Model Detailed Project Report

SOYA CHAAP

Prepared by

National Institute of Food Technology

Entrepreneurship and Management(NIFTEM)
Plot No. 97, Sector 56, HSIIDC, Industrial Estate, Kundli,
Sonipat, Haryana 131028
Ministry of Food Processing Industries, Government of India
1. INTRODUCTION

SOYA CHAAP

Soya chaap is a stick rolled chaap of soy products contains high nutritional
value. Traditionally it is prepared from soya chunks and soya beans which is
grounded together and mixed with all purpose flour. Later it is rolled into
skewers or ice cream sticks and boiled in hot water till it cooked. It can be
either used to prepare gravy for roti and sabzi or as snack.

The key benefits of soya are its high protein content, vitamins, minerals and
insoluble fibre. The soya bean has been now transformed into a number of
popular soya based foods including soya chaap. It is a good source of many
minerals.

2. MARKET POTENTIAL:

Soya food products are becoming popular throughout the world due to their
good nutritional values and medicinal qualities. Soya milk is high in protein,
low in fat and carbohydrate and contains no cholesterol. It is an excellent
food for babies, children, elderly people and pregnant and lactating women
since it contains vegetable protein which is very nutritious and easy to digest.
Due to the outbreak of the coronavirus disease (COVID-19), there has been
a rise in the demand for plant-based, protein-rich food products, such as tofu.
This is further supported by the shortage of meat products, which, in turn, is
positively influencing the market growth.

The soya Chaap market in India is growing at a rate of 15% to 20% which
are prompting companies to become more active.

3. PRODUCT DESCRIPTION

3.1 Raw Material sources

Following raw material is required as the major raw material for the
manufacturing of Soya Chaap.

S.N. Description Amount

1 Soya Flour Rs. 35-40 Per KG

2 Oil Rs. 100-150 Per Litre

3 Wheat flour Rs. 30-35 Per KG

4.

Average raw material (cost per KG): Rs. 40-50

MANUFACTURING PROCESS

 Preparation of dough by mixing soya flour, oil and wheat flour.

 After dough preparation, it is cut and wrapped on the stick.
 All this work is done manually.
  After giving shape, the soya chaap are boiled for 30 minutes and after
that kept in cold water to get cooled.
 Then it is freezed in blast freezer and stored in cold chamber.
 They are kept in cold chamber in large size packets or sacks.
 According to market demand, sack are taken out from cold chamber
and packed in 1 kg size packets.
 Supply of product into the market through cold chain.

5. PROJECT COMPONENTS

5.1 Land

Land required 2500-3000 square feet approx.

Approximate rent for the same is Rs.50000 - 60000 per month.

5.2 Plant Cost

S.N. Item Description Image

1 Boiled tank
 2 Cold chamber

3 Packaging machine

4 Sealing machine

5 Cold chain Transport

(rented or owned)

Note: cost of the machinery is approx. Rs. 30,00,000 excluding GST and
other transportation cost.
5.3 Misc. Assets

S.N. Item Description Rate

1 Electricity connection 50,000

2 Furniture and equipment’s 50,000

3 Knife, Storage tank etc. 20,000

5.4 Power Requirement

The borrower shall require power load of 15-20 KW which shall be applied
with Power Corporation. However, for standby power arrangement the
borrower shall also purchase DG Set.

5.5 Manpower Requirement

13-15 Manpower are required for the Soya Chaap Manufacturing unit.

Includes:

3 Skilled Labour

4-5 Unskilled Labour

4-5 Helper

1 Accountant

1 Driver
6. FINANCIALS

6.1 Cost of Project

COST OF PROJECT

(in Lacs)

PARTICULARS Amount

Land & Building Owned/rented

Plant & Machinery 30.00

miscellaneous Assets 1.20

Working capital 4.44

Total 35.64

6.2 Means of Finance

MEANS OF FINANCE

PARTICULARS AMOUNT

Own Contribution (min 10%) 4.48

Subsidy @35%(Max. Rs 10 Lac) 10.00

Term Loan @ 55% 17.16

Working Capital (bank Finance) 4.00

Total 35.64
6.3 Projected Balance Sheet

(in Lacs)
PROJECTED BALANCE SHEET
PARTICULARS 1st year 2nd year 3rd year 4th year 5th year

Liabilities

Capital

opening balance 14.59 15.31 16.71 18.86

Add:- Own Capital 4.48

Add:- Retained Profit 2.60 6.22 9.40 13.16 17.26

Less:- Drawings 2.50 5.50 8.00 11.00 14.00

Subsidy/grant 10.00

Closing Balance 14.59 15.31 16.71 18.86 22.13

Term Loan 15.25 11.44 7.63 3.81 -

Working Capital Limit 4.00 4.00 4.00 4.00 4.00

Sundry Creditors 0.90 1.06 1.23 1.42 1.61

Provisions & Other Liab 0.20 0.25 0.30 0.36 0.43

TOTAL : 34.94 32.06 29.86 28.45 28.17

Assets

Fixed Assets ( Gross) 31.20 31.20 31.20 31.20 31.20

Gross Dep. 4.62 8.55 11.90 14.75 17.18

Net Fixed Assets 26.58 22.65 19.30 16.45 14.02

Current Assets

Sundry Debtors 2.83 3.35 3.87 4.45 5.07

Stock in Hand 3.23 3.77 4.34 4.97 5.62

Cash and Bank 2.29 2.29 2.36 2.59 3.46

TOTAL : 34.94 32.06 29.86 28.45 28.17

6.4 Projected Cash Flow
(in Lacs)
PROJECTED CASH FLOW STATEMENT
PARTICULARS 1st year 2nd year 3rd year 4th year 5th year

SOURCES OF FUND

Own Margin 4.48

Net Profit 2.60 6.36 10.03 14.77 19.94

Depriciation & Exp. W/off 4.62 3.93 3.35 2.85 2.43

Increase in Cash Credit 4.00 - - - -

Increase In Term Loan 17.16 - - - -

Increase in Creditors 0.90 0.16 0.17 0.18 0.20

Increase in Provisions & Oth lib 0.20 0.05 0.05 0.06 0.07

Sunsidy/grant 10.00

TOTAL : 43.97 10.51 13.60 17.87 22.63

APPLICATION OF FUND

Increase in Fixed Assets 31.20

Increase in Stock 3.23 0.53 0.58 0.62 0.66

Increase in Debtors 2.83 0.52 0.51 0.58 0.62

Repayment of Term Loan 1.91 3.81 3.81 3.81 3.81

Drawings 2.50 5.50 8.00 11.00 14.00

Taxation - 0.14 0.64 1.61 2.68

TOTAL : 41.67 10.51 13.54 17.63 21.77

Opening Cash & Bank Balance - 2.29 2.29 2.36 2.59

Add : Surplus 2.29 0.00 0.07 0.24 0.86

Closing Cash & Bank Balance 2.29 2.29 2.36 2.59 3.46
6.5 Projected Profitability

(in Lacs)
PROJECTED PROFITABILITY STATEMENT

PARTICULARS 1st year 2nd year 3rd year 4th year 5th year

Capacity Utilization % 45% 50% 55% 60% 65%

SALES

Gross Sale

SOYA CHAAP 106.20 125.79 144.98 166.81 190.08

Total 106.20 125.79 144.98 166.81 190.08

COST OF SALES

Raw Material Consumed 54.00 63.60 73.92 84.96 96.72

Electricity Expenses 6.00 6.90 7.94 9.13 10.04

Depreciation 4.62 3.93 3.35 2.85 2.43

Wages & labour 10.80 11.88 13.07 14.37 15.81

Repair & maintenance 3.72 4.40 5.07 5.84 6.65

Packaging 3.19 3.77 4.35 5.00 5.70

Consumables 3.72 4.40 5.07 5.84 6.65

Cost of Production 86.04 98.89 112.77 127.99 144.01

Add: Opening Stock /WIP - 1.43 1.65 1.88 2.13

Less: Closing Stock /WIP 1.43 1.65 1.88 2.13 2.40

Cost of Sales 84.61 98.68 112.54 127.74 143.74

GROSS PROFIT 21.59 27.11 32.44 39.07 46.34

20.33% 21.55% 22.38% 23.42% 24.38%

Salary to Staff 7.68 8.45 9.29 10.22 11.24

Interest on Term Loan 1.69 1.49 1.07 0.65 0.23

Interest on working Capital 0.44 0.44 0.44 0.44 0.44

Rent 6.00 6.60 7.26 7.99 8.78

selling & adm exp 3.19 3.77 4.35 5.00 5.70

TOTAL 18.99 20.75 22.41 24.30 26.40

NET PROFIT 2.60 6.36 10.03 14.77 19.94

2.45% 5.06% 6.92% 8.85% 10.49%

Taxation 0.14 0.64 1.61 2.68

PROFIT (After Tax) 2.60 6.22 9.40 13.16 17.26

6.6 Production and Yield

COMPUTATION OF PRODUCTION OF SOYA CHAAP

Items to be Manufactured

SOYA CHAAP

Machine capacity Per Day 800 KG

Total working Hours 10

working days in a month 25 Days

working days per annum 300

machine capacity per annum 240000 KG

Production of SOYA CHAAP
Production Capacity KG
1st year 45% 108,000

2nd year 50% 120,000

3rd year 55% 132,000
4th year 60% 144,000
5th year 65% 156,000

Raw Material Cost

Year Capacity Rate Amount

Utilization (per KG) (Rs. in lacs)

1st year 45% 50.00 54.00

2nd year 50% 53.00 63.60

3rd year 55% 56.00 73.92

4th year 60% 59.00 84.96

5th year 65% 62.00 96.72

6.7 Sales Revenue

COMPUTATION OF SALE

Particulars 1st year 2nd year 3rd year 4th year 5th year
Op Stock - 1,800 2,000 2,200 2,400

Production 108,000 120,000 132,000 144,000 156,000

Less : Closing Stock 1,800 2,000 2,200 2,400 2,600
Net Sale 106,200 119,800 131,800 143,800 155,800
sale price per KG 100.00 105.00 110.00 116.00 122.00
Sales (in Lacs) 106.20 125.79 144.98 166.81 190.08
6.8 Working Capital Assessment
(in Lacs)
COMPUTATION OF CLOSING STOCK & WORKING CAPITAL
PARTICULARS 1st year 2nd year 3rd year 4th year 5th year

Finished Goods

1.43 1.65 1.88 2.13 2.40

Raw Material

1.80 2.12 2.46 2.83 3.22

Closing Stock 3.23 3.77 4.34 4.97 5.62

COMPUTATION OF WORKING CAPITAL REQUIREMENT

TRADITIONAL METHOD (in Lacs)

Particulars Amount Own Margin Bank Finance

Finished Goods & Raw Material 3.23

Less : Creditors 0.90

Paid stock 2.33 10% 0.23 90% 2.10

Sundry Debtors 2.83 10% 0.28 90% 2.55

5.17 0.52 4.65

MPBF 4.65

WORKING CAPITAL LIMIT DEMAND ( from Bank) 4.00

Working Capital Margin 0.44

6.9 Power, Salary & Wages Calculation

Utility Charges (per month)

Particulars value Description
Power connection required 20 KWH
consumption per day 200 units

Consumption per month 5,000 units

Rate per Unit 10 Rs.
power Bill per month 50,000 Rs.

BREAK UP OF LABOUR CHARGES

Particulars Wages No of Total

Rs. per Month Employees Salary

Skilled (in thousand rupees) 15,000 3 45,000

Unskilled (in thousand rupees) 9,000 5 45,000

Total salary per month 90,000

Total annual labour charges (in lacs) 10.80

BREAK UP OF Staff Salary CHARGES

Particulars Salary No of Total

Rs. per Month Employees Salary

helper 7,000 5 35,000

Driver 12,000 1 12,000

Accountant 17,000 1 17,000

Total salary per month 64,000

Total annual Staff charges (in lacs) 7.68

6.10 Depreciation
(in Lacs)
COMPUTATION OF DEPRECIATION
Description Plant & Machinery Miss. Assets TOTAL

Rate of Depreciation 15.00% 10.00%

Opening Balance - - -

Addition 30.00 1.20 31.20

Total 30.00 1.20 31.20

Less : Depreciation 4.50 0.12 4.62

WDV at end of Year 25.50 1.08 26.58

Additions During The Year - - -

Total 25.50 1.08 26.58

Less : Depreciation 3.83 0.11 3.93

WDV at end of Year 21.68 0.97 22.65

Additions During The Year - - -

Total 21.68 0.97 22.65

Less : Depreciation 3.25 0.10 3.35

WDV at end of Year 18.42 0.87 19.30

Additions During The Year - - -

Total 18.42 0.87 19.30

Less : Depreciation 2.76 0.09 2.85

WDV at end of Year 15.66 0.79 16.45

Additions During The Year - - -

Total 15.66 0.79 16.45

Less : Depreciation 2.35 0.08 2.43

WDV at end of Year 13.31 0.71 14.02

6.11 Repayment schedule

REPAYMENT SCHEDULE OF TERM LOAN

Interest 11.00%
Closing
Year Particulars Amount Addition Total Interest Repayment Balance
ist Opening Balance
1st month - 17.16 17.16 - - 17.16
2nd month 17.16 - 17.16 0.16 - 17.16
3rd month 17.16 - 17.16 0.16 - 17.16
4th month 17.16 - 17.16 0.16 17.16
5th month 17.16 - 17.16 0.16 17.16
6th month 17.16 - 17.16 0.16 17.16
7th month 17.16 - 17.16 0.16 0.32 16.84
8th month 16.84 - 16.84 0.15 0.32 16.52
9th month 16.52 - 16.52 0.15 0.32 16.21
10th month 16.21 - 16.21 0.15 0.32 15.89
11th month 15.89 - 15.89 0.15 0.32 15.57
12th month 15.57 - 15.57 0.14 0.32 15.25
1.69 1.91
2nd Opening Balance
1st month 15.25 - 15.25 0.14 0.32 14.94
2nd month 14.94 - 14.94 0.14 0.32 14.62
3rd month 14.62 - 14.62 0.13 0.32 14.30
4th month 14.30 - 14.30 0.13 0.32 13.98
5th month 13.98 - 13.98 0.13 0.32 13.66
6th month 13.66 - 13.66 0.13 0.32 13.35
7th month 13.35 - 13.35 0.12 0.32 13.03
8th month 13.03 - 13.03 0.12 0.32 12.71
9th month 12.71 - 12.71 0.12 0.32 12.39
10th month 12.39 - 12.39 0.11 0.32 12.08
11th month 12.08 - 12.08 0.11 0.32 11.76
12th month 11.76 - 11.76 0.11 0.32 11.44
1.49 3.81
3rd Opening Balance
1st month 11.44 - 11.44 0.10 0.32 11.12
2nd month 11.12 - 11.12 0.10 0.32 10.80
3rd month 10.80 - 10.80 0.10 0.32 10.49
4th month 10.49 - 10.49 0.10 0.32 10.17
5th month 10.17 - 10.17 0.09 0.32 9.85
6th month 9.85 - 9.85 0.09 0.32 9.53
7th month 9.53 - 9.53 0.09 0.32 9.22
8th month 9.22 - 9.22 0.08 0.32 8.90
9th month 8.90 - 8.90 0.08 0.32 8.58
10th month 8.58 - 8.58 0.08 0.32 8.26
 11th month 8.26 - 8.26 0.08 0.32 7.94
12th month 7.94 - 7.94 0.07 0.32 7.63
1.07 3.81
4th Opening Balance
1st month 7.63 - 7.63 0.07 0.32 7.31
2nd month 7.31 - 7.31 0.07 0.32 6.99
3rd month 6.99 - 6.99 0.06 0.32 6.67
4th month 6.67 - 6.67 0.06 0.32 6.36
5th month 6.36 - 6.36 0.06 0.32 6.04
6th month 6.04 - 6.04 0.06 0.32 5.72
7th month 5.72 - 5.72 0.05 0.32 5.40
8th month 5.40 - 5.40 0.05 0.32 5.08
9th month 5.08 - 5.08 0.05 0.32 4.77
10th month 4.77 - 4.77 0.04 0.32 4.45
11th month 4.45 - 4.45 0.04 0.32 4.13
12th month 4.13 - 4.13 0.04 0.32 3.81
0.65 3.81
5th Opening Balance
1st month 3.81 - 3.81 0.03 0.32 3.50
2nd month 3.50 - 3.50 0.03 0.32 3.18
3rd month 3.18 - 3.18 0.03 0.32 2.86
4th month 2.86 - 2.86 0.03 0.32 2.54
5th month 2.54 - 2.54 0.02 0.32 2.22
6th month 2.22 - 2.22 0.02 0.32 1.91
7th month 1.91 - 1.91 0.02 0.32 1.59
8th month 1.59 - 1.59 0.01 0.32 1.27
9th month 1.27 - 1.27 0.01 0.32 0.95
10th month 0.95 - 0.95 0.01 0.32 0.64
11th month 0.64 - 0.64 0.01 0.32 0.32
12th month 0.32 - 0.32 0.00 0.32 -
0.23 3.81
DOOR TO DOOR 60 MONTHS
MORATORIUM PERIOD 6 MONTHS
REPAYMENT PERIOD 54 MONTHS
6.12 DSCR

CALCULATION OF D.S.C.R

PARTICULARS 1st year 2nd year 3rd year 4th year 5th year

CASH ACCRUALS 7.22 10.16 12.75 16.01 19.69

Interest on Term Loan 1.69 1.49 1.07 0.65 0.23
Total 8.91 11.64 13.81 16.66 19.92

REPAYMENT
Instalment of Term Loan 1.91 3.81 3.81 3.81 3.81
Interest on Term Loan 1.69 1.49 1.07 0.65 0.23

Total 3.59 5.30 4.88 4.46 4.04

DEBT SERVICE COVERAGE RATIO 2.48 2.20 2.83 3.73 4.93

AVERAGE D.S.C.R. 3.23

6.13 Break Even Point Analysis

BREAK EVEN POINT ANALYSIS

Year I II III IV V

Net Sales & Other Income 106.20 125.79 144.98 166.81 190.08

Less : Op. WIP Goods - 1.43 1.65 1.88 2.13

Add : Cl. WIP Goods 1.43 1.65 1.88 2.13 2.40

Total Sales 107.63 126.00 145.21 167.06 190.34

Variable & Semi Variable Exp.

Raw Material Consumed 54.00 63.60 73.92 84.96 96.72

Electricity Exp/Coal Consumption at 85% 5.10 5.87 6.74 7.76 8.53

Wages & Salary at 60% 11.09 12.20 13.42 14.76 16.23

Selling & adminstrative Expenses 80% 2.55 3.02 3.48 4.00 4.56

Interest on working Capital 0.44 0.44 0.44 0.44 0.44

Repair & maintenance 3.72 4.40 5.07 5.84 6.65

Packaging 3.19 3.77 4.35 5.00 5.70

Consumables 3.72 4.40 5.07 5.84 6.65

Total Variable & Semi Variable Exp 83.80 97.70 112.50 128.60 145.50

Contribution 23.84 28.30 32.71 38.46 44.85

Fixed & Semi Fixed Expenses

Electricity Exp/Coal Consumption at 15% 0.90 1.04 1.19 1.37 1.51

Wages & Salary at 40% 7.39 8.13 8.94 9.84 10.82

Interest on Term Loan 1.69 1.49 1.07 0.65 0.23

Depreciation 4.62 3.93 3.35 2.85 2.43

Selling & adminstrative Expenses 20% 0.64 0.75 0.87 1.00 1.14

Rent 6.00 6.60 7.26 7.99 8.78

Total Fixed Expenses 21.24 21.94 22.68 23.69 24.91

Capacity Utilization 45% 50% 55% 60% 65%

OPERATING PROFIT 2.60 6.36 10.03 14.77 19.94

BREAK EVEN POINT 40% 39% 38% 37% 36%

BREAK EVEN SALES 95.89 97.67 100.67 102.91 105.72

7. LICENSE & APPROVALS

 Obtain the GST registration.

 Additionally, obtain the Udyog Aadhar registration Number.
 Fire/pollution license as required.
 FSSAI License
 Choice of a Brand Name of the product and secure the name with
Trademark if required.

Implementation Schedule

S.N. Activity Time Required

(in Months)

1 Acquisition Of premises 1-2

2 Procurement & installation of Plant & Machinery 1-2

3 Arrangement of Finance 1-2

4 Requirement of required Manpower 1

Total time Required (some activities shall run 5-6 Months

concurrently)
8. ASSUMPTIONS

1. Production Capacity of Soya Chaap is 800 Kgs per day. First year, Capacity
has been taken @ 45%.

2. Working shift of 10 hours per day has been considered.

3. Raw Material stock is for 10 days and finished goods Closing Stock has

been taken for 5 days.

4. Credit period to Sundry Debtors has been given for 8 days.

5. Credit period by the Sundry Creditors has been provided for 5 days.

6. Depreciation and Income tax has been taken as per the Income tax Act,

1961.

7. Interest on working Capital Loan and Term loan has been taken at 11%.

8. Salary and wages rates are taken as per the Current Market Scenario.

9. Power Consumption has been taken at 20 KW.

10. Selling Prices & Raw material costing has been increased by 5% & 5%
respectively in the subsequent years.
 Limitations of the Model DPR and Guidelines for Entrepreneurs

Limitations of the Model DPR

i. This model DPR has provided only the basic standard components and methodology to be
adopted by an entrepreneur while submitting a proposal under the Formalization of Micro Food
Processing Enterprises Scheme of MoFPI.

ii. This is a model DPR made to provide general methodological structure not for specific
entrepreneur/crops/location. Therefore, information on the entrepreneur, forms and structure
(proprietorship/partnership/cooperative/ FPC/joint stock company) of his business, details of
proposed DPR, project location, raw material base/contract sourcing, entrepreneurs own SWOT
analysis, detailed market research, rationale of the project for specific location, community
advantage/benefit from the project, employment generation and many more detailed aspects not
included.

iii. The present DPR is based on certain assumptions on cost, prices, interest, capacity utilization,
output recovery rate and so on. However, these assumptions in reality may vary across places,
markets and situations; thus the resultant calculations will also change accordingly.