ICE CREAMS

1. Introduction
Ice Creams a favorite among all children and a delicacy on all occasions.
They are highly nutritive because of the milk content and highly energizing
because of the fat. Especially in a warm climate like ours, ice creams can be
consumed right round the year.
2. Market
The major market outlets are the restaurants and ice cream parlours. It
also finds placement in self service counters and departmental stores. Bakeries
also sell ice creams.
3. Packaging
Ice Creams are packed in cups of 50 ml and 100 ml capacity. In addition
carry packs of 500 ml and 1 litre are available.
4. Production capacity
The plant will be in operation for one shift a day.
The total quantity of milk processed per day is 250 litres which on aeration
will yield 500 litres of ice cream.
The yield of ice creams per annum will be 1.5 lakh litres.
The time period required for achieving full capacity utilisation is one year.
5. Sales revenue
With an ex-factory selling price at Rs. 85.00 per litre, the total sales revenue
will be Rs. 127.50 lakhs.
6. Production process outline.
The milk received in cans is first chilled in the can cooler. It is then
pasteurized in the pasteurizer. The pasteurized milk is taken to the homogenizer,
where the required quantities of skimmed milk powder, whole milk powder,
sugar, flavours, emulsifiers, etc., are added and the mix prepared.
The mix is homogenized thoroughly and aerated till the homogenized
mass gives twice its volume. Simultaneously, the mass is chilled. It is then
transferred to a vat where it is allowed to mature and over run under chilled

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conditions. It is then transferred to the batch freezer for freezing, followed by
storage under refrigerated conditions.
7. Quality specifications
It shall be prepared from cow or buffalo milk.
Milk cream, whole milk powder, skimmed milk powder can be added.
Only sugar, dextrose, invert sugar, liquid glucose, either singly or in
combination can be used as sweetening agents. Artificial sweeteners are
prohibited from being added.
It can also contain eggs, fruits, fruit juices, preserved fruits, nuts, chocolate,
edible flavours, and permitted food colours.
Ice creams may contain stabilizing agents not exceeding 0.5% by weight.
The product should be free from mold and fungal growth.
It should be free from any fermented odour, coliforms, salmonella and
streptococci bacteria.
The mixture containing milk and other ingredients shall be suitably heated
before freezing.
Ice cream shall contain a minimum of 10% milk fat, 3.5% protein and 36%
total solids.
8. Pollution control measures
Not necessary as there are no pollutants or effluents.
9. Energy conservation measures
Common measures will do.

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10. Land and construction cost for the proposed unit
The proposed unit is to be set up in a leased area. The total area required
is 2500 square feet as described below:
Sl Description Sq. feet
1 Processing area 1000
2 Raw material store (milk store room) 200
3 Raw material (others store room) 100
4 Packing material store 100
5 Finished goods store 200
6 Laboratory space 200
7 Machinery spares room 100
8 Administration office 200
9 Toilet space 200
10 Miscellaneous space 200
11 Total 2500

Lease rent Rs. 8.00 per square foot

Total rent per month Rs. 20000
Lease advance Rs. 100000

11. Costing of machinery and equipment

Sl Description Rs. lakhs
1 Can cooler for chilling milk cans received
from farms
2 Pastuerizer
3 Homogenizer
4 Chiller
5 Aging vat
6 Batch freezer
9 Total 10.240
10 Laboratory equipment 0.600
11 Grand total machinery and equipment 10.840

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12. Project cost
Sl Description Rs. lakhs
1 Land On lease
2 Civil works On lease
3 Plant machinery 10.240
4 Laboratory equipment 0.600
5 Transport vehicle (refrigerated mini van) 7.500
6 Pollution control equipment 0.000
7 Energy conservation equipment 0.000
8 Cost of power connection 0.150
9 Cost of electrification 0.300
10 Erection and commissioning 1.000
11 Cost of machinery spares 0.200
12 Cost of office equipment 1.000
13 Deposits if any 0.500
14 Company formation expenses 0.100
15 Gestation period expenses 1.000
16 Sales tax registration expenses 0.100
17 Initial advertisement and publicity 10.000
18 Contingencies 0.500
19 Working capital margin money 2.000
20 Total 35.190

13. Working capital requirements per month

a. Salaries and wages
Sl Description No of Total
persons salary /
month
(Rs. lakhs)
1 Production Manager 1 0.150
2 Production supervisor cum 1 0.100
chemist
3 Skilled workers 2 0.120
4 Unskilled workers 4 0.120
5 Packing workers 2 0.060
6 Administrative staff 1 0.100
7 Driver 1 0.060
8 Total 12 0.710

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b. Raw material requirement per month
Sl Description Qty Rate / kg Value
(kgs) (Rs) (Rs. lakhs)
1 Milk 3750 14.00 0.525
2 Whole milk powder 500 180.00 0.900
3 Skimmed milk powder 500 140.00 0.700
4 Emulsifiers, stabilizers 30 200.00 0.060
5 Sugar 1500 17.00 0.255
6 Flavours 6 200.00 0.012
2 Total raw material 6286 2.452

c. Packaging material requirement per month

Sl Description Qty Rate / unit Value
Rs) (Rs. lakhs)
1 Primary packaging 125000 1.50 1.875
material cups with lid nos
2 Cartons and straps 12500 nos 10.00 1.250
3 Total 3.125
Total raw + packaging material - Rs. 5.577 lakhs

d. Utilities per month

Sl Description Rs. lakhs
1 Power 6000 kwh @ Rs. 5.50 per unit 0.330
2 Water 0.050
3 Refrigerants 0.250
4 Total utilities 0.630

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e. Contingent expenses per month
Sl Description Rs. lakhs
1 Rent for processing shed 0.200
2 Postage and stationery 0.010
3 Telephones, fax etc. 0.050
4 Consumable stores 0.020
5 Repairs and maintenance 0.100
6 Local transports, loading and unloading 0.100
7 Advertisement and publicity @ 10% of sales 1.000
8 Insurance 0.008
9 Sales expenses @ 1% of sales 0.100
10 Miscellaneous expenses @ 1% of sales 0.100
11 Trade incentives @ 2% of sales 0.200
12 Taxes @ 4% 0.400
13 Total contingent expenses 2.288

f. Total working capital requirement per month

Sl Description Rs. lakhs
1 Salaries and wages 0.710
2 Raw material and packaging material 5.577
3 Utilities 0.630
4 Contingent expenses 2.288
5 Total 9.205

14. Means of finance

Sl Description Rs. lakhs
1 Total Project Cost 35.190
2 Equity 11.730
3 Debt 23.460
4 Working capital margin money 2.000

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15. Financial analysis
Sl Description Rs. lakhs
1 Total recurring cost per year 110.460
2 Depreciation on land and building 0.000
3 Depreciation on machinery and vehicle 1.830
4 Depreciation on furnaces 0.000
5 Depreciation on moulds and fixtures 0.020
6 Depreciation on office equipment 0.100
7 Interest on long term loan @ 12% 2.815
8 Interest on short term borrowings@ 12% 0.865
9 Total cost of production 116.090

16. Turnover per year

Sl Item Qty Rate/unit Total

(Rs) Rs. lakhs
1 Ice Cream 150,000 kgs 85 127.50

17. Viability analysis

Sl Description Value
1 Net profit before income tax (Rs. lakhs) 11.410
2 Net profit ratio 8.9%
3 Internal rate of return 26.6%
4 Break even percentage 41%
5 Debt service coverage ratio 2.268

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List of machinery suppliers for Ice Creams

1. A.B. Industries, Shivaji Somajini Chawli, Near Agarwal Ice Factory,

Maherdikuva, Dudheshwar Road, Ahmedabad 380004. Gujarat.; Tel:
25625619
2. Akshay Industries, 107, Rajshree Industrial Estate - II, Chitalsar, Manpada,
Ghodbunder Road, Thane West, Mumbai. 400607. ; Tel: 022 - 25435838;
Fax 022 - 25335188
3. Dairy Den Limited, A - 29, GIDC Industrial Estate, Sector 25, Gandhinagar
382044, Gujarat.; Tel: 02712 - 232421; Fax: 02712 - 2227716
4. Heat and Control Private Limited, 3, Anurag, G - 131, 1st main Road, Anna
Nagar East, Chennai 600102. ; Tel: 044 - 6631455; Fax: 044 - 26631466
5. Indian Dairy Equipment Company Limited, Plot No. 124 / 128, GIDC Estate,
Vithal Udyognagar 388121, District Anand, Gujarat.; Tel: 02692 - 236148;
Fax: 02692 - 236164
6. Indian Foods Private Limited, 171, K.K.Nagar, Madurai 625020, Tamil Nadu. ;
Tel: 0452 - 2537776; Fax: 0452 - 2537511
7. P.W.S. Engineers Private Limited, Post Box No. 62, Anand Sojitra Road,
Anand 388620, Gujarat. ; Tel: 02692 - 261948; Fax: 02692 - 261716
8. R.P.M. Engineers, 14 NP Developed Plots, Thiru - Vi - Ka Industrial Estate,

Ekkatuthangal, Chennai 600097.; Tel: 044 - 22325596; Fax: 044 - 22321639