COSTING ASSIGNMENT

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Cost Sheet Analysis of Amul Ice-cream

SANTANU DAS SAHIL SUHAG GAVESHA KEERTY

VISHAL B PATIL RAHUL SHETTY AKASH AGARWAL
Microsoft

The ice cream market growth picked up after de-reservation of the sector in 1997. Some statistics about the company:The Turnover of Amul was Rs. followed by 30% in the north and 20% in the south.1200 Crores · Ice Cream market is growing at 26% (yoy) Major players 1.Chennai Based Hatsun Agro Product Few Brands/ Target Consumers 1. Future is bright for ice-cream industry in India.Market Leader with share of 36% 2.7 million No. 52. Youth Centric . Kids . New technologies and freezers are the main force behind the development.141 Total Milk handling capacity: 10.Moo 3. Health Conscious . PUNE COSTING ASSIGNMENT OVERVIEW OF ICE-CREAM INDUSTRY History The ice cream industry is mainly governed by the prevention of food and adulteration act (PFA)1954 in India. Amul . Arun . Members: 13 district cooperative milk producers' Union No. of Producer Members: 2. Teenagers . Mother Diary 4.SYMBIOSIS INSTITUTE OF INTERNATIONAL BUSINESS.55 billion in 2007-08. Almost 40% of the ice creams sold in the country are consumed in the western region with Mumbai being the main market. of Village Societies: 13. there are thousands of small players who produce ice. kulfis / ice creams made by small / cottage industry are popular.2nd biggest player 3.creams / kulfis in their home backyard and cater to the local market.Kwality Walls . Production–area In rural areas.Chillz 2. Industry Snapshot · Market Size .Cornetto 4.Amul Sugarfree & Pro-Life About the company Amul Gujarat Cooperative Milk Marketing Federation:Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's larges food products marketing organization. The market for organized sector is restricted to large metropolitan cities. It is a state level apex body of milk cooperatives in Gujarat which aims to provide remunerative returns to the farmers and also serve the interest of consumers by providing quality products which are good value for money. HLL .21 million liters per day 1|Page . In small towns and villages. History of Indian ice-cream industry is very old started in un-organized sector and mainly the popular product was kulfi.

Cassatta) · Utterly Delicious . · Amul Cheese. Amul ice creams entered Mumbai followed by Chennai in 1998 and Kolkata and Delhi in 2002.(Mango. Fresh Strawberry. Frostik. PUNE COSTING ASSIGNMENT Milk collection (Total . Chocolate. Sundae Magic. Black Currant. This position was achieved in 2001 and it has continued to remain at the top. Megabite. Roasted Almond) Nature's Treat . Ice cream range · Royal Treat Range . Fresh Pineapple) · Sundae Range. Rajbhog. The brand name "Amul. Fruit Bonanza. Some facts about the Amul ice cream · Amul Ice Cream was launched on 10th March. quality of products and of course the brand name. · Amul Shrikhand.SYMBIOSIS INSTITUTE OF INTERNATIONAL BUSINESS. Today Amul is a symbol of many things. Amul Milk and · Amulya have made Amul a leading food brand in India.(Kaju Draksh.4 million liters Milk Drying Capacity: 626 Mts. cupsas well as take home packs and institutional/catering packs.(Vanilla." and was suggested by a quality control expert in Anand. · Amul Ice creams. Malai Kulfi) · Nut-o-Mania Range (Kaju Draksh. Strawberry.2007-08): 2.(Butterscotch. Fruit Bonanza.69 billion liters Milk collection (Daily Average 2007-08): 7. cones. · Amul Butter.(Choco bar. Roasted Almond) · Royal Treat Range . Chocochips.high quality products sold at reasonable prices. 1996 in Gujarat. AMUL means"priceless" in Sanskrit. · Amul Ghee. Black Currant. Mother Dairy and achieved the No 1 position in the country.(Butterscotch. genesis of a vast co-operative network. Fresh Litchi." comes from the Sanskrit word "Amoolya. · The portfolio consisted of impulse products like sticks. Ice Candies. Tricone.(Alphanso Mango. Malai Kulfi) · Nut-o-Mania Range .Has combated competition like Walls. the triumph of indigenous technology. Cake Magic) 2|Page . · Amul Milk Powder. Various products under the brand name Amul Amul products have been in use in millions of homes since 1946. Rajbhog. Dollies. Choco crunch. Shahi Anjir. · Nutramul. Kesar Pista Royale. · Amul’s entry into ice creams is regarded as successful due to the large market share it was able to capture within a short period of time – due to price differential. the marketing savvy of farmers' organization and of a proven model for dairy development. Santra Mantra. Kesar Pista Royale. · Today the market share of Amul ice cream is 38% share against the 9% market share of HUL. Nationally it was rolled out across the country in 1999. thus making it 4 times larger than its closest competitor. · In 1997. per day Cattle feed manufacturing Capacity:3090 Mts per day AMUL --the brand:Amul -the age old brand brand belongs to (GCMMF). · Amul Chocolates. Double Sundae) · Assorted Treat .

39. PUNE COSTING ASSIGNMENT Manufacturing Units        Mother Dairy.50.500.30.00 1.00 2.000.000.000.50.000.000.00.00 5.00 2.00 3.00 3.00 2.00 3.50 8.388 110.000.000.00.00 1.000.50. Amul Cost Sheet Particulars opening stock Raw materials Dry fruits Milk Flavors Other ingredients Sugar Cup Cutlery Seasonal fruits Waffle Cocoa Carriage inward Raw materials Consumed Direct expenses Direct labour Cost per Unit (Rs.00 3.75 1. India.00 9.00 50.50 1. Tarapur – 401 506.00 10.05.000.00 60.000.00 1.50 1.000. Palanpur – 385 001.84.000.) 10.000.40 10.00 32.00.50 3.00 1.500.) 10.05 40.00.20.000. Anand.00 3.000.05. India.50 1.00.50.20 5.00 1. Banas Dairy.00 3|Page .50. India.00 2.00 1. Vasundhara Dairy.00 2. India Dairy Products Ltd. Dudhmansagar Dairy.000. Manesar – 112 020.000.75.85 33.50 2.00 1.00. India.00 1.000.00 70.00 9.00 1. India.00 Prime cost Factory overheads Fixed: Depreciation Rent Power Insurance Supervisor's salary Variable: Electricity Works cost Office over head Employee cost 40.00 50.00 2.84. Baroda Dairy.000.60 0.000.50 1.00.00.50.00.000. Vidya Dairy. Vadodra – 390 009.85 2. India.000.50 0.00 2.500.00 2.000.00 1.000.50. India.30 Amount(Rs. Chanditala – 712 702.00 1.00 33.05 50. Bhat – 382 428.00 1.00.000.70 1.00 0.SYMBIOSIS INSTITUTE OF INTERNATIONAL BUSINESS.

7650568. 18.92.000.000.500.000. 4|Page .000.00 1. 74.30 1.29. Since the company is earning some amount of profit. PVR=C/S= 2671750/9256250=28.40 0. These profits can be ploughed into the business again to create more output.5625 which includes the cost of a cup ice cream at Rs.00.00. 74.05 Which again Implies that the Profit of Rs. Since the company is earning some percentage of Profit above the cost.26 BEP (In units)= FC/C=2195000/2.86=16519.75.86=Rs.20 62.7405000 and the total cost sales profit being made is Rs.) = FC/ PVR=2195000/28.51 74.56.00 Cost Sheet Analysis   The Company is producing 100000 units of ice cream at Rs.75 0.000.250.00 3.00 10.20 0.00 74.00 64.51.000.30 2.67175=821558.00 62.56 4.00 20.00 2.05.5125 is earned on a single unit of Amul Ice Cream. The Company is producing a single cup of ice cream at Rs .00 50.9=821559 MOS= Profit/ PVR= 476750/28.50 92.SYMBIOSIS INSTITUTE OF INTERNATIONAL BUSINESS.500.50.10 0.000.00 4.00 18.404        Determination of selling price    Amul Ice cream has marked the selling price of their product roughly 20% above the cost price. PUNE COSTING ASSIGNMENT Other expenditure computer Telephone Taxes Carriage outward Cost of production Opening stock Closing stock Cost of goods sold Selling and distribution expenses Advertisement Delivery Vehicles Petrol Packaging Cost of sales Profit Sales 1.00 3.05 18.00 92.000.000.20.00 64.05 Which the total cost incurred is Rs. 1851250.250. This implies that they are making a profit on each unit of output that is sold.500.29.00 40.50 1. the business is capable to expand and diversify over a period of time. it means a slight increase in the cost will not have too much of an effect on the profit since there is a large margin of safety.86% BEP (in Rs.

PUNE COSTING ASSIGNMENT Facts  The portfolio consisted of impulse product like sticks. References: Star Industries Phone: 9922008253 Jai Shankar Dairy Phone: 020 -+27457440 Ambika Dudhalaya & Pavan Transport Phone: 9823597410 5|Page . Mother Dairy and achieved the No 1 position in the country. Nationally it was rolled out across the country in 1999. Today the market share of Amul ice cream is 38%.  Amul’s entry into ice cream is regarded as successful due to the large market share it was able to capture within a short period of time. cones.  Has combated competition like Walls. Amul ice creams entered Mumbai followed by Chennai in 1998 and Kolkata and Delhi in 2002. cups as well as take home packs and catering packs.SYMBIOSIS INSTITUTE OF INTERNATIONAL BUSINESS.  In 1997.

SYMBIOSIS INSTITUTE OF INTERNATIONAL BUSINESS. PUNE COSTING ASSIGNMENT 6|Page .