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How to Start a Profitable Soy Sauce Manufacturing Business

Do you want to start a soy sauce manufacturing business? Find here a detailed soy sauce-making business project plan guide for beginners.

Basically, soy sauce is a value-added product of soya beans. And soya bean is a widely grown crop throughout the world. Some of the major soybean-growing countries are the USA, Brazil, Argentina, China, India, Paraguay, Canada, and Uruguay. And if you are living in a soybean-producing country, you can consider starting this business.

Basically, Soya sauce works as a taste and flavor enhancer with certain non-vegetarian, Chinese, and western food varieties. In addition, you can prepare the sauce from defatted soybean flour by hydrolysis process. It is also a rich source of proteins.

The soy sauce production process is simple. And the industry comes under small-scale operation. Therefore, it demands comparatively small startup capital to initiate. Hence, starting a soy sauce brewing business is a lucrative opportunity for small entrepreneurs.

Is Soy Sauce Making Business Profitable?

Basically, the demand for soy sauce is increasing very fast globally. It is increasing because of growing health concerns and changing lifestyle and taste preferences. The global soy sauce industry has witnessed strong growth over the period 2010-2014. In today’s world, seasonings, dressings, and condiments is a chief part of the traditional multi-cuisine. Because it increases the taste and flavor of the food recipes.

Busy lifestyles and an increase in the working population are fueling the demand for soy sauces in several countries. Majorly these are the US, Japan, China, Vietnam, and Brazil among other countries. Growing consumer concerns about healthy eating have increased the proportion of homemade food consumption. Additionally, preparing different multi-cuisine food at home has increased the usage of soy sauces globally.

10 Steps to Start Soy Sauce Manufacturing Business

1. Market Research

In starting this business, you must study your local market. First of all, identify the established brands of soy sauce. Check their packaging, distribution, and marketing strategy. These all will help you in making critical decisions in crafting your business plan.

Generally, you can sell the product from the distribution network. Additionally, retail chains and supermarkets are lucrative propositions too. Additionally, you can also promote the product from your own retail space.

2. Business Compliance

Basically, soy sauce is a food item. Therefore, the manufacturing operation demands several licensing and permissions. However, it depends on the location where you are starting the business. Additionally, check the local rules and regulations for setting up the manufacturing unit.

Furthermore, you must register your business. It is advisable to check your state law. Determine the form of organization carefully according to the management pattern and investment ratio.

Also, obtain the GST registration number as it is a must at present to run a manufacturing business in the country.

3. Plant & Machinery

In starting this business, you will need to secure a space first. Generally, a covered area of 1000 Sq Ft is enough for starting a small unit. However, it depends, particularly on the business size. If you don’t have your own space, you can start the business from a rental location.

However, try to secure the space in an industrial zone. Additionally, check the availability of water supply, electricity, parking space, and labor.

You will need to procure the machinery as per your specific need for production output. Purchase the machinery from a reliable supplier. Check the warranty period. Ask the company for on-site training. Here, we are providing a basic list of machinery for soy sauce manufacturing.

  • SS tanks with filter sieves
  • SS Collection and neutralization tanks
  • Bottle Washing and Filling Machine
  • Weighing Scales

4. Raw Material

In soy sauce manufacturing, the major required raw material is defatted soy flour. Additionally, you will need to have Salt, Baking Soda, Vinegar, preservatives, etc.

Apart from the ingredients, you will need to procure the packaging consumables. Generally, soy sauce comes in a glass bottle or a pet bottle. Additionally, you will need to have the printed labels for the bottles. Also, you have to procure the outer cartons for bulk packaging.

5. Cost of Starting a Soy Sauce Manufacturing Business

The initial cost of launching a soy sauce manufacturing business will depend on a wide range of factors.  It includes machinery costs, production capacity, factory space rent, raw material costs, licensing and legal fees, and marketing expenses.

Approximately, the cost of starting a small-scale soy sauce manufacturing unit in India will be in the range of  Rs. 5lacs – 10 lacs.

6. Arrange Funds

If you are unable to arrange the required investment, apply for business loans from banks and financial institutions. Also, you can check out loan apps for instant cash funding.

Do not forget to apply for a credit card to meet day-to-day business expenses.

7. Soy Sauce Manufacturing Process

It is advisable to source the manufacturing technology from the Govt. research center. Here we are listing down the basic steps.

The manufacturing process is simple. You will need to process the defatted soy flour by using the hydrolysis process. Then mix the flour and water along with other ingredients like salt, baking soda, vinegar, preservatives, etc. homogeneously to form a semi-liquid or paste-type mixture.

After that, pass it through filter sieves to remove impurities. Then take this mixture to SS neutralization tanks and keep it for about 2 hours before packing. The final step is packing and distribution.

8. Hire Manpower

Basically, you need three different types of employees for three basic departments. First of all, you have to hire employees for the manufacturing unit. Additionally, you must have a sales team and administrative employees.

For the unit operation, you must have a production manager, a machine operator, and skilled laborers. Also, you have employees for generating bills, issuing money receipts, and bank operations. Check if there is a demand for logistic staff also.

9. Create a Website

It is mandatory to go online for the success of any business at present. Hence, create a website for your soy sauce business and create pages on your products, About Us, and a Contact page where prospective customers can connect with your company.

10. Promote your Soy Sauce Business

No business can get overall success as such until and unless you promote the venture. And it is applicable to soy sauce also. As this is an FMCG item, you must consider enhancing brand awareness. Additionally, you must have a marketing strategy to promote the soy sauce manufacturing business in the local market.

About Next What Business Research Team

The Editorial Staffs at NextWhatBusiness is a team of Business Consultants with years of experience in small and medium-scale manufacturing and service-based businesses.