Soy Sauce Making Business – How To Start In India

Starting a Soy Sauce making business in india for profit

Introduction

Do you plan to start a small-scale business which has a hype in market? Then why don’t you think of Soy Sauce making business? Find here a comprehensive soy sauce-making business plan sample with the checklist.

A Soy sauce is a value-added product of soya beans. And soya bean is an extensively grown crop throughout the globe. Some of the main soybean-growing countries are Brazil, the USA, Argentina, China, Paraguay, India, Canada, and Uruguay. And if you are living in a soybean-producing province, you can easily consider beginning this business.

Soya sauce has the property to enhance taste and flavor with certain non-vegetarian, Chinese and western food items. Also, you can prepare the sauce using defatted soybean flour by hydrolysis process. This also contains a high amount of proteins.

The soy sauce production process is easy. This business comes under the small scale operation. Therefore, it requires comparatively small startup investment. Hence, starting a soy sauce business is a profitable opportunity for small capitalists.

A step-by-step guide to starting a Soy Sauce making business in India

Soya Sauce
Soya Sauce (image credit: pixabay)

Market potential of Soy Sauce making business

The demand for soy sauce is growing very rapidly worldwide. It is growing because of increased health concerns and changing lifestyle and taste inclinations. The global soy sauce industry has observed a strong growth during 2010-2014. Currently, seasonings, dressings, and condiments are a main part of the traditional multi-cuisine. Because it enhances the taste and adds flavor to the food recipes.

Busy lifestyles and growth in the working population are fueling the demand for soy sauces in several countries. Majorly these are the Japan, US, China, Vietnam, and Brazil among other countries. Growing consumer concerns towards healthy eating have augmented the proportion of homemade food ingestion. Moreover, preparing various multi-cuisine food at home has endorsed the usage of soy sauces worldwide.

Business Plan for Soy Sauce making business in India

Market research in Soy Sauce making business

In starting this business, you must analyze your local market. First of all, recognize the established brands of soy sauce. Check their distribution, packaging, and marketing approach. These all will aid you in making critical judgments in designing your business plan.

Usually, you can sell the item from the distribution channel. Additionally, retail chains and supermarkets are the profitable proposition too. Additionally, you can also endorse the product from your own retail space.

Business compliance in Soy Sauce making business

As you know a soy sauce is a food product. Therefore, the manufacturing process needs several licensing and approvals. However, it is based on the region where you are opening the business. Additionally, check the local guidelines and regulations for setting up the manufacturing plant.

Furthermore, you must register your business with a Government agency. It is worthwhile to verify your state laws. Determine the form of organization prudently according to the management pattern and investment proportion.

License, permissions and registrations required for starting Soy sauce making business in India

One should acquire specific licenses and mainly depends on the final product. First, analyze whether you want to sell the soy sauce or soy sauce making business. In addition, check your state law for well-before. Here, we have accumulated some of the basic needs.

First of all, register your business and get ready with the MOA.

  • Apply for MSME Udyog Aadhaar online registration
  • Obtain the NOC from the PCB- Pollution Control Board
  • Apply for the commercial electricity connection & water supply
  • Apply for the Factory License. Moreover, apply for the FSSAI license. You should maintain the standard according to the PFA Act. Finally, check the upcoming tax liabilities of the business.

For starting a Soy sauce making unit, you should get several license and registration approvals from different government organizations.

  • Primarily, you must define the management design of your organization. And then as per the design, register your business.
  • Firstly, apply for MSME Udyog Aadhaar which is available as online registration.
  • Then, the important trade license from the local municipality should be applied.
  • The business comes under the food Industry category and requests consent from FSSAI which is also done online.
  • Nowadays it is a must to apply for GST registration.
  • Try to create a current account in any of the nearby banks.
  • Then it is important to apply for the BIS certification. The product must also conform to the PFA Act, guidelines
  • Moreover, it is essential to check the tax liabilities as well for this business.
  • AGMARK certification
  • Fire license
  • Mandi Act
  • Labor Laws such as the following: ESIC, EPFO, etc
  • CLU – for land
  • Electricity Bills
  • FSSAI: The Food Standards and Safety Rules, 2011, and rules made under IS 544: 1968 permit the inclusion of antioxidants in Soy sauce for an increased shelf life of the sauce. However, under the scheme of labeling of environment-friendly products, the occurrence of antioxidants in a prescribed limit is a need as per notification of the Ministry of Environment and Forests. These are the basic license and certification requisites. Check out the same with your local DIC authority about any other needful formalities.
Plant and machinery required for starting Soy sauce making business

While starting this business, you must look for a proper location. Generally, a covered area of 1000 sq. ft. is enough for beginning a small-scale unit. However, it depends, mainly on the business size. If you don’t have your land, you can start the business by availing of rent. However, try to secure the space in an industrial region. Additionally, check the accessibility of water supply, electricity, parking region, and workers.

You must get the machinery as per your specific need for production quantity. Purchase the machinery from a trustworthy supplier. Check the warranty period. Ask the company for on-site training. Here, we are listing out the needed machinery for soy sauce manufacturing.

  • SS tanks with filter sieves
  • SS Collection and neutralization tanks
  • Bottle Washing and Filling Machine
  • Weighing Scales
Raw materials required for starting Soy sauce making business

In soy sauce manufacturing, the main raw material that is needed is defatted soy flour. Additionally, you must procure Salt, Vinegar, Baking Soda, preservatives, etc.

Apart from the constituents, you will need to purchase the packaging materials. Generally, soy sauce comes in the pet bottle or glass bottles. Besides, you must have the printed labels with detailed information on the bottles. Apart from that, it is necessary to acquire the outer cartons for bulk packaging.

Step by step guide for making Soy Sauce

It is sensible to source the manufacturing technology from the Government research center. Here we are stating some basic steps.

The manufacturing process is easy. You must process the defatted soy flour through the hydrolysis process. Then mix the flour and water with other ingredients such as salt, vinegar, baking soda, preservatives, etc. uniformly to attain a semi-liquid or paste-type mixture.

After that, pass it through filter sieves to separate impurities. Then take this mixture to SS neutralization tanks and leave them 2 hours before packing. The final stage is packing and distribution.

In case if you miss this: Seed Processing Busienss In India.

Staffing for Soy Sauce making business

You must have three different types of employees for three basic departments. First of all, you must appoint people for the manufacturing unit. Then, you should hire people for the sales team and administrative roles.

For the unit operation, you must get a machine operator, production manager, and skilled laborers. Also, you must get staff for generating bills, issuing money receipts, and bank procedures. Verify if there is a need for the logistic department also.

Area required to start Soy Sauce making business

The area which is needed to set up Soy Sauce making business is 200 sq. ft.

Investment required to start Soy Sauce making business

To initiate the Soy Sauce making business, you need to arrange the finance about from Rs. 2 lakhs to Rs. 5 lakhs based on the scale of your business.

The Soy Sauce making machine price ranges from Rs. 80,000 to Rs. 2,00,000 depending upon the capacity.

The raw materials cost is Rs. 1 lakh.

So, the total amount required to start Soy Sauce making business is Rs. 2 lakh if you plan it on a smaller scale.

Expenses for medium-scale Soy Sauce making business unit

The costs of a soy sauce making business is based on the type and the desired production output. The rate may range from 3 – 5 Lacs per machine for a medium scale unit.

Profit in starting Soy Sauce making business

You can earn good profits in Soy Sauce making business. You can make 35 to 40% of profits in Soy Sauce making business, after deducting the total expenses from the capital amount. Then the leftover amount will be your profit, so you need to minimize the expenses incurred accordingly. You can also plan for used things so that it will reduce your fixed capital investment.

How to sell your Soy Sauce

You can sell your Soy Sauce in local markets or you can even sell in the online stores. You can also register in B2B websites and B2C websites in online markets to promote Soy Sauce products.

You can also sell your products in supermarkets, small stores in shopping malls, etc. Advertise about your product through social media to get a huge number of clients in this way you can increase and promote your business. There are very limited Soy Sauce manufacturers in India, but the demand for encouraging the new product is also high because of its medicinal properties. So, you need not worry about the market. You can sell your product based on the Soy Sauce wholesale price in India.

Marketing strategies to promote your Soy Sauce product

No business can gain overall success so easily until and unless you endorse the venture. And it is applicable for soy sauce also. As this is an FMCG product, you must consider improving brand awareness. Additionally, you must have the marketing ideas to promote the soy sauce manufacturing business in the nearby market.

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