Report Ice Plant (1) 1

Entrepreneurship Project: Ice plant
Ice plant
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INSTITUTE OF TECHNICAL EDUCATION AND RESEARCH

BHUBANESWAR
DEPARTMENT OF APPLIED ELECTRONICS & INSTRUMENTATION

ENGINEERING
ACKNOWLEDGEMENT
We take this opportunity to express our hearty thanks to all

those who individually as well as collectively helped us in the
successful completion of this project.
We are thankful Mihir Mohanty, H.O.D, Department of AE & I

engineering and also thankful to all the faculties of ITER
college For having permitted us to carry out this project and
for their constant advice.
We also acknowledge the continuous encouragement

rendered by our friends.
Group members
Regd. No.
1. CHETAN DAS
…………………………………………………………… 0601212524
2. SWAPNA SOURAV ROUT

…………………………………………………………..... 0601212531
3. SARIT KUMAR SI …...

……………………………………………………..0601212533
4. JAYANT KUMAR MUDULI …..

………………………………………………………0601212514
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5. SOURAV PRASAD KANUNGO …….

…………………………………………………0601212527
6. MANAS RANJAN BISWASRAY ……………………………………………….

………0601212529
Contents:
1. INTRODUCTION OF ENTREPRENURSHIP
2. CONCEPT AND DEFINATION
3. ENTREPRENEURIAL PHILOSOPHY
4. EXPECTATIONS OF ENTREPRENEURSHIP
5. CHARACTERISTICS OF ENTREPRENEUR
6. CHALLENGES FOR ENTREPRENUERSHIP PROJECT
7. SUMMARY
8. PROJECT PROFILE
9. INTRODUCTION
10. MARKERPOTENTIAL
11. TECHNICAL ASPECT
12. FINANCIAL ASPECT
13. WORKING CAPITAL ANALYSIS
14. CAPITAL INVESTMENTS
15. COST OF PRODUCTION
16. TURN OVER PER YEAR
17. BREAK EVEN ANALYSIS
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18. CONCLUSION
19. BIBLIOGRAPHY.
PREFACE
During final semester of B.TECH in AE&I ENGINEERING as a

curriculum assignment has to be taken as an
entrepreneurship project. Our entrepreneurship project is to
“establish an ice plant based upon the peripheral market
demand of Bhubaneswar”. A complete task of starting from
the concept analysis of project preparation, the entire has
been done under the guidance of our project guide Er.
B.P.MISHRA.
Our entrepreneurship project is associated with

establishment of an ice plant basing upon the market
demand for different purposes. Though Orissa is on the way
of industrialization, emphasizing on establishing a ice plant
unit will be a profitable aspect for entrepreneurs. Same time
this will be helpful for socioeconomic reformation for
economically backward Orissa.
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While preparation of this project every care has been taken

to avoid any mistakes & errors. Some errors might have
crept in advertently.
INTRODUCTION of
ENTREPRENEURSHIP
Do you know that there are millions of unemployed youth in

the country and the time you graduate, this number would
have increased substantially? Do you want to be part of that
group which keeps knocking from pillar to post, checking
with employment exchanges, relatives, friends, and
neighbours and still not able to get a job to their liking and
then settle for a second or third rate job? You can also
choose to be like Mr. Patel of Nirma who was a chemist’s
assistance and has a Rs. 2500 crore company today. Did you
know that the original Mr. Bata was a cobbler? And now has
stores in more than 30 countries all over the world. Or you
could be like Dhiru bhai Ambani who started life as a clerk in
a French company in Aden. He was not born into a business
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family nor did he possess an MBA degree and yet, he is a

household name in India and figures in2 the Forbes list of the
richest Asians. Lakshmi Mittal, the steel giant, Satbir Bhatia
of Hotmail fame and Narayan Murthy of Infosys are some
other names in the endless list you could choose from. If
your answer is yes then you can definitely opt for a career in
entrepreneurship.
The word entrepreneur has its origin in the French language.
It refers to the organizer of musical or other entertainments.
An entrepreneur can be described as a creative and
innovative response to the environment. such responses can
take place in any field of social endeavour business,
agriculture, social work the like. an entrepreneur is one who
can organizes, manages and assumes the risk of an
enterprise. An entrepreneur visualizes a business, takes bold
steps to establish undertaking, coordinates the various
factors of production gives it a start. Entrepreneur is the
owners of the business who contribute the capital and bear
the risk of uncertainties in business life.
Entrepreneur is action orientated and highly motivated
person who has ability to evaluate business opportunity,
together the necessary resources, to take advantage of that
and to intimate appropriate action to ensure success.
Entrepreneur is associated with innovation. He is the main
factor of production.
An entrepreneur is a person who starts an enterprise. He
searches for change and responds to it. A number of
definitions have been given of an entrepreneur-The
economists view him as a fourth factor of production along
with land labour and capital.
The sociologists feel that certain communities and cultures
promote entrepreneurship like for example in India we say
that Gujaratis and Sindhis are very enterprising. Still others
feel that entrepreneurs are innovators who come up with
new ideas for products, markets or techniques. To put it very
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simply an entrepreneur is someone who perceives

opportunity, organizes
Resources needed for exploiting that opportunity and
exploits it.
Computers, mobile phones, washing machines, ATMs, Credit
Cards, Courier Service, and Ready to eat Foods are all
examples of entrepreneurial ideas that got converted into
products or services.
CONCEPT AND DEFINITIONS
So let us see- is setting up one’s business that simple

and easy or is there more to it. In order to know what being
enterprising is all about we need to understand the following
terms- Entrepreneur, Entrepreneurship, and Enterprise.
1-ENTREPRENEUR
An entrepreneur is a person who starts an enterprise. He

searches for change and responds to it. A number of
definitions have been given of an entrepreneur-The
economists view him as a fourth factor of production along
with land, labour and capital. Entrepreneurs are innovators
who come up with new ideas for products, markets or
techniques. To put it very simply an entrepreneur is
someone who perceives opportunity, organizes resources
needed for exploiting that opportunity and exploits it. A
person who takes the initiative in combining land, labour and
capital, the three fundamental factors of production, to
produce a good or service. Computers, mobile phones,
washing machines, ATMs, Credit Cards, Courier Service, and
Ready to eat Foods are all examples of entrepreneurial ideas
that got converted into products or services.
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2-ENTREPRENEURSHIP
Entrepreneurship can be described as a process of action, an

entrepreneur
undertakes to establish his enterprise. Entrepreneurship is a
creative activity. It is the ability to create and build
something from practically nothing. It is a knack of sensing
opportunity where others see chaos, contradiction and
confusion. Entrepreneurship is the attitude of mind to seek
opportunities, take calculated risks and derive benefits by
setting up a venture. It comprises of numerous activities
involved in conception, creation and running an enterprise.
According to Peter Drucker Entrepreneurship is defined as ‘a
systematic innovation, which consists in the purposeful and
organized search for changes, and it is the systematic
analysis of the opportunities such changes might offer for
economic and social innovation.’ Entrepreneurship is a
discipline with a knowledge base theory. It is an outcome of
complex socio-economic, psychological, technological, legal
and other factors. It is a dynamic and risky process. It
involves a fusion of capital, technology and human
talent. Entrepreneurship is equally applicable to big and
small businesses, to economic and non-economic activities.
Different entrepreneurs might have some common traits but
all of them will have some different and unique features. If
we just concentrate on the entrepreneurs then there will be
as many models as there are ventures and we will not be
able to predict or plan, how and where, and when these
entrepreneurs will start their ventures. Entrepreneurship is a
process. It is not a combination of some stray incidents. It is
the purposeful and organized search for change, conducted
after
systematic analysis of opportunities in the environment.
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Entrepreneurship is a philosophy- it is the way one thinks,

one acts and
therefore it can exist in any situation be it business or
government or in
the field of education, science and technology or poverty
alleviation or
any others.
3-ENTERPRISE
Entrepreneur is a person who starts an enterprise. The

process of creation is called entrepreneurship. The
entrepreneur is the actor and entrepreneurship is the act.
The outcome of the actor and the act is called the
enterprise. An enterprise is the business organization that is
formed and which provides goods and services, creates jobs,
contributes to national income, exports and overall economic
development.
FUNCTIONS OF ENTREPRENEUR
An entrepreneur frequently has to wear many hats. He has

to perceive
Opportunity, plan, organize resources, and oversee
production,
Marketing and liaison with officials. Most importantly he has
to
Innovate and bear risk. The main functions of an
entrepreneur are as
Follows:
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1. Innovation: Innovation is one of the most

important functions of an Entrepreneur according to
Schumpeter. An entrepreneur uses Information,
knowledge and intuition to come up with new products,
new methods of reducing costs of a product,
improvement in design or function of a product,
discovering new markets or new ways of organization of
industry. Through innovation, an entrepreneur converts
a material into a resource or combines existing
resources into new and more productive configurations.
It is the creativity of an entrepreneur that results in
invention [creation of new knowledge] and innovation
[application of knowledge to create new products,
services or processes.]
2. Risk and uncertainty bearing: According to

Hozelist an entrepreneur performs the function of risk
and uncertainty bearing. Every decision pertaining to
development of new products, adapting new
technologies, opening up new markets involves risk.
Decision-making in an environment of uncertainty
requires anticipation of risk. Profit is said to be the
reward for anticipating and taking such risks. However
it is pertinent to mention that the entrepreneur is not a
gambler, he only takes calculated risks. An
entrepreneur develops the art of decision-making under
conditions of uncertainty as a matter of survival.
3. Organization building: An entrepreneur has to

organize men, Material and other resources. He has to
perform the functions of Planning, co-ordination and
control. He has to use his leadership Qualities to build a
team, generate resources and solve problems. With his
organizational skills an entrepreneur builds an
enterprise from scratch, nurtures it and makes it grow.
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His vision sows the seeds for a sound and vibrant

organization and synergies are built in the enterprise.
According to Kilby in a developing country even the imitator

entrepreneurs are very important and the entrepreneurial
role encompasses the following:
I. Perception of market opportunities
II. Gaining command over scarce resources
III. Purchasing inputs
IV. Marketing the products
V. Dealing with bureaucrats
VI. Managing human relations within the firm
VII. Managing customer and supplier relations
VIII. Managing finance
IX. Managing production
X. Acquiring and overseeing assembly of the factory
XI. Industrial engineering
XII. Upgrading process and product
XIII. Introducing new production techniques and

products
Entrepreneurial philosophy
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Entrepreneurial philosophy:
1. To take calculated risk.
2. Willingness to accept responsibility for one’s own

work.
3. Failure must be accepted as a learning

experience.
4. Goal oriented.
5. Acceptable results are more important than

perfect results.
6. Personal growth.
Expectations of entrepreneurship
Expectations of entrepreneurship:
It is expected from entrepreneurs that they will help :-
1. Increase number of industries
2. Increase production.
3. Increase employment
4. Earn foreign exchange through exports
5. Develop the underdeveloped parts of the country
6. Economical development
Characteristics of entrepreneur
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Characteristics of entrepreneur:
1. Task-result oriented
2. Risk taker
3. Leadership
4. Self confidence
5. Originality
6. Future oriented
Challenges of the entrepreneurship

project
Challenges the entrepreneurship project:-
1. Technology up gradation: - it is found that our

small scale sector is not able to compete because of
outdated technology. We must appreciate that small
scale industry has to keep itself updated and then only
it can sell goods anywhere in the world as there is no
restriction for goods to move. People will purchase only
if goods are of high quality. We must remember that we
may or may not need imported technology for up
gradation. Our small industries have the advantage of
developing import substitution period. Many SSI can
therefore become world-class with only small
modification or improvement.
2. Testing facilities: - because of small scale

industries are situated in far flung areas therefore it is
not possible to service by one or two central laboratory.
We suggest that educational institution even in small
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towns should be equipped to provide testing facilities to

small scale industries.
3. Exports: - we find that small industries engaged

exports do not we have any benefits, although they
count for bulk export. We strongly advocate special
concessions for small scale industries which are
engaged in exports.
4. Involvement of industrial associations: - we

feel that many problems of small scale can be taken
care of industrial association are involved in a big way.
5. Infrastructure development: - we small suffer

maximum from lack of infrastructure development. The
quality of power is bad and the power available is very
high in cost. This must be corrected. Roads are bad.
Communication facilities are not upto the mark.
6. Credit: - the credit is still not available in small

scale industries; the credit guarantee fund created by
SIDBI is not being exploited as there is still short
coming in the scheme.
7. Skill up gradation: - small scale industries are

known for providing on job training. But in post WTO
era when cost cutting is the order of the day, the
people are running small scale industries must be
skilled and this skill must be up graded continuously so
that they are in the job and no unemployment results.
8. Marketing:- the present market assistant scheme

is most welcome. More such schemes are require. Small
scale industries are being bundled out of the market by
aggressive advertisement done by industries and multi
nationals.
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9. Changing the labour laws: - The present labour

laws must be changed to have more flexibility and the
suitability for running a small scale sector.
10. Removal of inspector raj:- a small scale industry

generally a single man soul. He cannot find time to attend
all the inspectors visiting a small scale factory. The
inspector raj must be finished.
Conclusions can be taken considering above challenges. SSI

units in the following areas will have a bright future and
compete with the world class industries as these are the
area of our strength.
1. Tourism and hotel industry
2. Dairy industry
3. Food processing industry
4. Shoe and leather industry
5. Forging unit
6. Steel alloy casting
7. Plastic processing industry
SUMMARY
In recent decades the role of an entrepreneur has been

considered of very great significance in accelerating the
pace of growth and economic development in both the
developed and developing countries. An entrepreneur is a
person who perceives opportunities, organizes the
resources needed to exploit the opportunity and sets up an
enterprise. The process of setting up an enterprise is called
entrepreneurship.
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An enterprise is a business venture. It is an undertaking

that involves uncertainty and risk as well as innovation. An
individual has the right to choose any income generating
activity or self-employment or entrepreneurship as a career
option.
Functionally income generating and self-employment

activities are the initial sages of entrepreneurship.
Entrepreneurship is a discipline with a knowledge-based
theory. A person can learn and acquire the competencies of
becoming an entrepreneur and start a venture and make it
grow. So the myth that entrepreneurs are born and not
made can safely be dispelled.
PROJECT PROFILE
PRODUCT: ICE PLANT/ICE BLOCK
PRODUCTION CAPACITY
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Ice block of 120 kg, 60 no. of ice blocks/day
7.2 tonnes in every 24 hours (or per day)
@ M.C (Manufacturing Cost) Rs. 1.03/kg. for first 5 years and

Rs.
then 0.65/kg
@ S.P (Selling Price) Rs. 1.80/kg.
Annual production 2600 tonnes, sale = Rs 1.80 x 2600 x

1000
Annual sale = Rs.

46,80,000
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INTRODUCTION:
Water when made into solid mass by the action of

cooling is known as Ice. It is one of the essential modes for
short term preservation of highly perishable commodities
such as marine foods, fresh meat and poultry products, dairy
products, fruits and vegetables. These goods can be stored
for two to three days with ice which facilitates the
transportation of these foods to the consumer market. Ice is
also used in the chemical, pharmaceutical, canning and
freezing industries. It is being used for chilling synthetic fruit
beverages.
The complete ice making plant consists of:

• Ammonia Compressors
• Condensers / Heat Exchangers
• Ammonia Receiver
• Cooling Coil / Evaporator
• Chilling Tank
• Paneling (Electrical Equipments)
Ammonia Compressors:
• Ammonia compressors designed with state-of-
the-art technology for industrial & commercial
refrigeration and low temperature applications.
• Compressors are V belt driven and are suitable
to operate with Ammonia (NH3) & Freon [12 (CCl2F2),
22 (CHClF2)] as refrigerant.
• Robust construction, excellent performance and
power saving features and hallmarks of the
products.
Condensers / Heat Exchangers:
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Condenser is a heat transfer surface, generally which

are divided in to three types.
• Air Cooled Condenser: Employ air as the

condensing medium.
• Water Cooled Condenser: Utilize water to
condense the refrigerant.
• Evaporative Condenser: Use both air and water
as the condensing medium. The function of the air
is to increase the rate of evaporation by carrying
away the water vapor results from evaporation
process.
Ammonia Receiver:
• Ammonia receiver can control the supply and
demand relation between the condensers and the
evaporator, prevent excessive liquid ammonia from
staying in the condenser, and maintain a certain
level in the liquid receiver to prevent gas from
going into the liquid pipe line.
• The ammonia in the system can be stored in
the ammonia receiver to avoid loss of the ammonia
before the refrigerating system is repaired.
Therefore, the volume of the ammonia storage
should be considered before buying it.
Cooling Coil / Evaporator:

• Cooling Coil / Evaporator is used as heat
transfer surface in which a volatile liquid is
vaporized for the purpose of removing heat from
refrigerated space.
• V shape cooling coils are available in different
sizes, usually custom made to the individual
applications.
Chilling Tank:
Chilling Tank consists of three parts:
1) Ice Tank
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2) Insulation of Ice Tank

3) Ice Block
• Ice Tank:
Ice tanks are made of such material as wood, steel or
concrete. As wooden tanks do not last long enough and
are liable to leak, they should preferably be made of
steel well coated with waterproof paint. Tanks made of
reinforced concrete are also recommended as superior
to those of wood.
The ice tank contains the direct expansion coils, equally

distributed throughout the tank and these coils are
submerged in brine. The tank is provided with a suitable
frame of hard wood for support the ice cans and a
propeller or agitator for keeping the brine in motion: the
brine in the tank acts as a medium of contact only, the
ammonia evaporating in the ice coils extracts the heat
from the brine, which again absorbs the heat for the
water in the cans.
The tank itself should not be much larger than is

necessary to hold the cans, the coils, and the agitator.
About two inches should be left between the moulds and
three inches between the pipes and the moulds.
• Insulation of Ice Tank:

Insulation of the ice tank is accomplished by using
twelve to eighteen inches of good insulating
material on each of the sides and not less than
twelve inches under the bottom.
• Ice Block:
Commercial sizes of Ice cans vary with the weight of
ice cakes required. The cans are made to contain
about 5% more than their rated capacity to
compensate for thawing.
Dimensions Gauge Gauge

Size of Size of Plain or Weight Weight
of Steel, of Steel,
Ice Width Length Height Band Grooved per Can per Can
Galv. Galv.
50 6 12 28 1.5 Plain 18 25 - -
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50 8 8 31 1.5 Plain 18 25 - -
100 8 16 32 1.5 Plain 16 36 - -
300 11 22 48 1.5 Grooved 16 72 14 88
300 11 22 49 1.5 Grooved 16 74 14 90
300 11 22 50 1.5 Grooved 16 75 14 91
300 11.5 22.5 44 1.5 Grooved 16 69 14 84
300 11.5 22.5 46 1.5 Grooved 16 72 14 88
300 11.5 22.5 47 1.5 Grooved 16 73 14 89
400 11 22 63 2 Grooved 14 113 12 153
400 11.5 22.5 57 2 Grooved 14 106 12 146
Paneling (Electrical Equipments):

The Ice making plant must be furnished with electrical
control panel with compressor starter, all necessary
safety switches and pressostats, Voltmeter, Ammeter,
Temperature Sensor etc.
APPLICATIONS:
Ice Making plants are used in different applications like :
• Fisheries
• Hospital
• Chemical
• Pharmaceutical
MARKET POTENTIAL
MARKET POTENTIAL:
Except for upper middle class and rich households who

own refrigerators, there is hardly any households who are
not using ice during summer season in one form or other. It
is also used by the tea stalls, hoteliers, restaurants, clubs
and industrial houses for storage and chilling purpose. In
short, it is being used extensively in all urban areas, small
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towns or even villages. It is also used for preservation of fish

and other marine products. All over the country the ice is
used and in every state there are a good no. of Ice plants.
Ice plants have more scope in fish catching areas.
BASIS AND PRESUMPTION:
1. Eight working hours per day and 360 days per

annum has been considered for preparation of the
scheme.
2. 80% of the maximum capacity utilization of
machinery has been considered.
3. The cost of land and building and machinery are
taken as per the requirement of the entrepreneur.
4. Rate of interest has been considered as 12.5% per
annum.
IMPLEMENTATION SCHEDULE:
The time required for completing each activity of the

project will be as follows:
1. Project report preparation, selection of site

And provisional registration as SSI 3
months
2. Arrangement of land, selection of machines,

Approval of loan, placement of order for machinery
3 months
3. Land development, procurement of machinery

3 months
4. Erection and commissioning, trial, production
production and then commercial production

3 months
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TECHNICAL ASPECT
1. Process of Manufacture:
The process of manufacturing Ice is very simple. The

Ammonia or Freon gas coming from the cooling coil at low
temperature and pressure is compressed into liquid and is
passed through the cooling coils fixed in the freezing tank.
Due to the low boiling point of Freon/Ammonia it changes its
state from liquid to vapour and is condensed inside the
condenser.
The tank contains brine of 30% salt. The cold brine is

circulated by agitation to maintain uniform temperature
throughout the tank. The brine temperature is considerably
reduced to 15oF. This takes about 24 hours. After the brine
reaches the operating temperature, the ice cans are filled
with the water and are immersed inside the brine tank in
such a way that the level of the brine remains below the
level of the top of the Ice can. Due to the high freezing point
of water comparing to brine, the water in the can is solidified
at 30oF to form ice. To get solid clear ice, a small quantity of
air is passed into the cans. It takes about 18 hours to freeze
a 50 kg. can, 24 hours to freeze 70 kg. and 48 hours to
freeze 140 kgs.
2. Quality Control Standard:
As per ISI specification No.IS:3957.
3. Production capacity (Per Annum):

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Ice block of 120 kg, 60 no. of ice blocks/day
7200 kg in every 24 hours (or per day)
@ M.C (Manufacturing Cost) Rs. 1.03/kg.
@ S.P (Selling Price) Rs. 1.80/kg.
Annual production 2600 tons, sale = Rs 1.80 x 2600

x 1000
Annual sale
= Rs. 46,80,000
4. Pollution control:
As this product is manufactured from water there is no
pollution problem involved.
5. Motive Power requirement:
H.P. required: 50 HP.
FINANCIAL ASPECT
1. Land: 20,000 sq.ft. @ Rs.175/Sq.ft =

32,00,000
Shed area: 3,000 sq.ft @ Rs. 350/sq.ft

=10,50,000/-
Boring with waterpump =80,000/-
Overhead tank =
10,000
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Total
= 43,40,000/-
2. Plant and Machinery (with installation charges):
S.n Description Qty. Value

o
SECTION ‘A’ :
1. Kirloskar make Ammonia Two 3,00,000/p
compressor Model KC-3 with er
accessories as suction and
=
discharge and oil pressures
gauges “V” belts, motors pully 6,00,000/-
shide rails and foundation
incharge bolts
2. 75 HP Motor, make Kirloskar of Two 80,000/per
GFC slip ring, 1440 RPM 3
=
phase, 50 cycle 400/440 volts,
A/c supply each will be supplied 1,60,000/-
by us.
3. 75 HP, MEI or Kilborn or OCB or Two 25,000/per
BEE make oil immersed stater
=
suitable for the above motor will
be supplied by us 50,000/-
4. Oil separator made of 10 or 12 One 10,000/-
mm x 16” dia x 4’ length sheet
or seamless pipe complete with
all its fittings, etc. will be
supplied by us
5. Atmospheric type condensor Eight 2,00,000/-
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each set consisting of 12 pipes x sets

20’ long x 2” dia made out of
Tata made ‘C’ class heavy duty
Black pipe complete with water
spraying system will be supplied
by us
SECTION ‘B’ :
6. Ammonia receivers: One 50,000
Ammonia gas storing, receiver

made out of “C” class heavy
pipe or sheet 12 mm thickness
of 20” or 22” dia.x 16’ or 18’
longx10 or 12 mm thickness
complete with inlet outlet
charging valve, safety and
gauge valves, etc.
7. Cooling coils: One 1,40,000
Refrigeration Trunk or V type

cooling coil made out of 1.1/4.
Tata make ‘C’ class Black pipe
suitable for the above plant,
complete with accummulator
and inlet and out headers and
valve fittings.
8. Condenser Water pumps: One 25,000
7.5 HP Mono Block Centrifugal

water circulating pump, suitable
for operating on 400/440 volts, 3
phase, 50 cycles and 2800 RPM
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each etc. will be supplied by us.

9. Freezing tanks: Two. 2,50,000
Freezing tank made out of 5 mm

or 5.5 m/m thickness MS sheet
to accommodate 300 nos./Ice
cans of 11”x22”x48” lbs.cap.
complete with partition plate
each will be supplied by us.
10. Hand hoist crane: One 50,000
Hand hoist crane with 1 no. side

trolly Central Joise and side rails
will be supplied by us.
11. Agitators: Two. 20,000
14” size – Agitator, Vertical type

complete with Belt, Motor pully
and foundation railing will be
supplied by us.
12. One lot insulation for insulating One. 50,000
freezing tank with 4” thickness
thermocol bitomine etc. will be
supplied as per our requirement.
13. Ammonia valves flanges and One. 63,000
pipe fittings for Inter connection
of compressor, condenser, oil
separator receiver and cooling
coil, based on hook up of
equipments as per requirement
to complete the plant, etc. will
be supplied
14. 5 H.P. Kirloskar make, squirrel Two. 22,000
gauge induction motors suitable
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for operation on 400/440 volt, 3

phase, 50 cycle, 1440 RPM with
Delta starter for agitators, etc.
15. Electrical Panel board: 50,000
Panel board including all the

main switches, starter, Ampere
meter, Voltmeter, select
switches, indicating lamps,
cables to inter connect all the
equipt.,etc. will be supplied.
SECTION ‘C’ :
16. One lot Ice cans 120 nos. Ice 1,80,000
made out of 18 gauge of G.I.
sheet of 11”x22”x48” size fitted
with heavy bending steel plate
will be supplied.
17. One lot of G.I. pipe and pipe . 25,000
fittings for condensor water
circulating pump and
compressor Jacket cooling, etc.
will be supplied
18. One lot wood for making 60,000
wooden frame and covering Ice
Can Kanchcha of the chilling
tank will be cost for 2 nos. tanks
will be supplied.
19. One lot Brain water of 5,000
Hydrometer and thermometer
will be supplied
20. One lot Ammonia gas 40,000
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Compressor oil and Transformer

oil for operating the plant for the
first charge will be supplied
21. One lot common salt: For the 25,000
first charge of the common salt
in both tanks to make brine
water solution will be supplied
22. One lot insulation material, 60,000
thermocole, Bitumen etc. will be
supplied
23. Erection testing and
commissioning charges will be
of Rs.80,000/-
24. Ammonia charging hoise, etc. 1,000
25. Transportation charges will be 40,000
extra as per actual billings
26. Ammonia 10,000
27. One Transformer of 150 KV/400 2,50,000
Volts comp. With main Cable
installation connecting the same
with one panel board, made of
some reputed company will be
supplied
TOTAL: Rs.26,41,0
00
Transport charges @ 10% 2,63,10
0
Installation charges @ 10% 2,63,10
0
Total: Rs.31,67,2
Ice plant
Page 30
00
PRE-OPERATIVE EXPENDITURE:
Project profile 300
Telephone connection 3000
Travelling expr. 4000
Office Stationery 5000
Water distribution & pipe line works

40,000
Electrification 30,000
Other misc. expr. 500
82,800/-
TOTAL FIXED INVESTMENT = 43,30,000+31,60,200+82,800
= Rs.75,90,000
WORKING CAPITAL ANALYSIS:

A. Raw Material (P.M.):
The raw material used to prepare Ice block are water

and ammonia. Water is collected by using motor from
boring. Ammonia gas is charged once in a year. The
average ammonia consumption per month is 1500/-.for one
set of machinery
Common salt,vice bran etc = 2000
Ammonia = 4000
Lubricants for motor,etc. = 500
Ice plant
Page 31
= 6,500/-
B. UTILITY (P.M.):
To make 7.2 Ton ice per day:

Electricity40,000 KWH @ 5
2,00,000
C. OTHER CONTINGENT EXPR. PER MONTH:
Stationery = 1000
Telephone = 2000
Maintenance = 2000
Insurance = 5000
Misc. expr. = 2000
= 12000
D. STAFF AND LABOUR PER MONTH:
S.no. Designation No.

Salary
1) Supervisor two
15000
2) Technical person two
12000
3) Skilled workers four
24000
Ice plant
Page 32
4) Unskilled workers four

16000
5) Watchman two
4000
71,000/-
Working capital per month =

6,500+2,00,000+12000+71,000=2,89,500/-
CAPITAL INVESTMENT :
Fixed capital
75,80,000
Working capital (one month)

2,89,500
78,69,500/-
COST OF PRODUCTION (PER ANNUM):
Total recurring expdr. and other
Material cost
=30,000/-
Labor cost
=8,52,000/-
Ice plant
Page 33
Direct cost
=1,44,000/-
Depreciation on machine and construction =1,08520/-
Electric bill
=4,06,250/-
Insurance and taxes

=1,44,000/-
Interest on total invt. @ 20% =

10,00,000/-
TOTAL COST OF PRODUCTION = Rs.

26,84,770 /-
Cost of unit of Ice = 26,84,770 /2600000=1.03/kg
After loan payment = 16,84,770/2600000=0.65/kg
TURNOVER (PER YEAR) :
Ice block of 120 kg,
TOTAL 2600 ton. @ Rs.1.80/kg.(turnover) = 46,80,000/-
PROFIT: 46,80,000 – 26,84,770 =19,95,230/-
PROFIT RATIO = Profit x 100 = 19,95,230x100 = 42.63 %

Turnover 46,80,000
RATE OF RETURN = profit x 100 = 19,95,230x100 = 26.29%

Investment 78,90,000
Ice plant
Page 34
BREAK EVEN ANALYSIS:
Fixed cost:
Total Depreciation = 1,08,520
Interest on capital invt. = 10,00,000
Annual salary(nonproductive) = 3,72,000
Insurance and taxes = 1,44,000
TOTAL =16,24,520/-
Variable cost:
Direct cost =1,44,000
Direct material =30,000
productive salary =4,80,000
Electric bill =4,06,250
TOTAL =10,60,250/-
Total sell = fixed cost +variable cost + profit

=16,24,520 + 10,60,250 + 19,95,230
=46,80,000
Break Even Point = Total sell * fixed cost
Total sell – variable cost
= 46,80,000 * 16,24,520
46,80,000 – 10,60,250
= 21,00,353.23/-
Ice plant
Page 35
CONCLUSION
The main reason for planning for establishment of ice

manufacturing firm is because it is highly profitable, it has
lower capital investment.
Therfore, money invested can be recovered quickly and high

profits can be released within a couple of years of setting of
the business.
This project will be successfully implemented within the 3

months after approval of concerned authorities. The
commercial production from the unit may be started within 6
months of approval if everything goes right.
Ice plant
Page 36
During real time implementation of the project, the different

management techniques may be implemented to reduce the
set up cost and different overhead expenses may be avoided
by suitable industrial engineering methods. This project is an
analytical representation of data collected from various
sources. So, during real time implementation further
clarification must be done to make a successful project.
BIBLIOGRAPHY:
1. M/s. Bhubaneswar Ice Factory, Mancheswar

Industrial Estate, BBSR.
2. M/s.Frick India Ltd.,Poonam Bldg., 5/2 Russel
Street,Calcutta-71.
3. M/s.Asian Refrigeration, 9/2 Temple Street,
Calcutta-700072.
4. M/s.Guru Nanak Refrigerators Corpn., 18/30,
St.No.5 New Rohtak Road,New Delhi.
5. M/s.Refrigeration Trading Co., At/PO-
Nischintakoili,Near Kalyani Talkies, Dt.Cuttack.
Ice plant
Page 37
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Page 38

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Entrepreneurship Project: Ice plant

INSTITUTE OF TECHNICAL EDUCATION AND RESEARCH

DEPARTMENT OF APPLIED ELECTRONICS & INSTRUMENTATION

We take this opportunity to express our hearty thanks to all

We are thankful Mihir Mohanty, H.O.D, Department of AE & I

We also acknowledge the continuous encouragement

2. SWAPNA SOURAV ROUT

3. SARIT KUMAR SI …...

4. JAYANT KUMAR MUDULI …..

5. SOURAV PRASAD KANUNGO …….

6. MANAS RANJAN BISWASRAY ……………………………………………….

2. CONCEPT AND DEFINATION

6. CHALLENGES FOR ENTREPRENUERSHIP PROJECT

11. TECHNICAL ASPECT

12. FINANCIAL ASPECT

13. WORKING CAPITAL ANALYSIS

14. CAPITAL INVESTMENTS

15. COST OF PRODUCTION

16. TURN OVER PER YEAR

17. BREAK EVEN ANALYSIS

During final semester of B.TECH in AE&I ENGINEERING as a

Our entrepreneurship project is associated with

While preparation of this project every care has been taken

Do you know that there are millions of unemployed youth in

family nor did he possess an MBA degree and yet, he is a

simply an entrepreneur is someone who perceives

CONCEPT AND DEFINITIONS

So let us see- is setting up one’s business that simple

An entrepreneur is a person who starts an enterprise. He

Entrepreneurship can be described as a process of action, an

Entrepreneurship is a philosophy- it is the way one thinks,

Entrepreneur is a person who starts an enterprise. The

An entrepreneur frequently has to wear many hats. He has

1. Innovation: Innovation is one of the most

2. Risk and uncertainty bearing: According to

3. Organization building: An entrepreneur has to

His vision sows the seeds for a sound and vibrant

According to Kilby in a developing country even the imitator

I. Perception of market opportunities

II. Gaining command over scarce resources

III. Purchasing inputs

IV. Marketing the products

V. Dealing with bureaucrats

VI. Managing human relations within the firm

VII. Managing customer and supplier relations

VIII. Managing finance

IX. Managing production

X. Acquiring and overseeing assembly of the factory

XI. Industrial engineering

XII. Upgrading process and product

XIII. Introducing new production techniques and

2. Willingness to accept responsibility for one’s own

3. Failure must be accepted as a learning

5. Acceptable results are more important than

It is expected from entrepreneurs that they will help :-

1. Increase number of industries

4. Earn foreign exchange through exports

5. Develop the underdeveloped parts of the country

Challenges of the entrepreneurship

Challenges the entrepreneurship project:-

1. Technology up gradation: - it is found that our

2. Testing facilities: - because of small scale

towns should be equipped to provide testing facilities to