Project Report

soyafresh2013Project Report Feasibility Study of Soya Product (Milk, Curd & Paneer)ArvinderArvinder Kumar CUHP12MBA35

Feasibility Study OfSoya Product (Milk, Curd & Paneer) SOYAFRESH

ACKNOWLEDGEMENT

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

Executive summaryStudy of management will be immaterial if it is not coupled with practical aspect of the management. After studying the theoretical aspect of project management it is required to did it in actual world. This project report is prepared for the feasibility study of soya milk and soya product like curd, cheese. Today milk market is grow very rapid rate in coming years demand for milk is increases but the supply of milk is not increases as the demand increases. Soya milk is used as substitute of dairy milk. Soya milk contains low fat and high protein as compared to the dairy milk. Soya milk has cheaper cost as compared to the dairy milk.In this project report market analysis is done for the soya milk and its other products. Soya milk demand is increases in the youth segment due to high protein in this milk and it is also very much useful for heart patient because of low fat. Soya products also demanded in hotel & restaurants because of its cheaper cost health benefit. In future demand will be increased because of people are becoming more conscious about their health. Soya product like flavored soya milk demand increases it is very much popular in the western countries.Technical analysis of the soya milk plant is also done in this project report. In the technical analysis quality assurance quality control availability of raw material and utilities arrangement is done. Finance is very much important for every type of business financial analysis is also done for this project.Soya milk is cheaper substitute of dairy milk and its Nutrition value as compared to dairy milk this thing provide competitive edge to the soya milk industry. India is developing country and urbanization is at its growth stage it will provide greater opportunity for soya product industry in future.

Content Introduction Introduction of dairy milk sector Introduction of soya milk Basic idea Unique features of product Market analysis Market potential Factor affecting demand of soya milk product Target market

Technical feasibility Manufacturing process Quality control & standard Pollution control Plant layout Plant location Requirement of personnel Financial feasibility Fixed capital requirement Working capital requirement Raw material cost estimates Cost of production and turnover

Introduction OF Dairy Sector in India

Agriculture along with animal husbandry has been and will continue to be the lifeline of Indian economy. India is the largest and one of the most economical milk producers in the world (estimated production of 105 MT).It is the most important sector of the Indian economy particularly in poverty alleviation and employment generation. This sector contributes close to one-fourth of Indias National income and total work force engaged in agriculture is about 60 per cent.At global level, milk has been identified as an integral part of food for centuries. The success of White Revolution in India has largely been written by millions of small holders. About 70 million dairy farmers produce more than 50 per cent of the milk in the country. Milk and milk products are one of the important components of the Indian food industry. Consumption of milk and milk products is deeply rooted in our tradition and it is an essential item during rituals, festivals and other auspicious events.Dairy is currently the top-ranking commodity in India, with the value of output in 2004 at 1.179 billion rupees (US$39 million), which is almost equal to the combined output value of rice and wheat. Despite the importance of the dairy sector in overall GDP, it receives less government budgeting than the agriculture sector. Further, there has been no concentrated investment in the development of value-added or innovative products, nor any serious effort to support and modernize the informal sector.In light of the increasing demand driven by the growing population, higher incomes and more health consciousness, the slowdown in dairy industry growth is severely worrisome. Based on estimates by the National Dairy Development Board (NDDB), the demand for milk is likely to reach 180 million tonnes by 2022. To supply the market, an average incremental increase of 5 million tonnes per annum over thenext15 years is required a doubling of the average incremental rate achieved over thepast15 years. In the absence of sufficient increased production, India will need to rely on the world market for imports. And because of the huge volume required, it will affect global milk prices. Thus, focusing on areas for local dairy development is critical. According to the chairperson of National Dairy Development Board (NDDB). India is set to face milk shortage soon due to rising consumption in both rural and urban areas while productivity remains low despite the country being the worlds largest producer We will without doubt start facing milk shortage as demand is increasing at a much faster rate than production due to rising consumption in village households and demographic dividend in urban areas,.

Basic idea As stated in the earlier paragraph the demand of the milk 180 million in 2022. But the supply is not increases as the demand increases. So soya milk and its product like milk powder, soya paneer etc, business is best in coming years. Soya milk powder is easy to store for 180 days.

Introduction Soya milk(called soymilkin America) ismade fromsoya beans. Essentially, it is an aqueous extract that ispreparedby grinding soya beans that have been soaked in water.The process of makingsoya milkwas discovered in China where soya beans were originally cultivated and consumed. It was mainly used in the process of making tofu or bean curd. By 1931, calcium-fortifiedsoya milkwas being producedin Americaby Madison Foods in Tennessee.Soymilk and its related food products are getting popular throughout the world due to their nutritional and medicinal qualities.Soymilk is high in protein and low in fat and carbohydrate and contains no cholesterol. Soymilk is an excellent food for babies, children and the elderly people including pregnant and lactating women as it contains vegetable protein that is very easy to digest.Soya Milk is an inexpensive and remarkably versatile high protein food made from soya beans. It is a white liquid made from the seed. Unlike most other protein foods, milk is entirely free from cholesterol and low in fat (specially saturated fats). The quality of protein is as high as that found in chicken. It is also good for dieters as this contain low calories. It is an excellent food for babies, children, elderly people and pregnant and lactating women since it contains vegetable protein which is very nutritious and easy to digest. Soya milk and its derivatives are the cheapest source of protein, its derivatives tofu (soya paneer) makes testy dishes like matar paneer, palak paneer etc. and snacks like soya burger, patties, sand witches, pakoras etc. and also used in desserts.

Unique Feature of Soya Milk

Nutritional

Nutritionally,soya milkis quite similar todairy milk. Following are some of the reasons why it is endorsed as asubstitutetodairy milk. The protein content ofsoya milkis quite similar to that ofdairy milk. The protein found insoya milkis vegetable in nature. Unlike animal protein found indairy milk, vegetable protein prevents loss of calcium through the kidneys. (Much of the calcium in soya beans is lost during the process of extracting the milk through the residual pulp which is discarded. However, commercialsoya milkis adequately fortified with calcium.) Dairy milkhas saturated fats, which can lead to high cholesterol.Soya milk, on the other hand, contains very little saturated fat. Commercialsoya milkis also fortified withvitaminssuch asB12. This makessoya milkasubstitutefordairy milkfor vegans. Vegans are people who prefer not to consume or use any products of animal origin. Soya milkhas no lactose and can be easily digested by people who arelactose intolerant. Allergiesdue todairy milkare quite common among children. Compared to this, very few children are allergic tosoya milk. Before switching children tosoya milk, however, consult their doctor. Soya milkcontains prebiotic sugars such as stachyose and raffinose. These play a role in improving immunity and removing toxins in the body. Dairy milkmay contain harmful synthetic hormones such as rBGH (recombinant bovinegrowth hormone) that are used to increase milk production in cattle. Certain studies have linkeddairy milkin childhood to the development of insulin-dependentdiabetesin later life, though this has not been conclusively proved. Withsoya milkthere is no such risk. Soya milkis exceptionally rich in isoflavones such as genistein and daidzein. These confer certain health benefits such as reducing cholesterol levels, controlling osteoporosis, and reducing cancers of the prostrate and breast. Isoflavones also protect body cells from oxidation.

Ecological

Apart from itsnutritionalbenefits, widespread use ofsoya milkmay have ecological advantages. This is because soya beans grown on an area of land can produce moresoya milkthan if the same amount of land is used to grow fodder for cattle. However, as the quality of land required for cultivating soya beans differs from that used to grow fodder, this is a debated issue.

Market & Demand Analysis

Market PotentialWith the increasing health consciousness among the general people, the use of soya milk getting acceptance in the form of textured vegetable protein (popularly known as soya badi) soya milk, soya curd & paneer. Being mainly county of vegetation, India indeed has a great market potential for soya milk, curd & paneer. Expert predicts that soya food industry will grow at 20% annually over the next few years. Reason of buying of soya productSoya products have actually been shown to benefit people suffering from heart disease, an increasing health concern in India. The World Health Organization predicts that deaths caused by heart disease will double in India by 2015. Research attributes this expected rise to India's increased consumption of dairy and meat and adoption of a high-fat "cheeseburger" lifestyle.The soya cow's products, including soya milk, tofu (soya paneer), soya shakes will be given to heart patients and others who are undergoing training and therapy and the yoga institute, as well as to patients and staff and AIIMS. Both institutions believe that soya milk promotes good health, while dairy products are linked to deadly disease, including heart disease and cancer.Scientific research shows they are right to be concerned. Since the 1980's, study after study has linked dairy consumption to a high incidence of breast and other cancers. The American Dietetic Association, for example, reports that breast cancer is most prevalent in countries where women consume high-fat, animal-based diets. In east Asia, where milk consumption is extremely rare, breast cancer is almost unheard of. International renowned nutrition expert Dr. T. Colin Campbell points to China, a basically non-milk-drinking country, where cancer deaths among women aged 35 to 64 averaged less than 9 per 100,000, as opposed to 44 per 100,000 in the U.S.

Target market Target market firstly urban areas and small towns of the Himachal Pradesh medical store for selling of milk powder on later stage. Flavored milk will also sell to children of urban and town area. This milk is also help to maintain a healthy body due to low fat. People who want to develop their body are also included in the target market. Hotel restaurants in the Himachal Pradesh will be second in the list of target market for soya milk, soya curd and soya paneer. Firstly hotels in the district Bilaspur will on the target. There is more than 100 registered hotels in Bilaspur district.

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

Clean and Soak Soyabeans 1 kg. Beans 3.3 ltr Water

Airless grind and cook5.2 litre water and 1.3 kg steam.

Extract Soya milk Base 7.5litre Soya milk 1.4 kg Okara

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

Bake or Fry or add to foods and Cook flavour salt etc. Incubate Yughhut optionally and fruits flavour salt etc.Extract Curd pressin ga forming Box Tofu (Paneer) flavour salt etc. Homogenize or Mix well Soya milk flavour salt etc. (2) Quality Control and StandardsProduct should conform to the PFA (Prevention of Food Adulteration), Act, 1955Soybeans are stored and transported under various humidity and temperature conditions. Soymilk and tofu are two of the most important foods made from whole soybeans. The objective of this study was to investigate the influence of storage conditions on soybean quality as related to soymilk and tofu-making properties. Soybeans of 3 different genotypes (Proto, IA2032, and Vinton 81) were stored in varying conditions: temperature ranging from 4 to 50 degrees C, relative humidity from 55% to 80%, initial moisture content from 6% to 14%, and storage time up to 15 mo depending upon storage conditions. The effects of different storage conditions on soybean color, solids and protein extractability, soymilk pH, tofu yield, tofu solids and protein contents, tofu color, and texture were investigated. While no significant changes occurred for the soybeans stored at 4 degrees C, the soybeans stored at high temperatures (30 to 50 degrees C) exhibited significant quality loss (P < 0.05). The degradation of soybean lightness (Hunter L), color difference (Delta E), and solid extractability exhibited a linear relationship with time. Soak weight decreased at high temperature and relative humidity, but increased at mild storage conditions. Several combinations of storage conditions at temperatures exceeding 30 degrees C produced a drastic loss in tofu yield. Storage also affected the tofu making process by reducing optimum mixing time to produce the highest tofu yield. Varietal difference in soybean storability was observed. The results provided useful information for the soybean processing industry to store soybeans using the optimal storage conditions and to estimate soybean quality after storage. (3) Production Capacity (Per Annum):Item Qty. (Kg.) Value (Rs.)

Flavoured Soya Milk 60,000

Tofu (Soya Paneer) 6,000 19,80,000

Soya Curd 12,000

(4) Pollution Control:Though no industrial effluent is released in the manufacturing process even then a NOC from State Pollution Control Board is to be obtained before commercial production.(5) Energy Conservation:Suitable measures should be adopted to use appropriate amount of fuel and electricity.Plant Layout for Soya Milk and Its Product

Location for pant. Plant is located where raw material and resources are easily available. Transportation facility is also taken in account for the selection of site or location for production.Plant site is village kuthera in district Bilaspur.

Registration with DICIn each district one agency to deal with all requirements of small and village Industries. Business is registered with this .This is called District Industries Centre The District Industries Centers have undertaken various programs for investment promotion at the grassroot level such as a organizing seminars workshops, extending support for trade fairs and exhibitions organized by various Industries associations.All the services and support required by for MSME units under the single roof of the District Industries Centre. The Centre has a separate wing to look-after the special needs of cottage and house-hold industries as district from small industries. Registration of the business is beneficial to avail the benefit provided by the Govt. under the scheme of MSME.

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

Manager

1

Skilled worker

1

Unskilled worker

2

Total4

Arrangement of raw and packaging materialRaw material is purchased from Una in bulk packaging material is purchased from Baddi district solan from HP Only. Raw material includes 1) Soya bean 2) packaging material Arrangement of utilitiesUtilities includes water, electricity and power/fuel these things are very much important to run any manufacturing business. Water is taken from bore well and electricity clearance is taken from Himachal Pradesh state electricity board (HPSEB). LPG/fuel is purchased from local market.Form of ownershipOwnership is very crucial thing because of risk of failure of business is totally related with the owner of the business. In this particular business ownership is sole proprietorship. Profit and loss is shared by single person only.Source of finance Finance is blood of any business to run its operations efficiently it is also important to procure finance from cheaper source. There is requirement of Rs 7, 48, 000 as fixed capital and Rs.2, 24,000. As working capital for two months.

Sources of Finance Amount

Personal Finance2,50,000

Laon from bank7,50,000

Total10,00,000

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

BASIS & PRESUMPTIONS

This project is based on single shift basis and 300 working days in a year.The costs of machinery & equipment /materials indicated refer to a particular make and the prices are approximate to those prevailing at the time of preparation of this profile.The cost of packaging, forwarding tax etc and installation electrification of machinery is taken @ 25% and non-refundable deposits, project cost, trialproduction, fees etc are considered under pre-operative expenses.

Depreciation has been taken as an a) On building @ 5% b ) On machinery & equipment @ 10% c) On office furniture & fixture @ 20%

Interest on total capital investment has been taken @ 14% per annum.Minimum 40% of the total investment is required as margin money.Pay back period of the project will be 7 years, with half yearly installments.Break even point has been calculated at the full capacity utilization.It is presumed that that 1 kg of soya bean may yield 7.5 litre of soya milk and 1litre soya milk can be converted into 200 gm. of soya paneer

Sl.No.Particulars of MachinesSoya Machine for soya milk and paneer (Tofu)consisting of grinder cooker, Manual Boiler, FilterPress, Tofu Box, Tofu Press, Tools, Flushing ChamberDeodorizerVacuum Packaging MachineFreezer @ 25,000/-Pouch Sealing MachineTables with AL Top @ 10,000/-Plastic Trays/Tubes and other misc. items.Water Storage TankTotal:iii)iv)v)vi)Packaging, forwarding, Tax etc.Electrification and installation @ 10%Office Furniture and EquipmentsPre-operative Expenses Total Fixed Investment (ii to vi): Qty.(Nos.)1Amount (Rs.)2,25,000/-1.2.3.4.5.6.7.8.11213LS11,00,000/-1,25,000/-50,000/-10,000/-30,000/-15,000/-10,000/-5,65,000/-56,500/-56,500/- 50,000/- 20,000/-7,48,000/-B)(i)Working Capital (Per Month):Personnel (Salary & Wages):Sl. No.DesignationManagerSkilled WorkersUnskilled WorkersSweeperNo.1111Rate10000/-6000/-4000/-3000/-Total:Perquisites @ 10%Total:Total (Rs.)10,000/-6,000/-4,000/-3,000/-23,000/-2,300/-25,300/-Financial aspect

Raw Material:Sl. ItemNo.1. SoyabeanQty.1100 KgsLSLSRate (Rs.)30/-Kg.--Total:Value (Rs.)33,000/-15,000/-8,000/-56,000/-2.3.Chemical s, flavours, colour and othermaterial etc.Packaging material for milk and paneer(iii) Utilities:1.2.3.PowerFuel/LPGWaterTotal:(iv) Other Contingent Expenses (P.M.):12345678RentPostage & StationeryConsumable StoreRepairs and MaintenanceAdvertisement & PublicitySales ExpensesTelephone/MobileMiscellaneous ExpensesTotal:6,000/-500/-1,000/-500/-2,000/-2,000/-1,000/-2,000/-15,000/-4,500/-10,000/- 1,500/-16,000/-(v)Working Capital / Total Recurring Expenditure (P.M.):1.2.3.4.Salary & WagesRaw MaterialsUtilitiesOther Contingent ExpensesTotal:25,300/-56,000/-16,000/-15,000/-112,300/-(vi) Total working capital for 2 months 112,300 X 2 = Rs. 2,24,600/-

TOTAL CAPITAL INVESTMENT:(Rs. In Lakhs)I.II.Fixed CapitalWorking Capital for 2 monthsTotal:7,48,000/-2, 24,600/-9,72,600/-FINANCIAL ANALYSIS:i)Cost of Production (Per annum)Sl. No.ParticularsTotal Recurring Expenditure /CostDepreciation on machinery and equipment @ 10%Depreciation on Furniture @ 20%Interest on Total Capital Investment @ 14%Total: -Value (Rs. In Lakhs)13,47,600/-56,500/-10,000/-1,36,164/-15,50,264/-1.2.3.4.ii)Turnover (Per Annum)ItemFlavoured Soya milk 60,000 Ltrs. @ Rs.25/- LtrTofu (Paneer) 6000 Kgs @ Rs. 80/-KgSoya Curd 12000 Kgs @ Rs. 25/-KgValue (Rs. In Lakhs)15,00,000/-4,80,000/-3,00,000/-Total:Less marketing ExpensesNet Turn over:22,80,000/-(-) 3,00,000/-19,80,000/-iii)NET PROFIT (Per annum) Before Taxation:Turn Over19,80,000/-(-)(-)Cost of Production15,50,264/-=4, 29,636

NET PROFIT RATIO: (Per Annum):RATE OF RETURN (Per Annum):

Fixed Cost:i.ii.iii.iv.v.vi.Depreciation on machineryDepreciation on furnitureRent40% of other expenses40% of Salary & WagesInterest on total investment @ 14% per annumTotal:

21.70%44%vi)

56,500/- 10,000/- 72,000/- 43,200/-1,21,440/-1,36,164/-4,39,304/-