AMUL ICE CREAM

Presented By:

Hiral Mehta 61
Saurabh Mehta 62
Poonam Mishra 63
Parinaaz Mistry 64
Hemal Muchalla 65
Bhakti Shah 89
Contents
Overview of the Industry
About the Company
About Amul Icecream
Cost sheet and analysis
SWOT analysis of AMUL
 Overview of Ice Cream Industry
 Indian ice-cream industry is very old started in un-
organized developed into an organised sector.

 Ice Cream market is growing at 26%

 market size -1200 crores

 Major players:
Amul
HLL - Kwality Walls
Mother Diary
 Ice Cream Consumption in the Regions

east
10%

south west
20% 40%

west 40
north 30
south 20
east 10
north
30%
 About The Company
 Gujarat Cooperative Milk Marketing
Federation (GCMMF)

 AMUL means "priceless" in Sanskrit.

 Turnover of Amul was Rs. 52.55 billion in

2007-08

 Various other products under brand

name amul.
Various products under the brand name Amul

Amul products have been in use in millions of homes

since1946.

 Amul Butter

 Amul Milk

 Amul Cheese
 Amul Chocolates

 Amul Shrikhand,

 Amul Ice creams

 Amul Masti Dahi

 Amul Ghee

 Amul Kool Cafe

 About Amul Icecream
 Amul Ice Cream was launched on 10th March, 1996 in
Gujarat.

 Amul - Market Leader with share of 38%

HLL - Kwality Walls - 2nd biggest player

 Has combated competition like Walls, Mother Dairy and

achieved the No 1 position in the country in 2001 .
-reasons:-
reasonable pricing, quality of products &
the brand name.
Various Ice Cream Range of Amul
Market Share of Amul Ice Cream against kwality
walls
 Assumptions

 All raw materials consumed in production of ice cream.

 The production and sales units are same.

Cost Sheet
Cost Sheet Cont….
 DIRECT COST INDIRECT COST
Classification of Total Cost

Series1,
INDIRECT
COST, 45.45, Series1,
45% DIRECT
COST, 55.55,
55%
 ANALYSIS OF COST SHEET

Direct Cost
 Analysis of Cost Sheet
 Direct materials

To manufacture one ice cream cup below are the components

or raw materials required with their unit cost :
 Dry Fruits – 3 %
 Milk – 70%
 Flavours – 5 %
 Sugar – 16 %
 Cup – 2 %
 Other ingredients – 4 %
 Analysis of Cost Sheet
 Direct Labour

There are 17 workers employed in the production of the

ice cream and each worker is paid Rs 2000 per month .

 Direct Costs or expenses

The direct cost includes costs incurred in bringing the

raw materials into the factory ie. Carriage inward. The
raw materials are purchased every month and costs
involved for carriage are Rs 1840.
 Distribution of Indirect Cost

Series1, selling
and factory/works overheads
administrative Series1,
overheads, factory/works
office and administrative
44.2147, 44% overheads,
overheads
49.2134, 49%
selling and administrative
overheads

Series1, office
and
administrative
overheads,
6.5725, 7%
 ANALYSIS OF COST SHEET

Indirect Cost – Factory Overheads

 Analysis of Cost Sheet

 Indirect Costs

1. Factory Overheads

The Factory Overheads includes the indirect labour,

factory rent, insurance and depreciation on machinery,
power, factory supervisor’s salary ,packing material,
ware house expenses and other factory expenses.

Indirect labour : This includes 3 sweepers whose

average salaries are Rs. 1000 each.
 Analysis of Cost Sheet

Insurance: The total insurance amount is Rs 15000.

Break up of the total insurance amount for Machinery
1200000.

Land : 500000(1000 sq. ft. * Rs. 500 per sq. ft.)

Depreciation on machinery : There are 6 machines in

the factory ,one machine is used for making ice creams
which is Boiler and other are Refrigerators . The cost of
Boiler is Rs 300000 and Refrigerators are worth of Rs.
900000. The depreciation method followed is SLM @ 7%.
 Analysis of Cost Sheet

Power & Fuel: The monthly average cost of power

consumption of the factory is Rs 42375.

Supervisor’s salary : The factory has 2 supervisors and

salary of each supervisor is Rs 2500.

Cost of maintenance : oiling and cleaning of machinery

and other miscellaneous expences for maintainance
 ANALYSIS OF COST SHEET

Indirect Cost – Office & Administrative Overheads

 Analysis of Cost Sheet

 Indirect Cost

2. Office and administration overheads

Office and administration overheads include office rent,

salary to staff, office and general expenses, printing and
stationary, telephone expenses, electricity and lightings.

Office rent: The per sq.ft rate of the Office is Rs 18.The

area of the factory is 300 sq.ft.
 Analysis of Cost Sheet

Salary to staff : the office staff has three employees. A

peon, clerk and an Accountant and the salaries are Rs
800, Rs 2200 and Rs 4000 respectively.

Office and general expenses: This comprise

refreshments(tea and snacks).

Telephone Expenses:- Calls made by the staff

members.

Electricity and lightings:- It consists of office lighting

and air conditioning expenses.
 ANALYSIS OF COST SHEET

Indirect Cost – Selling & Distribution Overheads

 Analysis of Cost Sheet

 Indirect Cost

3. Sales and distribution overheads

Sales Commission : As a part of encouragement for

sales people ,they are given commission of 2.5 % of
the total sales done by them.

Discount allowed : To attract retailer to buy the

product they are offered a discount of 5% on the
selling price.
 Analysis of Cost Sheet

Salary of salesmen : The company has 5 sales

persons and they are paid a salary of Rs 3500
each per month.

Carriage outward: To carry the finished goods

to the whole sellers , the transportations charge
per unit/product is set as Re 1.24
 STRENGHTS WEAKNESS

It is a family brand.
Available in many flavors and sizes. Does not have many outlet centers.
They have sugar free probiotioc ice- Poor Packaging .
creams. Durability (melts very fast).
Low calorie ice-cream.
Available in reasonable prices.

SWOT
ANALYSIS
OPPORTUNITIES
THREATS
Come up with more fruit flavors.
Having more number of amul outlets. Competition from existing players –
Better advertising. Branded and Unbranded (mewad).
Changing the target audience Foreign players entering the market
(focusing more on youth and (Geleto , Baskin Robbins).
children).
 Refrence

 www.amulicecream.in

 Annual report of Amul

 Cost accounting and financial management-Ravi

kishore –edition 5