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RAJASTHAN AGRICULTURAL COMPETITIVENESS PROJECT Detailed Project Report on Soy milk Processing Plant Prepared by: AGRI BUSINESS PROMOTION FACILITY

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Page 1: RAJASTHAN AGRICULTURAL COMPETITIVENESS ...agriculture.rajasthan.gov.in/content/dam/agriculture...Rajasthan Agricultural Competitiveness Project 6 This section of the report outlines

RAJASTHAN AGRICULTURAL

COMPETITIVENESS PROJECT

Detailed Project Report on Soy milk

Processing Plant

Prepared by:

AGRI BUSINESS PROMOTION FACILITY

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Rajasthan Agricultural Competitiveness Project 1

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

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Rajasthan Agricultural Competitiveness Project 2

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.

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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

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Rajasthan Agricultural Competitiveness Project 4

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

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# Process Traditional method (especially in micro units)

Modern Method/s in more advanced units

1. Raw Material Soybean Storage

in own or other private godowns

processors follow shorter/ smaller inventory holding strategy

Galvanized Silos Storage

2. Raw Soybean Cleaning and sorting

Inadequate and outdated technology

Complete cleaning line - modern pre-cleaner (drum sieve), magnet separators, separator classifiers, gravity separators, de-stoners, and color sorters.

3. Soymilk Section

Lack of hulling systems

Traditional soaking tanks

Outdated Grinding and Milk Separation

Inadequate or outdated systems for Milk Sterilization, Homogenization, Mixing and Deodorizing

Modern Hullers

Dry Soybean tank with elevator

Modern Soybean Soaking and Washing Machine

Modern Grinding and Milk Separation

Modern Milk Sterilization, Homogenization, Mixing and Deodorizing

4. Tofu and Yogurt Production Section

Outdated method of tofu and yogurt production

Muslin cloth or manual filter press and manually cutting

Yogurt making process is without the use of any scientific incubation.

Modern Tofu and Soy Yogurt making equipments

Pneumatic press and mould, with precision and high speed and pneumatic tofu cutters

Digitally controlled incubator chambers, etc

5. Soymilk, Tofu and Yogurt Packaging

Non Shelf Stable Packaging of soymilk

Manual Bottle Packaging

Manual packaging of Tofu and Curd in basic packaging

Modern Multi-Head Automatic Liquid Filling Machines with Crown capping system and Automatic Bottle Labeling and Printing system

Modern Sterilization system

Modern Aseptic Shelf Stable Packaging of soymilk

Modern Packing and Sealing system for Tofu and Yogurt Packing

6. Testing and other support activities

Lack of even basic testing equipment

Testing equipment comprising of 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

7. Support Equipment, Engineering and Automation

Inadequate cleaning systems- Cleaning is mostly “cleaning out of place”, or COP; i.e. all equipment are opened / dismantled and cleaned manually.

Sub-standard quality support equipments and system which leads to leakages, clogging, breakdowns and other related problems.

Majority units have manual or semi-automatic processes.

CIP system and control: Modern units use CIP systems, i.e. “Cleaning in Place”

Based on size, capacity and milling engineering the support structure and equipments need to be installed; should be robust and shock absorbent.

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.

Process optimization refers to operate plant optimally with economic performance in terms of productivity and yields. It also avoids human errors. Scada systems are now integral part of flour mill industry.

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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

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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

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Creating a robust knowledge base

Preparation of business plans

Review of business plans for funding through RACP

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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

1 http://www.sopa.org/statistics/world-soybean-production/ (Retrieved on 10th April 2017) 2 Zauba 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

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

34%

15%14%

12%

7%

18%

Value of Import

Ukraine

Benin

Germany

India

USA

Others

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Figure 2 Total quantities of Imports by the country

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)

55%20%

13%

5% 4% 3%

Quantity of Import

Ukarine

Benin

India

Ethiopia

USA

Others

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

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

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

19%

11%

10%

8%7%

45%

Value of Export

USA

France

Canada

UK

South Korea

Others

16%

12%

9%

9%7%

48%

Quantity of Export

USA

France

Canada

South Korea

UK

Others

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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 Million Metric Ton)

Extraction Produced (In Million Metric Ton)

Oil Produced (In Million Metric Ton)

Total

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 Pradesh

6.41 5.6 6 5.7 5.24 6.35 3.41 5.72

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 Pradesh

0.13 0.16 0.15 0.34 0.4 0.26 0.16 0.24

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

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)

0500000

100000015000002000000250000030000003500000400000045000005000000

Total Value USD

Total Quantity

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Figure 6: Export of Soybean

Figure 7: Average Prices of Soybean

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.

140000000

120000000

100000000

80000000

60000000

40000000

20000000

0

Total Value USD

Total Quantity

60

40

20

0

Months

Ave

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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/

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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

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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

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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

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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.

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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

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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.

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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.

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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.

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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,

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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

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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

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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’

12 Advances in soybean processing and utilisation- Dr Bob Hosken University of Newcastle 13 Efficient 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.

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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.

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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.

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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

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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

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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:

15 Detailed 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.

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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

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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.

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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.

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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

1. Raw Material

Soybean Storage

Storage of raw material (cleaned and graded

soybean grains) by processors in own or other

private godowns leaves the raw material subjected to

infestation by rodents and pests. Modern and

scientific warehousing systems like dehumidifiers,

temperature monitors, grain handling equipment, etc

are non-existent in such facilities.

Often, lack of hygiene, pilferages, leakages, improper

handling of material, and various other factors lead to

losses in storage.

Several processors being micro millers follow

shorter/ smaller inventory holding strategy, to suffice

raw material availability for few batches only. This

strategy, often, leads to high procurement costs due

to speculative nature of markets.

Modern technology involves raw material storage in silos made of galvanized steel re-enforced exteriors. Galvanized Silos are used for storage of grains in bulk for longer period. These silos are made in Galvanized Steel and bolted in construction. The main parts of the silos are made in corrugated sheets instead of plain sheet, which increases its strength. These silos are generally equipped with accessories like Level Switches, Aeration System, Temperature Monitoring, Ventilation and Sweep Augers. These accessories help in monitoring the quality of stored grain inside the silos. Galvanized Silo Storage System ensures zero wastage due to moisture, fungus & rodents etc. This also enables units to target premium markets from quality-seeking consumers through direct retailing and export. In India, this system is adopted to some extent by private sector. Fowler Westrup, Rostfrie Steels, Westeel Silos, Buhler, Milltec, Bansal Group etc. are some key supplier options of large silo storage systems.

2. Raw Soybean

Cleaning and

sorting

Often grain processing firms (including soybean

cleaning units; i.e. backward integrated suppliers to

soymilk processors) use inadequate and outdated

technology in pre-cleaning, fine cleaning, drying and

hulling operations. Some small and medium scale

units do deploy pre-cleaners, de-stoners and gravity

separators; however, use of equipment like fine

cleaners, magnetic separators, advanced color

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.

To the contrary, benchmarked cleaning equipment deployed in

larger firms at MP, Maharashtra and Rajasthan involve a complete

cleaning line. This includes modern pre-cleaner (drum sieve),

magnet separators, separator classifiers, gravity separators, de-

stoners, and color sorters.

In nutshell, applying the above modern and more efficient systems

ensures better quality, safer, more consistent finished product for

the soymilk plant.17

17 Detailed 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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3. Soymilk Section Lack of hulling systems: Some micro units

process whole soya (i.e. without removal of husk or seed coat) for soymilk production. However, early in process, soybeans need be dehulled to avoid any off flavors and to improve yields. Most other units procure dehulled seeds from market.

Traditional soaking tanks: If soybean grains are

not cleaned well, it would lead to grinding with bacteria and dust from soybean skin, influencing the taste and quality of soymilk. Most micro units use only soaking tank, while some small units use upgraded equipments which have rinsing function. Notably, even in such equipment, grains at bottom do not get properly cleaned due to lack of proper agitating motion. More importantly, time and temperature monitoring in this operation is critical; if soybeans are soaked in water for too long it may lead to rancidity.

Outdated Grinding and Milk Separation: Most

micro units generally have single pass cooking and grinding operations. Although ground once, the cooked soybeans are still rather coarse. This leads to lower extraction rate later. Further most micro units use muslin cloth for separation of okara. Partially soaked beans cannot be finely ground in most low cost grinders. Also, most mini systems comprise poor flow control and inefficient okara separation. As a result, soy extract does not represent the smoothness of larger systems.

Inadequate or outdated systems for Milk

Sterilization, Homogenization, Mixing and

Deodorizing: Most micro units have relatively

outdated technology to sterilize milk. Transfer of

separated milk is done manually in most small

units. Homogenizing is practically non-existent

which leads to inconsistent texture of final

product. Moreover most units do not deploy

deodorizers for eliminating the beany smell and

flavor which comes in soy milk.

In relative comparison, technology and equipment in some

modern units at MP and other parts of India as well as in some

other countries considerably address the gaps associated with the

traditional systems. The soymilk section with benchmarked

technologies comprises of:

Modern Hullers: Most modern units use efficient hulling

system; i.e. roll mill with supporting equipment like aspirator,

cyclone, etc.

Dry Soybean tank with elevator: Often micro soymilk

processing units store dry soybean in jute bags (as received

from suppliers) and during processing operators open these

bags to fill the soaking tank. In modern units, material

handling equipment (like elevators) not only save labor cost,

but also increase production efficiency with fixed quantity

transfer to fit the production capacity for washing and

grinding.

Modern Soybean Soaking and Washing Machine: Modern

units deploy automated Soybean Soaking & Washing

Machine which help efficient cleaning of grains and improve

efficiency of Soymilk Production Line. These machines not

only feed and drain out water automatically, but also are

designed with a special feature of agitating motion at the

bottom. This design makes the soybean scroll up leading to

efficient cleaning. Also, soak and wash time and temperature

can be efficiently monitored.

Modern Grinding and Milk Separation: Modern Grinding

systems are connected with automatic wet soybean

suction/transfer system. This system not only helps save

labor cost, but also upgrades the efficiency of production

line. Several modern units also use highly efficient

centrifugal separators/decanters which spin out most of the

chunky insoluble fiber (i.e. okara) ensuring smoother, thinner

liquid soymilk. Several modern systems ensure okara

separation over 99.5%.

Modern Milk Sterilization, Homogenization, Mixing and

Deodorizing: In modern units, extracted soymilk is passed

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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.

4. Tofu and Yogurt

Production

Section

Outdated method of tofu and yogurt production: Most micro units use Muslin cloth

or manual filter press to strain water after coagulation of soymilk to obtain tofu. Thereafter obtained tofu is manually cut in desired shape and immersed in water in vessel and often kept in a refrigerator. Most micro units practice traditional domestic dairy yogurt making process, without use of any scientific incubation. Hence, often yogurt is a bit ‘runnier’ and less thicker than desired.

Modern Tofu and Soy Yogurt making equipments:

Advanced plants use pneumatic press and mould to prepare

tofu and mould shape, with precision and high speed. Often

in-built or separate pneumatic tofu cutters are used.

Similarly, modern and digitally controlled incubator

chambers are used by advanced plants to manufacture

yogurt in temperature monitored system.

5. Soymilk, Tofu and

Yogurt Packaging

Non Shelf Stable Packaging of soymilk: Some

micro units in the region practice manual filling of pouches and hand held pouch sealers to pack not only curd and tofu, but also soymilk. Soymilk

Modern Multi-Head Automatic Liquid Filling Machines

with Crown capping system and Automatic Bottle

Labeling and Printing system: Modern large plants

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sold in pouch needs proper refrigeration throughout and generally the expiry period is within 2-3 days of packaging.

Manual Bottle Packaging: Other units generally

pack soymilk in bottles, which is done either through a tap type system fitted with the finish product tank or basic filling and crown capping system. Filled bottles are sterilized in Autoclave/Sterilization system. Some units, on order basis, also get job work done from service providers for modern dairy plants.

Manual packaging of Tofu and Curd in basic packaging: Most micro units manufacture tofu

and curd on order basis and preserve same under refrigeration. Packaging is generally done with use of poly pouches or wraps.

worldwide have deployed modern bottling system to ensure

zero human intervention. Multi-head liquid filling system

enables speedy filling before bottles move to crown capping,

labeling, printing stations and then to sterilization unit on an

automated conveyor system. Advanced semi-automatic

versions of same are adopted by some small scale units in

India.

(Pouch Form Fill Seal machines (used by several Dairy

Companies) are generally not preferred even by large

companies due to marketing constraints.)

Modern Sterilization system: Modern sterilization devices

in advanced plants are built with most accurate monitoring

systems, including temperature, pressure and time

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

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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

support activities Most units do not have even basic testing equipment

for in-house quality check and control. On several

occasions, even such units are required to outsource

certain tests from local as well as distant accredited

testing labs.

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.

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

Equipments,

Engineering and

Automation

Inadequate cleaning systems: Most

mini/micro plants have poor cleaning systems

to remove residue, soil and deposits from

insides of the machines. Cleaning is mostly

“cleaning out of place”, or COP; i.e. all

equipment is opened/dismantled and cleaned

manually.

The support system majorly includes material

handling equipment (SS storage tanks and

frames, elevators, conveyors, etc.), aspiration

system (aspirators, cyclone, airlock, fans,

aspiration line and ducting, etc), machine

support structure, other mechanical fabricated

equipment and other support equipment

(compressors, water softeners, weighing

scales, electrification, etc.). The quality of such

equipment is highly critical for overall

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.

The support structure and equipment play a highly important

role in the performance of the unit. Based on size and

capacity, appropriate engineering with appropriate support

structure and equipment need to be installed. 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 of

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performance of the units. However, in this

context many millers have sub-standard quality

system which leads to leakages, clogging and

breakdowns and other related problems.

While some small soymilk plants have sound

plant engineering, several others suffer from

improper set-up. On several occasions, wrong

engineering leads to unnecessary material

travel also leading to high energy costs, low

sanitation, low efficiency, additional manual

interventions, increased accident risks, low

scope of expansion/modernization, etc.

Majority units have manual or semi-automatic

processes. Though this has helped local

employment, yet several non-skill human

interventions need up-scaling. Further, since

soymilk is highly sensitive to contamination,

high manual interventions lead to increased

risks.

similar repute make are highly preferred by modern units to

support packaging operations other pneumatic functions.

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.

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. 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 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 efficiency and productivity.

2. Use of modern storage systems will ensure proper hygiene and highly reduced incidences of leakages, improper handling of material, and various other factors that lead to losses in storage.

3. Use of modern CIP system eliminates impurities that pose a significant health and safety risk.

4. The use of modern technology may help reduce the yield losses.

5. Use of modern decanters/centrifuge eliminates impurities which impact downstream machine efficiency.

6. Modern separation methods facilitate relatively higher separation of liquid soymilk, thus ensuring higher recovery.

7. Relatively low competition in micro and small scale segment.

8. The use of modern technology will enable production of premium quality soymilk, which will help link with premium consumer segment and may fetch better margins.

9. New age machines, having small footprint, facilitate optimum space utilization for plant installation.

10. Use of two stage grinding with larger throughput capacities ensure higher production and reduced breakdowns, as well most precise grinding for maximum milk recovery.

11. Soymilk machines are built of complete non-corrosive material, i.e. stainless steel, which further supports the food safety approach.

12. Soymilk base lends itself to making several value added products like tofu, yogurt, soy-cream, soy ice-cream and soymilk base chocolates, energy bars and sweets.

1. The adoption rate of latest technology innovation could be low among the entrepreneurs due to relatively high capital investment involved.

2. Lack of awareness among the general public belonging to all classes, ages and groups about the value and role of soybean and its products as indispensable part of daily diet, in providing vitamins, minerals and proteins, is a major challenge.

3. Rajasthan being rich in dairy also has consumer inclination towards consumption of cow/buffalo milk.

4. Majority Indians, who are lactose intolerant, either are not aware that they are lactose intolerant or even if they know they do not switch to dairy alternatives easily and avoid all dairy/dairy substitutes.

5. Advertising and promotional measures to increase the sales are also a weak point of the industry.

6. Modern technology with higher capacities also increases working capital requirements.

7. Mere adding of few recommended machines in an existing traditional unit may not yield optimum results due to capacity mismatch/disequilibrium in complete process.

8. Lack of awareness regarding the latest innovations in the soymilk production process is another reason for low rate of adoption among entrepreneurs.

9. Lack of proper backward integration or even irregular supply of raw material discourages some entrepreneurs to invest in modern technologies with large capacities.

10. The cost of other inputs like packaging material, fuel, and transportation is high making cost of production to rise.

11. The period of soybean availability is very

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13. Modern packaging methods significantly reduce man hours spent on the activity, while considerably increasing the accuracy.

14. Scientific design and engineering of modern soymilk plant facilitates optimum space utilization, reduced leakages, reduced power consumption (by power saving in processes), better product output and manpower safety.

15. Automation in the plant can decrease the dependency on the labour contractors. It also ensures minimum human handling of products.

16. Automation can also help real-time identification of problems and immediate trouble shooting.

short during season. Bulk procurement during season means high working capital requirement and large storage capacities. Alternative model of purchase as per requirement (i.e. Pest and quality problems in soybean apart from high prices problems in procuring the raw material are also there.

12. Existing micro scale millers have units set up in limited spaces. Modernization may require larger area in some cases.

13. New technologies require manpower to upgrade their skills for handling operations. In some cases, such skilled labour may not be easily available locally or only higher 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. 2. Large scope of tapping the “Protein rich-

lactose free-healthy” products market. 3. Key schemes of Central Govt. (like Kisan

Sampada, etc) and State Govt. could be utilized to set up most modern plants.

4. Changes in lifestyle, such as longer work hours, higher disposal incomes, growth in online purchase, impulse purchase, working women, convenience lifestyle, etc have increased the demand for packaged beverages.

5. Branding offers huge potential for product promotion.

6. Increased interest in health and nutrition is creating demand for some properly processed and packaged soymilk products.

7. FPOs can invest in mini versions of recommended technologies, which are developed by some Institutes like CFTRI/KVKs and even other reputed private players.

8. FPOs who upgrade with mini mills will be able to produce quality products and directly penetrate in premium markets.

9. FPOs can also tap opportunity of soymilk for malnourished children programs or 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.

1. Automation does leads to fewer jobs (especially for unskilled jobs).

2. Some entrepreneurs in other states who had set-up units have suffered losses and even have closed down. One of the most major problems being faced is/was poor capacity utilization which is often even below 40%. This often is even below to the break-even levels.

3. Industry operates under high speculation mode due to numerous domestic and global factors.

4. Branded products have high visibility and acceptance due to their constant high cost marketing efforts. Even on shelf, consumers often chose these brands due to familiarity with these brands.

5. Competition with large players often also means thin margins in marketing of products.

6. Rapid developments in contemporary markets and requirements of the industry may lead to fast obsolescence. Technology once obsolete would require re-investment for up-gradation.

7. Technology breakdown for a longer period may have much higher cost implications than a labor intensive firm.

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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- Sq. Ft.

Rate/ sq. ft. Amount (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 & By-Products

Bottle with crown cap, seal and label for Flavored Soymilk, Pouch Packing for Tofu and 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 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

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Batch time for one lot (in hours) 2 2 2 2 2

Soymilk base Produced in one batch

150 150 150 150 150

Total Batches per day 5 5 5 5 5

Total Annual Capacity of production of Soymilk base in Ltrs (@ 100% CU)

225000 225000 225000 225000 225000

Soybean in kg, required for 1 day operations (@100% CU)

107 107 107 107 107

Annual Soybean Requirement (in Kg) @ 100% CU (with 1 kg required for 7 ltrs of soymilk base)

32100 32100 32100 32100 32100

Capacity Utilization 75.00% 80.00% 85.00% 90.00% 95.00%

Total Input of Cleaned and Graded Soybean (in Kg)

24075 25680 27285 28890 30495

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 Soybean

25078 25747 27352 28957 30562

Purchase Price (in Rs./kg)

32 34 36 38 40

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

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7.1.6. Consumables a. Packaging Material

Packaging Material No. of units Cost of Units (in Rs.)

Size Type Product Rate/unit

Y1 Y2 Y3 Y4 Y5 Y1 Y2 Y3 Y4 Y5

200 ml Bottle with crown cap, seal and label

Flavored Soymilk

4 759375 810000 860625 911250 961875 3037500 3240000 3442500 3645000 3847500

1 kg Pouch Packing

Tofu 1 1205 1286 1366 1446 1527 1205 1286 1366 1446 1527

500 ml Pouch Packing

Soy-Yogurt 1 11306 12060 12814 13568 14322 11306 12060 12814 13568 14322

100 kg pp/jute bag (used bags)

Okara 30 241 257 273 289 305 7230 7710 8190 8670 9150

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 ops)

5250 Liters/day

Human Consumption

1750 Liters/day

total 7000 Liters/day

cost/kl= Rs. 10/kl i.e. Rs. 70 Daily

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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

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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

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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

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1 Flavored Soymilk (Ltrs)

146812 161663 171787 181913 192037

Sale Price (in Rs. Per Ltr)

40 42 44 46 48

Flavored Soymilk Sales

5,872,480.00 6,789,846.00 7,558,628.00 8,367,998.00 9,217,776.00

2 Tofu (KG) 1193 1285 1365 1446 1526

Sale Price (in Rs. Per kg)

220 231 243 255 268

Tofu Sales 262,460.00 296,835.00 331,695.00 368,730.00 408,968.00

3

Soy-Yogurt (Ltrs) 5596 6027 6403 6780 7157

Sale Price (in Rs. Per Ltr)

50 53 56 59 62

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 kg)

20 21 22 23 24

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

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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

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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 Liabilities

33,437.00 3,038.00 4,553.00 4,821.00 5,088.00

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 Interest)

1,010,875.70 1,061,419.00 1,114,489.00 1,170,216.00 1,228,726.00

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

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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- Sq. Ft.

Rate/ sq. ft. Amount (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,

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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.

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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 Ltrs (@ 100% CU)

375000 375000 375000 375000 375000

Soybean in kg, required for 1 day operations (@100% CU) 179 179 179 179 179

Annual Soybean Requirement (in Kg) @ 100% CU (with 1 kg required for 7 ltrs of soymilk base)

53700 53700 53700 53700 53700

Capacity Utilization 75.00% 80.00% 85.00% 90.00% 95.00%

Total Production Input of Cleaned and Graded Soybean (in Kg)

40275 42960 45645 48330 51015

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

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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/unit

Y1 Y2 Y3 Y4 Y5 Y1 Y2 Y3 Y4 Y5

200 ml Bottle with crown cap, seal and label

Flavored Soymilk

4 1265625 1350000 1434375 1518750 1603125 5062500 5400000 5737500 6075000 6412500

1 kg Vacuum Packing without label

Tofu 1 2009 2143 2277 2411 2545 2009 2143 2277 2411 2545

500 ml Pouch Packing

Soy-Yogurt

1 18844 20100 21356 22612 23868 18844 20100 21356 22612 23868

100 kg pp/jute bag (used bags)

Okara 30 403 430 456 483 510 12090 12900 13680 14490 15300

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

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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

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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

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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 1,885,524.00

1,885,524.00 1,885,524.00 1,885,524.00

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 ) 6,659,700.80

8,482,015.50

10,938,879.70

14,074,690.00

17,930,838.80

(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

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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 ) 6,659,700.80

8,482,015.50

10,938,879.70

14,074,690.00

17,930,838.80

7.2.15. Projected Profit and Loss Statement

Particulars Y1 Y2 Y3 Y4 Y5

Total Sales 11,491,580.00 13,245,280.00

14,751,979.00 16,339,074.00

18,008,232.00

Less:- Opening Stock of F.G.

- 352,000.00 394,210.00 439,041.00 485,943.00

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 11,843,580.00

13,287,490.00 14,796,810.00

16,385,976.00 18,057,551.00

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 capital

1,885,524.00 - - - -

4 RACP Investment Grant

- - - - -

5 Increase in Current Liabilities

116,349.00 6,006.00 15,252.00 16,147.00 17,039.00

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 Work

2,445,000.00 - - - -

c Plant and Machinery 2,059,000.00 - - - -

d Land Development & - - - - -

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Registration

e Electrification & Misc 150,000.00

f Pre Operative Exp 50,000.00 - - - -

2 Operational Expenditure

a Fixed Cost (Excl. Of Interest)

1,390,109.50 1,459,615.00 1,532,596.00 1,609,228.00 1,689,691.00

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 Consumed

1,288,800.00 1,453,928.00 1,636,060.00 1,828,932.00 2,032,544.00

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 Assets

383,053.00 58,456.00 50,224.00 52,903.00 55,638.00

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-B)

1,691,605.80 2,213,390.70 2,789,925.20 3,408,735.30 4,075,695.80

Opening Cash and Bank

1,691,605.80 3,904,996.50 6,694,921.70 10,103,657.00

Cumulative Cash Balance

1,691,605.80 3,904,996.50 6,694,921.70 10,103,657.00 14,179,352.80

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. No

Particulars Plan Area- Rate/ sq. ft. Amount

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

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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 Products & By-Products

Bottle with crown cap, seal and label for Plain and Flavored Soymilk, Vacuum packing with label for Tofu, cup fill packing for

Soy-Yogurt, pp/jute bag 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 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

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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 Soymilk base in Ltrs (@ 100% CU)

1500000 1500000 1500000 1500000 1500000

Soybean in kg, required for 1 day operations (@100% CU)

714 714 714 714 714

Annual Soybean Requirement (in Kg) @ 100% CU (with 1 kg required for 7 ltrs of soymilk base)

214200 214200 214200 214200 214200

Capacity Utilization 60.00% 65.00% 70.00% 75.00% 80.00%

Total Production Input of Cleaned and Graded Soybean (in Kg)

128520 139230 149940 160650 171360

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

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Particulars Y1 Y2 Y3 Y4 Y5

Cleaned & Graded Soybean

139230 140123 150832 161543 172252

Purchase Price (in Rs./kg)

32 34 36 38 40

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

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7.3.6. Consumables Packaging Material No. of units Cost of Units

Size Type Product Rate/

unit

Y1 Y2 Y3 Y4 Y5 Y1 Y2 Y3 Y4 Y5

200 ml Bottle with crown cap, seal and label

Flavored Soymilk

4 2925000 3168750 3412500 3656250 3900000 11700000 12675000 13650000 14625000 15600000

1000 ml Bottle with crown cap, seal and label

Plain Soymilk

9 225000 243750 262500 281250 300000 2025000 2193750 2362500 2531250 2700000

1 kg Vacuum Packing with label

Tofu 2 6429 6964 7500 8036 8571 12858 13928 15000 16072 17142

500 ml Cup Packing with seal and label

Soy-Yogurt

5 60300 65326 70350 75376 80400 301500 326630 351750 376880 402000

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 Consumption

2000 Liters/day

total 37000 Liters/day

cost/kl= Rs. 10/kl i.e. Rs, 370 Daily

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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

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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

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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

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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 F.G.

- 1,051,320.00 1,200,239.00 1,358,437.00 1,526,026.00

Add:-Closing Stock of F. G.

1,051,320.00 1,200,239.00 1,358,437.00 1,526,026.00 1,703,380.00

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 R.M

- 342,720.00 394,502.00 449,820.00 508,744.00

Less:-Closing Stock of R.M.

342,720.00 394,502.00 449,820.00 508,744.00 571,200.00

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 capital

6,085,948.00 - - - -

4 RACP Investment Grant

- - - - -

5 Increase in Current Liabilities

371,280.00 25,735.00 55,481.00 59,057.00 62,620.00

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

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a Building and Civil Work

5,800,000.00 - - - -

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 Interest)

4,160,426.00 4,368,447.00 4,586,871.00 4,816,219.00 5,057,030.00

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 Consumed

4,112,640.00 4,712,400.00 5,374,634.00 6,079,710.00 6,827,624.00

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 Assets

1,153,032.00 199,925.00 178,677.00 189,319.00 200,229.00

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-B)

5,469,005.27 7,249,249.47 9,248,670.06 11,419,708.97 13,780,984.47

Opening Cash and Bank

5,469,005.27 12,718,254.74 21,966,924.80 33,386,633.77

Cumulative Cash Balance

5,469,005.27 12,718,254.74 21,966,924.80 33,386,633.77 47,167,618.24

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.

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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

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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.

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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

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