 329,742.00 375,988.00 418,747.00 463,555.00 510,865.00
Current Liability 33,437.00 36,475.00 41,028.00 45,849.00 50,937.00
Total ( A ) 3,331,829.51 4,245,685.16 5,515,987.83 7,170,915.11 9,236,224.79
(B) ASSETS

Rajasthan Agricultural Competitiveness Project 69


Fixed Assets
Gross Block 2,317,400.00 2,048,790.00 1,812,570.00 1,604,670.00 1,421,560.00
Less : Depreciation 268,610.00 236,220.00 207,900.00 183,110.00 161,410.00
Net Block 2,048,790.00 1,812,570.00 1,604,670.00 1,421,560.00 1,260,150.00

Misc Fixed Assets 20,000.00 15,000.00 10,000.00 5,000.00 -


Current Assets
Sundry Debtor 229,767.00 264,839.00 294,964.00 326,699.00 360,071.00
229,767.00 264,839.00 294,964.00 326,699.00 360,071.00
Closing Stock
Closing Stock FG 211,230.00 236,574.00 263,462.00 291,471.00 321,180.00
Closing Stock RM 32,096.00 36,380.00 40,932.00 45,752.00 50,840.00
243,326.00 272,954.00 304,394.00 337,223.00 372,020.00
Cash & Bank Balance 789,946.51 1,880,322.16 3,301,959.83 5,080,433.11 7,243,983.79
(Including Cash Credit Limit)
Total ( B ) 3,331,829.51 4,245,685.16 5,515,987.83 7,170,915.11 9,236,224.79

7.1.15. Projected Profit and Loss Statement


Particulars Y1 Y2 Y3 Y4 Y5
Total Sales 6,893,020.00 7,945,182.00 8,848,919.00 9,800,965.00 10,802,118.00
Less:- Opening Stock of F.G. - 211,230.00 236,574.00 263,462.00 291,471.00
Add:-Closing Stock of F. G. 211,230.00 236,574.00 263,462.00 291,471.00 321,180.00
Cost of Finish Goods 7,104,250.00 7,970,526.00 8,875,807.00 9,828,974.00 10,831,827.00
Raw Material Purchased 802,496.00 875,398.00 984,672.00 1,100,366.00 1,222,480.00
Add:- Opening Stock of R.M - 32,096.00 36,380.00 40,932.00 45,752.00
Less:-Closing Stock of R.M. 32,096.00 36,380.00 40,932.00 45,752.00 50,840.00
Cost of Material Consumed 770,400.00 871,114.00 980,120.00 1,095,546.00 1,217,392.00
Total Variable Exp 4,128,544.50 4,397,709.00 4,676,633.50 4,956,042.00 5,235,945.50
Total Fixed Exp 1,010,875.70 1,061,419.00 1,114,489.00 1,170,216.00 1,228,726.00
Amortization of Exp 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00
Profit Before Int & Dep 1,189,429.80 1,635,284.00 2,099,564.50 2,602,170.00 3,144,763.50
Int. on Term Loan 137,316.67 106,516.67 75,716.66 44,916.67 14,116.67
Int. on W. Capital Loan 36,271.62 41,358.68 46,062.17 50,991.05 56,195.15
Depreciation 268,610.00 236,220.00 207,900.00 183,110.00 161,410.00
Net Profit 747,231.51 1,251,188.65 1,769,885.67 2,323,152.28 2,913,041.68
Tax 230,895.00 386,617.00 546,895.00 717,854.00 900,130.00

Rajasthan Agricultural Competitiveness Project 70


Net Profit 516,336.51 864,571.65 1,222,990.67 1,605,298.28 2,012,911.68

7.1.16. Projected Cash Flow Statement


Sr. Particulars Y1 Y2 Y3 Y4 Y5
1 Revenue
Sales 7,104,250.00 7,970,526.00 8,875,807.00 9,828,974.00 10,831,827.00
2 Term Loan 1,400,000.00 - - - -
W. Capital Loan 329,742.00 46,246.00 42,759.00 44,808.00 47,310.00
3 Equity/ Share capital 1,052,314.00 - - - -
4 RACP Investment Grant - - - - -
5 Increase in Current 33,437.00 3,038.00 4,553.00 4,821.00 5,088.00
Liabilities
Sub Total (A) 9,919,743.00 8,019,810.00 8,923,119.00 9,878,603.00 10,884,225.00
Cash Outflow (Rs.)
1 Capital Expenditure
a Building and Civil Work 1,500,000.00 - - - -
c Plant and Machinery 737,400.00 - - - -
d Land Development & - - - - -
Registration
e Electrification & Misc 80,000.00
f Pre Operative Exp 25,000.00 - - - -
2 Operational Expenditure
a Fixed Cost (Excl. Of 1,010,875.70 1,061,419.00 1,114,489.00 1,170,216.00 1,228,726.00
Interest)
b Variable Cost 4,128,544.50 4,397,709.00 4,676,633.50 4,956,042.00 5,235,945.50
c Cost of Material Consumed 770,400.00 871,114.00 980,120.00 1,095,546.00 1,217,392.00
3 Loan Repayment - - - - -
a Interest on WC 36,271.62 41,358.68 46,062.17 50,991.05 56,195.15
b Interest on TL 137,316.67 106,516.67 75,716.66 44,916.67 14,116.67
4 Increase in Current Assets 229,767.00 35,072.00 30,125.00 31,735.00 33,372.00
Increase in Stock 243,326.00 29,628.00 31,440.00 32,829.00 34,797.00
5 Tax 230,895.00 386,617.00 546,895.00 717,854.00 900,130.00
6 Differential tax liabilities
Sub Total (B) 9,129,796.49 6,929,434.35 7,501,481.33 8,100,129.72 8,720,674.32
Net Cash Flow (A-B) 789,946.51 1,090,375.65 1,421,637.67 1,778,473.28 2,163,550.68
Opening Cash and Bank 789,946.51 1,880,322.16 3,301,959.83 5,080,433.11
Cumulative Cash Balance 789,946.51 1,880,322.16 3,301,959.83 5,080,433.11 7,243,983.79

Rajasthan Agricultural Competitiveness Project 71


7.1.17. Financial Indicators
Indicator Value
Internal Rate of Return 29%
Break Even (Average) 47%
Net Present Value 28.37 Lakhs, Positive above Project Cost
DSCR (Average) 4.53
RoCE (Average) 21%
RoE (Average) 49%
Project Payback Period 2 Years 11 Months
Equity Payback Period 1 Year 8 Month

7.1.18. Conclusion
Based on study of technology to be adopted in the project, project economics and high economic viability indicators, it can be concluded that
project is techno-economically viable and sustainable.

7.2 Project Profile 2: Small Scale Unit (Economy Model)

7.2.1. Premises of Calculation- Suggested Model


(a) Details of Technical Civil Works/ Building Cost
Sr. No Particulars Plan Area- Rate/ sq. ft. Amount
Sq. Ft. (in Rupees)
1 Factory Constructions 3000 700 2,100,000.00
2 Admin and other Civil Con. 350 700 245,000.00
3 Compound Wall/Chain link and other minor civil work 100,000.00

Total (in Rupees) 2445,000.00

(b) Plant & Machinery Breakup


Item Capacity Amount
(in Rupees)
Main Plant & Machinery 250 LPH 2,059,000.00
Total INR 2,059,000.00
 The technology proposed for this segment involves Semi-Automatic 250 Litres per hour capacity Soymilk Processing unit which
comprises of Soya Bean Grinder and Milk Separator, Soya milk Sterilizer, Soya Milk boiling Equipment, with LPG fired, Soya Milk
Transfer Pump with fitting, SS Balance tank, SS Machine Frame, Accessories Kit, Belt Press for okara, Mixing Tank SS, Soymilk
Homogenizer, Deodorizer, Soymilk Plate Heat Exchanger Machine, SS Balance/Buffer Tanks, Pneumatic Tofu Press, Liquid Filling
Machine, Glass Bottle Sterilizer, Crown Capping Machine, Bottle Labeling and Printing System, Tofu Coagulation Tank, Tofu Cutter,

Rajasthan Agricultural Competitiveness Project 72


Tofu Table - Alloy top, Curd Making Unit-Digitally controlled with fan & timer.- Incubation Chamber, Pouch Sealing Machine for
Yogurt, Vacuum Packing Machine, Deep Freezer, Compressor for Pneumatics and packing machines, Basic Testing Machines, Water
Softener and filter, Weighing scales, SS Pipeline and Electrification.
 Other Assumptions
1 Working Hours per day 10 hours
2 Plant Capacity /Day 250 LPH Grinding capacity
(one batch of 250 Ltrs, with batch time of 2 hours)
3 No. of Working Days in a year 300
4 Power Requirement 30 KVA
5 Standard Packaging for Main Products & By-Products Bottle with crown cap, seal and label for Flavored Soymilk, Vacuum packing with
label for Tofu, pouch packing for Soy-Yogurt, pp/jute bag (used bags) for Okara
6 Insurance Exp Considered on Plant & Mach, Building 0.5% of Capex
7 Inflation assumed annually 5% annually
8 Debtors 10 Days of Sales
9 Stock of Finished Goods 10 Days for soymilk, 3 days for tofu and yogurt, 2 days for okara
10 Stock of Raw Material 30 days Consumption

7.2.2. Project Cost


Sr. No. Particulars Amt (in Rs .)
1 Land -
2 Building & other civil works 2,445,000.00
3 Plant & Machinery 2,059,000.00
4 Misc Fixed Assets 150,000.00
5 Preliminary & Pre operative 50,000.00
5 Working Capital 181,524.00
Total 4,885,524.00
 The Total Project Cost is Rs. 48.85 Lakhs
 It is assumed that upon considering the requirement by way of buildings and other civil works, installation of machinery and provision for
stocking material, it is perceived that a suitable plot of land will be leased by entrepreneur.
 Miscellaneous fixed assets shall include CCD Cameras, Safety Gear for operators and Shop-floor Employees, Bottle Crates, furniture and
electric fixtures, etc that are pegged at Rs. 150,000.
 Preliminary expenses are envisaged in terms of legal & administrative expenses, registration, detailed civil engineering drawings, telephone,
stationery, etc. Pre-operative expenses include establishment costs, travel, and overheads during construction period including salaries.
These are pegged at Rs. 50,000.
 The Total Working Capital requirement during the first year of operation is estimated at Rs. 7.26 Lakhs with margin money requirement
of Rs. 1.82 Lakhs. Calculations of same are presented in section 7.2.12.

Rajasthan Agricultural Competitiveness Project 73


7.2.3. Means of Finance
Sr. No. Particulars Amt (in Rs .)
1 Bank Term Loan 3,000,000.00
2 Promoter's Capital 1,885,524.00
3 RACP Grant -
Total 4,885,524.00
 It is assumed that Rs. 30.00 Lakhs will be sought as Term Loan from Bank.

7.2.4. Product Schedule


Particulars Y1 Y2 Y3 Y4 Y5
Grinding Capacity (Ltrs/Hour) 250 250 250 250 250
No. of working hours per day 10 10 10 10 10
Working Days in Year 300 300 300 300 300
Batch time for one lot (in hours) 2 2 2 2 2
Soymilk base Produced in one batch 250 250 250 250 250
Total Batches per day 5 5 5 5 5
Total Annual Capacity of production of Soymilk base in 375000 375000 375000 375000 375000
Ltrs (@ 100% CU)
Soybean in kg, required for 1 day operations (@100% CU) 179 179 179 179 179
Annual Soybean Requirement (in Kg) @ 100% CU (with 1 53700 53700 53700 53700 53700
kg required for 7 ltrs of soymilk base)
Capacity Utilization 75.00% 80.00% 85.00% 90.00% 95.00%
Total Production Input of Cleaned and Graded 40275 42960 45645 48330 51015
Soybean (in Kg)
Output (Ltrs/Kg)
Soymilk Processing Unit
Plain Soymilk (Ltrs) 0 0 0 0 0
Flavored Soymilk (Ltrs) 253125 270000 286875 303750 320625
Tofu (KG) 2009 2143 2277 2411 2545
Soy-Yogurt (Ltrs) 9422 10050 10678 11306 11934
Okara (KG) 40275 42960 45645 48330 51015
Soybean (in kg) processed / day 179 179 179 179 179
No. of days of operation 225 240 255 270 285

Rajasthan Agricultural Competitiveness Project 74


7.2.5. Purchase Schedule
Particulars Y1 Y2 Y3 Y4 Y5
Cleaned & Graded Soybean 43631 43184 45869 48554 51238
Purchase Price (in Rs./kg) 32 34 36 38 40
Soybean Purchases (in Rs.) 1,396,192.00 1,468,256.00 1,651,284.00 1,845,052.00 2,049,520.00
Total Purchases (in Rs.) 1,396,192.00 1,468,256.00 1,651,284.00 1,845,052.00 2,049,520.00

7.2.6. Consumables
a. Packaging Material
Packaging Material No. of units Cost of Units
Size Type Product Rate/ Y1 Y2 Y3 Y4 Y5 Y1 Y2 Y3 Y4 Y5
unit
200 ml Bottle with Flavored 4 1265625 1350000 1434375 1518750 1603125 5062500 5400000 5737500 6075000 6412500
crown cap, Soymilk
seal and label
1 kg Vacuum Tofu 1 2009 2143 2277 2411 2545 2009 2143 2277 2411 2545
Packing
without label
500 ml Pouch Soy- 1 18844 20100 21356 22612 23868 18844 20100 21356 22612 23868
Packing Yogurt
100 kg pp/jute bag Okara 30 403 430 456 483 510 12090 12900 13680 14490 15300
(used bags)
Total 5095443 5435143 5774813 6114513 6454213

7.2.7. Power Requirement


The total requirement of the plant (including admin building power req.) is 30 KVA.

7.2.8. Water Requirement


Water (for Factory ops) 8750 Liters/day
Human Consumption 1250 Liters/day
total 10000 Liters/day
cost/kl= Rs. 10/kl i.e. Rs. 100 Daily

Rajasthan Agricultural Competitiveness Project 75


7.2.9. Manpower Requirement
# Particulars No. Monthly Salary Annual Income Dept.
1 Director/Miller 1 20,000.00 240,000.00 Admin
2 Accounts Head 1 12,000.00 144,000.00 Admin
3 Plant Operators 1 12,000.00 144,000.00 factory
4 Fitters 1 8,000.00 96,000.00 factory
5 Accountant 1 8,000.00 96,000.00 Admin
6 Sales Executives 1 12,000.00 144,000.00 Admin
7 Admin Staff 1 8,000.00 96,000.00 Admin
8 Storekeeper 1 8,000.00 96,000.00 factory
9 Security Staff 1 8,000.00 96,000.00 Admin
Total 9 157,000.00 1,152,000.00
10 Helpers 3 300/day factory
Total Manpower 12

7.2.10. Depreciation Schedule


Particulars Building Plant & Machinery Misc Fixed assets Total Rs.
Rate of Depreciation 10% 15% 10%

Opening WDV 2,445,000.00 2,059,000.00 150,000.00 4,654,000.00


Total 2,445,000.00 2,059,000.00 150,000.00 4,654,000.00
Dep. For 1st Year 244,500.00 308,850.00 15,000.00 568,350.00
W.D.V. as on II Year 2,200,500.00 1,750,150.00 135,000.00 4,085,650.00
Dep. For 2st Year 220,050.00 262,520.00 13,500.00 496,070.00
W.D.V. as on III Year 1,980,450.00 1,487,630.00 121,500.00 3,589,580.00
Dep. For 3rd Year 198,050.00 223,140.00 12,150.00 433,340.00
W.D.V. as on IV Year 1,782,400.00 1,264,490.00 109,350.00 3,156,240.00
Dep. For 4th Year 178,240.00 189,670.00 10,940.00 378,850.00
W.D.V. as on V Year 1,604,160.00 1,074,820.00 98,410.00 2,777,390.00
Dep. For 5th Year 160,420.00 161,220.00 9,840.00 331,480.00
W.D.V. as on VI Year 1,443,740.00 913,600.00 88,570.00 2,445,910.00

7.2.11. TL Repayment Schedule


Loan Amount 3,000,000.00
Rate 10.00%

Monthly Loan amount Monthly Repayment' Int Total Instl. Closing Bal

1 3,000,000.00 50,000.00 24,583.33 74,583.33 2,950,000.00


2 2,950,000.00 50,000.00 24,166.67 74,166.67 2,900,000.00
3 2,900,000.00 50,000.00 23,750.00 73,750.00 2,850,000.00
4 2,850,000.00 50,000.00 23,333.33 73,333.33 2,800,000.00
5 2,800,000.00 50,000.00 22,916.67 72,916.67 2,750,000.00
6 2,750,000.00 50,000.00 22,500.00 72,500.00 2,700,000.00
7 2,700,000.00 50,000.00 22,083.33 72,083.33 2,650,000.00
8 2,650,000.00 50,000.00 21,666.67 71,666.67 2,600,000.00
9 2,600,000.00 50,000.00 21,250.00 71,250.00 2,550,000.00
10 2,550,000.00 50,000.00 20,833.33 70,833.33 2,500,000.00
11 2,500,000.00 50,000.00 20,416.67 70,416.67 2,450,000.00
12 2,450,000.00 50,000.00 20,000.00 70,000.00 2,400,000.00
13 2,400,000.00 50,000.00 19,583.33 69,583.33 2,350,000.00
14 2,350,000.00 50,000.00 19,166.67 69,166.67 2,300,000.00

Rajasthan Agricultural Competitiveness Project 76


15 2,300,000.00 50,000.00 18,750.00 68,750.00 2,250,000.00
16 2,250,000.00 50,000.00 18,333.33 68,333.33 2,200,000.00
17 2,200,000.00 50,000.00 17,916.67 67,916.67 2,150,000.00
18 2,150,000.00 50,000.00 17,500.00 67,500.00 2,100,000.00
19 2,100,000.00 50,000.00 17,083.33 67,083.33 2,050,000.00
20 2,050,000.00 50,000.00 16,666.67 66,666.67 2,000,000.00
21 2,000,000.00 50,000.00 16,250.00 66,250.00 1,950,000.00
22 1,950,000.00 50,000.00 15,833.33 65,833.33 1,900,000.00
23 1,900,000.00 50,000.00 15,416.67 65,416.67 1,850,000.00
24 1,850,000.00 50,000.00 15,000.00 65,000.00 1,800,000.00
25 1,800,000.00 50,000.00 14,583.33 64,583.33 1,750,000.00
26 1,750,000.00 50,000.00 14,166.67 64,166.67 1,700,000.00
27 1,700,000.00 50,000.00 13,750.00 63,750.00 1,650,000.00
28 1,650,000.00 50,000.00 13,333.33 63,333.33 1,600,000.00
29 1,600,000.00 50,000.00 12,916.67 62,916.67 1,550,000.00
30 1,550,000.00 50,000.00 12,500.00 62,500.00 1,500,000.00
31 1,500,000.00 50,000.00 12,083.33 62,083.33 1,450,000.00
32 1,450,000.00 50,000.00 11,666.67 61,666.67 1,400,000.00
33 1,400,000.00 50,000.00 11,250.00 61,250.00 1,350,000.00
34 1,350,000.00 50,000.00 10,833.33 60,833.33 1,300,000.00
35 1,300,000.00 50,000.00 10,416.67 60,416.67 1,250,000.00
36 1,250,000.00 50,000.00 10,000.00 60,000.00 1,200,000.00
37 1,200,000.00 50,000.00 9,583.33 59,583.33 1,150,000.00
38 1,150,000.00 50,000.00 9,166.67 59,166.67 1,100,000.00
39 1,100,000.00 50,000.00 8,750.00 58,750.00 1,050,000.00
40 1,050,000.00 50,000.00 8,333.33 58,333.33 1,000,000.00
41 1,000,000.00 50,000.00 7,916.67 57,916.67 950,000.00
42 950,000.00 50,000.00 7,500.00 57,500.00 900,000.00
43 900,000.00 50,000.00 7,083.33 57,083.33 850,000.00
44 850,000.00 50,000.00 6,666.67 56,666.67 800,000.00
45 800,000.00 50,000.00 6,250.00 56,250.00 750,000.00
46 750,000.00 50,000.00 5,833.33 55,833.33 700,000.00
47 700,000.00 50,000.00 5,416.67 55,416.67 650,000.00
48 650,000.00 50,000.00 5,000.00 55,000.00 600,000.00
49 600,000.00 50,000.00 4,583.33 54,583.33 550,000.00
50 550,000.00 50,000.00 4,166.67 54,166.67 500,000.00
51 500,000.00 50,000.00 3,750.00 53,750.00 450,000.00
52 450,000.00 50,000.00 3,333.33 53,333.33 400,000.00
53 400,000.00 50,000.00 2,916.67 52,916.67 350,000.00
54 350,000.00 50,000.00 2,500.00 52,500.00 300,000.00
55 300,000.00 50,000.00 2,083.33 52,083.33 250,000.00
56 250,000.00 50,000.00 1,666.67 51,666.67 200,000.00
57 200,000.00 50,000.00 1,250.00 51,250.00 150,000.00
58 150,000.00 50,000.00 833.33 50,833.33 100,000.00
59 100,000.00 50,000.00 416.67 50,416.67 50,000.00
60 50,000.00 50,000.00 - 50,000.00 0.00
TOTAL - 1,450,000.00 543,750.00 1,993,750.00 -

7.2.12. Projected Working Capital Requirement


Particulars Y1 Y2 Y3 Y4 Y5
Debtors 383,053.00 441,509.00 491,733.00 544,636.00 600,274.00
Stock of F.G 352,000.00 394,210.00 439,041.00 485,943.00 535,262.00
Stock of R.M 107,392.00 121,720.00 136,944.00 153,064.00 170,040.00

Rajasthan Agricultural Competitiveness Project 77


Less Creditor 116,349.00 122,355.00 137,607.00 153,754.00 170,793.00
Total Working Cap Required 726,096.00 835,084.00 930,111.00 1,029,889.00 1,134,783.00
W.C Margin 181,524.00 208,771.00 232,528.00 257,472.00 283,696.00
W.C Loan 544,572.00 626,313.00 697,583.00 772,417.00 851,087.00

7.2.13. Sales Schedule


# Particulars Y1 Y2 Y3 Y4 Y5
1 Flavored Soymilk (Ltrs) 244687 269438 286312 303188 320062
Sale Price (in Rs. Per Ltr) 40 42 44 46 48
Flavored Soymilk Sales 9,787,480.00 11,316,396.00 12,597,728.00 13,946,648.00 15,362,976.00
2 Tofu (KG) 1989 2142 2275 2410 2544
Sale Price (in Rs. Per kg) 220 231 243 255 268
Tofu Sales 437,580.00 494,802.00 552,825.00 614,550.00 681,792.00
3 Soy-Yogurt (Ltrs) 9328 10043 10672 11300 11928
Sale Price (in Rs. Per Ltr) 50 53 56 59 62
Soy-Yogurt Sales 466,400.00 532,279.00 597,632.00 666,700.00 739,536.00
4 Okara (KG) 40006 42943 45627 48312 50997
Sale Price (in Rs. Per kg) 20 21 22 23 24
Okara Sales 800,120.00 901,803.00 1,003,794.00 1,111,176.00 1,223,928.00
Total Sales 11,491,580.00 13,245,280.00 14,751,979.00 16,339,074.00 18,008,232.00

7.2.14. Projected Balance Sheet


Particulars Y1 Y2 Y3 Y4 Y5
(A) LIABILITIES
Partner's Capital 1,885,524.00 1,885,524.00 1,885,524.00 1,885,524.00 1,885,524.00
Add: Addition During the - - - - -
Year
Total Capital 1,885,524.00 1,885,524.0 1,885,524.00 1,885,524.00 1,885,524.00
0
Reserves & Surplus
RACP Grant - - - - -
Profit & Loss
Opening Balance - 1,113,255.80 2,847,823.50 5,218,165.70 8,262,995.00
Add: Profit after tax 1,113,255.80 1,734,567.70 2,370,342.20 3,044,829.30 3,760,439.80
Total 1,113,255.80 2,847,823.50 5,218,165.70 8,262,995.00 12,023,434.80
Secured Loan From Bank 3,000,000.00 3,000,000.00 3,000,000.00 3,000,000.00 3,000,000.00
W. Capital Loan 544,572.00 626,313.00 697,583.00 772,417.00 851,087.00
Current Liability 116,349.00 122,355.00 137,607.00 153,754.00 170,793.00
Total ( A ) 6,659,700.8 8,482,015.5 10,938,879.7 14,074,690.0 17,930,838.8
0 0 0 0 0

(B) ASSETS
Fixed Assets
Gross Block 4,654,000.00 4,085,650.00 3,589,580.00 3,156,240.00 2,777,390.00
Less : Depreciation 568,350.00 496,070.00 433,340.00 378,850.00 331,480.00
Net Block 4,085,650.00 3,589,580.00 3,156,240.00 2,777,390.00 2,445,910.00

Misc Fixed Assets 40,000.00 30,000.00 20,000.00 10,000.00 -


Current Assets
Sundry Debtor 383,053.00 441,509.00 491,733.00 544,636.00 600,274.00
383,053.00 441,509.00 491,733.00 544,636.00 600,274.00

Rajasthan Agricultural Competitiveness Project 78


Closing Stock
Closing Stock FG 352,000.00 394,210.00 439,041.00 485,943.00 535,262.00
Closing Stock RM 107,392.00 121,720.00 136,944.00 153,064.00 170,040.00
459,392.00 515,930.00 575,985.00 639,007.00 705,302.00
Cash & Bank Balance 1,691,605.80 3,904,996.50 6,694,921.70 10,103,657.00 14,179,352.80
(Including Cash Credit Limit)
Total ( B ) 6,659,700.8 8,482,015.5 10,938,879.7 14,074,690.0 17,930,838.8
0 0 0 0 0

7.2.15. Projected Profit and Loss Statement


Particulars Y1 Y2 Y3 Y4 Y5
Total Sales 11,491,580.00 13,245,280.0 14,751,979.00 16,339,074.0 18,008,232.0
0 0 0
Less:- Opening Stock of - 352,000.00 394,210.00 439,041.00 485,943.00
F.G.
Add:-Closing Stock of F. G. 352,000.00 394,210.00 439,041.00 485,943.00 535,262.00
Cost of Finish Goods 11,843,580.0 13,287,490.00 14,796,810.0 16,385,976.00 18,057,551.00
0 0
Raw Material Purchased 1,396,192.00 1,468,256.00 1,651,284.00 1,845,052.00 2,049,520.00
Add:- Opening Stock of R.M - 107,392.00 121,720.00 136,944.00 153,064.00
Less:-Closing Stock of R.M. 107,392.00 121,720.00 136,944.00 153,064.00 170,040.00
Cost of Material Consumed 1,288,800.00 1,453,928.00 1,636,060.00 1,828,932.00 2,032,544.00
Total Variable Exp 6,653,284.50 7,087,517.00 7,537,248.50 7,987,815.00 8,439,201.50
Total Fixed Exp 1,390,109.50 1,459,615.00 1,532,596.00 1,609,228.00 1,689,691.00
Amortization of Exp 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00
Profit Before Int & Dep 2,501,386.00 3,276,430.00 4,080,905.50 4,950,001.00 5,886,114.50
Int. on Term Loan 267,500.00 207,500.00 147,500.00 87,500.00 27,500.00
Int. on W. Capital Loan 54,457.20 62,631.30 69,758.30 77,241.70 85,108.70
Depreciation 568,350.00 496,070.00 433,340.00 378,850.00 331,480.00
Net Profit 1,611,078.80 2,510,228.70 3,430,307.20 4,406,409.30 5,442,025.80
Tax 497,823.00 775,661.00 1,059,965.00 1,361,580.00 1,681,586.00
Net Profit 1,113,255.80 1,734,567.70 2,370,342.20 3,044,829.30 3,760,439.80

7.2.16. Projected Cash Flow Statement


Sr. Particulars Y1 Y2 Y3 Y4 Y5
1 Revenue
Sales 11,843,580.00 13,287,490.00 14,796,810.00 16,385,976.00 18,057,551.00
2 Term Loan 3,000,000.00 - - - -
W. Capital Loan 544,572.00 81,741.00 71,270.00 74,834.00 78,670.00
3 Equity/ Share 1,885,524.00 - - - -
capital
4 RACP Investment - - - - -
Grant
5 Increase in Current 116,349.00 6,006.00 15,252.00 16,147.00 17,039.00
Liabilities
Sub Total (A) 17,390,025.00 13,375,237.00 14,883,332.00 16,476,957.00 18,153,260.00
Cash Outflow (Rs.)
1 Capital Expenditure
a Building and Civil 2,445,000.00 - - - -
Work
c Plant and Machinery 2,059,000.00 - - - -
d Land Development & - - - - -

Rajasthan Agricultural Competitiveness Project 79


Registration
e Electrification & Misc 150,000.00
f Pre Operative Exp 50,000.00 - - - -

2 Operational
Expenditure
a Fixed Cost (Excl. Of 1,390,109.50 1,459,615.00 1,532,596.00 1,609,228.00 1,689,691.00
Interest)
b Variable Cost 6,653,284.50 7,087,517.00 7,537,248.50 7,987,815.00 8,439,201.50
c Cost of Material 1,288,800.00 1,453,928.00 1,636,060.00 1,828,932.00 2,032,544.00
Consumed
3 Loan Repayment - - - - -
a Interest on WC 54,457.20 62,631.30 69,758.30 77,241.70 85,108.70
b Interest on TL 267,500.00 207,500.00 147,500.00 87,500.00 27,500.00
4 Increase in Current 383,053.00 58,456.00 50,224.00 52,903.00 55,638.00
Assets
Increase in Stock 459,392.00 56,538.00 60,055.00 63,022.00 66,295.00
5 Tax 497,823.00 775,661.00 1,059,965.00 1,361,580.00 1,681,586.00
6 Differential tax
liabilities
Sub Total (B) 15,698,419.20 11,161,846.30 12,093,406.80 13,068,221.70 14,077,564.20
Net Cash Flow (A- 1,691,605.80 2,213,390.70 2,789,925.20 3,408,735.30 4,075,695.80
B)
Opening Cash and 1,691,605.80 3,904,996.50 6,694,921.70 10,103,657.00
Bank
Cumulative Cash 1,691,605.80 3,904,996.50 6,694,921.70 10,103,657.00 14,179,352.80
Balance

7.2.17. Financial Indicators


Indicator Value
Internal Rate of Return 29%
Break Even (Average) 41%
Net Present Value 55.10 Lakhs, Positive above Project Cost
DSCR (Average) 4.18
RoCE (Average) 23%
RoE (Average) 59%
Project Payback Period 2 Years 11 Months
Equity Payback Period 1 Year 6 Month

7.2.18. Conclusion
Based on study of technology to be adopted in the project, project economics and high economic
viability indicators, it can be concluded that project is techno-economically viable and sustainable.

7.3 Project Profile 3: Small Scale Unit (Advanced Plant)

7.3.1. Premises of Calculation- Suggested Model


(a) Details of Technical Civil Works/ Building Cost
Sr. Particulars Plan Area- Rate/ sq. ft. Amount
No Sq. Ft. (in Rupees)
1 Factory Civil and Shed Works 5000 800 4,000,000.00
2 Admin Office and other Civil Con. 2000 800 1,600,000.00

Rajasthan Agricultural Competitiveness Project 80


3 Compound Wall, Weighbridge pit and other civil works Lump sum 200,000.00
Total (in Rupees) 5,800,000.00

(b) Plant & Machinery Breakup


Sr. No. Item Capacity Amount
(in Rupees)
1 Main Plant & Machinery 1000 LPH 7,292,000.00
Total INR 7,292,000.00
 The technology proposed for this segment involves Fully Automatic 1000 Litres per hour
capacity for the Soymilk Processing unit which comprises of Dry Beans Tank with Elevator,
Soaking and Washing Machine, Soybean De-huller - complete set with aspirator, blowers, etc.,
Multi fuel Steam Boiler, Soya Bean Grinder and Milk Separator, Centrifuge/Decanter, Belt
Press for okara, Transfer Pump with fittings, Soya milk Sterilizer, Flavor Milk Mixing Machine,
Soymilk Homogenizer, Deodorizer, Soymilk Plate Heat Exchanger Machine, Soymilk Storage
Tank (SS) cum Refrigerator Cum Agitator system, SS Balance/Buffer Tanks, SS Machine
Frame, Automatic Liquid Filling Machine (Double Head), Glass Bottle Sterilizer/Autoclave
with boiler, Crown Capping Machine, Automatic Bottle Labeling and Printing System, Tofu
Coagulation Tank, Tofu Press - Pneumatic (with compressor) cum mould, Tofu Cutter, Tofu
Table - Alloy top, Curd Making - Digitally controlled with fan & timer- Incubation Chamber,
Pouch Sealing Machine for Yogurt, Cup filling Machine, Cup Sealer, Vacuum Packing Machine,
Deep Freezer, Compressor for Pneumatics and packing machines, Testing Equipments,
Automation with PLC, Water Softener and Purifier, Weighing Scales (of various weight
capacities), Generator, SS Pipeline, CIP Cleaning Mechanism (complete SS) and Electrification.
(c) Other Assumptions
1 Working Hours per day 10 hours
2 Plant Capacity /Day 1000 LPH Grinding capacity
(one batch of 1000 Ltrs, with batch time of 2 hours)
3 No. of Working Days in a year 300
4 Power Requirement 70 KVA
5 Standard Packaging for Main Bottle with crown cap, seal and label for Plain and Flavored
Products & By-Products Soymilk, Vacuum packing with label for Tofu, cup fill packing for
Soy-Yogurt, pp/jute bag for Okara
6 Insurance Exp Considered on Plant 0.5% of Capex
& Mach, Building
7 Inflation assumed annually 5% annually
8 Debtors 10 Days of Sales
9 Stock of Finished Goods 10 Days for soymilk, 3 days for tofu and yogurt, 2 days for okara
10 Stock of Raw Material 1 Months Consumption

7.3.2. Project Cost


Sr. No. Particulars Amt (in Rs .)
1 Land -
2 Building & other civil works 5,800,000.00
3 Plant & Machinery 7,292,000.00
4 Misc Fixed Assets 300,000.00
5 Preliminary & Pre operative 150,000.00
6 Working Capital 543,948.00
Total 14,085,948.00
 The Total Project Cost is Rs. 140.86 Lakhs

Rajasthan Agricultural Competitiveness Project 81


 It is assumed that upon considering the requirement by way of buildings , other civil works,
installation of machinery and provision for stocking material, it is perceived that a suitable plot
of land will be leased by entrepreneur.
 Miscellaneous fixed assets shall include CCD Cameras, Safety Gear for operators and Shop-
floor Employees, Bottle Crates, furniture and electric fixtures, etc. that are pegged at Rs. 3
Lakhs.
 Preliminary expenses are envisaged in terms of legal & administrative expenses, registration,
detailed civil engineering drawings, telephone, stationery, etc. Pre-operative expenses include
establishment costs, travel, and overheads during construction period including salaries. These
are pegged at Rs. 1.50 Lakhs.
 The Total Working Capital requirement during the first year of operation is estimated at Rs.
21.76 Lakhs with margin money requirement of Rs. 5.44 Lakhs. Calculations of same are
presented in section 7.3.12.

7.3.3. Means of Finance


Sr. No. Particulars Amt (in Rs .)
1 Bank Term Loan 8,000,000.00
2 Promoter's Capital 6,085,948.00
3 RACP Grant -
Total 14,085,948.00
 It is assumed that Rs. 80 Lakhs will be sought as Term Loan from Bank.

7.3.4. Product Schedule


Particulars Y1 Y2 Y3 Y4 Y5
Grinding Capacity (Ltrs/Hour) 1000 1000 1000 1000 1000
No. of working hours per day 10 10 10 10 10
Working Days in Year 300 300 300 300 300
Batch time for one lot (in hours) 2 2 2 2 2
Soymilk base Produced in one batch 1000 1000 1000 1000 1000
Total Batches per day 5 5 5 5 5
Total Annual Capacity of production of 1500000 1500000 1500000 1500000 1500000
Soymilk base in Ltrs (@ 100% CU)
Soybean in kg, required for 1 day 714 714 714 714 714
operations (@100% CU)
Annual Soybean Requirement (in Kg) @ 214200 214200 214200 214200 214200
100% CU (with 1 kg required for 7 ltrs of
soymilk base)
Capacity Utilization 60.00% 65.00% 70.00% 75.00% 80.00%
Total Production Input of Cleaned and 128520 139230 149940 160650 171360
Graded Soybean (in Kg)
Output (Ltrs/Kg)
Soymilk Processing Unit
Plain Soymilk (Ltrs) 225000 243750 262500 281250 300000
Flavored Soymilk (Ltrs) 585000 633750 682500 731250 780000
Tofu (KG) 6429 6964 7500 8036 8571
Soy-Yogurt (Ltrs) 30150 32663 35175 37688 40200
Okara (KG) 128520 139230 149940 160650 171360
Soybean (in kg) processed / day 714 714 714 714 714
No. of days of operation 180 195 210 225 240

7.3.5. Purchase Schedule

Rajasthan Agricultural Competitiveness Project 82


Particulars Y1 Y2 Y3 Y4 Y5
Cleaned & Graded 139230 140123 150832 161543 172252
Soybean
Purchase Price (in 32 34 36 38 40
Rs./kg)
Soybean Purchases (in Rs.)
4,455,360.00 4,764,182.00 5,429,952.00 6,138,634.00 6,890,080.00
Total Purchases (in Rs.)
4,455,360.00 4,764,182.00 5,429,952.00 6,138,634.00 6,890,080.00

Rajasthan Agricultural Competitiveness Project 83


7.3.6. Consumables
Packaging Material No. of units Cost of Units
Size Type Product Rate/ Y1 Y2 Y3 Y4 Y5 Y1 Y2 Y3 Y4 Y5
unit

200 ml Bottle with Flavored 4 2925000 3168750 3412500 3656250 3900000 11700000 12675000 13650000 14625000 15600000
crown cap, Soymilk
seal and label
1000 ml Bottle with Plain 9 225000 243750 262500 281250 300000 2025000 2193750 2362500 2531250 2700000
crown cap, Soymilk
seal and label
1 kg Vacuum Tofu 2 6429 6964 7500 8036 8571 12858 13928 15000 16072 17142
Packing with
label
500 ml Cup Packing Soy- 5 60300 65326 70350 75376 80400 301500 326630 351750 376880 402000
with seal and Yogurt
label
100 kg pp/jute bag Okara 50 1285 1392 1499 1607 1714 64250 69600 74950 80350 85700
Total 14103608 15278908 16454200 17629552 18804842

7.3.7. Power Requirement


The total requirement of the plant (including admin building power req.) is 70 kva.

7.3.8. Water Requirement


Water 35000 Liters/day
Human 2000 Liters/day
Consumption
total 37000 Liters/day
cost/kl= Rs. 10/kl i.e. Rs, 370 Daily

Rajasthan Agricultural Competitiveness Project 84


7.3.9. Manpower Requirement
S. No. Particulars No. Monthly Salary Annual Income Dept.
1 Director/Miller 1 40,000.00 480,000.00 Admin
2 Factory Head 1 30,000.00 360,000.00 factory
3 Accounts Head 1 30,000.00 360,000.00 Admin
4 Marketing and Business Development Head 1 35,000.00 420,000.00 Admin
5 Product and Quality Assurance Manager 1 25,000.00 300,000.00 factory
6 Plant and System Operators 3 15,000.00 540,000.00 factory
7 Fitters 1 8,000.00 96,000.00 factory
8 Accountant 1 8,000.00 96,000.00 Admin
9 Sales Executives 3 12,000.00 432,000.00 Admin
10 Admin Staff 2 8,000.00 192,000.00 Admin
11 Storekeeper 2 8,000.00 192,000.00 factory
12 Security Staff 2 8,000.00 192,000.00 Admin
Total 19 227,000.00 3,660,000.00
13 Helpers 7 300/day factory
Total Manpower 26

7.3.10. Depreciation Schedule


Particulars Building Plant & Machinery Misc Fixed assets Total Rs.
Rate of Depreciation 10% 15% 10%

Opening WDV 5,800,000.00 7,292,000.00 300,000.00 13,392,000.00


Total 5,800,000.00 7,292,000.00 300,000.00 13,392,000.00
Dep. For 1st Year 580,000.00 1,093,800.00 30,000.00 1,703,800.00
W.D.V. as on II Year 5,220,000.00 6,198,200.00 270,000.00 11,688,200.00
Dep. For 2st Year 522,000.00 929,730.00 27,000.00 1,478,730.00
W.D.V. as on III Year 4,698,000.00 5,268,470.00 243,000.00 10,209,470.00
Dep. For 3rd Year 469,800.00 790,270.00 24,300.00 1,284,370.00
W.D.V. as on IV Year 4,228,200.00 4,478,200.00 218,700.00 8,925,100.00
Dep. For 4th Year 422,820.00 671,730.00 21,870.00 1,116,420.00
W.D.V. as on V Year 3,805,380.00 3,806,470.00 196,830.00 7,808,680.00
Dep. For 5th Year 380,540.00 570,970.00 19,680.00 971,190.00
W.D.V. as on VI Year 3,424,840.00 3,235,500.00 177,150.00 6,837,490.00

7.3.11. TL Repayment Schedule


Loan Amount 8,000,000.00
Rate 10.00%

Monthly Loan amount Monthly Repayment' Int Total Instl. Closing Bal

1 8,000,000.00 133,333.33 65,555.56 198,888.89 7,866,666.67


2 7,866,666.67 133,333.33 64,444.44 197,777.77 7,733,333.33
3 7,733,333.33 133,333.33 63,333.33 196,666.66 7,600,000.00
4 7,600,000.00 133,333.33 62,222.22 195,555.55 7,466,666.67
5 7,466,666.67 133,333.33 61,111.11 194,444.44 7,333,333.33
6 7,333,333.33 133,333.33 60,000.00 193,333.33 7,200,000.00
7 7,200,000.00 133,333.33 58,888.89 192,222.22 7,066,666.67
8 7,066,666.67 133,333.33 57,777.78 191,111.11 6,933,333.33
9 6,933,333.33 133,333.33 56,666.67 190,000.00 6,800,000.00
10 6,800,000.00 133,333.33 55,555.56 188,888.89 6,666,666.67
11 6,666,666.67 133,333.33 54,444.44 187,777.77 6,533,333.33

Rajasthan Agricultural Competitiveness Project 85


12 6,533,333.33 133,333.33 53,333.33 186,666.66 6,400,000.00
13 6,400,000.00 133,333.33 52,222.22 185,555.55 6,266,666.67
14 6,266,666.67 133,333.33 51,111.11 184,444.44 6,133,333.33
15 6,133,333.33 133,333.33 50,000.00 183,333.33 6,000,000.00
16 6,000,000.00 133,333.33 48,888.89 182,222.22 5,866,666.67
17 5,866,666.67 133,333.33 47,777.78 181,111.11 5,733,333.33
18 5,733,333.33 133,333.33 46,666.67 180,000.00 5,600,000.00
19 5,600,000.00 133,333.33 45,555.56 178,888.89 5,466,666.67
20 5,466,666.67 133,333.33 44,444.44 177,777.77 5,333,333.33
21 5,333,333.33 133,333.33 43,333.33 176,666.66 5,200,000.00
22 5,200,000.00 133,333.33 42,222.22 175,555.55 5,066,666.67
23 5,066,666.67 133,333.33 41,111.11 174,444.44 4,933,333.33
24 4,933,333.33 133,333.33 40,000.00 173,333.33 4,800,000.00
25 4,800,000.00 133,333.33 38,888.89 172,222.22 4,666,666.67
26 4,666,666.67 133,333.33 37,777.78 171,111.11 4,533,333.33
27 4,533,333.33 133,333.33 36,666.67 170,000.00 4,400,000.00
28 4,400,000.00 133,333.33 35,555.56 168,888.89 4,266,666.67
29 4,266,666.67 133,333.33 34,444.44 167,777.77 4,133,333.33
30 4,133,333.33 133,333.33 33,333.33 166,666.66 4,000,000.00
31 4,000,000.00 133,333.33 32,222.22 165,555.55 3,866,666.67
32 3,866,666.67 133,333.33 31,111.11 164,444.44 3,733,333.33
33 3,733,333.33 133,333.33 30,000.00 163,333.33 3,600,000.00
34 3,600,000.00 133,333.33 28,888.89 162,222.22 3,466,666.67
35 3,466,666.67 133,333.33 27,777.78 161,111.11 3,333,333.33
36 3,333,333.33 133,333.33 26,666.67 160,000.00 3,200,000.00
37 3,200,000.00 133,333.33 25,555.56 158,888.89 3,066,666.67
38 3,066,666.67 133,333.33 24,444.44 157,777.77 2,933,333.33
39 2,933,333.33 133,333.33 23,333.33 156,666.66 2,800,000.00
40 2,800,000.00 133,333.33 22,222.22 155,555.55 2,666,666.67
41 2,666,666.67 133,333.33 21,111.11 154,444.44 2,533,333.33
42 2,533,333.33 133,333.33 20,000.00 153,333.33 2,400,000.00
43 2,400,000.00 133,333.33 18,888.89 152,222.22 2,266,666.67
44 2,266,666.67 133,333.33 17,777.78 151,111.11 2,133,333.33
45 2,133,333.33 133,333.33 16,666.67 150,000.00 2,000,000.00
46 2,000,000.00 133,333.33 15,555.56 148,888.89 1,866,666.67
47 1,866,666.67 133,333.33 14,444.44 147,777.77 1,733,333.33
48 1,733,333.33 133,333.33 13,333.33 146,666.66 1,600,000.00
49 1,600,000.00 133,333.33 12,222.22 145,555.55 1,466,666.67
50 1,466,666.67 133,333.33 11,111.11 144,444.44 1,333,333.33
51 1,333,333.33 133,333.33 10,000.00 143,333.33 1,200,000.00
52 1,200,000.00 133,333.33 8,888.89 142,222.22 1,066,666.67
53 1,066,666.67 133,333.33 7,777.78 141,111.11 933,333.33
54 933,333.33 133,333.33 6,666.67 140,000.00 800,000.00
55 800,000.00 133,333.33 5,555.56 138,888.89 666,666.67
56 666,666.67 133,333.33 4,444.44 137,777.77 533,333.33
57 533,333.33 133,333.33 3,333.33 136,666.66 400,000.00
58 400,000.00 133,333.33 2,222.22 135,555.55 266,666.67
59 266,666.67 133,333.33 1,111.11 134,444.44 133,333.33
60 133,333.33 133,333.33 - 133,333.33 -
TOTAL - 3,866,666.67 1,450,000.00 5,316,666.67 -

7.3.12. Projected Working Capital Requirement


Particulars Y1 Y2 Y3 Y4 Y5

Rajasthan Agricultural Competitiveness Project 86


Debtors 1,153,032.00 1,352,957.00 1,531,634.00 1,720,953.00 1,921,182.00
Stock of F.G 1,051,320.00 1,200,239.00 1,358,437.00 1,526,026.00 1,703,380.00
Stock of R.M 342,720.00 394,502.00 449,820.00 508,744.00 571,200.00
Less Creditor 371,280.00 397,015.00 452,496.00 511,553.00 574,173.00
Total Working Cap Required 2,175,792.00 2,550,683.00 2,887,395.00 3,244,170.00 3,621,589.00
W.C Margin 543,948.00 637,671.00 721,849.00 811,043.00 905,397.00
W.C Loan 1,631,844.00 1,913,012.00 2,165,546.00 2,433,127.00 2,716,192.00

7.3.13. Sales Schedule


# Particulars Y1 Y2 Y3 Y4 Y5
1 Plain Soymilk (Ltrs) 217500 243125 261875 280625 299375
Sale Price (in Rs. Per Ltr) 30 32 34 36 38
Plain Soymilk Sales 6,525,000.00 7,780,000.00 8,903,750.00 10,102,500.00 11,376,250.00
2 Flavored Soymilk (Ltrs) 565500 632125 680875 729625 778375
Sale Price (in Rs. Per Ltr) 40 42 44 46 48
Flavored Soymilk Sales 22,620,000.00 26,549,250.00 29,958,500.00 33,562,750.00 37,362,000.00
3 Tofu (KG) 6365 6958 7495 8031 8565
Sale Price (in Rs. Per kg) 220 231 243 255 268
Tofu Sales 1,400,300.00 1,607,298.00 1,821,285.00 2,047,905.00 2,295,420.00
4 Soy-Yogurt (Ltrs) 29848 32638 35150 37663 40175
Sale Price (in Rs. Per Ltr) 50 53 56 59 62
Soy-Yogurt Sales 1,492,400.00 1,729,814.00 1,968,400.00 2,222,117.00 2,490,850.00
5 Okara (KG) 127663 139159 149868 160579 171289
Sale Price (in Rs. Per kg) 20 21 22 23 24
Okara Sales 2,553,260.00 2,922,339.00 3,297,096.00 3,693,317.00 4,110,936.00
Total Sales 34,590,960.00 40,588,701.00 45,949,031.00 51,628,589.00 57,635,456.00

7.3.14. Projected Balance Sheet


Particulars Y1 Y2 Y3 Y4 Y5
(A) LIABILITIES
Partner's Capital 6,085,948.00 6,085,948.00 6,085,948.00 6,085,948.00 6,085,948.00
Add: Addition During the - - - - -
Year
Total Capital 6,085,948.00 6,085,948.00 6,085,948.00 6,085,948.00 6,085,948.00
Reserves & Surplus
RACP Grant - - - - -
Profit & Loss
Opening Balance - 3,735,205.27 9,569,447.74 17,587,925.80 27,950,408.77
Add: Profit after tax 3,735,205.27 5,834,242.47 8,018,478.06 10,362,482.97 12,874,148.47
Total 3,735,205.27 9,569,447.74 17,587,925.80 27,950,408.77 40,824,557.24
Secured Loan From Bank 8,000,000.00 8,000,000.00 8,000,000.00 8,000,000.00 8,000,000.00
W. Capital Loan 1,631,844.00 1,913,012.00 2,165,546.00 2,433,127.00 2,716,192.00
Current Liability 371,280.00 397,015.00 452,496.00 511,553.00 574,173.00
Total ( A ) 19,824,277.27 25,965,422.74 34,291,915.80 44,981,036.77 58,200,870.24
(B) ASSETS
Fixed Assets
Gross Block 13,392,000.00 11,688,200.00 10,209,470.00 8,925,100.00 7,808,680.00
Less : Depreciation 1,703,800.00 1,478,730.00 1,284,370.00 1,116,420.00 971,190.00
Net Block 11,688,200.00 10,209,470.00 8,925,100.00 7,808,680.00 6,837,490.00
Misc Fixed Assets 120,000.00 90,000.00 60,000.00 30,000.00 -
Current Assets

Rajasthan Agricultural Competitiveness Project 87


Sundry Debtor 1,153,032.00 1,352,957.00 1,531,634.00 1,720,953.00 1,921,182.00
1,153,032.00 1,352,957.00 1,531,634.00 1,720,953.00 1,921,182.00
Closing Stock
Closing Stock FG 1,051,320.00 1,200,239.00 1,358,437.00 1,526,026.00 1,703,380.00
Closing Stock RM 342,720.00 394,502.00 449,820.00 508,744.00 571,200.00
1,394,040.00 1,594,741.00 1,808,257.00 2,034,770.00 2,274,580.00
Cash & Bank Balance 5,469,005.27 12,718,254.74 21,966,924.80 33,386,633.77 47,167,618.24
(Including Cash Credit
Limit)
Total ( B ) 19,824,277.27 25,965,422.74 34,291,915.80 44,981,036.77 58,200,870.24

7.3.15. Projected Profit and Loss Statement


Particulars Y1 Y2 Y3 Y4 Y5
Total Sales 34,590,960.00 40,588,701.00 45,949,031.00 51,628,589.00 57,635,456.00
Less:- Opening Stock of - 1,051,320.00 1,200,239.00 1,358,437.00 1,526,026.00
F.G.
Add:-Closing Stock of F. 1,051,320.00 1,200,239.00 1,358,437.00 1,526,026.00 1,703,380.00
G.
Cost of Finish Goods 35,642,280.00 40,737,620.00 46,107,229.00 51,796,178.00 57,812,810.00
Raw Material Purchased 4,455,360.00 4,764,182.00 5,429,952.00 6,138,634.00 6,890,080.00
Add:- Opening Stock of - 342,720.00 394,502.00 449,820.00 508,744.00
R.M
Less:-Closing Stock of 342,720.00 394,502.00 449,820.00 508,744.00 571,200.00
R.M.
Cost of Material Consumed 4,112,640.00 4,712,400.00 5,374,634.00 6,079,710.00 6,827,624.00
Total Variable Exp 19,353,389.00 20,960,221.00 22,617,301.00 24,280,825.00 25,950,829.00
Total Fixed Exp 4,160,426.00 4,368,447.00 4,586,871.00 4,816,219.00 5,057,030.00
Amortization of Exp 30,000.00 30,000.00 30,000.00 30,000.00 30,000.00
Profit Before Int & Dep 7,985,825.00 10,666,552.00 13,498,423.00 16,589,424.00 19,947,327.00
Int. on Term Loan 713,333.33 553,333.33 393,333.34 233,333.33 73,333.33
Int. on W. Capital Loan 163,184.40 191,301.20 216,554.60 243,312.70 271,619.20
Depreciation 1,703,800.00 1,478,730.00 1,284,370.00 1,116,420.00 971,190.00
Net Profit 5,405,507.27 8,443,187.47 11,604,165.06 14,996,357.97 18,631,184.47
Tax 1,670,302.00 2,608,945.00 3,585,687.00 4,633,875.00 5,757,036.00
Net Profit 3,735,205.27 5,834,242.47 8,018,478.06 10,362,482.97 12,874,148.47

7.3.16. Projected Cash Flow Statement


Sr. Particulars Y1 Y2 Y3 Y4 Y5
1 Revenue
Sales 35,642,280.00 40,737,620.00 46,107,229.00 51,796,178.00 57,812,810.00
2 Term Loan 8,000,000.00 - - - -
W. Capital Loan 1,631,844.00 281,168.00 252,534.00 267,581.00 283,065.00
3 Equity/ Share 6,085,948.00 - - - -
capital
4 RACP Investment - - - - -
Grant
5 Increase in Current 371,280.00 25,735.00 55,481.00 59,057.00 62,620.00
Liabilities
Sub Total (A) 51,731,352.00 41,044,523.00 46,415,244.00 52,122,816.00 58,158,495.00
Cash Outflow (Rs.)
1 Capital Expenditure

Rajasthan Agricultural Competitiveness Project 88


a Building and Civil 5,800,000.00 - - - -
Work
c Plant and Machinery 7,292,000.00 - - - -
d Land Development & - - - - -
Registration
e Electrification & Misc 300,000.00
f Pre Operative Exp 150,000.00 - - - -

2 Operational
Expenditure
a Fixed Cost (Excl. Of 4,160,426.00 4,368,447.00 4,586,871.00 4,816,219.00 5,057,030.00
Interest)
b Variable Cost 19,353,389.00 20,960,221.00 22,617,301.00 24,280,825.00 25,950,829.00
c Cost of Material 4,112,640.00 4,712,400.00 5,374,634.00 6,079,710.00 6,827,624.00
Consumed
3 Loan Repayment - - - - -
a Interest on WC 163,184.40 191,301.20 216,554.60 243,312.70 271,619.20
b Interest on TL 713,333.33 553,333.33 393,333.34 233,333.33 73,333.33
4 Increase in Current 1,153,032.00 199,925.00 178,677.00 189,319.00 200,229.00
Assets
Increase in Stock 1,394,040.00 200,701.00 213,516.00 226,513.00 239,810.00
5 Tax 1,670,302.00 2,608,945.00 3,585,687.00 4,633,875.00 5,757,036.00
6 Differential tax
liabilities
Sub Total (B) 46,262,346.73 33,795,273.53 37,166,573.94 40,703,107.03 44,377,510.53
Net Cash Flow (A- 5,469,005.27 7,249,249.47 9,248,670.06 11,419,708.97 13,780,984.47
B)
Opening Cash and 5,469,005.27 12,718,254.74 21,966,924.80 33,386,633.77
Bank
Cumulative Cash 5,469,005.27 12,718,254.74 21,966,924.80 33,386,633.77 47,167,618.24
Balance

7.3.17. Financial Indicators


Indicator Value
Internal Rate of Return 35%
Break Even (Average) 38%
Net Present Value 204.42 Lakhs, Positive above Project Cost
DSCR (Average) 5.18
RoCE (Average) 27%
RoE (Average) 61%
Project Payback Period 2 Years 7 Months
Equity Payback Period 1 Year 5 Months

7.3.18. Conclusion
Based on study of technology to be adopted in the project, project economics and high economic
viability indicators, it can be concluded that project is techno-economically viable and sustainable.

Rajasthan Agricultural Competitiveness Project 89


Chapter 8: Method of technology
dissemination and adoption

Method of dissemination of suggested technology and models

RACP-ABPF will undertake mix of some or several initiatives to disseminate the suggested technologies
and models, which may broadly include:

 Workshops for prospective entrepreneurs/groups, existing industry owners and BoDs of FPCs
 Facilitate technology benchmarking exposure visits within and outside state for prospective
entrepreneurs/groups, existing industry owners and BoDs of FPCs
 Seminars and Workshops in association with Industry Associations, Technical Institutes and
R&D Institutions
 Technology Meets and Tie-ups with Technology Suppliers, Technical Institutes and subject
experts
 Facilitate through consultancy and business development services
 Dissemination of success stories of units facilitated by ABPF through appropriate media
 Dissemination through web portals and mobile applications

Scale of adoption in the clusters and state, through ABPF support

The models and business plans suggested in this report are broadly generic in nature, however involve:

 technology profile
 civil works requirement
 raw material sourcing and logistic costs for sourcing raw material
 capacity utilization for different scenarios
 realistic assessment of investment and working capital needs
 possible sources of funding
 financial analysis

The suggested models and business plans are for optimal capacities which can be fine-tuned to the scale,
investment, technology needs of the entrepreneur. ABPF will further guide entrepreneurs on statutory
clearances needed for operating the business, required licenses, ways of leveraging various government
schemes/subsidies and several other aspects for effective technology adoption. In order to increase the

Rajasthan Agricultural Competitiveness Project 90


scale and potential adoption, ABPF shall pursue some or mix of several initiatives, which may broadly
include:

 Investor road shows: ABPF will organize road shows that will comprise of meets aimed at
disseminating information regarding opportunities to invest in the state, targeting potential
investors both within & outside the state.
 B2B Meets: ABPF will hold Business to Business Meetings to develop partnerships amongst
entrepreneurs with complimentary offerings.
 Establishing Mentor Network: ABPF will also prepare a list of well-established
entrepreneurs/ subject matter experts who could mentor the emerging entrepreneurs- advising
them on technical and commercial aspects of running a business.
 Mentor-Mentee Workshops: ABPF will hold a series of workshop wherein the potential
entrepreneurs and their mentors would interact and exchange ideas on establishing, developing
and running new businesses. Based on the interest and seriousness of the entrepreneur, ABPF
will also facilitate one on one discussion with the mentors. ABPF will also invite commercial
banks to these workshops and investor meets, so as to establish a rapport between the
entrepreneur and the banks. By building a good working relationship with the banks over a
period of time, ABPF will be able to recommend viable business projects for accessing
commercial credit from these banks.
 Facilitating Access to Finance: ABPF will guide and facilitate entrepreneurs to explore
possible sources of funding including ways of leveraging various government
schemes/subsidies. ABPF will facilitate one on one dedicated meetings between entrepreneurs
and commercial banks in order to facilitate access to finance (both investment as well as
working capital).
 Creating a robust Knowledge Base: ABPF will prepare an operational knowledge base that
could be used by an entrepreneur throughout the life cycle of the enterprise. The knowledge
base will comprise of fundamentals of business management including objectives, operations
management, organizational behavior, human resources management, structure of the
organization, products and markets, operations finance including major expenditures, sources
of financing across the stages of the life cycle of the enterprise (from start up to mature
business and expansion). Knowledge base would also cover fundamentals of accounting, sales,
marketing, promotion, branding, distribution, logistics, human resource management etc. ABPF
will also establish a business performance tracking system of the enterprises supported by
ABPF.
 Review of Business Plans for funding through RACP: ABPF will review the business plans
and provide its recommendations on applications.

Rajasthan Agricultural Competitiveness Project 91


References

 Comparative Study of Soy Paneer Prepared from Soymilk, Blends of Soymilk and Skimmed
Milk- By Jeelani Raja*, Hillal A Punoo and Farooq A Masoodi, Department of Food Science
and Technology, University of Kashmir, Srinagar-190006, India
 Soy Processes, Equipment, Capital, and Processing Costs- By G. C. Mustakas-Process
Engineering, V. E. Sohns-Cost Engineering, Engineering and Development Laboratory,
Northern Regional Research Laboratory
 Technology of Soymilk and some Derivatives- By Tan Boe Han
 History of Soymilk and Other Non-Dairy Milks (1226 TO 2013) - Compiled by William
Shurtleff & Akiko Aoyagi, Soyinfo Center
 Manufacturing delicious soy milk, Palsgaard Technical Paper, November 2011
 Soybean Processing and Nutrition- By Omo Ohiokpehai (PhD)
 Processing soymilk: the dairy alternative for the health conscious- By SPX Editorial
 Advanced Food Technology Workshop Report –Volume I, Space and Life Sciences
Directorate, Habitability and Environmental Factors Division
 Cleaning in place: A guide to cleaning technology in the food processing industry- by Tetra Pak
 Soymilk and Related Products- http://www.fao.org
 Soya Milk Machine- http://www.prosoya.com/soya-milk-machine/
 Studies on the Processing and Properties of Soymilk- By A Khaleque, W.R. Bannatyne and
G.M. Wallace
 Bühler sets new standards in soybean seed cleaning- http://www.buhlergroup.com/
 How Tofu is made? - www.madehow.com
 How Tofu Is Processed- Tara McHugh
 How Soy Milk is made? - www.madehow.com
 Advances in soybean processing and utilization- By Dr Bob Hosken, University of Newcastle
 Soya Drinks and Beverages - Soy Yogurt - Soymilk Powder - Soya Dairy Foods-
www.soyadairy.com
 Soybean Dehulling – How Does It Work?- By Jason Buseman
 Soy Food Processing- Overview of Soy Food Production- Tuchenhagen Dairy Systems

Rajasthan Agricultural Competitiveness Project 92


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