You are on page 1of 9

INDIAN ICE-CREAM AN OVERVIEW

Ice-cream is a frozen dessert usually made from dairy products, such as milk and cream, and often combined with fruits or other ingredients and flavors. Most varieties contain sugar, although some are made with other sweeteners. In some cases, artificial flavorings and colorings are used in addition to the natural ingredients. The meaning of ice-cream varies from one country to another. Terms like frozen custard, frozen yogurt, sorbet, and gelato and so on.

ICE CREAM INDUSTRY IN INDIA


The ice cream industry in India is in many ways, reflective of overall population distribution. The countrys population is primarily rural with approximately 65% of the population living in villages. It is estimated that only 30% of entire market is organized. The Ice-cream industry in India is worth Rs. 2000 crores. The industry can be divided into branded and unbranded market. The branded market at present is 100 million liters per annum valued at Rs.800 crores. In 2008-09, in the branded ice cream market, Amul held the no. one spot with the market share of 38%, followed by Kwality Walls 14%, Vadilal 12% and Mother Dairy at 8%. The per capita consumption of ice cream in India is approximately 300m1, as against the world average of 2.3 liter per annum. Vanilla, strawberry and chocolate together constitute approximately 60% of the market

BRIEF HISTORY OF ORGANISATION


Who is unknown with that moppet, which put the branded milk product on Indias breakfast table? Yes! the amul butter girl which simply said by her baseline utterly butter delicious AMUL the butter of amul which has launched in 1945 by GCMMF became very famous in 1967 amongst the majority of people of India by the help of its advertisement .For 30 odd years the utterly butterly girl has managed to keep her following intact .so much so that adds are ready to enter in the gunnies book of world record being the largest campaign ever. Today people are very frank with brand name of AMUL OF GCM.MF Ltd. Now amul has completely set up its goodwill in Indian market. The national dairy development board, with its operation flood programmed, has played a shining role in its growth & development.

The institute of rural management ANAND (Gujarat) as always has contributed to the prospective building & professionalization of management of co-operative sector. The advertising agency like ASP bankers like (bank of Baroda, standard bank of India, kaira district central co-operative bank Itd. insurances, management, Consultants, suppliers &transport has also given a great help in management. The great strength of GCMMF Ltd. (AMUL) is member union of cooperatives, the spirit of co-operative movement & adherence to fundamental principle of the co-operative. The management of federation elected leaders & office bearers for their valuable guidance, support& co-operative. With the support of govt, of India &govt. of Gujarat, today GCMMF Ltd. (AMUL) continued toward its progress. Gujarat co-operative milk marketing federation ltd. ANAND India is registered under Gujarat co-operative Societies act 1961.

Industry Snapshot:Market Size - 1200 Crores Ice Cream market is growing at 26% (yoy) Major players:1. Amul - Market Leader with share of 36% 2. HLL - Kwality Walls - 2nd biggest player 3. Mother Diary 4. Arun - Chennai Based Hatsun Agro Product Few Brands/ Target Consumers 1. Youth Centric - Chillz 2. Kids - Moo 3. Teenagers - Cornetto 4. Health Conscious - Amul Sugarfree & Pro-Life

Future of Ice Cream Market in India:Ice Cream market will expand with increase in number of malls. Also companies like - HLL has been increasing their ice cream outlets Swirl. Few years ago consumers use to go out for walk after dinner and use to buy ice creams from hawkers. But now consumer who often visit malls for entertainment prefers to buy ice creams during different times of the day as it is visible upfront and feel like spending Rs. 50 for that tasty

chocolate swirl with cake and nuts. As marketers are understanding the different needs of consumers, be it health conscious people- (Amul sugar free and pro-life ice-cream) , kids, youngsters, etc, and are coming up with products specific for them., with portfolio of flavors, consumer today has plethora of options at hand to choose from and therefore high probability of buying one more scoop of ice cream. Also with increasing wallet size and innovative modern retail formats, it has definitely given a Philip to the ice cream industry in India.

About the company Amul


GCMMF, known through its popular desi brand, Amul. The mighty Ganges at its origin is but a tiny stream in the Gangotri ranges of the Himalayas. Similar is the story of Amul which inspired 'Operation Flood' and heralded the 'White Revolution' in India. It began with two village cooperatives and 250 liters of milk per day, nothing but a trickle compared to the flood it has become today. Today Amul collects processes and distributes over a million liters of milk and milk products per day, during the peak, on behalf of more than a thousand village cooperatives owned by half a million farmer members. Further, as Ganga-ma carries the aspirations of generations for moksha, Amul too has become a symbol of the aspirations of millions of farmers. Creating a pattern of liberation and self-reliance for every farmer to follow. The brand name AMUL, from the Sanskrit Amoolya, meaning priceless, was suggested by a quality control expert in Anand. The first products with the Amul brand name were launched in 1955. Since then, they have been in use in millions of homes in all parts of India, and beyond. Today Amul is a symbol of many things: Of high quality products sold at reasonable prices, of availability, of service. There is something more, though, that makes the Amul brand special and that something is the reason for our commitment to quality and value for money. Amul is the brand name of 2 million farmers, members of 10,000 village dairy cooperative societies throughout Gujarat. This is the heart of Amul, it is what gives strength to Amul, and it is what is so special about the Amul saga.In the early days of Kaira Union there was no dearth of cynics. Could

natives handle sophisticated dairy equipment? Could western-style milk products be processed from buffalo milk? Could a humble farmers cooperative market butter and cheese to sophisticated urban consumers? The Amul team farmers and professionals confounded the cynics by processing a variety of high-grade dairy products, several of them for the first time from buffalo milk, and marketing them nationally against tough competition.

Some statistics about the company:The Turnover of Amul was Rs. 52.55 billion in 2007-08.
COST ANALYSIS OF AMUL ICE CREAM- FRUIT AND NUT

Members: 13 district cooperative milk producers' Union No. of Producer Members: 2.7 million No. of Village Societies: 13,141 Total Milk handling capacity: 10.21 million liters per day Milk collection (Total - 200708): 2.69 billion liters Milk collection (Daily Average 2007-08): 7.4 million liters Milk Drying Capacity: 626 Mts. per day Cattle feed manufacturing Capacity: 3090 Mts per day

AMUL --the brand:Amul -the age old brand brand belongs to (GCMMF). AMUL means "priceless" in Sanskrit. The brand name "Amul," comes from the Sanskrit word "Amoolya," and was suggested by a quality control expert in Anand. Today Amul is a symbol of many things. Of high-quality products sold at reasonable prices. Of the genesis of a vast co-operative network. Of the triumph of indigenous technology. Of the marketing savvy of a farmers' organization. And of a proven model for dairy development.

Various products under the brand name Amul :Amul products have been in use in millions of homes since 1946. Amul Butter, Amul Milk Powder, Amul Ghee, Amul Cheese, Amul Chocolates, Amul Shrikhand, Amul Ice creams, Nutramul, Amul Milk and Amulya have made Amul a leading food brand in India. Some facts about the Amul ice cream:Amul Ice Cream was launched on 10th March, 1996 in Gujarat. The portfolio consisted of impulse products like sticks, cones, cups as well as take home packs and institutional/catering packs. In 1997, Amul ice creams entered Mumbai followed by Chennai in 1998 and Kolkata and Delhi in 2002. Nationally it was rolled out across the country in 1999. Has combated competition like Walls, Mother Dairy and achieved the No 1 position in the country. This position was achieved in 2001 and it has continued to remain at the top. Today the market share of Amul ice cream is 38% share against the 9% market share of HLL, thus making it 4 times larger than its closest competitor. Amuls 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, quality of products and of course the brand name.

Ice cream range:Royal Treat Range - (Butterscotch, Rajbhog, Malai Kulfi Nut-o-Mania Range (Kaju Draksh, Kesar Pista Royale, Fruit Bonanza, Roasted Almond) Royal Treat Range - (Butterscotch, Rajbhog, Malai Kulfi) Nut-o-Mania Range - (Kaju Draksh, Kesar Pista Royale, Fruit Bonanza, Roasted Almond) Nature's Treat - (Alphanso Mango, Fresh Litchi, Shahi Anjir, Fresh Strawberry, Black Currant, Santra Mantra, Fresh Pineapple) Sundae Range- (Mango, Black Currant, Sundae Magic, Double

Sundae) Assorted Treat - (Choco bar, Dollies, Frostik, Ice Candies, Tricone, Choco crunch, Megabite, Cassatta) Utterly Delicious - (Vanilla, Strawberry, Chocolate, Chocochips, Cake Magic)

cost sheet analysis


Direct Cost : 1) 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 % Other ingredients 4 % Sugar 16 % Cup 2 % 2) Direct Labour : There are 17 workers employed in the production of the ice cream and each worker is paid Rs 2000 per month . 3) 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. Indirect Costs: 1) Factory Overheads: The Factory Overheads includes the indirect labour, factory rent, insurance and depreciation on machinery, power, factory supervisors salary ,packing material, ware house expenses and other factory expenses. Indirect labour : This includes 3 sweepers whose average salaries are Rs. 1000 each. 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%. Power & Fue l: The monthly average cost of power consumption of

the factory is Rs 42375. Supervisors 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. 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. 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. 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. 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. Assumptions : The company produces only one product All raw materials consumed in production of ice cream The production and sales units are same. In Valuation of plant, the rate per square feet has been assumed at Rs. 500. We gave a discount to retailer on 450000 units on bulk purchase.

SWOT ANALYSIS
STRENGTHS: The amul ice-creams brand is one of the the top 3 brands .As its an Indian brand its popular as a family brand. Its available in all metropolitan cities and is in the reach of middleclass &above middleclass .Its available in many flavours and most of these are Indian flavours liked by Indians.

They are available in various sizes. They are available in reasonable prices.They have launched brands such as sugar free probiotic icecreams. There are many premium varieties. Its got good food energy value i.e calories per 100ml-196.7. WEAKNESS: The durability of amul ice-creams is not really good, it melts very soon. It does not have many outlet centers.Not a famous brand among youngsters who are the main customers of ice-cream. OPPORTUNITIES: They can come up with new flavours which would be able to attract the youth .They should not restrict themselves to departmental stores infact come with new luxury brands which can be available in hotels and they should come up with their own ice-cream parlours. They should focus more on their advertising and marketing strategies. They should use a strategy similar to what they used in case of butter (Utly butterly girl ).They should come up with offers for purchase of ice-cream in whole market . Offers should run all throughout the year; not only in winters. There should emphasis for special occasions. THREATS : The biggest threat for amul ice-cream industry would be its competitors. Its ranked 3rd in the Indian market . It faces tough competition from the unorganized sector as well. A slight change in the price of the ice-cream would shift its customers to another brand. Foreign players like BaskinRobbins entering Indian market with new premium brands at feasible prices.