How To Start Tofu Making Business In India

Introduction on how to start a soya paneer or Tofu making business in India

 Soya Paneer is a byproduct of Soy Milk. It is a plant-based drink produced using soya beans. It is also known as “Soy Milk and Soymilk”. It contains the following properties of a stable liquid mixture of water, oil, and proteins.

A guide to start a Tofu making business in India

The original form of Soya milk is a natural secondary product of the manufacture of bean curd or Tofu. We will be giving out the information on how to prepare soya milk from soya flour, some history of soya milk, how to prepare soya milk, what could be the basic raw materials that are needed for the preparation of soya milk, what is exactly soya paneer, and regarding the manufacturing steps of soya milk in this entire article. 

What is soya milk?

The place of origin of Soya Milk is in China which is known since 1365. The usual term is “Dou Jiang” that is used for the traditional watery and bean beverage is prepared as a natural secondary product of manufacture of bean curd or Tofu. Later, in the 20th century, it was popular as a general beverage in countries such as North America and Europe. 

How to prepare soya milk from soy flour?  

Soya beans have a high content of proteins and Soya Flour is the simplest form of a protein. You can prepare Soya Milk from Soy Flour through these simple steps: 

  • Firstly, take freshwater and then heat it.
  • Next, add the soy flour after the water gets boiled. 
  • Thirdly, agitate it to dissolve the total soya flour in the boiling water. 
  • After that, keep on low flame for about 20 minutes.
  • It is important to keep in mind that for every 03 cups of water you should add a single cup of flour. 
  • Later, strain the soy flour mixture using a clean cheesecloth.
  • Also, keep that mixture in a cool dry place or you can even refrigerate it. 
  • Finally, as per your choice, you can add vanilla or other any other flavor to it.

License, registration and permissions required to start making business

Permissions required to start making business,
Permissions required to start making business

The below are the list of license required to start a tofu manufacturing businesses in India;

  • Registration of firm
  • GST registration
  • Trade license
  • Pollution certificate
  • MSME/SSI registration
  • EPI and ESI registrations
  • Trademark 
  • FSSAI registration
  • IEC code
  • FPO act

Area requirement to start a Tofu making business

To initiate even a small business you need appropriate space. To establish a tofu production business at a small level, you must find a place with a minimum area of 250 square feet. Apart from that, you must have a place for processing, storage, and packing, an area to store raw materials, and a place for transport. To begin the business a few essential resources such as water and electricity are crucial. Hence, it is evident that designing a draft of the tofu production project report is very essential before establishing the business.

Raw materials required to to start a Tofu making business

Before knowing how you manufacture soya milk you must have an idea of raw materials. The following are the raw materials for preparing soya milk: Soya beans; Water; Flavors such as Carob, Almond, Vanilla; Chocolate; Sugar; Salt 

Actually to prepare soya milk the major component is soya beans and water. The flavors can be added as per your need. Sugar and salt are can be added while preparation of soya milk by many companies to impart taste to the consumers.  Obtaining raw materials is the first step in the Manufacturing Process of Soya Milk. The raw materials like Soya beans can be obtained from the farmers and brought to the plant. Then the soya beans will be thoroughly washed and cleaned.

Making process of soy milk 

Since soya milk is famous as a low acid food that is also a good source for the breeding of harmful bacteria. Therefore, the process of manufacturing must be performed in aseptic conditions. The following are the basic steps for manufacturing soya milk: 

Procure the raw material, then Dehulling, after that is Invalidating the indigestible enzyme, the is the rough grinding followed by finer grinding, extracting, blending, the important aseptic sterilizing, homogenizing, cooling, storing, and finally packaging.

These steps for manufacturing the Soya Milk are briefly explained below: 

Dehulling process

The next step in the manufacturing process of soya milk is dehulling. Here, the soya beans will be steamed which will split into halves. With the use of vacuum the hulls it releases the hull present on the soya bean. 

Nullifying the indigestible enzyme in soy

Invalidating the indigestible enzyme is the next stage in the manufacturing process of soya milk. A particular enzyme that will make the human digestive system indigestible to identify the soya beans will be cooked in high pressure, temperature, and water. 

Rough grinding

In this stage of the manufacturing process of soya milk rough grinding is performed, where the cooked soya beans are transferred into the mill or rough grinder. For grinding the bean pieces roughly in the 01st milling machine water is needed.  

Finer grinding

Finer grinding is the next stage in the manufacturing process of soya milk. After rough grinding, we can identify the harsh texture. So the finer grinding process is done to powder the bean pieces into smaller particles. Then it turns into a hot slurry having a white color along with tiny insoluble soybean particles. 


The next stage in the manufacturing process of soya milk is known as extracting. The minute insoluble particles will be removed with the help of a huge centrifuge. Within the centrifuge against the drum surface, a rubber roller will impart pressure on the hot soya milk slurry. The fibers will remain outside the drum as it will force the pure liquid in the drum. 


The next step in the manufacturing process of soya milk is blending. The various flavors, the required sugars, and also vitamins are mixed separately into smaller tanks and after that these ingredients are mixed into the larger tanks then blending is performed with the raw soya milk.

Aseptic sterilizing

The next step in the manufacturing process of soya milk is called Aseptic sterilizing. It is sterilized at high temperature and pressure within a vacuum for a short period. This helps to avoid germs and bacteria in the air that can grow soya milk with low acid quantity.


Homogenizing is the next stage in the manufacturing process of soya milk. In this process, a high-pressure piston pump is drawn into the pump cylinder that is forced back continuously which aids to break down the fat particles and also avoids them from separating the leftover mixture.


The next step in the manufacturing process of soya milk is cooling. In this process, the hot soya milk is placed into the cold plates which decrease the soya milk temperature to room temperature. So, the hot soya milk is then sent to the cooling tank.


The storing is the 11th stage in the manufacturing process of soya milk. In this step, the soya milk is refrigerated, pressurized, and sealed to avoid entry of bacteria to enter the milk. Then the cooled soya milk is placed into the aseptically sealed tanks. 

Preparation of tofu

Soya Paneer is somewhat the same as normal milk paneer. Soya Paneer is also called “Bean Curd, Soya Milk Paneer or Tofu” which is available as a soft cheese that is made by curding the soya milk with a liquid.


The last stage in the manufacturing process of tofu is called packaging. In this process, the packaging is automatically done by the machine which has a ribbon of flat packaging cardboard threaded into it.

You should not miss this: How To Start A Flaxseed Oil Production.

Cost or investment to start a to start a Tofu making business

If you are choosing any small-scale business in tofu production then you must pay for raw materials specifically milk and other things such as packaging material and other things. If you are inaugurating a small-scale business then employees’ remuneration is also essential. The capital for small scale tofu production business is Rs. 2 lakhs. Additionally, on a large scale basis, the equipment can be around 2.30 lakh rupees. The cost of raw material could be about 2 lakhs. Therefore, the entire cost could be estimated to 5-6 lakh rupees.

For beginning the business, you must plan for the budget. You may charge around 150 to 200 rupees per kilogram in the market. Not only this, but you can also directly contact and have a network with restaurants and hotel industries.

Profits in tofu making or production in India

Because of the high demand, the profit margin in tofu making business is high. One can gain up to 2000 rupees every day. The profit margin in the tofu production business is much more for wholesale dealers. If you carefully follow the above-mentioned steps you can earn income through the tofu production business though you have spent less capital.

In case if you are interested in this: Organic Soybean Farming.


  1. Hey i want to start tofu business but i want some sort of training program and also some tips that how to sell the produced items thank you


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