RAJASTHAN AGRICULTURAL COMPETITIVENESS PROJECT...
Transcript of RAJASTHAN AGRICULTURAL COMPETITIVENESS PROJECT...
RAJASTHAN AGRICULTURAL
COMPETITIVENESS PROJECT
Detailed Project Report on Textured
Soy Protein (Soy nuggets)
Prepared by:
AGRI BUSINESS PROMOTION FACILITY
Rajasthan Agricultural Competitiveness Project 1
Contents
Page
Executive Summary 2
Chapter 1: Introduction-Soybean 8
Chapter 2: Technology advances and circumstances in Textured Soy Protein Processing 21
Chapter 3: Production and processing hubs/ clusters in Rajasthan 27
Chapter 4: Manufacturing process and technology benchmarking 28
Chapter 5: Appropriate technology options 36
Chapter 6: SWOT of technology 44
Chapter 7: Indicative project profile for Rajasthan 47
Chapter 8: Method of technology dissemination and adoption 73
References 75
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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 Soy
Nuggets/Granules processing. Broadly, the report aims to provide some insights to prospective
entrepreneurs and existing unit holders in the state/country 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.
Lately, Textured soya protein products like soy chunks have become very popular not only among the
health conscious consumers but also with others as these products are easy to digest and rich in
proteins. Nuggets or chunks are now used in large quantities along with other vegetables while making
curries. Thus restaurants, caterers, clubs, canteens and ready to-eat vegetable manufacturers are the bulk
consumers. Texturization of soy flour and other proteins into usable meat extenders and replacers has
been economically feasible for quite some time. Initially the use of extrusion equipment for this purpose
was limited to a narrow range of raw materials. Developments in machinery, new techniques, and the art
of texturizing protein products have changed and as a result the spectrum of ingredients that can be
texturized into useable end products, has increased greatly. Importantly, there are unique challenges that
accompany soy nuggets production, especially related to mixing, extruding, drying, packaging, testing
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and storage. The present thesis provides some important suggestions on the adoption of new
technologies to overcome such challenges.
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. USA has been the consistent
leader in production since past 5 years followed by Brazil and Argentina. Other major countries with
respect to production are China, India, Paraguay, Canada, Mexico and other EU 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.
Americas dominate the global soy production with U.S., Brazil and Argentina catering to more than half
of the global soy demand. Such a scenario is presumed to be beneficial for the regional meat substitutes
market. Among the products, textured vegetable protein (TVP) dominates the consumption market
followed by tofu and tofu-based products. Other products occupy smaller fractions of the market.
Changing food habits and patterns are presumed to bolster the regional as well as the global market.
R&D initiatives to develop superior and cheaper meat substitutes offer ample opportunities to the
industry participants.
In India, Ruchi Soya is the market leader in the soya food segment with the ‘Nutrela’ brand having more
than a 50 percent market share. With increasing acceptance and demand, the soya nugget market in
India has been growing at a rate of 25% to 30%. The market has many regional players which are
manufacturing and selling soya granules and chunks; some of them enjoy a good market share as well,
but severally their quality is very inconsistent. The use of conventional technology in the production of
chunks leads to a loss of natural nutrients, and hence modern processes used by some bigger players
provides them the competitive advantage. Lately, Soya products like soy chunks have become very
popular not only among the health conscious consumers but also with others as these products are easy
to digest and rich in proteins. Nuggets or chunks are now used in large quantities along with other
vegetables while making curries. Thus restaurants, caterers, clubs and canteens and ready to-eat
vegetable manufacturers are the bulk consumers.
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 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. Only a few are engaged in making value
added products indicating apprehensions on viability of investments in soybean value added products.
Notably, however, in some food retail outlets in shopping malls, more prominent brands of soy chunks
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and granules like Nutrela (Ruchi Soya) and Fortune (Adani Wilmar) are more visible on shelves.
Products of some regional players are also being promoted by small outlets like kirana shops or dairy
products outlets. Notably, soy nuggets/granules consumers are largely those who are health conscious
and gym enthusiasts or sport persons. The major category of consumers that manufacturers normally
target includes vegan consumers who do not prefer animal products of any kind. Generally, upper
middle class or higher income consumers (especially in cities like Jaipur) are more inclined towards
buying soy products. Several under this category look at soy nuggets/granules as healthy option to lose
weight without compromising on nutritional deficit caused due to dieting.
Texturized soy products serve a variety of purposes, including alternative protein sources for the
manufacture of convenience foods and for centralized feeding of large numbers of people within
defined budgets. In India, TSP products like chunks and granules are generally seen not as meat
replacers but rather as protein rich vegetable in itself. Several innovative dishes like soya badi masala,
soya keema masala, soya bhurji, soya tikki, soya chaap, soya kebab, soy vegetable biryani, soy chhole, soy
tikkis, chilli nuggets, etc are popular among Indian households and restaurants.
Typically, discussion with some processors and industry experts pointed to the common technology
gaps (in traditional units) mentioned below
1. Most units are micro/small units and with limited capacities of production.
2. Lack of advanced extrusion (like twin extruders) in some of these units leads to inconsistent
texture of final product.
3. Most units are wary of high capital investment in the beginning phase and thus prefer cheaper
semi-automatic technology which often is relatively less efficient to modern systems adopted
worldwide.
4. The raw material used for production of soy nuggets is defatted soy flour hence quality of raw
material highly impacts the quality of final product. Also, the technology adopted by backward
integrated suppliers ultimately affects quality of nuggets/granules.
5. 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. Use of outdated technology in extruding not only leads to quality aberrations but also leads to
loss of yield during extrusion process.
7. The dryer section generally uses wood as fuel as deploying electrical system at such small
capacities is unviable.
8. The cost of upgradation is often high.
9. There is absence of efficient metal detecting system in most units.
10. Investment in testing equipment is negligible. Required tests are mostly outsourced from labs in
nearby locations.
11. Packaging in most units is done manually and/or with use hand held stitching machines of pp
bags. For retail packaging manufacturers use services of job working units.
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# Process Traditional method (especially in micro units)
Modern Method/s in more advanced units
1 Raw Material Defatted Soy Flour Storage before processing
Processors follow a practice of holding less inventory in their own private godowns.
Modern and scientific warehousing systems like dehumidifiers, temperature monitors, grain handling equipment, etc
High tenacity Trevira fabric
2.
Flour Mixer/ Blender and pre-conditioner
Low capacity and traditional styled equipments are used sans control on uniform mixing, moisture and heat penetration, etc.
Modern and PLC controlled bin/feeder and pre-conditioner.
3. Screw Extruder Most units use single screw extruder
Lesser flexibility in use of raw material (i.e. of specific particle size), comparatively higher wear, difficult cleanup process
Modern and PLC controlled co-rotating twin screw extruders
High level of process flexibility, Better control of process parameters, Remarkable mixing capability, Lesser wear and tear and thus Higher economic opportunities and business potential than single screw extruders
4. Drying and Cooling Section
Traditional dryers (wood/diesel based)
Lack precise temperature control and monitoring, leading to uneven drying or overheating
Certain dryers are high energy consuming dryers and hence lead to high operational costs
Continuous conveyor styled multi-story dryers with customized solution built with various lengths, widths, number of passes, materials, air flows, sanitary considerations and optimized heating systems and low foot print
5. Crusher/ Shearing/ Disintegrating machine
Most units involved in production of nuggets, manufacture only nuggets.
Modern Crusher/ Shearing/ Disintegrating machine for manufacturing granules
6. Material handling and feeding equipment systems
Use of manual and semi-automatic systems for material conveying
High automation screw conveying and pneumatic air conveying systems, with PLC controlled systems, with required accessories like airlocks, rotary valves, diverter valves, etc.
7. Soy Nuggets and Granules Packaging
Wholesale Bagging: Basic hand
held stitching equipment
Retail Packaging: Manual filling
in liners and closing with simple heat sealing machines and further packing in ready product cartons manually.
Automatic Weighing and Bagging machine
Fully automatic liner carton machines with multi-head weighers and multi-stations
Vertical form fill seal (VFFS) machine
8. Testing and other support activities
Lack of equipment required for basic testing
Testing equipment comprising Kjeldahl Digestion Apparatus and Distillation apparatus, air drying oven, muffle furnace, analytical balance, pH meter, volumetric flasks, NIR Analyser, Moisture meter, Universal Testing Machine, vortex stirrer, sedimentation shaker, glassware and chemicals, etc
9. Support Equipment, Engineering and Automation
Often, sub-standard quality support equipment and system that often lead to leakages, clogging and breakdowns and other related
Based on size, capacity and milling engineering the support structure and equipment need to be installed; should be robust and shock absorbent.
The plant layout should present a
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problems.
Majority units have manual or semi-automatic processes.
consistent and 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.
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.
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 Semi-Automatic 250 Kg per hour capacity Soy nuggets processing
unit which comprises of Mixture Machine, Screw Conveyor, Food Extruder, Lift Conveyor, Dryer 3
Story, Cooling Conveyor Belt, Stitching Machines, Heat Sealing Machine, Basic Testing Machines,
Water Softener, Weighing Scales and Electrification. The total cost of the complete set of P&M, on
basis of some referred quotations of leading suppliers in the segment, is Rs. 20.72 Lakhs. This is
inclusive of taxes, transportation, installation and commissioning charges.
Profile 2 showcases a small scale (relatively low investment) model, which can be pursued as guiding
model by small scale entrepreneurs, farmer producer association/companies. The technology proposed
for this segment involves Semi-Automatic 400 Kg per hour capacity Soy nuggets/granules processing
unit which comprises of Mixture Machine, Screw Conveyor, Food Extruder, Belt Conveyor, Conveyor
type Electric Dryer in Three Stage, Crusher (For granules), Cooling Conveyors, Finished Product Bins,
Automatic Weighing And Bagging Machine, Heat Sealing Machine, Basic Testing Machines, Water
Softener, Weighing Scales, Compressor For Pneumatics including Packing Machines, CVCF and
Electrification. The total cost of the complete set of P&M, on basis of some referred quotations of
leading suppliers in the segment, is Rs. 57.49 Lakhs. This is inclusive of Utilities (like Electrical
transformer, etc) and taxes, transportation, installation and commissioning charges.
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 600 Kg per hour capacity Soy nuggets/granules Processing
unit which comprises of Feed Bin, Screw Conveyor, Mixture Machine (Blender), Vacuum Conveyor,
Intermediate Storage Hopper, Conditioner, Extruder, Air Conveyor, Crusher, Air Conveyor, Oven
Dryer, Cooling Conveyor, Finish Product Bins, Automatic Weighing And Bagging Machine, Automatic
Liner Carton Machine, Basic Testing Machines, Industrial Water Softener, Weighing Scales, Plant
Automation, Compressors For Pneumatics Including Packing Machines, CVCF and Electrification. The
total cost of the complete set of P&M, on basis of some referred quotations of leading suppliers in the
segment, is Rs. 139.05 Lakhs. This is inclusive of Utilities (like Electrical transformer, weighbridge etc)
and taxes, transportation, installation and commissioning charges.
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RACP-ABPF shall 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 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
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) also known as the “Golden Bean” of the 20th century 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, soy
meal/Deoiled cake is being exported to many co3untries.1
Table 1 Nutritional Value of Soybean
# 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 commercially utility as edible oil and animal feed. On crushing the mature beans,
around 18% oil could be obtained, the rest being the oil cake/meal, which forms the prime source of
protein in animal feeds. Recently, 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 Area, Production 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. 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 in the stage 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 orcotton, pests and 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 U.S.
1.1.2. World Soybean Production
As per recent SOPA statistics, it has been observed that USA was 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 countries with
respect to production 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 - the world's oldest soy futures
market; Dalian Commodity Exchange - trades the most liquid soybean contracts in the world Argentina
and Brazil FOB determine the physical prices
1.1.4. Major Imports of Soybean in World2
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 data
of the global import value of the top 5 countries and the percentage of their share have been given in
the table below. Ukriane, 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:
2 Zauba technologies & data search( https://www.zauba.com/import-soybean-hs-code.html)(Retrieved on 11th
April 2017)
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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
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 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 following figure shows 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
As per reports3 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
Figure 3: Major Exporters of Soybean in World (Million MT)
With respect to the countries that are 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
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
19%
11%
10%
8%7%
45%
Value of Export
USA
France
Canada
UK
South Korea
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France and further 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/
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/
16%
12%
9%
9%7%
48%
Quantity of Export
USA
France
Canada
South Korea
UK
Others
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1.2. Indian Scenario
1.2.1. Major Trading Centers
The major trading centers in India are listed below:
Indore, Ujjain, Dewas, Mandsore in Madhya Pradesh
Akola, Sangli, Nagpur in Maharashtra
Kota in Rajasthan 1.2.2. State Wise Production of Soybean in India (Million MT)4 Table 3 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, which account
for 80% percent of production.
Table 4 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
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 Soybean5
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. The soybean market has seen huge changes with respect to the
value of soybeans imported globally. 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
4 Directorate of Economics and Statistics, Department of Agriculture and Cooperation 5 Source: Directorate of Economics and Statistics, Department of Agriculture and Cooperation
Rajasthan Agricultural Competitiveness Project 14
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 has 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:
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
Rajasthan Agricultural Competitiveness Project 15
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 below:
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.
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
140000000
120000000
100000000
80000000
60000000
40000000
20000000
0
Total Value USD
Total Quantity
Ave
rag
e P
rice
60
40
20
0
Months
Rajasthan Agricultural Competitiveness Project 16
1.3. Global scenario – Textured Vegetable Protein (i.e. Soy nuggets/chunks)
market
Global meat substitutes market was valued at USD 3,192.8 million in 2013. Rising health awareness
and changes in dietary preferences towards vegan diet are projected to drive the meat substitutes
market over the forecast period. Growing health concerns regarding meat consumption and several
animal disease outbreaks in the recent years are critical factors that are capable of bolstering the
global market. Table 5 Global meat substitutes market revenue, by raw material, 2012 - 2022 (USD Million)
**Source: Market Research Report on Meat Substitutes Market Analysis by Product, by Raw Material (Soy-Based,
Wheat-Based, Mycoprotein) and Segment Forecasts to 2022, by Grand View Research
Rising living standards due to an increase in the disposable income in the developing regions such as
Asia Pacific and Latin America have fueled meat substitute consumption. This trend is presumed to
continue over the next several years, aiding the regional meat substitutes market. Several animal disease
outbreaks such as bird flu and swine flu in the recent past have led to shift towards a more vegan diet.
This has resulted in higher meat substitute consumption, in turn augmenting the regional as well as
global market. Growing health problems such as obesity and diabetes among people, especially the
younger generations have led to shift towards vegan dietary habits.
Animal rearing has a notable impact on the natural resources of the planet and is responsible for global
warming to some extent. Though this factor has not been quantified, awareness regarding this factor is
presumed to shift global food habits towards a more vegan diet, aiding the meat substitutes market.
Growing awareness regarding vegan diet benefits such as lower heart problems, improved
cardiovascular health, lower risk of cholesterol and reduced diabetes & obesity risk are expected to
further compliment the global meat substitutes market. Higher meat substitute cost is anticipated to
hamper the market growth, especially in the developing regions, owing to income disparity and low
dietary awareness. Several problems concerning meat substitute consumption such as soy allergy and
gluten intolerance are anticipated to impact the global market negatively. R&D initiatives to develop
superior as well as novel meat substitutes offer ample opportunities to the market participants.
Rajasthan Agricultural Competitiveness Project 17
Soy based products dominate nearly four-fifth of the global consumption market. Growing soy
production in regions such as North America and Latin America is presumed to impact positively the
regional market. Americas dominate the global soy production with U.S., Brazil and Argentina catering
to more than half of the global soy demand. Such a scenario is presumed to be beneficial for the
regional meat substitutes market. Among the products, textured vegetable protein (TVP) dominates the
consumption market followed tofu and tofu-based products. Other products occupy smaller fractions of
the market. Changing food habits and patterns are presumed to bolster the regional as well as the global
market. R&D initiatives to develop superior and cheaper meat substitutes offer ample opportunities for
the industry participants. The high cost of meat substitutes results from the extensive R&D required to
commercialize them. This high cost is anticipated to dampen market development.
1.3.1. Global Leaders
Industry participants are investing in R&D initiatives and taking strong measures to develop superior
products and to expand their product portfolio. Such steps are being taken to penetrate the emerging
meat substitutes markets and cater to their future demand. Companies such as Archer Daniels Midland
developed TVP and currently dominate the meat substitutes market with nearly half the market share.
Companies are engaging in partnerships and collaborations to strengthen their product offerings for the
market. Technological knowhow, R&D capabilities and strong presence in the agro sector are some
factors defining the industry collaborations and partnerships. Key industry participants include AMY’s
Kitchen Inc., Vbites Food Ltd., Beyond Meat, Morning Star Farms, Blue Chip Group, MGP Ingredients
Inc., Cauldron Foods UK, Quorn Foods, Garden Protein International Inc. and Meatless B.V.
Few other key players in the Texturized vegetable protein market include ADM Proteins, Bob's Red
Mill, Ruchi Soya Industries Limited, Galpro Srl, Avi Agri Business Pvt. Ltd., Harbi Hi-Tech Soybean
Food Co. Ltd., Sinoprotein Biotech Co. Ltd., Nahar Agro World, Indian Soya Industries Pvt. Ltd.,
Oppenheimer Faith Foods Pvt. Ltd., Vippy Industries Limited etc.
1.4. Indian scenario– Textured Soy Protein (i.e. Soy nuggets/chunks) market
In India, Ruchi Soya is the market leader in the soya food segment
with its ‘Nutrela’ brand having more than a 50 % market share. With
increasing acceptance and demand, the soya nugget market in India
has been growing at a rate of 25% to 30%. Ruchi Soya Industries
has now also launched soya chunks under the brand Mahakosh
Hunky Chunky. The company is one of the largest manufacturers of
healthy edible oils and soya food in India. The brand ambassador for
Mahakosh (including Mahakosh Hunky Chunky) is renowned Indian
actress Madhuri Dixit Nene. The Mahakosh brand is positioned
on the health platform with its unique brand proposition of “Fit
hain toh Future hai”. Relatively new entrants like Priya Biscuits
have also been successfully marketing soy chunks in India.
The market has many regional players which are manufacturing
and selling soya granules and chunks; some of them enjoy a good
market share as well, but severally their quality is very
Rajasthan Agricultural Competitiveness Project 18
inconsistent. The use of conventional technology in the production of chunks leads to a loss of natural
nutrients, and hence modern processes used by some bigger players provides them the competitive
advantage. For example, Adani Wilmar that markets Fortune soya chunks and nuggets uses ultra-
modern technology Wenger K2 for production. The process is fully automatic and without human
interface. The entire production undergoes multi-level stringent quality checks, and this makes their
product highly competitive in market. The deployed modern technology ensures that the nutrients are
retained at all levels.
Lately, Soya products like soy chunks have become very popular not only among the health conscious
consumers but also with others as these products are easy to digest and rich in proteins. Nuggets or
chunks are now used in large quantities along with other vegetables while making curries. Thus
restaurants, caterers, clubs and canteens and ready to-eat vegetable manufacturers are the bulk
consumers.
1.5. State scenario– Textured Soy Protein (i.e. Soy nuggets/chunks) market
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 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.7 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 such as soy nuggets. Therefore,
in the present study, attempt is made to find out the profitability of processing such soybean value
added products.
Notably, however, in some food retail outlets in shopping malls, more prominent brands of soy chunks
and granules like Nutrela (Ruchi Soya) and Fortune (Adani Wilmar) are more visible on shelves.
Products of some regional players are also being promoted by small outlets like kirana shops or dairy
products outlets. Notably, soy nuggets/granules consumers are largely those who are health conscious
and gym enthusiasts or sport persons. The major category of consumers that manufacturers normally
target includes vegan consumers who do not prefer animal products of any kind. In past several years,
soy chunks/granules have become popular substitute to meat, fish and chicken. Generally, upper middle
class or higher income consumers (especially in cities like Jaipur) are more inclined towards buying soy
products. Several manufacturers also target women and children as their key consumer segment as soy
nuggets are highly nutritious and rich in protein. In this context, persuasive labeling and media
promotion has helped even in ‘impulse purchase’. Another important category of consumers is rural
households, who prefer products like soy nuggets as they serve as cheap source of meal.
Several consumers are now turning to soy chunks/granules to make recipes like chana soy masala, soy
badi biryani, chilli soya, etc and this trend has been aggressively tapped by restaurants especially those
7Source: http://krishikosh.egranth.ac.in/bitstream/1/67798/1/D9455.pdf
Rajasthan Agricultural Competitiveness Project 19
serving Indian, Chinese or Thai cuisine. This demand is generally being met directly by regional
processors.
1.6. Textured Soy Protein Applications-A brief note
8Texturized soy protein has been a commercial success for many years because of the development of
machinery that is capable of continuously producing textured vegetable product. Once texturized, these
plant proteins can be dehydrated for use as an extender of fresh or processed meat. Consumers are
becoming increasingly interested in healthy foods and open to soy protein ingredients. Texturization of
soy flours into usable meat extenders and replacers is
economically feasible for some time. Texturized soy
products serve a variety of purposes, including alternative
protein sources for the manufacture of convenience foods
and for centralized feeding of large numbers of people
within defined budgets.
Today, due to increasing consumer demand for healthy
diets and concerns about rising meat prices, some industry leaders are betting that consumers will
increase their appetites for soy-based burgers. As a result, various types of soy based meat products can
be now seen in the market. There are basically three major market groups for meat analogs. Each may
restrict the ingredient choices during product formulation. They range from those who limit certain
animal products because of religious dietary restrictions. The second group consists of those looking for
a healthier alternative to meat. The final group consists of people who are looking for cheaper protein
sources.
In India, China, Japan and South Korea textured soy protein is eaten directly as a flavored or seasoned
piece usually as a side or main portion of the meal. Some of the textured protein consumption in
different parts of the world is based on religious, cultural, or economic reasons. Textured soy protein
widely used in child nutrition programs as well as for worldwide relief agencies to help feed famine
plagued people in impoverished countries. Because of their low moisture and water activity, storage,
shelf life and handling under poor conditions, do not become a problem.
Vitamins and minerals can be fortified in textured soy protein to make it an
ideal protein source. It is cholesterol free and can be processed as a low fat
food. Textured soy products can assist in weight control by providing high
quality protein in a concentrated form, specially designed low calorie/high
nutrient ready meals can be produced. These can make a significant
contribution to weight control products.
In India, TSP products like chunks and granules are generally seen not as
meat replacers but rather as protein rich vegetable in itself. Several
8 Textured Soy Protein and Its Uses, By Mian N. Riaz, PhD. Head - Extrusion Technology Program and Graduate Faculty, Food Sci. & Tech. Program, Food Protein R&D Center, Texas A&M University
Rajasthan Agricultural Competitiveness Project 20
innovative dishes like soya badi masala, soya keema masala, soya bhurji, soya tikki, soya chaap, soya
kebab, soy vegetable biryani, soy chhole, soy tikkis, chilli nuggets, etc are popular among Indian
households and restaurants. Several meat consumers who have turned vegetarians prefer several such
dishes because of meat like chewy texture of soy chunks/granules. It was also being used as an extender
(add-on) in food. In markets such as Kolkata’s, for instance, soya chunks were added to fish to increase
the quantity of the dish.
Technology is becoming accomplished at creating realistic analogs that resemble their meat counterparts
in terms of flavor, texture and most importantly, satiety. For high moisture meat analogues (HMMA)
production, the water content is similar to lean meat, about 50 to 80% extrusion moisture.
Consequently, the final products need to be stored in a refrigerator or freezer and are as delicate as
meat. There are analogs of hamburger, both in patties and ground form; sliced lunch meat; sausages; hot
dogs; Canadian bacon; pepperoni; bacon bits; and stuffed turkey. Texture and flavor are the two biggest
challenges in developing a meat analog. Vitamins and mineral fortification can be done for the school
and military luncheon programs. TSP is also very lightweight and is often used in backpacking recipes.
Because of its relatively low cost, high protein content, and long shelf life, TSP is often used in prisons
and schools, as well as for disaster preparedness.
Some popular prepared vegetable protein foods are pareve (without meat, milk, eggs and their
derivatives) and are of interest to people following Jewish (Kosher) dietary laws. Islam is one of the
world’s fastest growing religions, and Muslims are today demanding Halal foods. Texturized vegetable
foods provide an alternative to animal meat and falls under the Halal foods.
Meat analogs have become a viable alternative in offering a nutritionally acceptable meat substitute that
in some cases come close to matching actual meat products. Food scientists have made major headway
in improving flavor, texture, mouth feel, appearance and color of meat analog products. In the market
place, you can see more and more meat analog and meat extender products such as, bacon bits, soy
burgers, meat free hot dogs, breakfast sausage patties/links and bacon to name a few. Many of these
products are even packaged in the same fashion as their meat counterparts.
Rajasthan Agricultural Competitiveness Project 21
Chapter 2: Technology advances and circumstances in Textured Soy Protein Processing
2.1. Evolution of Textured Soy Protein Processing
Textured vegetable protein was invented by the agricultural commodities and food processing
company Archer Daniels Midland in the 1960s; the company owns the TVP name as a registered
trademark. Archer Daniels Midland had developed a textured soy protein isolate made with an extruder
in the shape of rods or tubes. The soy protein isolate was produced in a small pilot plant and sold to one
or two customers for use in chilibut the product was not commercially successful. By 1968, TVP was
widely used in a variety of food products, and consumption skyrocketed after 1971, when TVP was
approved for use in school lunch programs. By 1980, similar products were being produced by rival
companies in America, but Archer Daniels Midland remained the leader in TVP production.9
10In 1971, India's first systematic research on soy foods development was started at G.B. Pant University
of Agriculture and Technology, at Pantnagar, with the technical collaboration between the University of
Illinois and the Nave Technical Institute at Shahjahanpur. By 1972 a number of the extrusion cooked
products began to be manufactured commercially by the Soya Production and Research Association
(SPRA) in Bareilly, a company formed as a joint venture of Nave Technical Institute and Pantnagar
University.
In the fall of 1972, SPRA started to make its first commercial product, an extruded/textured soy flour
(TVP). Recipes were developed and the product was marketed at a low price in inexpensive packaging
for the poor. But they wouldn't take it even when it was given to them. So SPRA took a new approach,
marketing the product for the rich to reach the poor. The company chose a catchy name (Nutri
Nugget), developed a fancy box written entirely in English for snob appeal, and introduced the product
only in the finest stores with demonstrations at colleges and for upper income women's groups. After
much hard work, the product caught on. Interestingly, its success was assured when Sikhs started using
it at their wedding dinners to satisfy both vegetarian and non-vegetarian guests. Soon all TVP came to
be referred to by the public as Nutri Nugget (or Soy Nugget or Nugget).
9 Source: https://en.wikipedia.org/wiki/Textured_vegetable_protein 10 Source: http://www.soyinfocenter.com/HSS/indian_subcon2.php
Rajasthan Agricultural Competitiveness Project 22
First made in India in 1972 by SPRA, TVP (extruded/textured soy protein) was India's most popular
soy-food from the outset, and by 1981 five companies were making an estimated 4,000 tonnes a year.
SPRA made about 50% of the total, followed by Ganesh Flour Mills in Delhi, Ruchi (owned by General
Foods of Indore), and Mysore Snack Foods. All products were marketed (following SPRA's lead) in
roughly the same way, not as a meat extender or substitute, but as a food in its own right, suggested for
use in meatless curries, pilau (pilaf), and the like. It was generally sold as granules or chunks to de-
emphasize its similarity to meat and some brands were advertised as "100% vegetarian."
2.2. Key Advances in Textured Soy Proteins (TSP) processing
Texturization of soy flour and other proteins into usable meat extenders and replacers has been
economically feasible for quite some time. Initially the use of extrusion equipment for this purpose was
limited to a narrow range of raw materials. Developments in machinery, new techniques, and the art of
texturizing protein products have changed, and as a result the spectrum of ingredients that can be
texturized into useable end products, has increased greatly.
Advances in extrusion technology: The extrusion technology in production of textured soy proteins
is central to entire processes. The basis of the technology is a screw system within a tube or barrel that
conveys the dough towards small openings called dies. In the confined space of the barrel, the dough is
compressed and heated to high temperatures at high pressures before being extruded through the dies
into the atmosphere. An extrusion cooking process has a number of key features, the feeding devices
supplying the raw material feed stocks, the design of the screw system and its barrel, the dimensions and
number of the dies, and the devices that handle the extrudates. Active research and development have
led to several technology advances that have in turn made the process more and more precise, ensuring
high quality of end product. In addition to retexturing and restructuring soy proteins, the extrusion
cooking system performs several other important functions:
Protein denaturation: Vegetable proteins are effectively denatured during the moist and
thermal process of extrusion cooking. Denaturation of protein lowers solubility, increases
digestibility and destroys the biological activity of enzymes as well as toxic proteins. At the same
time the extrusion process deactivates residual heat labile growth inhibitors native to soy
proteins in a raw or partially processed state. These growth inhibitors have a deleterious
physiological effect on man or animals as shown by different scientific studies.
Reducing raw and beany flavor: An extrusion process can control raw or bitter flavors
commonly associated with soy protein sources. Some of these undesirable flavors are volatile in
nature and are eliminated through the extrusion and decompression of the protein at the
extruder die. The use of pre-conditioner and an atmospheric venting device in the extruder
design may assist in volatilization and removal of off-flavor.
Homogeneous mixing: Extrusion provides a very homogeneous, irreversible, bonded
dispersion of all micro ingredients throughout a protein matrix. This not only ensures the
uniformity of all ingredients, such as dyes, flavor and other minor ingredients throughout the
product, but also provides a means for minor ingredients to intimately associate with potential
reaction sites promoting cross-linking or other desirable chemical and physical modifications.
Shaping the products: The extrusion process shapes and sizes the final texturized protein in convenient and transportable portions for packaging in retail or bulk containers.
Rajasthan Agricultural Competitiveness Project 23
Advances in drying technology: In the production of TSP, one of the main steps is the drying
process, which is necessary to decrease the product moisture to required level. The objective of
dehydration in foods is diminishing its degradation caused by the growth of bacteria, yeasts, and molds.
Moreover, undesirable chemical and biochemical reactions that also are responsible for product
degradation and shelf life time reduction- are affected by moisture decrease. Drying is a very complex
process since it involves simultaneous heat, mass, and momentum transfer in which moisture is
removed from food material and carried out by hot air. This operation may be accompanied by chemical
and biochemical reactions, phase change, and shrinkage of the food product. This process is mainly
affected by several parameters (type of dryer, system pressure, drying air temperature, velocity, and
relative humidity) and the product nature (superficial area, orientation of constituents, and type and
concentration of solutes).
With modern and advanced continuous type dryers, optimization in the drying process can be achieved
by the variation of the listed parameters, decreasing the product residence time inside the dryer hence
increasing the plant productivity.
Quality Assurance: Quality assurance and food safety is another area where food sector is looking
beyond just legal standards and providing whole food industry 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 soy foods, however some of the instrumental measures can be very specialized. For
example, to measure the mechanical properties of chewy snack foods and meat analogues is measured
using a texture analyzer. In a nutshell, soy nuggets need be analyzed for coarseness, springiness,
hardness, cohesiveness, chewiness, size of chewed particles, size of fat deposits, Moisture/oil content,
etc.
Some of the 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. For soy nuggets production, color texture, moisture and screen analysis
of raw material (defatted soy flour) is equally important. Color can be measured using a Chroma
meter, with measurement based on the CIE system.
Nutritional profile requires measurement of protein, fat, minerals, vitamins photochemical and
anti-nutrients (trypsin inhibitor). This information is needed for nutrition labeling.
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 to storage conditions and the expected shelf life.
Rajasthan Agricultural Competitiveness Project 24
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, extruders are operated at double the speed and three times the feed rate
that would have been the norm in the last couple decades. The advent of new ‘high speed’ extruders has
taken this evolution one step further with speeds and loadings double those of today’s norms. The
efficiency of drying has also been increased significantly. Similarly, capacities of all other functions vis-à-
vis material transfer, packaging, etc. have been considerably increased even in terms of speed of
operations.
Safe, Scientific and Food Grade Machine Construction: In recent years, significant changes have
occurred 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 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 and Material Movement: Material handling systems like screw
conveyors, etc and the engineering design behind same is now executed to ensure reduced material
travel between machines enabling leaner manufacturing also aiding reduction in power costs and
unnecessary instances of human intervention at various stages. Modern designs of soy nuggets plants
with controls at central plant location (with PLC) have now become the standard norm. The engineering
behind same is done to ensure compact design eliminating leakages/wastages at shop floor. This has
increased overall safety and efficiency of the mills.
Process Optimization: All processes in the textured soy protein processing can be optimized and
controlled through control panel i.e. automation. 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 the food processing industry. Electro-Pneumatics and PLC have
significantly changed the way plants are operated. Automation ultimately leads to productivity and ease
of operation. Automation, as such monitors system, diagnoses problems and provides actionable
information which in turn helps prevent problems both on Processing and Equipment side. It allows
operator to identify problems before it happens and take diagnostic action. The food processing
industry is now changing from plant control to process control or even to the extent beyond that.
2.3. Recent Global Technology Advances
The global soy processing industry and service suppliers that support it are continually searching to
improve technology and methods to process soybean into 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:
Rajasthan Agricultural Competitiveness Project 25
a. Testing and Research Findings: Recent research11 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. It was also observed that more traditional approaches where soy flour was
extracted with ethanol were more effective in reducing the off-flavors.
Furthermore, several novel techniques are now being applied for 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 new food products and
growth of the soy food market.
b. 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 these 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.
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 onto system. 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.
c. Advanced System of cooking and extrusion: Advanced systems have been rolled out for
developing textured soy protein or soy meat and high moisture meat analogues (HMMA) produced
by high moisture extrusion cooking (HMEC). Co-rotating twin screw extruders are used for the
production of both TSP and HMMA, although the set-ups for both products are totally different.
The process section of advanced twin screw extruders is now designed as a modular system. It
consists of several barrels in which the co-rotating screws operate. These screws also consist of
different screw elements which can be combined individually. The advantage of this modular
principle is the inherent maximum flexibility in the extrusion process. In addition, direct steam
injection into the extruder is often applied to reduce the mechanical energy input and increase the
thermal energy input by process volume. For direct steam injection, continuous temperature,
11 Advances in soybean processing and utilisation- Dr Bob Hosken University of Newcastle
Rajasthan Agricultural Competitiveness Project 26
pressure and flow velocity measurements of the hot steam are used to achieve high accuracy. An
automatic valve regulates the flow and controls the feed rate.
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 Soy nuggets 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 and are being operated by relatively larger sized firms in the
state.
Notably, the few existing soy nuggets processing units in the State are generally of small scale nature and
use semi-automated technology. Shri Govindam Food (Jaipur), Savour India Pvt. Ltd. (Bhiwadi), Shree
Jee Soya Industries (Jaipur), Kabir Foods (Jaipur), Manishankar Oils Pvt. Ltd. (Jaipur), Ashoka Oil
Industries (Jaipur) etc are few units involved in Soy nuggets and Soy products manufacturing in the
State. Typically, discussions with some processors and industry experts pointed to below common
technology gaps (in traditional units):
1. Most units are micro/small units and with limited capacities of production.
2. Lack of advanced extrusion (like twin extruders) in some of these units leads to inconsistent
texture of final product.
3. Most units are wary of high capital investment in the beginning phase and thus prefer cheaper
semi-automatic technology, which often is relatively less efficient to modern systems adopted
worldwide.
4. The raw material used for production of soy nuggets is defatted soy flour; and hence quality of
raw material highly impacts the quality of final product. Again, the technology adopted by
backward integrated suppliers ultimately affects quality of nuggets/granules.
5. 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. Use of outdated technology in extruding not only leads to quality aberrations but also yield loss
during extrusion process.
7. The dryer section generally uses wood as fuel, as deploying electrical system at such small
capacities is unviable.
8. The cost of up gradation is often high.
9. There is absence of efficient metal detecting system in most units.
10. Investment in testing equipments is negligible. Required tests are mostly outsourced from labs
in nearby locations.
11. Packaging in most units is done manually and/or with use hand held stitching machines of pp
bags. For retail packaging manufacturers use services of job working units.
Rajasthan Agricultural Competitiveness Project 27
Chapter 3: Production and processing hubs/ clusters in Rajasthan
3.1. Major Soybean producing districts
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
# 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 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.12 Only a few are engaged in
making value added products indicating apprehensions on viability of investments in soybean value
added products. Shri Govindam Food (Jaipur), Savour India Pvt. Ltd. (Bhiwadi), Shree Jee Soya
Industries (Jaipur), Kabir Foods (Jaipur), Manishankar Oils Pvt. Ltd. (Jaipur), Ashoka Oil Industries
(Jaipur) etc. are few units involved in Soy nuggets 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.
12Source: http://krishikosh.egranth.ac.in/bitstream/1/67798/1/D9455.pdf
Rajasthan Agricultural Competitiveness Project 28
Chapter 4: Manufacturing process and technology benchmarking
4.1. Manufacturing Process
Soy chunks/granules are an important value added processing opportunity for soybean sector. Strategic
market assessment has prioritized several key markets that will be targeted in the future for promotion
of soy nuggets and similar TSP products. Moreover, in context of Rajasthan that has large vegan
population, with increase in health consciousness and higher awareness, the demand for soy food
products is expected to increase.
Extrusion cooking has been defined as ‘the process by which moistened, expansile, starchy and/or
proteinaceous materials are texturized in a tube by a combination of moisture, pressure, heat and
mechanical shear. This results in elevated product temperatures within the tube, gelatinization of starchy
components, denaturization of proteins, the stretching or restructuring of tractile components and the
exothermic expansion of the extruder”. Extrusion is widely used to accomplish this restructuring of
protein-based foodstuffs to manufacture a variety of textured convenience foods. When mechanical and
thermal energy are applied during the extrusion process, the macromolecules in the proteinaceous
ingredients lose their native, organized structure and form a continuous, visco-elastic mass. The extruder
barrel, screws and die align the molecules in the direction of flow. This realignment “exposes bonding
sites that lead to cross-linking and a reformed, expandable structure’ that creates the chewy texture in
fabricated foods.
Traditionally the most popular raw material for production of textured vegetable proteins in an
extrusion system has been slightly toasted defatted soy flour. This defatted soy flour usually meets the
following characteristics: 50% protein minimum, 3.5% fiber maximum, 1.5% fat maximum and PDI of
60 to 70.13 This along with greater simplicity of extrusion gives the process a cost advantage over the
spinning (Boyer) process which uses isolated soy protein. A cooker-extruder is used to force the protein
material through a die that controls the size and shape of the texturized material.In operation, the
extrusion is quite simple, but does require considerable experience in the handling of the equipment. At
first, the raw material is pre-moistened to levels of 15-40 percent (with special additives sometimes
added to the preconditioning water). The mixture is agitated until homogenous. It is then fed to the
extruder while the screw is rotated at a substantial speed. Steam and water are used in alternate jacket
sections for heating and cooling. Cooling is usually carried out near the feed section of the extruder. The
13 The use and development of twin screw extrusion cookers in the field of texturized proteins has increased the
raw material specification range to include raw materials that include: PDI ranges from 20 to 70, fat levels from 0.5 to 6.5%, fiber levels up to 6% and particle sizes up 3 to 8 mesh.
Rajasthan Agricultural Competitiveness Project 29
meal mixture is advanced within the extruder while being heated to high temperatures and subjected to
elevated pressures. The mechanically worked mixture becomes a viscous fluid-type substance that is
forced through a restrictor orifice after 30 to 60 seconds' retention time in the extruder. As the product
emerges from the die outlet, the superheated moisture contained in the meal enters the substantially
lower atmospheric pressure environment where flash-off evaporation of part of the moisture expands
the product into a porous structure. Evaporation also cools the product substantially. The expanded
product is very porous and has a fibrous network structure somewhat resembling that of meat.14
The product can be kept moist and used directly for food materials, or can be dried and packed
conveniently for later use. It rehydrates rapidly and completely within a few seconds merely by adding
water (usually about two parts for one part solids) to yield a product with excellent food characteristics.
Finished products (nuggets/granules) are then packed through packing spouts in bags. Wholesale
Packaging of products can be done through an Automatic Weighing and Bagging machine, which can
pack the nuggets/granules in 10 kg-100 kg capacity bags. In general, 25 kg and 50 kg size bags are used
in wholesale. On an average, such bagging machine can give an output of 250 to even 500 bags per
hour. For retail packaging (i.e. 1 kg, 2 kg and 5 kg), a liner carton machines with multi-head weighers can
be used.
Table 6 Textured Soy Protein Manufacturing Process
Testing: Quality control begins with acquiring high quality defatted soy flour for the production of
nuggets/granules. Soy nuggets need be inspected for coarseness, springiness, hardness, cohesiveness,
14 In order to obtain soy granules from nuggets, chunks/nuggets are partially hydrated for a period of 15 minutes to 2 hours to obtain a moisture content of between 15-25%, and then disintegrating the equilibrated partially hydrated soy chunks/pieces in a shearing machine and the further drying the same for a period between 15 minutes to 3 hours in the dryer to obtain high-protein soy granules.
Rajasthan Agricultural Competitiveness Project 30
chewiness, size of chewed particles, size of fat deposits, Moisture/oil content, etc. 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; it is taken off the line in every batch and checked on several
parameters. Because the product is sealed off from the workers for much 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 increasingly 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 wastage, enable hygiene and they also standardize process and
hence can add significantly to the overall efficiency of value added products (especially soy
nuggets/granules) manufacturing.
While both soya chunks and soya granules come from soy bean, they are not actually directly made from
soy. Both are a byproduct of making soy oil. Once the soy oil is extracted, the residual is soy flour. This
soy flour is then defatted converted into soya chunks and soya granules. It is also sometimes called as
textured soy protein (TSP) or soy meat. Historically, conversion of TSP from defatted soy flour is a
simple process which can be done with commercial equipment in a modern plant. This process has four
basic steps:
1. Mixing all kinds of flour and water and other add-ons (if applicable)
2. Conveying the mixed material to screw extruder
3. Texturization: Cooking, extruding, shaping and cutting of the product
4. Drying of product to remove moisture
The central activity in the above process is ‘Texturization’ which is done through extrusion processing.
A modern extruder can provide
Grinding
Hydration
Expansion
Shearing
Mixing
Shaping
Texture alteration
Thermal Treatment
Homogenization
Gelatinization
Destruction of micro-
organisms and some toxic
compounds
Here, the major transformation of the raw or preconditioned soy protein occurs and it ultimately affects
the final product texture. Extruders are popularly classified as being either a single or twin screw design.
Rajasthan Agricultural Competitiveness Project 31
In both designs, the impact on final product texture is affected by screw and barrel profile, screw speed,
processing conditions such as temperature, moisture, pressure, raw material characteristics and die
selection.
Ultimately, local tastes and market considerations will determine not only the kind and variety of soya
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 to reduce processing time, improve
hygiene, increase productivity and enhance nutrition. These developments can be classified as improving
existing techniques and systems but there is also considerable effort going into creating true innovation
that will drive revolutionary new solutions into the industry and open up new markets.
4.3. Benchmarking the Soy nuggets/granules products manufacturing process
in key clusters at Rajasthan
Notably, soy nuggets/granules processing technology in India is similar in most units across states (as
most being micro/small scale enterprises) characterized by several semi-automatic processes. Some
more significant soy foods industries in India are located at MP, Maharashtra and AP. As matter of fact,
some large and known brands like Nutrela (Ruchi Soya Industries Limited), Indian Soya Industries Pvt.
Ltd., Fortune (Adani Wilmar), Vippy Industries Limited etc. have their large setups in India. However,
for the purpose, technology and practices followed in some other countries like China, 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 Buhler/, Coperion/ Jinan Saibainuo Technology
Development Co. Ltd/Guru Nanak Engineering Works/SS Equipment 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.
Even though some of the units in Rajasthan (or even in some other parts of the country) have deployed
these machines, several small mills (especially in the unorganized sector) use some outdated
technologies. To summarize, the soy nuggets/granules processing by units in the soybean clusters of
Rajasthan involve various activities which may be benchmarked in terms of best practices in other
locations:
Rajasthan Agricultural Competitiveness Project 32
# Process Traditional method (especially in micro units) Modern Method/s in more advanced units
1.
Raw Material
Defatted Soy Flour
Storage before
processing
Defatted Soy Flour is difficult to handle because of
poor flow ability and bridging characteristics. Soybean
meal tends to settle or consolidate over time. This
phenomenon becomes more severe with increased
moisture, increased time frame and small particle
size. Because of this, bulk soy flour is best stored in
flat storage buildings instead of vertical silos.
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 and scientific warehousing systems like dehumidifiers,
temperature monitors, grain handling equipment, etc can be adopted.
Alternatively, bulk flour handling systems include silos made of high
tenacity Trevira fabric are watertight and suitable for the storage of
food powder products. Specially designed for flour storage, the top
portion of the silo sack acts as a filter, and the modular supporting
structure is composed of galvanized steel and allows for quick
assembly and disassembly. The high tenacity Trevira fabric
guarantees optimum oxygenation and a free flow of the stored flour.
These silos are designed to ensure a clean, dust-controlled
environment, while providing reliable storage and discharge.
2. Flour Mixer/ Blender
and pre-conditioner
In general, low capacity and traditional styled
equipment is used sans control on uniform mixing,
moisture and heat penetration, etc
To the contrary, benchmarked technology in relatively larger units
involves most modern and PLC controlled bin/feeder and pre-
conditioner. The live bin/feeder provides a means of uniformly
metering the raw materials (granular or floury in nature) into a pre-
conditioner or mixing cylinder and subsequently into the extruder
itself. This flow of raw materials must be uninterrupted and rate-
controllable.
Some of the leading suppliers and turnkey technology suppliers for
above machines include Coperion/ Jinan Saibainuo Technology
Development Co. Ltd/Guru Nanak Engineering Works/SS Equipments
etc.
3. Screw Extruder
In general, most units use single screw extruder
which is relatively low cost equipment but has several
limitations like lesser flexibility in use of raw material
(i.e. of specific particle size), higher wear and tear,
difficult cleanup process. The transmission of
materials in single screw extruder is mainly by friction,
so that the feeding performance is limited. Notably,
the raw material for single screw extruder is required
to meet the following characteristics: 50% protein
minimum, 3.5% fiber maximum, 1.5% fat maximum
and PDI of 60 to 70.
To the contrary, benchmarked technology in relatively larger units
involves use of most modern and PLC controlled co-rotating twin
screw extruders. The use and development of twin screw extrusion
cookers in the field of texturized proteins has increased the raw
material specification range to include raw materials that include: PDI
ranges from 20 to 70, fat levels from 0.5 to 6.5%, fiber levels up to
6% and particle sizes up 3 to 8 mesh. Apart from providing
advantage of High level of process flexibility, twin screw extruders
provide Better control of process parameters, Remarkable mixing
capability, low wear and tear and thus Higher economical
opportunities and business potential than single screw extruders.
Some of the leading suppliers and turnkey technology suppliers for
Rajasthan Agricultural Competitiveness Project 33
# Process Traditional method (especially in micro units) Modern Method/s in more advanced units
above machines include Buhler/Clextral/Coperion/ Jinan Saibainuo
Technology Development Co. Ltd/Guru Nanak Engineering
Works/SS Equipments etc.
4. Drying and Cooling
Section
Most units use traditional dryers (wood/diesel based),
and the use of electric dryers is mostly nonexistent.
Some old systems also lack precise temperature
control and monitoring, leading to uneven drying and
overheating on certain occasions. Some of these
traditional units have deployed high energy
consuming dryers which lead to high operational
costs. Also, often leakages in some old systems lead
to energy loss. Traditional systems also consume
large space in the unit premises.
In absence of drying system, some micro millers may
also depend on sun drying, which can be highly time
consuming.
Cooling of dried product (before packing same) is
largely done through exposure to environment sans
any technology.
Modern units deploy continuous conveyor styled multi-story dryers
with customized solution built with various lengths, widths, number of
passes, materials, conveyor styles, air flows, sanitary considerations
and optimized heating systems and low foot print. These optimized
systems, not only lead to optimized drying time but also lead to
consistent and even drying of the product, in turn maximizing quality
output. As a matter of fact, in the modern systems, drying time for the
product can be adjusted by a frequency inverter. Options of multi-fuel
and electric drying systems are deployed based on plant capacity and
energy requirement. Modern electrical heating systems involve
infrared heating system which enables optimizing energy
consumption.
Modern units also deploy Cooling Conveyor. After the product comes
out from the dryer, it is still is not cool enough for packaging. A cooling
conveyor with several cooling fans can finish cooling process
speedily.
Some of the leading suppliers and turnkey technology suppliers for
above machines include Coperion/ Zhu Zhou WaveLane technology
co./ Jinan Saibainuo Technology Development Co. Ltd/Guru Nanak
Engineering Works/SS Equipments etc.
5.
Crusher/ Shearing/
Disintegrating
machine
Most units involved in production of nuggets and the
focus of these units remains on the same.
In order to obtain soy granules from nuggets, chunks/nuggets are partially hydrated for a period of 15 minutes to 2 hours to obtain a moisture content of between 15-25%, and then disintegrating the equilibrated partially hydrated soy chunks/pieces in a shearing machine and the further drying the same for a period between 15 minutes to 3 hours in the dryer to obtain high-protein soy granules.
6.
Material handling
and feeding
equipment systems
While some traditional units use manual and semi-
automatic systems for material conveying, most have
deployed screw conveyors and air conveying systems
for raw material and intermediate product
respectively.
Advanced plants use high automation screw conveying and
pneumatic air conveying systems, with PLC controlled systems also
enabling speedy conveying and transfer to ensure maximum energy
efficiency and control. Highly reliable feeding and refill systems
prevent feeding inaccuracies that could cause shutdown of the entire
extrusion line which, in turn, adds to process time and calls for
cleaning. Modern conveying and transfer systems are all designed
Rajasthan Agricultural Competitiveness Project 34
# Process Traditional method (especially in micro units) Modern Method/s in more advanced units
with ease of cleaning, accessibility and quick product changeover in
mind.
Based on level of technology in plant, use of air systems etc, certain
additional accessories are required like airlocks, rotary valves,
diverter valves, etc. For example, rotary valves are ideal for
integration into high pressure explosion protection milling systems for
pressure isolation between the feeding mechanism and the product
collector discharge point. They can also be used in conjunction with
screw feeders at the entrance of the milling system to ensure optimal
and safe performance of the milling operation.
Some of the leading suppliers and turnkey technology suppliers for
above machines include Coperion/ Jinan Saibainuo Technology
Development Co. Ltd/Guru Nanak Engineering Works/SS Equipment
etc.
7. Soy Nuggets and
Granules Packaging
Wholesale Bagging: Most units in the region use
pp bags packaging material sourced from local
dealers and agents from manufacturers in
locations like Gujarat, National Capital Region
(NCR), etc. Firms mostly pack nuggets/granules
in 20 KG, 50 KG and 25 KG bags. The packaging
operations are largely tedious, time consuming
and manual. After filling and weighing the bags
manually, a basic hand held stitching equipment
is used. Benchmarked machine and equipment
for same involves automatic net weighing and
bagging system.
Retail Packaging: Most units in the region get
job work done from service providers for retail
packs (mostly carton, pouches can also be used)
such as 1 kg and 5 kg. In this context, the
service/waiting time could be over 4-7 days.
Some units use manual filling methods with
simple heat sealing machines and further packing
in ready product cartons.
Wholesale Packaging of products is done through an Automatic
Weighing and Bagging machine, which can pack
nuggets/granules in 10 kg-100 kg capacity bags. In general, 20
kg, 25 kg and 50 kg size bags are used in wholesale. On an
average, such bagging machine can give an output of 250 to
even 500 bags per hour.
Retail packaging in carton is pursued in larger units with use of
fully automatic liner carton machines with multi-head weighers.
For retail packaging in pouches (i.e. 1 kg, 2 kg and 5 kg), a
vertical form fill seal (VFFS) machine is used. Packaging speed
of 30-35 packs per minute can be achieved with multi-head
VFFS systems.
Above machines are further incorporated with advanced
accessories like magnetic separators, TTO printing system, etc
Some reputed suppliers like Hassia Packaging, Nichrome, Global
EssPak Private Limited, Line Flex International, etc. could be
considered for machinery selection.
Rajasthan Agricultural Competitiveness Project 35
# Process Traditional method (especially in micro units) Modern Method/s in more advanced units
8. Testing and other
support activities
Most units do not have even basic testing equipment
for in-house quality check and control. Several of the
parameters are judged only on the basis of visual
analysis only. On several occasions, even such units
are required to outsource certain tests from local as
well as distant accredited testing labs.
Some key tests like Protein dispersibility index, Fat level, Fiber
level, Particle size, Protein levels, Adjustments in pH, Moisture
test (air oven method and IR), Carbohydrate content 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.
9.
Support Equipment,
Engineering and
Automation
The support system majorly includes machine
support structure and other support equipment
(compressors, water softeners, weighing scales,
electrification, etc). The quality of these
equipments is highly critical for overall
performance of the units. However, in this
context many millers have sub-standard quality
system which leads to poor quality, breakdowns
and other related problems.
While some 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, several non-skill human
interventions need up-scaling. Further, soy
foods being highly sensitive to contamination,
high manual interventions lead to increased
risks.
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 Coperion/
Jinan Saibainuo Technology Development Co. Ltd/Guru Nanak
Engineering Works/SS Equipment 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 of a soy nuggets plant depends on several factors
such as size/capacity, technology, quality 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 soy nuggets 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
soy nuggets/granules industry. Key turnkey plant suppliers like
Coperion/ Jinan Saibainuo Technology Development Co.
Ltd/Guru Nanak Engineering Works/SS Equipments etc.
provide solutions on this front as well.
Rajasthan Agricultural Competitiveness Project 36
Chapter 5: Appropriate technology options
5.1. Appropriate technology options
5.1.1. Storage of defatted soy flour For storage of raw material-defatted soy flour, silos made of High Tenacity
Trevira fabric are watertight and suitable for the storage of food powder
products. The top portion of the silo sack acts as a filter, and the modular
supporting structure is composed of galvanized steel and allows for quick
assembly and disassembly. Most suppliers provide custom-made silos to best
fit into the space available at the customer’s premises, and are assembled on
site. The High Tenacity Trevira fabric guarantees optimum oxygenation and
a free flow of the stored flour. Generally, fabric silos offer a much more
economical alternative to stainless steel silos in terms of overall cost of the
system, ongoing maintenance, as well as installation cost. In addition, fabric
silos are anti-microbial for the highest levels of bacteria resistance. Return on investment is usually much
shorter with fabric silos. Equipment suppliers such as GEA Group AG, Technosilos, Novapan etc.
have an established reputation in the field of High Tenacity Trevira fabric silos.
5.1.2. Live Bin/Feeder and Blender
The live bin/feeder provides a means of uniformly metering the raw
materials (granular or floury in nature) into a pre-conditioner or mixing
cylinder and subsequently into the extruder itself. This flow of raw
material must be uninterrupted and controllable with rates. This
component controls the product rate or throughput of the entire system.
The feeder portion also can be used to
initiate the preconditioning of raw materials
through the injection of steam to control raw
material temperature and moisture. It is
particularly useful where the particle size of
the raw material is large (a grit or flake). This initial steam preconditioning
promotes moisture and heat penetration of the individual particles, resulting
in uniform moisture application and elevated raw material temperature. A
screw conveyor is generally used for intake and then material transfer to
conditioner or mixing cylinder.
Rajasthan Agricultural Competitiveness Project 37
5.1.3. Pre-conditioner/Mixing Cylinder The raw material then passes through the atmospheric
preconditioner or mixing cylinder where moisture can be uniformly
applied in the form of water and/or steam to achieve a moisture
content of 10 to 25%. If steam is applied, it is carefully metered into
the raw material to precondition it at modest temperatures of 65 to
100°C. The mixing cylinder is vented to avoid excess steam and
undesirable volatile flavor components found in the raw soy protein.
Flavors, coloring agents and other additives may also be introduced
at this phase of the process to ensure thorough and continuous
mixing of all foodstuffs entering the extruder barrel. As mentioned
earlier, the preconditioning step is also an effective means of initiating control of growth inhibitors
found in many raw soy proteins.
Most pre-conditioners contain one or two mixing conveying elements which consist of rotating shafts
with radially attached pitched paddles. Atmospheric or pressurized chambers may be utilized in this
preconditioning step. Pressurized pre-conditioners can achieve higher discharge temperatures, but have
the disadvantages of potential nutrient
destruction and higher operating costs. Without
the use of preconditioning, it is difficult to make
good laminar-structured, textured soy protein.
When soy proteins are not preconditioned, there
is a strong tendency for them to expand rather
than laminate due to non-uniform moisture
penetration which does not allow uniform
alignment of protein molecules. Uniform
moisture penetration of raw ingredients
significantly improves the stability of the extruder and final product quality. This moisture-temperature-
time history allows the extrusion of raw materials having larger particle sizes without sacrificing final
product quality.
5.1.4. Screw Extruder The pre-conditioner discharges pre-conditioned material directly into the extruder assembly which
consists of the barrel and screw configuration. Here,
the major transformation of the raw or preconditioned
soy protein occurs and that ultimately affects the final
product texture. Extruders are popularly classified as
either being a single or twin screw design. In both
designs, the impact on final product texture is affected
by screw and barrel profile, screw speed, processing
conditions such as temperature, moisture, pressure, raw
material characteristics and die selection.
The initial section of the extruder barrel is designed to act as a feeding or metering zone and simply
conveys the raw or pre-conditioned soy protein away from the inlet portion of the barrel and into the
Rajasthan Agricultural Competitiveness Project 38
extruder. The product then enters a processing zone where the amorphous, free-flowing soy protein is
worked into colloidal dough. The compression ratio of the screw profile is increased in this stage to
assist in blending water or steam with the raw material. The temperature of this moist, proteinaceous
dough is rapidly elevated in the last 2-5 seconds of dwell time within the extruder barrel. Most of this
heat is from mechanical energy dissipated through the rotating screw and may be assisted from the
direct injection of steam or from external thermal energy sources. The screw profile can be altered by
the pitch, flight height and angle, and steam lock diameter, which affects the conveying of this
plasticized food material down the screw channel. Retention times of 5-15 seconds, temperatures of 100
to 200°C and moisture levels of 15 to 30% all influence the protein dough quality just behind the die
and the final product expansion. The temperature at this point actually melts the protein into a visco-
elastic, plasticized mass having very high viscosities. This plasticized material is extruded through the die
openings, and expansion occurs as the product is released to ambient pressures. Final product density
has been shown to correlate with temperatures and moistures of extrusion.
It is possible to produce an extruded meat analog which has a remarkable similarity to meat in appearance, texture and mouth-feel. Although the process to extrude meat analogs is similar to that used for the production of meat extenders, it often uses two extruders or a long-barreled single extruder. Through this configuration, the dwell time in the extruder is extended, the moisture content increased to 30% and the pressure maintained below 150 PSIG. The vegetable proteins exposed to this process are stretched, cooled and formed into uniform layers of parallel orientation and cut into bite-sized portions. The lower pressures used inboard of the die reduces product expansion and disruptions to the laminar structure. Due to the dense nature of these analogs, they are able to retain their integrity and meat-like texture even after retorting them for 2-3 hours. Thus, texturized protein can be processed through both single and twin screw extruders, however, there are differences between these two extruder barrel designs. Single screw extruders are the machines that have produced and still produce the greatest tonnage of textured soy protein products in the world. Over the years of extrusion development, the process has become more of a science, which has resulted in the ability to design
Rajasthan Agricultural Competitiveness Project 39
screws, heads and shear locks for single screw extruders for specific functions. This variety or selection of parts includes straight and spiral-ribbed jacketed heads which allow the control of friction or product shear, internally, while the flow of cooling water or heating fluids in the external jacket has allowed control of temperatures of the product as it passes through the various extruder sections. Coupling these heads with the wide range of extruder screws that are unrestricted in number of their flights, the flight pitches, cut flights, the screw volumes and the shear locks between these screws allow for a very versatile machine that has been successful in producing a wide range of products. In the case of texturized proteins, the use of a narrow range of raw materials has been the limiting factor in the use of single screw extruders. Their use requires good uniform raw materials and a maintenance program to keep the extruder barrel parts within tolerances. The twin screw extruder barrel generally used in the food industry consists of two co-rotating intermeshing self-wiping sets of screws. Because the screws intermesh they do have restrictions in screw design. They are limited by the flight profile and root diameter. The twin screw extruder has a segmented smooth bore head that is jacketed. The screws are also segmented so that their arrangement can be modified. The twin screw barrel design does have the advantage of a more positive feeding characteristic over the single screw barrel design. The twin screw design, as a result, has been more lenient in raw material specifications. In either case, single or twin, the combination of preconditioning and the extruder barrel arrangement results in modification of the raw materials and the result is a texturized protein. Hydration and heating cause unraveling of the long twisted protein molecules in soy proteins. In the extrusion process, these molecules align themselves along the streamline flows of the screws and dies. The increase in shear temperature and retention time causes cross-linking to occur, yielding a textured product that is layered, and the resulting denaturation or cross-linking can be considered an irreversible endothermic chemical reaction. Dies for texturized soy proteins should have smooth streamlined flows that do not disrupt or cause shearing effects to the already laminated and cross-linked protein molecules. 15Advantages of co-rotating twin screw extruder vis-à-vis single screw extruder show:
o Remarkable mixing capability due to the interpenetration of the screws and the broad
diversity of specialized screw designs (such as reverse screw elements, kneading blocks, gear
mixing elements, etc.) that allow the extent of shearing/mixing to be precisely adjusted; hence
leading to control the degree of mixing in regards to mixing intensity and mixing quality
(dispersive versus distributive). Conversely, mixing capability of single screw extruders is very
limited hence and any flow restrictions to enhance mixing through special screw designs lead to
depress the extruder throughput.
o High level of process flexibility due to throughput and screw speed independency, and
capability to handle multiple processing functions in series (such as melting, mixing, cooking,
venting, cooling, etc.) in one single extruder. Conversely with single screw extruders throughput
and screw speed are dependent, and screw designs with multiple processing functions in series
are restricted.
o Better control of process parameters that have narrower residence time distribution, lower
dispersion of shear rates and strain, higher convective heat transfer and accurate control of
temperature profile. Hence leading to much better control of shear-time-temperature histories
in the extruder to much wider range of mechanical energy inputs and to so much more
consistency in regards to material conversion and product quality.
15 Source: http://www.clextral.com/technologies-and-lines/technologies-et-procedes/benefits-of-twin-screw-extrusion/
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o Higher process productivity due to positive pumping action of the screws, ability to handle
wider varieties of raw materials and mix formulations including complex recipes, screw speed-
aided compensation of screw wear (with single screw extruders process performances invariably
decrease when screw wear increases), lower downtime.
o Higher economical opportunities and business potential than single screw
extruders, owing to higher process flexibility and productivity, to produce wider range of end
products, to convert materials and handle product quality more consistently, to compensate the
effect of screw wear through screw speed adjustment.
Some of the leading suppliers and turnkey technology suppliers for above machines include
Buhler/Clextral/Coperion/ Jinan Saibainuo Technology Development Co. Ltd/Guru Nanak
Engineering Works/SS Equipments etc.
5.1.5. Drying and Cooling In the extrusion processing of textured proteins, the
moisture content is elevated and as a result the cooked
product must have the moisture reduced for safe storage
prior to its use. Proper design and size selection of the
dryer cooler is important for making good quality
products as well as monitor overall cost of production,
because this production step is generally the costliest.
There are many dryer/cooler designs but in general the
most popular style for textured soy protein production is
conveyor styled multi-stage Dryer. These dryers can be
built with various lengths, widths, number of passes,
materials, conveyor styles, air flows, sanitary
considerations and heating systems.
Dryers with various lengths, widths and number of passes allow proper sizing for the extruder output as
well as offering flexibility in equipment placement in existing or new facilities. The two-three pass design
not only saves floor space but allows the product to be turned over in the dryer, improving evenness of
drying. Using varying speed motors on the dryer passes allows for changes in the product bed depth,
and thus retention time of the product in the dryer.
Dryer/cooler construction materials include mild steel, stainless steel and combination of both. In
human food production the dryer/coolers are normally equipped with stainless steel, at least where the
product comes in contact with the dryer, or are all of stainless steel construction. Product-carrying
conveyors are perforated mild or stainless steel trays that can be coated with teflon or silverstone. Also,
available are wire mesh screens that are carried on special supports. The wire mesh design has greater
open area for even air flow and allows for smaller particles to be dried and retained on the conveyor.
Air flow is generally up through the product with the heating elements mounted in a single side plenum
chamber above air recirculation fans. These recirculation fans create the static pressure below the dryer
trays resulting in evenness of drying across the product bed. A percentage of air is exhausted to control
the humidity in the dryer while the balance is re-circulated and the same permits maximum efficiency in
Rajasthan Agricultural Competitiveness Project 41
energy consumption. The heating elements mounted in the side plenum are generally steam coils or gas
burners. This is usually based on the location of the plant and the cost of the fuel to be used. Steam
coils are generally the most popular.
Sanitary considerations include doors wherever possible for cleaning access and maintenance. Fine
recovery systems remove fines from the bottom of the dryer and deposit
them in a cross auger that removes them to the side of the dryer. Dryers
are commonly equipped with integral coolers or extensions of the bottom
dryer pass. Internal airlocks are used to reduce the amount of air leakage
between these two zones. Air flow is generally down through the product
and a percentage of this exhausted air is used as makeup air for the dryer,
yielding a more efficient dryer, reducing energy consumption. Once the
product comes out of dryer, it is still is not cool enough for packaging. A
cooling conveyor with several cooling fans can finish cooling process
speedily.
5.1.6. Packaging of products
In Wholesale Packaging, automatic bagging equipment consists of a microprocessor controller, load cells, weigher and discharge chute with bag holder. The Microprocessor controls the whole machine to achieve and deliver the target weights i.e., 10, 25/30, 50 KG etc. and can be easily programmed by the user for required target weights. Once the material reaches the target weight, it discharges into the bag. The filled bag is then de-clamped on slat conveyor which helps the bag to reach the Stitching Machine for bag closing. A user friendly interface allows the operator to pre-select settings
to obtain optimum operation and simple, easy adjustment of bag
width and length to accommodate different bag sizes. This
equipment ensures saving of labor hours and is easy to operate,
hence, increases productivity.
In Consumer packaging, a Single/Multi-head Lined Carton Packing Machine helps in packaging of
nuggets in 1, 2 and 5 kg size cartons. One kg capacity
cartons can be filled at the rate of even 40-50 cartons per
minute with about 14 pack
stations. Typically, machine
construction is of M.S. and
product contact parts are of
S.S. Alternatively, a
Vertical-Form-Fill-Seal
(VFFS) machine helps in
packaging of
nuggets/granules in 1, 2 and 5 kg sizes. The equipment produces pillow
and other pouches type like block bottom, etc. with center seal. One kg
capacity pouches can be filled at the rate of even 24-26 pouches per
minute. Typically, machine construction is of M.S. and product contact parts are of S.S. The equipment
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comes with forming collar and pipe, pneumatic cylinders to perform sealing, knife to cut and seal
cooling, splicing unit for easy roll change over, etc.
The above bagging and packing machines require a compressor and voltage stabilizer (to address
abnormal fluctuations in power supply).
Quality Control and Testing Equipments: Testing equipment comprising Kjeldahl Digestion
Apparatus and Distillation apparatus, air drying oven, muffle furnace, analytical balance, pH meter,
volumetric flasks, NIR Analyser, Moisture meter, Universal Testing Machine, vortex stirrer,
sedimentation shaker, glassware and chemicals, etc. and is in the list of requirement.
Functionality and importance of some key testing equipments: Protein is no doubt the most important and frequently analyzed nutrient in soy products. The protein content of soybean products is estimated as total nitrogen in the sample multiplied by 6.25. The key machine in this test involves Kjeldahl equipment. The Kjeldahl Digestion Apparatus and Distillation apparatus are also required to measure crude fibre content. Among the available tests for determining protein quality in soybean products, the Protein Dispersibility Index (PDI) is the simplest, most consistent, and most sensible method. This test measures the solubility of soybean proteins in water and is probably the best adapted to all soy products. The PDI method measures the amount of soy protein dispersed in water after blending a sample with water in a high-speed blender. The water solubility of soybean protein can also be measured with a technique called Nitrogen Solubility Index (NSI). These two methods differ in the speed and vigor at which the water containing the soybean product is stirred. Both methods require a blender (8,500 ppm), filtering funnels or a centrifuge, and the routine Kjeldahl equipment for N analysis. Moisture content is simplest yet more important component that needs to be determined. . For the same, it is necessary to have a forced-air drying oven, capable of C), porcelain crucibles or aluminum
dishes and an analytical balance with a 2 C (maintaining 130 precision of 0.01 mg. Ash determination requires a muffle furnace, porcelain crucibles, and an analytical balance (precision of 0.01 mg). Urease Index method requires a pH meter, volumetric flasks (250 ml), a small water bath that allows maintenance of temperature at 30 0 C for at least 30 minutes, test tubes and a pipette. The method determines the residual urease activity of soybean products as an indirect indicator to assess whether the anti-nutritional factors, such as trypsin inhibitors, present in soybeans have been destroyed by heat processing. Determining the amino acid composition of proteins is necessary to determine their biological value. The greater the proportions of essential amino acids, the greater will be the biological value of a protein. Near Infrared Reflectance Spectroscopy offers the potential for more direct and quicker analyses. It also ensures that reliable calibrations are in place and equipment is properly maintained and calibrated.
Rajasthan Agricultural Competitiveness Project 43
Dealers of some reputed manufacturers like Agilent and Presto Testing could be considered for testing
equipments.
5.1.7. Support Equipments, Engineering and Automation
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, motors and
fittings. Key suppliers like Coperion/ Jinan Saibainuo Technology Development Co. Ltd/Guru Nanak
Engineering Works/SS Equipments 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 soy nuggets/granules 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.
Automation: All processes in soy nuggets 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 the food processing 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 else skilled/ technical workforce will be a challenge for future. IoT monitors
systems, 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 Buhler/Clextral/Coperion/ Jinan Saibainuo Technology Development
Co. Ltd/Guru Nanak Engineering Works/SS Equipments 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 Soy nuggets/granules 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, reduced improper handling of material, and reduction in incidences of various other factors that lead to losses in storage.
3. Ease of cleaning of modern equipments eliminates impurities that pose a significant health and safety risk.
4. The use of modern technology can reduce the energy losses to some extent.
5. Use of advanced mixing cylinders ensures homogenous and uniform mixing of raw material with water and/or steam and flavors, coloring agents and other additives (if applicable).
6. Use of advanced twin extruders ensures relatively better control of process parameters, remarkable mixing capability, low wear and tear and thus higher economical opportunities and business potential.
7. Advanced die and cutting stations ensure desired sizing control of final product.
8. Advanced continuous conveyor styled multi-stage dryers ensure uniform drying while also ensuring maximum energy efficiency and control.
9. Relatively low competition in micro and small scale segment.
10. The use of modern technology will enable production of premium quality soy nuggets/granules that will help link with premium consumer segment and may fetch better margins.
11. New age machines, having small footprint, facilitate optimum space utilization for plant installation.
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. Advertising and promotional measures to increase the sales are also a weak point of the industry.
4. Modern technology with higher capacities also increases working capital requirements.
5. Mere adding of few recommended machines in an existing traditional unit may not yield optimum results due to capacity mismatch/disequilibrium in complete process.
6. Lack of awareness regarding the latest innovations in the soy nuggets production process is another reason for low rate of adoption among entrepreneurs.
7. Lack of proper backward integration or even irregular supply of raw material discourages some entrepreneurs to invest in modern technologies with large capacities.
8. The cost of other inputs such as packaging material, fuel, and transportation is high which leads to rise in cost of production.
9. Bulk procurement of defatted soy flour during lower market prices means high working capital requirement and large storage capacities. Alternative model of purchase as per requirement which often does not allow taking advantage of low market prices.
10. Existing micro scale millers have units set up in limited spaces. Modernization and capacity enhancements may require larger area in some cases.
Rajasthan Agricultural Competitiveness Project 45
12. Soy nuggets/granules machines are built of complete non-corrosive material, i.e. stainless steel (especially contact parts), which further supports the food safety approach.
13. The product- Soy nuggets/granules- lends itself to making several value added meat analogs products like soy chaap, soy patties, soy hot dog, etc.
14. Modern packaging methods significantly reduce man hours spent on the activity, while considerably increasing the accuracy.
15. Scientific design and engineering of modern soy nuggets plant facilitates optimum space utilization, reduced leakages, reduced power consumption (by power saving in processes), better product output and manpower safety.
16. Automation in the plant can decrease the dependency on the labour contractors. It also ensures minimum human handling of products.
17. Automation can also help real-time identification of problems and immediate trouble shooting.
11. 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.
12. Initial high cost could be incurred in launching soy nuggets/granules product brands.
Opportunity Threat
1. Upgradation of technology 2. Large scope of tapping the Protein rich-
healthy-chewy-cheaper-meat alternative’ products market.
3. Key schemes of Central Govt. (like Kisan Sampada, etc) and State Govt. will facilitate upgradation.
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 products like nuggets and granules.
5. Branding offers huge potential for product promotion.
6. Increased interest in health and nutrition is creating demand for some properly processed and packaged soy products.
7. FPOs can also 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 soy nuggets/granules for distribution in school programs.
10. FPOs can also tap rural consumption as soy nuggets serve as cheaper vegetable alternative.
11. Opportunity to penetrate into the growing market of refrigerated and packaged soy value added products like soy chaap, etc.
12. Niche yet increasing market demand for soy
1. Automation does leads to fewer jobs (especially for unskilled manpower).
2. Some entrepreneurs in other states who had set-up units have suffered losses and even have shut down operations. 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 play on association and recognition people have with the product and this association and recognition can be attributed to high investment in marketing..
5. Competition with large players often also means thin margins in marketing of products.
6. Rapid developments in contemporary markets and fast changing requirements of the industry may lead to fast obsolescence necessitating re investment in new technology
7. Technology breakdown for a longer period may have much higher cost implications than a labour intensive firm.
Rajasthan Agricultural Competitiveness Project 46
nuggets/granules with better quality standards.
13. Higher value realization to units by way of higher yields and production of premium quality soy nuggets/granules.
14. Scope for FPOs to build strong forward linkages with SEP and Refinery Plants and agri-traders to supply their raw material soybean while also purchasing defatted soy flour form them.
15. Opportunity to custom process for larger players in market: Custom milling/processing offers three specific advantages to the soy nuggets 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.
16. 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 are 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.
17. It could be publicized that soy based foods 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.
18. Industries could collaborate and jointly advertise and promote the soy nuggets/granules and products in international market.
19. Soy nuggets and granules 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.
20. Soy 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
7.1. Indicative project Profiles
This section of the report outlines three project profiles that could be used as a reference by
entrepreneurs to select their most suitable option. Broadly, one micro scale, one small scale (relatively
low investment) and one small scale fully automatic model (relatively high investment) option have been
showcased primarily to suit the investment capabilities of the entrepreneurs. Sections 7.1, 7.2 and 7.3 of
this chapter individually showcase the financial feasibility of these projects.
a. Section 7.1 showcases a micro scale model that 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 Semi-Automatic 250 Kg per hour capacity
Soy nuggets processing unit which comprises of Mixture Machine, Screw Conveyor, Food
Extruder, Lift Conveyor, Dryer 3 Story, Cooling Conveyor Belt, Stitching Machines, Heat
Sealing Machine, Basic Testing Machines, Water Softener, Weighing Scales and Electrification.
The total cost of the complete set of P&M, on basis of some referred quotations of leading
suppliers in the segment, is Rs. 20.72 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, and farmer producer association/companies. The
technology proposed for this segment involves Semi-Automatic 400 Kg per hour capacity Soy
nuggets/granules processing unit which comprises of Mixture Machine, Screw Conveyor, Food
Extruder, Belt Conveyor, Conveyor type Electric Dryer in Three Stage, Crusher (For granules),
Cooling Conveyors, Finished Product Bins, Automatic Weighing And Bagging Machine, Heat
Sealing Machine, Basic Testing Machines, Water Softener, Weighing Scales, Compressor For
Pneumatics including Packing Machines, CVCF and Electrification. The total cost of the
complete set of P&M, on basis of some referred quotations of leading suppliers in the segment,
is Rs. 57.49 Lakhs. This is inclusive of Utilities (like Electrical transformer, etc) and 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 600 Kg per hour capacity Soy
nuggets/granules Processing unit which comprises of Feed Bin, Screw Conveyor, Mixture
Machine (Blender), Vacuum Conveyor, Intermediate Storage Hopper, Conditioner, Extruder,
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Air Conveyor, Crusher, Air Conveyor, Oven Dryer, Cooling Conveyor, Finish Product Bins,
Automatic Weighing And Bagging Machine, Automatic Liner Carton Machine, Basic Testing
Machines, Industrial Water Softener, Weighing Scales, Plant Automation, Compressors For
Pneumatics Including Packing Machines, CVCF and Electrification. The total cost of the entire
set of P&M, on basis of some referred quotations of leading suppliers in the segment, is Rs.
139.05 Lakhs. This is inclusive of Utilities (like Electrical transformer, weighbridge etc) and
taxes, transportation, installation and commissioning charges.
7.2. Project Profile 1: Micro Scale Unit
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 Civil and Shed Works 1500 700 1,400,000.00
2 Boundary chain link and minor civil work Lump sum 55,000.00
Total (in Rupees) 1,105,000.00
(a) Plant & Machinery Breakup Sr. No. Item Capacity Amount
(in Rupees)
1 Main Plant & Machinery 250 Kg/Hr 2,072,400.00
Total (in Rupees) 2,072,400.00
The technology proposed for this segment involves Semi-Automatic 250 Kg per hour capacity Soy nuggets processing unit which comprises of Mixture Machine, Screw Conveyor, Food Extruder, Lift Conveyor, Dryer 3 Story, Cooling Conveyor Belt, Stitching Machines, Heat Sealing Machine, Basic Testing Machines, Water Softener, Weighing Scales and Electrification.
Other Assumptions Assumptions
1 Working Hours per day 8 hours
2 Plant Capacity /Day 250 Kg per hour
3 No. of Working Days in a year 300
4 Power Requirement 92 KVA
5 Standard Packaging for Main Products & By-Products
PP bags for bulk packaging; Carton with liner packing for retail
6 Insurance Exp Considered on Plant & Mach, Building
0.5% of Capex
7 Inflation assumed annually 5% annually
8 Debtors 15 Days of Sales
9 Stock of Finished Goods 15 Days for Soy nuggets
10 Stock of Raw Material 15 days Consumption
7.2.2. Project Cost
Sr. No. Particulars Amt (in Rs .)
1 Land -
2 Building 1,105,000.00
3 Plant & Machinery 2,072,400.00
4 Misc. Fixed Assets 25,000.00
5 Preliminary & Preoperative 25,000.00
6 Working Capital Margin 208,875.00
Total 3,436,275.00
Total Project Cost is Rs. 34.36 Lakhs
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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, furniture, etc expenses which are pegged at Rs. 25,000.
Preliminary expenses and Preoperative expenses are pegged to be Rs. 25,000.
The Total Working Capital requirement during the first year of operation is estimated at Rs. 8.35 Lakhs with margin money requirement of Rs. 2.09 Lakhs. Calculations of same are presented in section 7.1.12.
7.2.3. Means of Finance Sr. No. Particulars Amt (in Rs .)
1 Bank Term Loan 2,000,000.00
2 Promoter's Capital 1,436,275.00
3 RACP Grant -
Total 3,436,275.00
It is assumed that Rs 20.00 Lakhs will be sought as Term Loan from Bank. 7.2.4. Product Schedule
Particulars Y1 Y2 Y3 Y4 Y5
Soy nuggets plant Capacity (MT/Day)
2 2 2 2 2
Working Days in Year 300 300 300 300 300
Annual Defatted Soy Flour Requirement @ 100% CU
600 600 600 600 600
Capacity Utilization 60.00% 65.00% 70.00% 75.00% 80.00%
Total Input of Defatted Soy Flour (in MT)
360 390 420 450 480
Output (MT)
Soy Nuggets 349 378 407 437 466
Soy Granules 0 0 0 0 0
Normal loss 11 12 13 14 14
Tonnes processed / day 2 2 2 2 2
No. of days of operation 180 195 210 225 240
7.2.5. Purchase Schedule
Particulars Y1 Y2 Y3 Y4 Y5
Defatted Soy Flour (MT) 375 391 422 451 481
Purchase Price (in Rs./MT)
34,000.00
35,700.00
37,485.00
39,359.00
41,327.00
Defatted Soy Flour Purchases
12,750,000.00
13,958,700.00
15,818,670.00
17,750,909.00
19,878,287.00
Total Purchases (in Rs.) 12,750,000.00
13,958,700.00
15,818,670.00
17,750,909.00
19,878,287.00
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7.2.6. Consumables Packaging Material
No. of bags/cartons with liner Cost of Packaging Material
Size Product Rate/ba
g/carto
n with
liner
Y1 Y2 Y3 Y4 Y5 Y1 Y2 Y3 Y4 Y5
1 KG Soy Nuggets
1 34900 37800 40700 43700 46600 34900 37800 40700 43700 46600
50 KG
Soy Nuggets
18 6282 6804 7326 7866 8388 113076 122472 131868 141588 150984
Total 147,976.00
160,272.00
172,568.00
185,288.00
197,584.00
7.2.7. Power Requirement
The total requirement of the plant is 92 KVA.
7.2.8. Water Requirement
Water 400 Liters/day
Human Consumption
600 Liters/day
Total 1000 Liters/day
cost/kl= Rs. 10/kl 10 Rs. Daily
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7.2.9. Manpower Requirement S. No. Particulars No. Monthly Salary Annual Income Dept.
1 Director/Miller 1 15,000.00 180,000.00 Admin
2 Factory Head 1 12,000.00 144,000.00 factory
3 Accounts Head 1 12,000.00 144,000.00 Admin
4 Marketing and Business Development Head 1 15,000.00 180,000.00 Admin
5 Plant Operator 1 8,000.00 96,000.00 factory
6 Accountant 1 8,000.00 96,000.00 Admin
7 Sales Executives 3 8,000.00 288,000.00 Admin
8 Admin Staff 2 8,000.00 192,000.00 Admin
9 Security Staff 2 6,000.00 144,000.00 Admin
13 92,000.00 1,464,000.00
Helpers 7 300/day factory
Total Manpower 20
7.2.10. Depreciation Schedule
Particulars Building Plant & Machinery Misc Fixed assets Total Rs.
Rate of Depreciation 10% 15% 10%
Opening WDV 1,105,000.00 2,072,400.00 25,000.00 3,202,400.00
Total 1,105,000.00 2,072,400.00 25,000.00 3,202,400.00
Dep. For 1st Year 110,500.00 310,860.00 2,500.00 423,860.00
W.D.V. as on II Year 994,500.00 1,761,540.00 22,500.00 2,778,540.00
Dep. For 2nd Year 99,450.00 264,230.00 2,250.00 365,930.00
W.D.V. as on III Year 895,050.00 1,497,310.00 20,250.00 2,412,610.00
Dep. For 3rd Year 89,510.00 224,600.00 2,030.00 316,140.00
W.D.V. as on IV Year 805,540.00 1,272,710.00 18,220.00 2,096,470.00
Dep. For 4th Year 80,550.00 190,910.00 1,820.00 273,280.00
W.D.V. as on V Year 724,990.00 1,081,800.00 16,400.00 1,823,190.00
Dep. For 5th Year 72,500.00 162,270.00 1,640.00 236,410.00
W.D.V. as on VI Year 652,490.00 919,530.00 14,760.00 1,586,780.00
7.2.11. TL Repayment Schedule
Loan Amount 2,000,000.00
Rate 10.00% In Rs.
Monthly Loan amount Monthly Repayment' Interest Total Instl. Closing Bal
1 2,000,000.00 33,333.33 16,388.89 49,722.22 1,966,666.67
2 1,966,666.67 33,333.33 16,111.11 49,444.44 1,933,333.33
3 1,933,333.33 33,333.33 15,833.33 49,166.66 1,900,000.00
4 1,900,000.00 33,333.33 15,555.56 48,888.89 1,866,666.67
5 1,866,666.67 33,333.33 15,277.78 48,611.11 1,833,333.33
6 1,833,333.33 33,333.33 15,000.00 48,333.33 1,800,000.00
7 1,800,000.00 33,333.33 14,722.22 48,055.55 1,766,666.67
8 1,766,666.67 33,333.33 14,444.44 47,777.77 1,733,333.33
9 1,733,333.33 33,333.33 14,166.67 47,500.00 1,700,000.00
10 1,700,000.00 33,333.33 13,888.89 47,222.22 1,666,666.67
11 1,666,666.67 33,333.33 13,611.11 46,944.44 1,633,333.33
12 1,633,333.33 33,333.33 13,333.33 46,666.66 1,600,000.00
13 1,600,000.00 33,333.33 13,055.56 46,388.89 1,566,666.67
14 1,566,666.67 33,333.33 12,777.78 46,111.11 1,533,333.33
Rajasthan Agricultural Competitiveness Project 52
15 1,533,333.33 33,333.33 12,500.00 45,833.33 1,500,000.00
16 1,500,000.00 33,333.33 12,222.22 45,555.55 1,466,666.67
17 1,466,666.67 33,333.33 11,944.44 45,277.77 1,433,333.33
18 1,433,333.33 33,333.33 11,666.67 45,000.00 1,400,000.00
19 1,400,000.00 33,333.33 11,388.89 44,722.22 1,366,666.67
20 1,366,666.67 33,333.33 11,111.11 44,444.44 1,333,333.33
21 1,333,333.33 33,333.33 10,833.33 44,166.66 1,300,000.00
22 1,300,000.00 33,333.33 10,555.56 43,888.89 1,266,666.67
23 1,266,666.67 33,333.33 10,277.78 43,611.11 1,233,333.33
24 1,233,333.33 33,333.33 10,000.00 43,333.33 1,200,000.00
25 1,200,000.00 33,333.33 9,722.22 43,055.55 1,166,666.67
26 1,166,666.67 33,333.33 9,444.44 42,777.77 1,133,333.33
27 1,133,333.33 33,333.33 9,166.67 42,500.00 1,100,000.00
28 1,100,000.00 33,333.33 8,888.89 42,222.22 1,066,666.67
29 1,066,666.67 33,333.33 8,611.11 41,944.44 1,033,333.33
30 1,033,333.33 33,333.33 8,333.33 41,666.66 1,000,000.00
31 1,000,000.00 33,333.33 8,055.56 41,388.89 966,666.67
32 966,666.67 33,333.33 7,777.78 41,111.11 933,333.33
33 933,333.33 33,333.33 7,500.00 40,833.33 900,000.00
34 900,000.00 33,333.33 7,222.22 40,555.55 866,666.67
35 866,666.67 33,333.33 6,944.44 40,277.77 833,333.33
36 833,333.33 33,333.33 6,666.67 40,000.00 800,000.00
37 800,000.00 33,333.33 6,388.89 39,722.22 766,666.67
38 766,666.67 33,333.33 6,111.11 39,444.44 733,333.33
39 733,333.33 33,333.33 5,833.33 39,166.66 700,000.00
40 700,000.00 33,333.33 5,555.56 38,888.89 666,666.67
41 666,666.67 33,333.33 5,277.78 38,611.11 633,333.33
42 633,333.33 33,333.33 5,000.00 38,333.33 600,000.00
43 600,000.00 33,333.33 4,722.22 38,055.55 566,666.67
44 566,666.67 33,333.33 4,444.44 37,777.77 533,333.33
45 533,333.33 33,333.33 4,166.67 37,500.00 500,000.00
46 500,000.00 33,333.33 3,888.89 37,222.22 466,666.67
47 466,666.67 33,333.33 3,611.11 36,944.44 433,333.33
48 433,333.33 33,333.33 3,333.33 36,666.66 400,000.00
49 400,000.00 33,333.33 3,055.56 36,388.89 366,666.67
50 366,666.67 33,333.33 2,777.78 36,111.11 333,333.33
51 333,333.33 33,333.33 2,500.00 35,833.33 300,000.00
52 300,000.00 33,333.33 2,222.22 35,555.55 266,666.67
53 266,666.67 33,333.33 1,944.44 35,277.77 233,333.33
54 233,333.33 33,333.33 1,666.67 35,000.00 200,000.00
55 200,000.00 33,333.33 1,388.89 34,722.22 166,666.67
56 166,666.67 33,333.33 1,111.11 34,444.44 133,333.33
57 133,333.33 33,333.33 833.33 34,166.66 100,000.00
58 100,000.00 33,333.33 555.56 33,888.89 66,666.67
59 66,666.67 33,333.33 277.78 33,611.11 33,333.33
60 33,333.33 33,333.33 - 33,333.33 -
TOTAL - 966,666.67 362,500.00 1,329,166.67 -
7.2.12. Projected Working Capital Requirement
Particulars Y1 Y2 Y3 Y4 Y5
Debtors 668,000.00 791,700.00 895,230.00 1,009,449.00 1,130,415.00
Stock of F.G 720,000.00 806,400.00 899,640.00 1,000,188.00 1,108,536.00
Stock of R.M 510,000.00 571,200.00 674,730.00 747,821.00 826,540.00
Rajasthan Agricultural Competitiveness Project 53
Less Creditor 1,062,500.00 1,163,225.00 1,318,223.00 1,479,242.00 1,656,524.00
Total Working Cap Required 835,500.00 1,006,075.00 1,151,377.00 1,278,216.00 1,408,967.00
W.C Margin 208,875.00 251,519.00 287,844.00 319,554.00 352,242.00
W.C Loan 626,625.00 754,556.00 863,533.00 958,662.00 1,056,725.00
7.2.13. Sales Schedule
Particulars Y1 Y2 Y3 Y4 Y5
Soy Nuggets (MT) 334 377 406 436 465
Sale Price (in Rs. Per MT)
48000 50400 52920 55566 58344
Soy Nuggets Sales 16,032,000.00
19,000,800.00
21,485,520.00
24,226,776.00
27,129,960.00
Total Sales 16,032,000.00
19,000,800.00
21,485,520.00
24,226,776.00
27,129,960.00
7.2.14. Projected Balance Sheet
Particulars Y1 Y2 Y3 Y4 Y5
A. LIABILITIES
Partner's Capital 1,436,275.00 1,436,275.00 1,436,275.00 1,436,275.00 1,436,275.00
Add: Addition During the Year - - - - -
Total Capital 1,436,275.00 1,436,275.00 1,436,275.00 1,436,275.00 1,436,275.00
Reserves & Surplus
RACP Grant - - - - -
Profit & Loss
Opening Balance - 671,528.17 1,743,939.23 3,208,126.60 5,133,464.07
Add: Profit after tax 671,528.17 1,072,411.06 1,464,187.37 1,925,337.47 2,380,910.16
Total 671,528.17 1,743,939.23 3,208,126.60 5,133,464.07 7,514,374.23
Secured Loan From Bank 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00
W. Capital Loan 626,625.00 754,556.00 863,533.00 958,662.00 1,056,725.00
Current Liability 1,062,500.00 1,163,225.00 1,318,223.00 1,479,242.00 1,656,524.00
Total ( A ) 5,796,928.17 7,097,995.23 8,826,157.60 11,007,643.07 13,663,898.23
B. ASSETS
Fixed Assets
Gross Block 3,202,400.00 2,778,540.00 2,412,610.00 2,096,470.00 1,823,190.00
Less : Depreciation 423,860.00 365,930.00 316,140.00 273,280.00 236,410.00
Net Block 2,778,540.00 2,412,610.00 2,096,470.00 1,823,190.00 1,586,780.00
Misc Fixed Assets 20,000.00 15,000.00 10,000.00 5,000.00 -
Current Assets
Sundry Debtor 668,000.00 791,700.00 895,230.00 1,009,449.00 1,130,415.00
668,000.00 791,700.00 895,230.00 1,009,449.00 1,130,415.00
Closing Stock
Closing Stock FG 720,000.00 806,400.00 899,640.00 1,000,188.00 1,108,536.00
Closing Stock RM 510,000.00 571,200.00 674,730.00 747,821.00 826,540.00
1,230,000.00 1,377,600.00 1,574,370.00 1,748,009.00 1,935,076.00
Cash & Bank Balance 1,100,388.17 2,501,085.23 4,250,087.60 6,421,995.07 9,011,627.23
(Including Cash Credit Limit)
Total ( B ) 5,796,928.17 7,097,995.23 8,826,157.60 11,007,643.07 13,663,898.23
7.2.15. Projected Profit and Loss Statement
Particulars Y1 Y2 Y3 Y4 Y5
Rajasthan Agricultural Competitiveness Project 54
Total Sales 16,032,000.00
19,000,800.00
21,485,520.00
24,226,776.00
27,129,960.00
Less:- Opening Stock of F.G.
- 720,000.00 806,400.00 899,640.00 1,000,188.00
Add:-Closing Stock of F. G. 720,000.00 806,400.00 899,640.00 1,000,188.00 1,108,536.00
Cost of Finish Goods 16,752,000.00 19,087,200.00 21,578,760.00 24,327,324.00 27,238,308.00
Raw Material Purchased 12,750,000.00 13,958,700.00 15,818,670.00 17,750,909.00 19,878,287.00
Add:- Opening Stock of R.M - 510,000.00 571,200.00 674,730.00 747,821.00
Less:-Closing Stock of R.M. 510,000.00 571,200.00 674,730.00 747,821.00 826,540.00
Cost of Material Consumed 12,240,000.00 13,897,500.00 15,715,140.00 17,677,818.00 19,799,568.00
Total Variable Exp 1,029,292.00 1,119,929.00 1,209,115.00 1,299,493.00 1,389,934.00
Total Fixed Exp 1,841,032.00 1,933,083.00 2,029,739.00 2,131,227.00 2,237,789.00
Amortization of Exp 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00
Profit Before Int & Dep 1,636,676.00 2,131,688.00 2,619,766.00 3,213,786.00 3,806,017.00
Int. on Term Loan 178,333.33 138,333.34 98,333.33 58,333.33 18,333.34
Int. on W. Capital Loan 62,662.50 75,455.60 86,353.30 95,866.20 105,672.50
Depreciation 423,860.00 365,930.00 316,140.00 273,280.00 236,410.00
Net Profit 971,820.17 1,551,969.06 2,118,939.37 2,786,306.47 3,445,601.16
Tax 300,292.00 479,558.00 654,752.00 860,969.00 1,064,691.00
Net Profit 671,528.17 1,072,411.06 1,464,187.37 1,925,337.47 2,380,910.16
7.2.16. Projected Cash Flow Statement
Sr. Particulars Y1 Y2 Y3 Y4 Y5
1 Revenue
Sales 16,752,000.00 19,087,200.00 21,578,760.00 24,327,324.00 27,238,308.00
2 Term Loan 2,000,000.00 - - - -
W. Capital Loan 626,625.00 127,931.00 108,977.00 95,129.00 98,063.00
3 Equity/ Share capital
1,436,275.00 - - - -
4 RACP Investment Grant
- - - - -
5 Increase in Current Liabilities
1,062,500.00 100,725.00 154,998.00 161,019.00 177,282.00
Sub Total (A) 21,877,400.00 19,315,856.00 21,842,735.00 24,583,472.00 27,513,653.00
Cash Outflow (Rs.)
1 Capital Expenditure
a Building and Civil Work
1,105,000.00 - - - -
c Plant and Machinery 2,072,400.00 - - - -
d Land Development & Registration
- - - - -
e Electrification & Misc.
25,000.00
f Pre-Operative Exp. 25,000.00 - - - -
2 Operational Expenditure
a Fixed Cost (Excl. Of Interest)
1,841,032.00 1,933,083.00 2,029,739.00 2,131,227.00 2,237,789.00
b Variable Cost 1,029,292.00 1,119,929.00 1,209,115.00 1,299,493.00 1,389,934.00
c Cost of Material Consumed
12,240,000.00 13,897,500.00 15,715,140.00 17,677,818.00 19,799,568.00
3 Loan Repayment - - - - -
Rajasthan Agricultural Competitiveness Project 55
a Interest on WC 62,662.50 75,455.60 86,353.30 95,866.20 105,672.50
b Interest on TL 178,333.33 138,333.34 98,333.33 58,333.33 18,333.34
4 Increase in Current Assets
668,000.00 123,700.00 103,530.00 114,219.00 120,966.00
Increase in Stock 1,230,000.00 147,600.00 196,770.00 173,639.00 187,067.00
5 Tax 300,292.00 479,558.00 654,752.00 860,969.00 1,064,691.00
6 Differential tax liabilities
Sub Total (B) 20,777,011.83 17,915,158.94 20,093,732.63 22,411,564.53 24,924,020.84
Net Cash Flow (A-B)
1,100,388.17 1,400,697.06 1,749,002.37 2,171,907.47 2,589,632.16
Opening Cash and Bank
1,100,388.17 2,501,085.23 4,250,087.60 6,421,995.07
Cumulative Cash Balance
1,100,388.17 2,501,085.23 4,250,087.60 6,421,995.07 9,011,627.23
7.2.17. Financial Indicators
Indicator Value
Internal Rate of Return 25%
Break Even (Average) 56%
Net Present Value 32.32 Lakhs, Positive above Project Cost
DSCR (Average) 4.03
RoCE (Average) 20%
RoE (Average) 47%
Project Payback Period 3 Years 2 Months
Equity Payback Period 1 Year 9 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 2: Small Scale Unit (Economy Model)
7.3.1. 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 800 2,400,000.00
2
Compound Wall/Chain link and other minor civil work
Lump sum 200,000.00
Total (in Rupees) 2,600,000.00
(b) Plant & Machinery Breakup
Sr. No.
Item Capacity Amount (in Rupees)
1 Main Plant & Machinery 400 kg per hour 5,049,600.00
2 Utilities (Electrical Substation, etc) 700,000.00
Total INR 5,749,600.00
a. The technology proposed for this segment involves Semi-Automatic 400 Kg per hour capacity Soy nuggets/granules processing unit which comprises of Mixture Machine, Screw Conveyor, Food Extruder, Belt Conveyor, Conveyor type Electric Dryer in Three Stage, Crusher (For granules), Cooling Conveyors, Finished Product Bins, Automatic Weighing And Bagging Machine, Heat Sealing Machine, Basic Testing Machines, Water Softener, Weighing Scales, Compressor For Pneumatics including Packing Machines, CVCF and Electrification.
Rajasthan Agricultural Competitiveness Project 56
Other Assumptions 1 Working Hours per day 8 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 128 KVA
5 Standard Packaging for Main Products & By-Products
PP bags for bulk packaging; Carton with liner packing for retail
6 Insurance Exp Considered on Plant & Mach, Building
0.5% of Capex
7 Inflation assumed annually 5% annually
8 Debtors 15 Days of Sales
9 Stock of Finished Goods 15 Days for Soy nuggets
10 Stock of Raw Material 15 days Consumption
7.3.2. Project Cost Sr. No. Particulars Amt (in Rs .)
1 Land -
2 Building & other civil works 2,600,000.00
3 Plant & Machinery 5,749,600.00
4 Misc Fixed Assets 50,000.00
5 Preliminary & Pre operative 50,000.00
6 Working Capital 408,209.00
Total 8,857,809.00
The Total Project Cost is Rs. 88.58 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, Crates, furniture and electric fixtures, etc which are pegged at Rs. 50,000.
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. 16.33 Lakhs with margin money requirement of Rs. 4.08 Lakhs. Calculations of same are presented in section 7.2.12.
7.3.3. Means of Finance Sr. No. Particulars Amt (in Rs .)
1 Bank Term Loan 4,000,000.00
2 Promoter's Capital 4,857,809.00
3 RACP Grant -
Total 8,857,809.00
It is assumed that Rs. 40.00 Lakhs will be sought as Term Loan from Bank.
7.3.4. Product Schedule Particulars Y1 Y2 Y3 Y4 Y5
Soy nuggets plant Capacity (MT/Day)
3.2 3.2 3.2 3.2 3.2
Working Days in Year 300 300 300 300 300
Rajasthan Agricultural Competitiveness Project 57
Annual Defatted Soy Flour Requirement @ 100% CU
960 960 960 960 960
Capacity Utilization 70.00% 75.00% 80.00% 85.00% 90.00%
Total Input of Defatted Soy Flour (in MT)
672 720 768 816 864
Output (MT)
Soy Nuggets 470 504 538 571 605
Soy Granules 202 216 230 245 259
Normal loss 0 0 0 0 0
Tonnes processed / day 3.2 3.2 3.2 3.2 3.2
No. of days of operation 210 225 240 255 270
Rajasthan Agricultural Competitiveness Project 58
7.3.5. Purchase Schedule Particulars Y1 Y2 Y3 Y4 Y5
Defatted Soy Flour (MT) 700 722 770 818 866
Purchase Price (in Rs./MT) 34,000.00 35,700.00 37,485.00 39,359.00 41,327.00
Defatted Soy Flour Purchases 23,800,000.00 25,775,400.00 28,863,450.00 32,195,662.00 35,789,182.00
Total Purchases (in Rs.) 23,800,000.00 25,775,400.00 28,863,450.00 32,195,662.00 35,789,182.00
7.3.6. Consumables Packaging Material
No. of bags/cartons with liner Cost of Packaging Material
Size Product Rate/ba
g/carton
with
liner
Y1 Y2 Y3 Y4 Y5 Y1 Y2 Y3 Y4 Y5
1 KG Soy Nuggets
1 47000 50400 53800 57100 60500 47000 50400 53800 57100 60500
50 KG
Soy Nuggets
18 8460 9072 9684 10278 10890 152280 163296 174312 185004 196020
1 KG Soy Granules
1 20200 21600 23000 24500 25900 20200 21600 23000 24500 25900
50 KG
Soy Granules
18 3636 3888 4140 4410 4662 65448 69984 74520 79380 83916
Total 284,928.00 305,280.00 325,632.00 345,984.00 366,336.00
7.3.7. Power Requirement The total requirement of the plant (including admin building power req.) is 128 KVA.
7.3.8. Water Requirement Water 480 Liters/day
Human Consumption
520 Liters/day
Total 1000 Liters/day
cost/kl= Rs. 10/kl 10 Rs. Daily
Rajasthan Agricultural Competitiveness Project 59
7.3.9. Manpower Requirement S. No. Particulars No. Monthly Salary Annual Income Dept.
1 Director/Miller 1 30,000.00 360,000.00 Admin
2 Factory Head 1 18,000.00 216,000.00 factory
3 Accounts Head 1 15,000.00 180,000.00 Admin
4 Marketing and Business Development Head 1 25,000.00 300,000.00 Admin
5 Product and Quality Assurance Manager 1 20,000.00 240,000.00 factory
6 Plant Operator 1 15,000.00 180,000.00 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 10,000.00 240,000.00 Admin
11 Storekeeper 1 8,000.00 96,000.00 factory
12 Security Staff 2 6,000.00 144,000.00 Admin
Total 16 175,000.00 2,580,000.00
Helpers 5 300/day factory
Total Manpower 21
7.3.10. Depreciation Schedule
Particulars Building Plant & Machinery Misc Fixed assets Total Rs.
Rate of Depreciation 10% 15% 10%
Opening WDV 2,600,000.00 5,749,600.00 50,000.00 8,399,600.00
Total 2,600,000.00 5,749,600.00 50,000.00 8,399,600.00
Dep. For 1st Year 260,000.00 862,440.00 5,000.00 1,127,440.00
W.D.V. as on II Year 2,340,000.00 4,887,160.00 45,000.00 7,272,160.00
Dep. For 2nd Year 234,000.00 733,070.00 4,500.00 971,570.00
W.D.V. as on III Year 2,106,000.00 4,154,090.00 40,500.00 6,300,590.00
Dep. For 3rd Year 210,600.00 623,110.00 4,050.00 837,760.00
W.D.V. as on IV Year 1,895,400.00 3,530,980.00 36,450.00 5,462,830.00
Dep. For 4th Year 189,540.00 529,650.00 3,650.00 722,840.00
W.D.V. as on V Year 1,705,860.00 3,001,330.00 32,800.00 4,739,990.00
Dep. For 5th Year 170,590.00 450,200.00 3,280.00 624,070.00
W.D.V. as on VI Year 1,535,270.00 2,551,130.00 29,520.00 4,115,920.00
Rajasthan Agricultural Competitiveness Project 60
7.3.11. TL Repayment Schedule Loan Amount 4,000,000.00
Rate 10.00% In Rs.
Monthly Loan amount Monthly Repayment' Interest Total Instl. Closing Bal
1 4,000,000.00 66,666.67 32,777.78 99,444.45 3,933,333.33
2 3,933,333.33 66,666.67 32,222.22 98,888.89 3,866,666.67
3 3,866,666.67 66,666.67 31,666.67 98,333.34 3,800,000.00
4 3,800,000.00 66,666.67 31,111.11 97,777.78 3,733,333.33
5 3,733,333.33 66,666.67 30,555.56 97,222.23 3,666,666.67
6 3,666,666.67 66,666.67 30,000.00 96,666.67 3,600,000.00
7 3,600,000.00 66,666.67 29,444.44 96,111.11 3,533,333.33
8 3,533,333.33 66,666.67 28,888.89 95,555.56 3,466,666.67
9 3,466,666.67 66,666.67 28,333.33 95,000.00 3,400,000.00
10 3,400,000.00 66,666.67 27,777.78 94,444.45 3,333,333.33
11 3,333,333.33 66,666.67 27,222.22 93,888.89 3,266,666.67
12 3,266,666.67 66,666.67 26,666.67 93,333.34 3,200,000.00
13 3,200,000.00 66,666.67 26,111.11 92,777.78 3,133,333.33
14 3,133,333.33 66,666.67 25,555.56 92,222.23 3,066,666.67
15 3,066,666.67 66,666.67 25,000.00 91,666.67 3,000,000.00
16 3,000,000.00 66,666.67 24,444.44 91,111.11 2,933,333.33
17 2,933,333.33 66,666.67 23,888.89 90,555.56 2,866,666.67
18 2,866,666.67 66,666.67 23,333.33 90,000.00 2,800,000.00
19 2,800,000.00 66,666.67 22,777.78 89,444.45 2,733,333.33
20 2,733,333.33 66,666.67 22,222.22 88,888.89 2,666,666.67
21 2,666,666.67 66,666.67 21,666.67 88,333.34 2,600,000.00
22 2,600,000.00 66,666.67 21,111.11 87,777.78 2,533,333.33
23 2,533,333.33 66,666.67 20,555.56 87,222.23 2,466,666.67
24 2,466,666.67 66,666.67 20,000.00 86,666.67 2,400,000.00
25 2,400,000.00 66,666.67 19,444.44 86,111.11 2,333,333.33
26 2,333,333.33 66,666.67 18,888.89 85,555.56 2,266,666.67
27 2,266,666.67 66,666.67 18,333.33 85,000.00 2,200,000.00
28 2,200,000.00 66,666.67 17,777.78 84,444.45 2,133,333.33
29 2,133,333.33 66,666.67 17,222.22 83,888.89 2,066,666.67
30 2,066,666.67 66,666.67 16,666.67 83,333.34 2,000,000.00
31 2,000,000.00 66,666.67 16,111.11 82,777.78 1,933,333.33
32 1,933,333.33 66,666.67 15,555.56 82,222.23 1,866,666.67
33 1,866,666.67 66,666.67 15,000.00 81,666.67 1,800,000.00
34 1,800,000.00 66,666.67 14,444.44 81,111.11 1,733,333.33
35 1,733,333.33 66,666.67 13,888.89 80,555.56 1,666,666.67
36 1,666,666.67 66,666.67 13,333.33 80,000.00 1,600,000.00
37 1,600,000.00 66,666.67 12,777.78 79,444.45 1,533,333.33
38 1,533,333.33 66,666.67 12,222.22 78,888.89 1,466,666.67
39 1,466,666.67 66,666.67 11,666.67 78,333.34 1,400,000.00
40 1,400,000.00 66,666.67 11,111.11 77,777.78 1,333,333.33
41 1,333,333.33 66,666.67 10,555.56 77,222.23 1,266,666.67
42 1,266,666.67 66,666.67 10,000.00 76,666.67 1,200,000.00
43 1,200,000.00 66,666.67 9,444.44 76,111.11 1,133,333.33
44 1,133,333.33 66,666.67 8,888.89 75,555.56 1,066,666.67
45 1,066,666.67 66,666.67 8,333.33 75,000.00 1,000,000.00
46 1,000,000.00 66,666.67 7,777.78 74,444.45 933,333.33
47 933,333.33 66,666.67 7,222.22 73,888.89 866,666.67
Rajasthan Agricultural Competitiveness Project 61
48 866,666.67 66,666.67 6,666.67 73,333.34 800,000.00
49 800,000.00 66,666.67 6,111.11 72,777.78 733,333.33
50 733,333.33 66,666.67 5,555.56 72,222.23 666,666.67
51 666,666.67 66,666.67 5,000.00 71,666.67 600,000.00
52 600,000.00 66,666.67 4,444.44 71,111.11 533,333.33
53 533,333.33 66,666.67 3,888.89 70,555.56 466,666.67
54 466,666.67 66,666.67 3,333.33 70,000.00 400,000.00
55 400,000.00 66,666.67 2,777.78 69,444.45 333,333.33
56 333,333.33 66,666.67 2,222.22 68,888.89 266,666.67
57 266,666.67 66,666.67 1,666.67 68,333.34 200,000.00
58 200,000.00 66,666.67 1,111.11 67,777.78 133,333.33
59 133,333.33 66,666.67 555.56 67,222.23 66,666.67
60 66,666.67 66,666.67 - 66,666.67 0.00
TOTAL - 1,933,333.33 725,000.00 2,658,333.33 -
7.3.12. Projected Working Capital Requirement
Particulars Y1 Y2 Y3 Y4 Y5
Debtors 1,304,167.00 1,526,613.00 1,710,069.00 1,908,246.00 2,121,655.00
Stock of F.G 1,360,000.00 1,530,900.00 1,715,490.00 1,912,394.00 2,127,125.00
Stock of R.M 952,000.00 1,071,000.00 1,199,520.00 1,338,206.00 1,487,772.00
Less Creditor 1,983,333.00 2,147,950.00 2,405,288.00 2,682,972.00 2,982,432.00
Total Working Cap Required 1,632,834.00 1,980,563.00 2,219,791.00 2,475,874.00 2,754,120.00
W.C Margin 408,209.00 495,141.00 554,948.00 618,969.00 688,530.00
W.C Loan 1,224,625.00 1,485,422.00 1,664,843.00 1,856,905.00 2,065,590.00
7.3.13. Sales Schedule
Ref.
Particulars Y1 Y2 Y3 Y4 Y5
1 Soy Nuggets (MT) 450 503 537 569 604
Sale Price (in Rs. Per MT)
48000 50400 52920 55566 58344
Soy Nuggets Sales
21,600,000.00 25,351,200.00 28,418,040.00 31,617,054.00 35,239,776.00
2 Soy Granules (MT) 194 215 229 245 258
Sale Price (in Rs. Per MT)
50000 52500 55125 57881 60775
Soy Granules Sales
9,700,000.00 11,287,500.00 12,623,625.00 14,180,845.00 15,679,950.00
Total Sales 31,300,000.00 36,638,700.00 41,041,665.00 45,797,899.00 50,919,726.00
7.3.14. Projected Balance Sheet
Particulars Y1 Y2 Y3 Y4 Y5
A. LIABILITIES
Partner's Capital 4,857,809.00 4,857,809.00 4,857,809.00 4,857,809.00 4,857,809.00
Add: Addition During the Year
- - - - -
Total Capital 4,857,809.00 4,857,809.00 4,857,809.00 4,857,809.00 4,857,809.00
Reserves & Surplus
RACP Grant - - - - -
Profit & Loss
Opening Balance - 2,463,066.83 5,809,657.96 10,024,508.00 15,162,113.83
Add: Profit after tax 2,463,066.83 3,346,591.13 4,214,850.04 5,137,605.83 6,117,641.33
Rajasthan Agricultural Competitiveness Project 62
Total 2,463,066.83 5,809,657.96 10,024,508.00 15,162,113.83 21,279,755.16
Secured Loan From Bank
4,000,000.00 4,000,000.00 4,000,000.00 4,000,000.00 4,000,000.00
W. Capital Loan 1,224,625.00 1,485,422.00 1,664,843.00 1,856,905.00 2,065,590.00
Current Liability 1,983,333.00 2,147,950.00 2,405,288.00 2,682,972.00 2,982,432.00
Total ( A ) 14,528,833.83 18,300,838.96 22,952,448.00 28,559,799.83 35,185,586.16
B. ASSETS
Fixed Assets
Gross Block 8,399,600.00 7,272,160.00 6,300,590.00 5,462,830.00 4,739,990.00
Less : Depreciation 1,127,440.00 971,570.00 837,760.00 722,840.00 624,070.00
Net Block 7,272,160.00 6,300,590.00 5,462,830.00 4,739,990.00 4,115,920.00
Misc Fixed Assets 40,000.00 30,000.00 20,000.00 10,000.00 -
Current Assets
Sundry Debtor 1,304,167.00 1,526,613.00 1,710,069.00 1,908,246.00 2,121,655.00
1,304,167.00 1,526,613.00 1,710,069.00 1,908,246.00 2,121,655.00
Closing Stock
Closing Stock FG 1,360,000.00 1,530,900.00 1,715,490.00 1,912,394.00 2,127,125.00
Closing Stock RM 952,000.00 1,071,000.00 1,199,520.00 1,338,206.00 1,487,772.00
2,312,000.00 2,601,900.00 2,915,010.00 3,250,600.00 3,614,897.00
Cash & Bank Balance 3,600,506.83 7,841,735.96 12,844,539.00 18,650,963.83 25,333,114.16
(Including Cash Credit Limit)
Total ( B ) 14,528,833.83 18,300,838.96 22,952,448.00 28,559,799.83 35,185,586.16
7.3.15. Projected Profit and Loss Statement
Particulars Y1 Y2 Y3 Y4 Y5
Total Sales 31,300,000.00 36,638,700.00 41,041,665.00 45,797,899.00 50,919,726.00
Less:- Opening Stock of F.G.
- 1,360,000.00 1,530,900.00 1,715,490.00 1,912,394.00
Add:-Closing Stock of F. G.
1,360,000.00 1,530,900.00 1,715,490.00 1,912,394.00 2,127,125.00
Cost of Finish Goods 32,660,000.00 36,809,600.00 41,226,255.00 45,994,803.00 51,134,457.00
Raw Material Purchased
23,800,000.00 25,775,400.00 28,863,450.00 32,195,662.00 35,789,182.00
Add:- Opening Stock of R.M
- 952,000.00 1,071,000.00 1,199,520.00 1,338,206.00
Less:-Closing Stock of R.M.
952,000.00 1,071,000.00 1,199,520.00 1,338,206.00 1,487,772.00
Cost of Material Consumed
22,848,000.00 25,656,400.00 28,734,930.00 32,056,976.00 35,639,616.00
Total Variable Exp 1,470,828.00 1,585,196.00 1,696,757.00 1,809,378.00 1,923,095.00
Total Fixed Exp 3,160,107.00 3,318,112.00 3,484,019.00 3,658,222.00 3,841,135.00
Amortization of Exp 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00
Profit Before Int & Dep 5,171,065.00 6,239,892.00 7,300,549.00 8,460,227.00 9,720,611.00
Int. on Term Loan 356,666.67 276,666.67 196,666.66 116,666.67 36,666.67
Int. on W. Capital Loan 122,462.50 148,542.20 166,484.30 185,690.50 206,559.00
Depreciation 1,127,440.00 971,570.00 837,760.00 722,840.00 624,070.00
Net Profit 3,564,495.83 4,843,113.13 6,099,638.04 7,435,029.83 8,853,315.33
Tax 1,101,429.00 1,496,522.00 1,884,788.00 2,297,424.00 2,735,674.00
Net Profit 2,463,066.83 3,346,591.13 4,214,850.04 5,137,605.83 6,117,641.33
Rajasthan Agricultural Competitiveness Project 63
7.3.16. Projected Cash Flow Statement
Sr. Particulars Y1 Y2 Y3 Y4 Y5
1 Revenue
Sales 32,660,000.00 36,809,600.00 41,226,255.00 45,994,803.00 51,134,457.00
2 Term Loan 4,000,000.00 - - - -
W. Capital Loan
1,224,625.00 260,797.00 179,421.00 192,062.00 208,685.00
3 Equity/ Share capital
4,857,809.00 - - - -
4 RACP Investment Grant
- - - - -
5 Increase in Current Liabilities
1,983,333.00 164,617.00 257,338.00 277,684.00 299,460.00
Sub Total (A)
44,725,767.00 37,235,014.00 41,663,014.00 46,464,549.00 51,642,602.00
Cash Outflow
(Rs.)
1 Capital Expenditure
a Building and Civil Work
2,600,000.00 - - - -
c Plant and Machinery
5,749,600.00 - - - -
d Land Development & Registration
- - - - -
e Electrification & Misc
50,000.00
f Pre Operative Exp
50,000.00 - - - -
2 Operational Expenditure
a Fixed Cost (Excl. Of Interest)
3,160,107.00 3,318,112.00 3,484,019.00 3,658,222.00 3,841,135.00
b Variable Cost 1,470,828.00 1,585,196.00 1,696,757.00 1,809,378.00 1,923,095.00
c Cost of Material Consumed
22,848,000.00 25,656,400.00 28,734,930.00 32,056,976.00 35,639,616.00
3 Loan Repayment
- - - - -
a Interest on WC
122,462.50 148,542.20 166,484.30 185,690.50 206,559.00
b Interest on TL
356,666.67 276,666.67 196,666.66 116,666.67 36,666.67
4 Increase in Current Assets
1,304,167.00 222,446.00 183,456.00 198,177.00 213,409.00
Increase in 2,312,000.00 289,900.00 313,110.00 335,590.00 364,297.00
Rajasthan Agricultural Competitiveness Project 64
Stock
5 Tax 1,101,429.00 1,496,522.00 1,884,788.00 2,297,424.00 2,735,674.00
6 Differential tax liabilities
Sub Total (B)
41,125,260.17 32,993,784.87 36,660,210.96 40,658,124.17 44,960,451.67
Net Cash Flow (A-B)
3,600,506.83 4,241,229.13 5,002,803.04 5,806,424.83 6,682,150.33
Opening Cash and Bank
3,600,506.83 7,841,735.96 12,844,539.00 18,650,963.83
Cumulative Cash Balance
3,600,506.83 7,841,735.96 12,844,539.00 18,650,963.83 25,333,114.16
7.3.17. Financial Indicators
Indicator Value
Internal Rate of Return 30%
Break Even (Average) 45%
Net Present Value 99.97 Lakhs, Positive above Project Cost
DSCR (Average) 5.51
RoCE (Average) 28%
RoE (Average) 51%
Project Payback Period 2 Years 9 Months
Equity Payback Period 1 Year 9 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.
7.4. Project Profile 3: Small Scale Unit (Advanced Plant)
7.4.1. Premises of Calculation- Suggested Model (a) Details of Technical Civil Works/ Building Cost
# 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. 500 800 400,000.00
3 Compound Wall, Weighbridge pit and other civil works Lump sum 600,000.00
Total (in Rupees) 5,000,000.00
(b) Plant & Machinery Breakup Sr. No. Item Capacity Amount
(in Rupees)
1 Main Plant & Machinery 600 Kg per hour 11,404,800.00
2 Utilities (Electrical Substation, Weighbridge, etc)
2,500,000.00
Total INR 13,904,800.00
The technology proposed for this segment involves Fully Automatic 600 Kg per hour capacity Soy
nuggets/granules Processing unit which comprises of Feed Bin, Screw Conveyor, Mixture Machine
(Blender), Vacuum Conveyor, Intermediate Storage Hopper, Conditioner, Extruder, Air Conveyor,
Crusher, Air Conveyor, Oven Dryer, Cooling Conveyor, Finish Product Bins, Automatic Weighing And
Bagging Machine, Automatic Liner Carton Machine, Basic Testing Machines, Industrial Water Softener,
Rajasthan Agricultural Competitiveness Project 65
Weighing Scales, Plant Automation, Compressors For Pneumatics Including Packing Machines, CVCF
and Electrification. The total cost of the complete set of P&M, on basis of some referred quotations of
leading suppliers in the segment, is Rs. 139.05 Lakhs. This is inclusive of Utilities (like Electrical
transformer, weighbridge etc) and taxes, transportation, installation and commissioning charges.
(c) Other Assumptions Assumptions
1 Working Hours per day 8 hours
2 Plant Capacity /Day 600 Kg per hour
3 No. of Working Days in a year 300
4 Power Requirement 200 KVA
5 Standard Packaging for Main Products & By-Products
PP bags for bulk packaging; Carton with liner packing for retail
6 Insurance Exp Considered on Plant & Mach, Building
0.5% of Capex
7 Inflation assumed annually 5% annually
8 Debtors 15 Days of Sales
9 Stock of Finished Goods 15 Days for Soy nuggets
10 Stock of Raw Material 15 days Consumption
7.4.2. Project Cost Sr. No. Particulars Amt (in Rs .)
1 Land -
2 Building & other civil works 5,000,000.00
3 Plant & Machinery 13,904,800.00
4 Misc Fixed Assets 250,000.00
5 Preliminary & Pre operative 150,000.00
6 Working Capital 668,083.00
Total (in Rs.) 19,972,883.00
The Total Project Cost is Rs. 199.73 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, Crates, furniture and electric fixtures, etc. which are pegged at Rs. 2.50 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. 26.72 Lakhs with margin money requirement of Rs. 6.68 Lakhs. Calculations of same are presented in section 7.3.12.
7.4.3. Means of Finance Sr. No. Particulars Amt (in Rs .)
1 Bank Term Loan 7,000,000.00
2 Promoter's Capital 12,972,883.00
3 RACP Grant -
Total 19,972,883.00
It is assumed that Rs. 70 Lakhs will be sought as Term Loan from Bank. 7.4.4. Product Schedule
Particulars Y1 Y2 Y3 Y4 Y5
Rajasthan Agricultural Competitiveness Project 66
Soy nuggets plant Capacity (MT/Day)
4.8 4.8 4.8 4.8 4.8
Working Days in Year 300 300 300 300 300
Annual Chickpea Defatted Soy Flour Requirement @ 100% CU
1440 1440 1440 1440 1440
Capacity Utilization 75.00% 80.00% 85.00% 90.00% 95.00%
Total Input of Defatted Soy Flour (in MT)
1080 1152 1224 1296 1368
Output (MT)
Soy Nuggets 756 806 857 907 958
Soy Granules 324 346 367 389 410
Normal loss 0 0 0 0 0
Tonnes processed / day 4.8 4.8 4.8 4.8 4.8
No. of days of operation 225 240 255 270 285
7.4.5. Purchase Schedule
Particulars Y1 Y2 Y3 Y4 Y5
Defatted Soy Flour (MT)
1125 1155 1227 1299 1371
Purchase Price (in Rs./MT)
34,000.00 35,700.00 37,485.00 39,359.00 41,327.00
Defatted Soy Flour Purchases
38,250,000.00 41,233,500.00 45,994,095.00 51,127,341.00 56,659,317.00
Total Purchases (in Rs.)
38,250,000.00 41,233,500.00 45,994,095.00 51,127,341.00 56,659,317.00
Rajasthan Agricultural Competitiveness Project 67
7.4.6. Consumables Packaging Material
No. of bags/cartons with liner Cost of Packaging Material
Size Product Rate/ba
g/carton
with liner
Y1 Y2 Y3 Y4 Y5 Y1 Y2 Y3 Y4 Y5
1 KG Soy Nuggets
1 75600 80600 85700 90700 95800 75600 80600 85700 90700 95800
50 KG
Soy Nuggets
18 13608 14508 15426 16326 17244 244944 261144 277668 293868 310392
1 KG Soy Granules
1 32400 34600 36700 38900 41000 32400 34600 36700 38900 41000
50 KG
Soy Granules
18 5832 6228 6606 7002 7380 104976 112104 118908 126036 132840
Total 457,920.00
488,448.00
518,976.00
549,504.00
580,032.00
7.4.7. Power Requirement
The total requirement of the plant (including admin building power req.) is 200 kva.
7.4.8. Water Requirement
Water 600 Liters/day
Human Consumption
600 Liters/day
Total 1200 Liters/day
cost/kl= Rs. 10/kl i.e. Rs. 12 Daily
Rajasthan Agricultural Competitiveness Project 68
7.4.9. Manpower Requirement S. No. Particulars No. Monthly Salary Annual Income Dept.
1 Director/Miller 1 30,000.00 360,000.00 Admin
2 Factory Head 1 15,000.00 180,000.00 factory
3 Accounts Head 1 12,000.00 144,000.00 Admin
4 Marketing and Business Development Head 1 20,000.00 240,000.00 Admin
5 Product and Quality Assurance Manager 1 15,000.00 180,000.00 factory
6 Plant Operator 1 12,000.00 144,000.00 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 10,000.00 360,000.00 Admin
10 Admin Staff 2 8,000.00 192,000.00 Admin
11 Storekeeper 1 8,000.00 96,000.00 factory
12 Security Staff 2 6,000.00 144,000.00 Admin
Total 16 152,000.00 2,232,000.00
Helpers 5 300/day factory
Grand Total 21
7.4.10. Depreciation Schedule
Particulars Building Plant & Machinery Misc Fixed assets Total Rs.
Rate of Depreciation 10% 15% 10%
Opening WDV 5,000,000.00 13,904,800.00 250,000.00 19,154,800.00
Total 5,000,000.00 13,904,800.00 250,000.00 19,154,800.00
Dep. For 1st Year 500,000.00 2,085,720.00 25,000.00 2,610,720.00
W.D.V. as on II Year 4,500,000.00 11,819,080.00 225,000.00 16,544,080.00
Dep. For 2nd Year 450,000.00 1,772,860.00 22,500.00 2,245,360.00
W.D.V. as on III Year 4,050,000.00 10,046,220.00 202,500.00 14,298,720.00
Dep. For 3rd Year 405,000.00 1,506,930.00 20,250.00 1,932,180.00
W.D.V. as on IV Year 3,645,000.00 8,539,290.00 182,250.00 12,366,540.00
Dep. For 4th Year 364,500.00 1,280,890.00 18,230.00 1,663,620.00
W.D.V. as on V Year 3,280,500.00 7,258,400.00 164,020.00 10,702,920.00
Dep. For 5th Year 328,050.00 1,088,760.00 16,400.00 1,433,210.00
W.D.V. as on VI Year 2,952,450.00 6,169,640.00 147,620.00 9,269,710.00
7.4.11. TL Repayment Schedule
Loan Amount 7,000,000.00
Rate 10.00% In Rs.
Monthly Loan amount Monthly Repayment' Interest Total Instl. Closing Bal
1 7,000,000.00 116,666.67 57,361.11 174,027.78 6,883,333.33
2 6,883,333.33 116,666.67 56,388.89 173,055.56 6,766,666.67
3 6,766,666.67 116,666.67 55,416.67 172,083.34 6,650,000.00
4 6,650,000.00 116,666.67 54,444.44 171,111.11 6,533,333.33
5 6,533,333.33 116,666.67 53,472.22 170,138.89 6,416,666.67
6 6,416,666.67 116,666.67 52,500.00 169,166.67 6,300,000.00
7 6,300,000.00 116,666.67 51,527.78 168,194.45 6,183,333.33
8 6,183,333.33 116,666.67 50,555.56 167,222.23 6,066,666.67
9 6,066,666.67 116,666.67 49,583.33 166,250.00 5,950,000.00
10 5,950,000.00 116,666.67 48,611.11 165,277.78 5,833,333.33
11 5,833,333.33 116,666.67 47,638.89 164,305.56 5,716,666.67
Rajasthan Agricultural Competitiveness Project 69
12 5,716,666.67 116,666.67 46,666.67 163,333.34 5,600,000.00
13 5,600,000.00 116,666.67 45,694.44 162,361.11 5,483,333.33
14 5,483,333.33 116,666.67 44,722.22 161,388.89 5,366,666.67
15 5,366,666.67 116,666.67 43,750.00 160,416.67 5,250,000.00
16 5,250,000.00 116,666.67 42,777.78 159,444.45 5,133,333.33
17 5,133,333.33 116,666.67 41,805.56 158,472.23 5,016,666.67
18 5,016,666.67 116,666.67 40,833.33 157,500.00 4,900,000.00
19 4,900,000.00 116,666.67 39,861.11 156,527.78 4,783,333.33
20 4,783,333.33 116,666.67 38,888.89 155,555.56 4,666,666.67
21 4,666,666.67 116,666.67 37,916.67 154,583.34 4,550,000.00
22 4,550,000.00 116,666.67 36,944.44 153,611.11 4,433,333.33
23 4,433,333.33 116,666.67 35,972.22 152,638.89 4,316,666.67
24 4,316,666.67 116,666.67 35,000.00 151,666.67 4,200,000.00
25 4,200,000.00 116,666.67 34,027.78 150,694.45 4,083,333.33
26 4,083,333.33 116,666.67 33,055.56 149,722.23 3,966,666.67
27 3,966,666.67 116,666.67 32,083.33 148,750.00 3,850,000.00
28 3,850,000.00 116,666.67 31,111.11 147,777.78 3,733,333.33
29 3,733,333.33 116,666.67 30,138.89 146,805.56 3,616,666.67
30 3,616,666.67 116,666.67 29,166.67 145,833.34 3,500,000.00
31 3,500,000.00 116,666.67 28,194.44 144,861.11 3,383,333.33
32 3,383,333.33 116,666.67 27,222.22 143,888.89 3,266,666.67
33 3,266,666.67 116,666.67 26,250.00 142,916.67 3,150,000.00
34 3,150,000.00 116,666.67 25,277.78 141,944.45 3,033,333.33
35 3,033,333.33 116,666.67 24,305.56 140,972.23 2,916,666.67
36 2,916,666.67 116,666.67 23,333.33 140,000.00 2,800,000.00
37 2,800,000.00 116,666.67 22,361.11 139,027.78 2,683,333.33
38 2,683,333.33 116,666.67 21,388.89 138,055.56 2,566,666.67
39 2,566,666.67 116,666.67 20,416.67 137,083.34 2,450,000.00
40 2,450,000.00 116,666.67 19,444.44 136,111.11 2,333,333.33
41 2,333,333.33 116,666.67 18,472.22 135,138.89 2,216,666.67
42 2,216,666.67 116,666.67 17,500.00 134,166.67 2,100,000.00
43 2,100,000.00 116,666.67 16,527.78 133,194.45 1,983,333.33
44 1,983,333.33 116,666.67 15,555.56 132,222.23 1,866,666.67
45 1,866,666.67 116,666.67 14,583.33 131,250.00 1,750,000.00
46 1,750,000.00 116,666.67 13,611.11 130,277.78 1,633,333.33
47 1,633,333.33 116,666.67 12,638.89 129,305.56 1,516,666.67
48 1,516,666.67 116,666.67 11,666.67 128,333.34 1,400,000.00
49 1,400,000.00 116,666.67 10,694.44 127,361.11 1,283,333.33
50 1,283,333.33 116,666.67 9,722.22 126,388.89 1,166,666.67
51 1,166,666.67 116,666.67 8,750.00 125,416.67 1,050,000.00
52 1,050,000.00 116,666.67 7,777.78 124,444.45 933,333.33
53 933,333.33 116,666.67 6,805.56 123,472.23 816,666.67
54 816,666.67 116,666.67 5,833.33 122,500.00 700,000.00
55 700,000.00 116,666.67 4,861.11 121,527.78 583,333.33
56 583,333.33 116,666.67 3,888.89 120,555.56 466,666.67
57 466,666.67 116,666.67 2,916.67 119,583.34 350,000.00
58 350,000.00 116,666.67 1,944.44 118,611.11 233,333.33
59 233,333.33 116,666.67 972.22 117,638.89 116,666.67
60 116,666.67 116,666.67 - 116,666.67 0.00
TOTAL - 3,383,333.33 1,268,750.00 4,652,083.33 -
Projected Working Capital Requirement
Rajasthan Agricultural Competitiveness Project 70
Particulars Y1 Y2 Y3 Y4 Y5
Debtors 2,093,833.00 2,445,275.00 2,725,931.00 3,031,044.00 3,359,743.00
Stock of F.G 2,236,000.00 2,448,600.00 2,731,995.00 3,037,604.00 3,366,935.00
Stock of R.M 1,530,000.00 1,713,600.00 1,911,735.00 2,125,386.00 2,355,639.00
Less Creditor 3,187,500.00 3,436,125.00 3,832,841.00 4,260,612.00 4,721,610.00
Total Working Cap Required 2,672,333.00 3,171,350.00 3,536,820.00 3,933,422.00 4,360,707.00
W.C Margin 668,083.00 792,838.00 884,205.00 983,356.00 1,090,177.00
W.C Loan 2,004,250.00 2,378,512.00 2,652,615.00 2,950,066.00 3,270,530.00
7.4.12. Sales Schedule Ref. Particulars Y1 Y2 Y3 Y4 Y5
1 Soy Nuggets (MT)
724 804 855 905 956
Sale Price (in Rs. Per MT)
48000 50400 52920 55566 58344
Soy Nuggets Sales
34,752,000.00 40,521,600.00 45,246,600.00 50,287,230.00 55,776,864.00
2 Soy Granules (MT)
310 346 366 388 409
Sale Price (in Rs. Per MT)
50000 52500 55125 57881 60775
Soy Granules Sales
15,500,000.00 18,165,000.00 20,175,750.00 22,457,828.00 24,856,975.00
Total Sales 50,252,000.00 58,686,600.00 65,422,350.00 72,745,058.00 80,633,839.00
7.4.13. Projected Balance Sheet Particulars Y1 Y2 Y3 Y4 Y5
A. LIABILITIES
Partner's Capital 12,972,883 12,972,883 12,972,883 12,972,883 12,972,883
Add: Addition During the Year
- - - - -
Total Capital 12,972,883 12,972,883 12,972,883 12,972,883 12,972,883
Reserves & Surplus
RACP Grant - - - - -
Profit & Loss
Opening Balance - 4,504,286.33 10,505,040.47 17,964,999.30 26,957,102.03
Add: Profit after tax 4,504,286.33 6,000,754.14 7,459,958.83 8,992,102.73 10,603,770.34
Total 4,504,286.33 10,505,040.47 17,964,999.30 26,957,102.03 37,560,872.37
Secured Loan From Bank
7,000,000.00 7,000,000.00 7,000,000.00 7,000,000.00 7,000,000.00
W. Capital Loan 2,004,250.00 2,378,512.00 2,652,615.00 2,950,066.00 3,270,530.00
Current Liability 3,187,500.00 3,436,125.00 3,832,841.00 4,260,612.00 4,721,610.00
Total ( A ) 29,668,919.33 36,292,560.47 44,423,338.30 54,140,663.03 65,525,895.37
B. ASSETS
Fixed Assets
Gross Block 19,154,800.00 16,544,080.00 14,298,720.00 12,366,540.00 10,702,920.00
Less : Depreciation 2,610,720.00 2,245,360.00 1,932,180.00 1,663,620.00 1,433,210.00
Net Block 16,544,080.00 14,298,720.00 12,366,540.00 10,702,920.00 9,269,710.00
Misc Fixed Assets 120,000.00 90,000.00 60,000.00 30,000.00 -
Current Assets
Sundry Debtor 2,093,833.00 2,445,275.00 2,725,931.00 3,031,044.00 3,359,743.00
2,093,833.00 2,445,275.00 2,725,931.00 3,031,044.00 3,359,743.00
Rajasthan Agricultural Competitiveness Project 71
Closing Stock
Closing Stock FG 2,236,000.00 2,448,600.00 2,731,995.00 3,037,604.00 3,366,935.00
Closing Stock RM 1,530,000.00 1,713,600.00 1,911,735.00 2,125,386.00 2,355,639.00
3,766,000.00 4,162,200.00 4,643,730.00 5,162,990.00 5,722,574.00
Cash & Bank Balance
7,145,006.33 15,296,365.47 24,627,137.30 35,213,709.03 47,173,868.37
(Including Cash Credit Limit)
Total ( B ) 29,668,919.33 36,292,560.47 44,423,338.30 54,140,663.03 65,525,895.37
7.4.14. Projected Profit and Loss Statement Particulars Y1 Y2 Y3 Y4 Y5
Total Sales 50,252,000.00 58,686,600.00 65,422,350.00 72,745,058.00 80,633,839.00
Less:- Opening Stock of F.G.
- 2,236,000.00 2,448,600.00 2,731,995.00 3,037,604.00
Add:-Closing Stock of F. G.
2,236,000.00 2,448,600.00 2,731,995.00 3,037,604.00 3,366,935.00
Cost of Finish Goods
52,488,000.00 58,899,200.00 65,705,745.00 73,050,667.00 80,963,170.00
Raw Material Purchased
38,250,000.00 41,233,500.00 45,994,095.00 51,127,341.00 56,659,317.00
Add:- Opening Stock of R.M
- 1,530,000.00 1,713,600.00 1,911,735.00 2,125,386.00
Less:-Closing Stock of R.M.
1,530,000.00 1,713,600.00 1,911,735.00 2,125,386.00 2,355,639.00
Cost of Material Consumed
36,720,000.00 41,049,900.00 45,795,960.00 50,913,690.00 56,429,064.00
Total Variable Exp 2,611,490.00 2,836,434.00 3,044,390.00 3,258,215.00 3,477,700.00
Total Fixed Exp 3,172,694.00 3,331,329.00 3,497,898.00 3,672,795.00 3,856,433.00
Amortization of Exp
30,000.00 30,000.00 30,000.00 30,000.00 30,000.00
Profit Before Int & Dep
9,953,816.00 11,651,537.00 13,337,497.00 15,175,967.00 17,169,973.00
Int. on Term Loan 624,166.67 484,166.66 344,166.67 204,166.67 64,166.66
Int. on W. Capital Loan
200,425.00 237,851.20 265,261.50 295,006.60 327,053.00
Depreciation 2,610,720.00 2,245,360.00 1,932,180.00 1,663,620.00 1,433,210.00
Net Profit 6,518,504.33 8,684,159.14 10,795,888.83 13,013,173.73 15,345,543.34
Tax 2,014,218.00 2,683,405.00 3,335,930.00 4,021,071.00 4,741,773.00
Net Profit 4,504,286.33 6,000,754.14 7,459,958.83 8,992,102.73 10,603,770.34
7.4.15. Projected Cash Flow Statement
Sr. Particulars Y1 Y2 Y3 Y4 Y5
1 Revenue
Sales 52,488,000.00 58,899,200.00 65,705,745.00 73,050,667.00 80,963,170.00
2 Term Loan 7,000,000.00 - - - -
W. Capital Loan 2,004,250.00 374,262.00 274,103.00 297,451.00 320,464.00
3 Equity/ Share capital
12,972,883.00 - - - -
4 RACP Investment Grant
- - - - -
Rajasthan Agricultural Competitiveness Project 72
5 Increase in Current Liabilities
3,187,500.00 248,625.00 396,716.00 427,771.00 460,998.00
Sub Total (A) 77,652,633.00 59,522,087.00 66,376,564.00 73,775,889.00 81,744,632.00
Cash Outflow (Rs.)
1 Capital Expenditure
a Building and Civil Work
5,000,000.00 - - - -
c Plant and Machinery 13,904,800.00 - - - -
d Land Development & Registration
- - - - -
e Electrification & Misc 250,000.00
f Pre Operative Exp 150,000.00 - - - -
2 Operational Expenditure
a Fixed Cost (Excl. Of Interest)
3,172,694.00 3,331,329.00 3,497,898.00 3,672,795.00 3,856,433.00
b Variable Cost 2,611,490.00 2,836,434.00 3,044,390.00 3,258,215.00 3,477,700.00
c Cost of Material Consumed
36,720,000.00 41,049,900.00 45,795,960.00 50,913,690.00 56,429,064.00
3 Loan Repayment - - - - -
a Interest on WC 200,425.00 237,851.20 265,261.50 295,006.60 327,053.00
b Interest on TL 624,166.67 484,166.66 344,166.67 204,166.67 64,166.66
4 Increase in Current Assets
2,093,833.00 351,442.00 280,656.00 305,113.00 328,699.00
Increase in Stock 3,766,000.00 396,200.00 481,530.00 519,260.00 559,584.00
5 Tax 2,014,218.00 2,683,405.00 3,335,930.00 4,021,071.00 4,741,773.00
6 Differential tax liabilities
Sub Total (B) 70,507,626.67 51,370,727.86 57,045,792.17 63,189,317.27 69,784,472.66
Net Cash Flow (A-B)
7,145,006.33 8,151,359.14 9,330,771.83 10,586,571.73 11,960,159.34
Opening Cash and Bank
7,145,006.33 15,296,365.47 24,627,137.30 35,213,709.03
Cumulative Cash Balance
7,145,006.33 15,296,365.47 24,627,137.30 35,213,709.03 47,173,868.37
7.4.16. Financial Indicators
Indicator Value
Internal Rate of Return 22%
Break Even (Average) 37%
Net Present Value 152.32 Lakhs, Positive above Project Cost
DSCR (Average) 5.81
RoCE (Average) 23%
RoE (Average) 35%
Project Payback Period 3 Years 3 Months
Equity Payback Period 2 Year 4 Months
7.4.17. Conclusion
Based on study of technology to be adopted in the project, project economics and high economic viability indicators, it can be concluded that project is techno-economically viable and sustainable.
Rajasthan Agricultural Competitiveness Project 73
Chapter 8: Method of technology dissemination and adoption
Method of dissemination of suggested technology and models
RACP-ABPF shall undertake mix of some or several initiatives to disseminate the suggested
technologies and models that will broadly include:
Workshops for prospective entrepreneurs/groups, existing industry owners and BoDs of FPCs
Facilitate technology benchmarking exposure visits within the state and outside state for
prospective entrepreneurs/groups, existing industry owners and BoDs of FPCs
Seminars and Workshops in association with Industry Associations, Technical Institutes and
R&D Institutions
Technology Meets and Tie-ups with Technology Suppliers, Technical Institutes and subject
experts
Facilitate through consultancy and business development services
Dissemination of success stories of units facilitated by ABPF through appropriate media
Dissemination through web portals and mobile applications
Scale of adoption in the clusters and state, through ABPF support
The models and business plans suggested in this report are broadly generic in nature, however involve:
technology profile
civil works requirement
raw material sourcing and logistic costs for sourcing raw material
capacity utilization for different scenarios
realistic assessment of investment and working capital needs
possible sources of funding
financial analysis
The suggested models and business plans are for optimal capacities which can be fine-tuned to the scale,
investment, technology needs of the entrepreneur. ABPF will further guide entrepreneurs on statutory
clearances needed for operating the business, required licenses, ways of leveraging various government
schemes/subsidies and several other aspects for effective technology adoption. In order to increase the
Rajasthan Agricultural Competitiveness Project 74
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 which 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 forging 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 would comprise of fundamentals of business management including objectives, operations
management, organizational behavior, human resources management, structure of the
organization, products and markets, operations finance including major expenditures, sources
of financing across the stages of the life cycle of the enterprise (from start up to mature
business and expansion). Knowledge base would also cover fundamentals of accounting, sales,
marketing, promotion, branding, distribution, logistics, human resource management etc. ABPF
will also establish a business performance tracking system of the enterprises supported by
ABPF.
Review of Business Plans for funding through RACP: ABPF will review the business plans
and provide its recommendations on applications.
Rajasthan Agricultural Competitiveness Project 75
References
Conventional and Advanced Food Processing Technologies- edited by Suvendu Bhattacharya
Textured vegetable protein- From Wikipedia
Advances in Food Extrusion Technology- edited by Medeni Maskan, Aylin Altan
Benefits of Twin Screw Extrusion- From Clextral
Market Research Report on Meat Substitutes Market Analysis by Product, by Raw Material (Soy-Based, Wheat-Based, Mycoprotein) and Segment Forecasts to 2022, by Grand View Research
Texturized Vegetable Protein Market: Global Industry Analysis and Opportunity Assessment 2017-2027 - By Future Market Insights
Scope for soy protein ingredients in food industry- By Suresh Itapu
All about Soyfoods- SoyConnection - By the United Soybean Board
Adani Wilmar to Tap New Avenues of Growth- By Manisha Bapna, www.indiaretailing.com
Consumer Awareness for Soya Products: A Conceptual Study By Mr. Upendra Singh Panwar Asst. Professor; Dr. Punit K. Dwivedi Sr. Lecturer Lt. Col. (Retd.); Dr. V.K. Gautam, Professor; Modern Institute of Professional Studies Indore (M.P)
EXTRUSION COOKING | Principles and Practice- R.C.E. Guy, in Encyclopedia of Food Sciences and Nutrition (Second Edition), 2003
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Type of Extruders and Extrusion Conditions – By Shodhganga
Soy Protein Applications in Nutrition & Food Technology- By Dr. Karl Weingartner and Bridget Owen, National Soybean Research Laboratory, University of Illinois
Processing, Characteristics and Uses of Extruded Plant Protein Ingredients – By Mian N. Riaz, Ph.D., Food Protein R&D Center, Texas A&M University
Optimization of the Drying Process of Textured Soy Protein - by AS Cassini
Extrusion Process Parameters, Sensory Characteristics, and Structural Properties of a High Moisture Soy Protein Meat Analog- By S. LIN, H.E. HUFF, AND F. HSIEH
Functional Properties of Soybean Food Ingredients in Food Systems- By V. A. Jideani, Department of Food Technology, Cape Peninsula University of Technology, Cape Town, South Africa
Advances in soybean processing and utilisation – By Dr Bob Hosken, University of Newcastle
Soy Processes, Equipment, Capital, and Processing Costs- By G. C. Mustakas-Process Engineering, V. E. Sohns-Cost Engineering
Extrusion of Texturized Proteins – By Joseph P. Kearns, Galen J. Rokey – American Soybean Association
Meat Analogues: Plant based alternatives to meat products- By VK Joshi1 and Satish Kumar, Department of Food Science and Technology, Dr YS Parmar University of Horticulture and Forestry, Nauni, Solan, Himachal Pradesh, India
Manual of Quality Analyses for Soybean Products in the Feed Industry- 2nd Edition- By J.E. Van Eys, Ph.D.
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