EXECUTIVE SUMMARY

INTRODUCTION
The history of ice cream begins in China. About 3,000 years ago the Chinese the invented the
first type of ice cream which is now referred to as snow ice cream. However, what they really
invented was closer to water ice, frozen sugar syrup with flavor and color, or fruit ice, similar to
water ice, but made with real fruit juice. Ice cream did not evolve into what it is today until it
was brought to Europe by Marco Polo in 1295. The recipe for ice cream was given as a gift to
royalty throughout Europe. The recipe changed as it went from country to country. Therefore, it
is impossible to determine which country is responsible for the modern recipe for ice cream.
Since the discovery of the modern recipe for ice cream, there have been advances in the
production of ice cream and the creation of hundreds, if not thousands, of different flavors.

Similar to all over the world, Bangladesh is also no exception. In Bangladesh, ice cream is loved
by all the people of different ages. With the fast growing RMG, Pharmaceuticals and steel
industries, there are some new industries too which can be considered industries of the future.
Among them, Ice Cream industry is most important. The first branded ice cream, Igloo, was
introduced in 1964 in the national region, which was later nationalized right after the liberation
of Bangladesh. Later during the early 80’s it was acquired by Abdul Monem Ltd. In 1987, Polar
entered the market creating the first rivalry. But after 10 years since privatization, Igloo got to
be the market leader after conducting heavy promotional campaigns. Since then it has retained its
position among all major domestic and foreign brands in the market. However, Igloo has been
losing share to Polar and the new entrants in the industry over the past few years.
 BACKGROUND

 Industry Background
The growth of the industry can be attributed to a few factors: growing middle class, improving
electricity conditions, the hot and humid weather of Bangladesh and the improved distribution
network. The ice cream market is an oligopoly. The major player in the market is Igloo. The
pioneering ice-cream company in Bangladesh started its operation in 1964 in Chittagong. The
company is now the market leader since 1997 with clear market share victory over others with
45-50% market share. However, Igloo has been losing share to Polar and the new entrants in the
industry over the past few years. The industry is currently growing at a rate of 19%. Branded
common format is dominated by Igloo with more than 51% share with followers like Kwality
and Polar where Milk Vita and Savoy are minnows. Boutique segment is competed by Club
Gelato (20% share), MövenPick, Andrsen’s (3 outlets) and Gelateria Igloo (3 outlets). These
three have around 17% share. The market is characterised by low competitive rivalry where
Dhaka still contributes to more than 61% of total country’s sales. This is due to issues regarding
electricity and requirement of cold distribution chain by the industry. There are still huge
untapped areas of the country. However, the industry is extremely capital intensive and there are
lots of entry barriers. Only manufacturers with large capital can invest and thus there has been no
big player in the common format segment since Kwlaity (1999). Kwality belongs to parent group
Sanowara. It is not a major competitor in the industry as they are not very aggressive with their
marketing tools, distribution network and product offering. They are present mainly in
Chittagong and Noakhali and have a very minute presence in Dhaka. Bellissimo is a relatively
new player in the ice cream market, they commenced operations in 2013. They belong to Kazi
Farm Group Ltd. Bellissimo is different from all the other brands in the industry because they
produce premium quality ice cream and hence are not competitive in terms of price with the
other players. They currently hold 5-6% of the market share. The entry of Bellissimo has
changed the dynamics of the industry as it introduced many different new types of ice creams.
The market players are now shifting focus towards offering a wide range of products.
  Company Background
Polar came into being in 1987 from parent company Dhaka Ice Cream Industries Ltd. They are
pioneers in the hygienically produced and packaged ice cream section of Bangladesh. Polar faced
some internal management and financial difficulties and in 2009, the ownership changed from
Dhaka Ice Cream Industries Ltd. To Urban Development and the entire brand changed along
with it. A major revamping of the brand and its products took place which got massive responses
from the consumers taking which is reflected in their market share of 30-33%. Polar’s range
extends to a wide range of popular SKUs like Chocobar, Doi, Kheer, Butter Bite, Carnival,
Fruital etc. in array of delicious tastes and flavors. Dhaka Ice Cream Industries Ltd. Is the first
ice cream industry in Bangladesh which achieved ISO 22000:2005 certificate for maintaining
outstanding standard in manufacturing sales and distribution of ice cream. Polar Ice Cream has
50% automation process up until now but they have a plan of going into 70% automation process
in their new factory which will be completed within 2020 to support their continuous growth.
 COMPANY OPERATION
 Production Process Overview
 According to 7 days’ production plan officer, operator, supervisor requisite raw and
packaging material for 24 hours in the store.

 Then mixing process starts which was according to BSTI and

CODEX Standard. The mix is made according to company’s unique
recipe. Some basic parameter like pasteurization temperature, mixing temperature are
followed while mixing.

 After that mixture goes into a tank which was labelled mixture not ready
for product. Then QA department check it. After that color flavor added to mixture.
Then mixture will be ready for production.

 Then QA Department again review the product and check batch no, mfg. date, exp.
date, MRP etc. Throughout the production running time Manufacture team and
officers check everything within every 20 minutes and gives clearance report.

 When production is ready assigned persons count every product and then handover it
to the distribution department.
  Process Map

START

Requisition
Mixing The Yes
of Raw QA
Raw Materials
Materials Check

No

Cooling Homogenization Pasteurization of Mix

Waiting
for the
Defective
Goods
QA Yes
Check Ageing Adding Color and
Flavor

No
 Continuous Freezing
Hardening Adding
Particulate Batch Freezing

Packaging QA Storage
Check Distribution
Yes
No

 Process Map Detail END

 Requisition of Raw Materials: Before starting the production process, the production
department evaluates the target set by the top management and according to that they request
for Raw Materials needed to Supply Chain Management Department. Typically, the
production department requests for 7 days’ worth raw materials needed for production.
 Mixing the Raw Materials: The first step in ice cream making is formulating a suitable mix.
The mix is composed of a combination of dairy ingredients, such as fresh milk and cream,
frozen cream, condensed or dried skim, buttermilk, dairy whey, or whey protein concentrate.
Sugars may include sucrose, corn syrup, honey, and other syrups. Stabilizers and emulsifiers
are added in small amounts to help prevent formation of ice crystals, particularly during
temperature fluctuations in storage.
 Quality Assurance Check: The mixing then checked by the persons responsible for
maintaining the Quality Assurance. If there is no problem found, then the production process
continues. But if any deviation is detected in the quality of the mix then the production
process stops instantly and the Raw Materials and machines are being checked for the source
of the problem.
 Pasteurization of Mix: The mix is then pasteurized. Pasteurization is the biological control
point in the system, designed for the destruction of pathogenic bacteria. In addition to this
very important function, pasteurization also reduces the number of spoilage organisms such
 as psychrotrophs, and helps to hydrate some of the components (proteins, stabilizers).
Pasteurization (Ontario regulations): 69° C/30 min. 80° C/25s.
 Homogenization: The mix is also homogenized, which forms the fat emulsion by breaking
down or reducing the size of the fat globules found in milk or cream to less than 1 µ m. Two
stage homogenization is usually preferred for ice cream mix. Clumping or clustering of the
fat is reduced thereby producing a thinner, more rapidly whipped mix. Melt-down is also
improved. Homogenization provides the following functions in ice cream manufacture:
 Reduces size of fat globules
 Increases surface area
 Forms membrane
 makes possible the use of butter, frozen cream, etc.

By helping to form the fat structure, it also has the following indirect effects:

 makes a smoother ice cream

 gives a greater apparent richness and palatability
 better air stability
 increases resistance to melting

Homogenization of the mix should take place at the pasteurizing temperature. The high
temperature produces more efficient breaking up of the fat globules at any given pressure and
also reduces fat clumping and the tendency to thick, heavy bodied mixes. No one pressure can be
recommended that will give satisfactory results under all conditions. The higher the fat and total
solids in the mix, the lower the pressure should be. If a two stage homogenizer is used, a pressure
of 2000 - 2500 psi on the first stage and 500 - 1000 psi on the second stage should be satisfactory
under most conditions. Two stage homogenization is usually preferred for ice cream mix.
Clumping or clustering of the fat is reduced thereby producing a thinner, more rapidly whipped
mix. Melt-down is also improved.

 Ageing of Mix: The mix is then aged for at least four hours and usually overnight. This
allows time for the fat to cool down and crystallize, and for the proteins and polysaccharides
to fully hydrate. Aging provides the following functions:
  Improves whipping qualities of mix and body and texture of ice cream

It does so by:

 providing time for fat crystallization, so the fat can partially coalesce;
 allowing time for full protein and stabilizer hydration and a resulting slight viscosity
increase;
 allowing time for membrane rearrangement and protein/emulsifier interaction, as
emulsifiers displace proteins from the fat globule surface, which allows for a reduction in
stabilization of the fat globules and enhanced partial coalescence.

Aging is performed in insulated or refrigerated storage tanks, silos, etc. Mix temperature should
be maintained as low as possible without freezing, at or below 5 C. An aging time of overnight is
likely to give best results under average plant conditions. A "green" or unaged mix is usually
quickly detected at the freezer.

 Adding Color and Flavor: Various flavor and color is mixed in this step to make the ice
cream more appealing. High-volume flavors such as vanilla, chocolate, and strawberry may
be blended in their own large batch tanks. For flavors with large particles, such as fruit, nuts,
cookies, or candy parts are injected manually.
 Freezing: The dynamic freezing process both freezes a portion of the water and whips air
into the frozen mix. The "barrel" freezer is a scraped-surface, tubular heat exchanger, which
is jacketed with a boiling refrigerant such as ammonia or Freon. Mix is pumped through this
freezer and is drawn off the other end in a matter of 30 seconds, (or 10 to 15 minutes in the
case of batch freezers) with about 50% of its water frozen. There are rotating blades inside
the barrel that keep the ice scraped off the surface of the freezer and also dashers inside the
machine which help to whip the mix and incorporate air. As the ice cream is drawn with
about half of its water frozen, particulate matter such as fruits, nuts, candy, etc, is added to
the semi-frozen slurry which has a consistency similar to soft-serve ice cream. In fact, almost
the only thing which differentiates hard frozen ice cream from soft-serve, is the fact that soft
serve is drawn into cones at this point in the process rather than into packages for subsequent
hardening.
 Hardening: After the particulates have been added, the ice cream is packaged and is placed
into a blast freezer at -30° to -40° C where most of the remainder of the water is frozen.
Below about -25° C, ice cream is stable for indefinite periods without danger of ice crystal
growth; however, above this temperature, ice crystal growth is possible and the rate of crystal
growth is dependent upon the temperature of storage. This limits the shelf life of ice cream.
Hardening involves static (still, quiescent) freezing of the packaged products in blast
freezers. Freezing rate must still be rapid, so freezing techniques involve low temperature (-
40oC) with either enhanced convection (freezing tunnels with forced air fans) or enhanced
conduction (plate freezers).
 Packaging: After completing the Hardening steps, the ice cream gets packaged and moves to
the final stage of QA checking.
 Quality Assurance Check: After getting the packaging done, the QA team do their final
inspection to see if the packaging and labeling are done correctly. If no problem found, then
the ice cream moves to the storage area.
 Storage: Ice cream and other frozen desserts require no preservatives and have long shelf
lives if they are kept below −23 °C (−10 °F) and are protected from temperature fluctuations.
Airtight packaging materials have made it possible to consider frozen storage of six months
or longer without loss of flavor or body and texture. When ice cream is finally dipped,
composition and overrun will determine ideal scooping temperature. This can vary from −16
to −9 °C (3 to 15 °F), with lower temperatures resulting in less dipping loss but more effort
on the part of the server.