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PROJECT REPORT ICE CREAM PURPOSE OF THE DOCUMENT This particular pre feasibility is regardingg Ice Cream comes under Food

The objective of the pre feasibility is primarily to facilitate potential entrepreneurs in project identification for investment

and finance and business management [We can modify the project capacity and project cost as per your requirement.

1 PROJECT REPORT ICE CREAM PURPOSE OF THE DOCUMENT This particular pre feasibility is regardingg Ice Cream comes under Food processing sector of MSME. The objective of the pre feasibility is primarily to facilitate potential entrepreneurs in project identification for investment and in order to serve this objective; the document covers various aspects of the project concept development, startup, marketing, and finance and business management [We can modify the project capacity and project cost as per your requirement. We can also prepare project report on any subject as per your requirement.] M/S Institute for Industrial Development A unit of M/S Samadhan Samiti 27/1/ /B Gokhle Marg Lucknow Mail : iidincubator17@gmail.com Web : industryincubator.co.in

2 ICE CREAM Introduction: Ice Cream is a popular food product. It was considered as a luxury food for summer season only. However, with the development of Dairy and Milk processing industry it has also found use as a Dessert. The Bureau of Indian Standards have formulated IS2802:1964 for performed Ice Cream and IS5839:1970 for hygienic conditions for manufacture storage and sale of Perfumed Ice Cream. Average Ice Cream and Premium Ice Cream differ in solid content as below: Sl.No. Ingredient Content as percent in Average Ice Cream Premium Ice Cream 1. Milk Fat 10.5% 16.0% 2. Non Fat Milk solids 11.0% 9,0% 3. Sucrose 12.5% 16.0% 4. Corn syrup 5.5% 5. Stabilizers 0.3% 0.1% 6. Emulsifier 0.1% Total solids 39.9% 41.1% One hundred grams of Ice Cream contain more than 200 calories and 4% protein, besides Minerals and Vitamins. Market: Ice Cream is consumed as Dessert as well as anytime snacks. Its demand peak in summer months. Railways are the most important bulk consumer of Ice Cream. Hotels, Restaurants, Resorts and flight kitchens are other bulk consumers. Sales through vendors and shops attract other consumers the most. Street vendors find good market for Ice Creams among school children.

3 Ice cream is consumed both as Dessert and as anytime snacks; street vendors find excellent market for Ice Cream among school children. Brand consciousness in rural and semi urban areas is comparatively less and hence local Brands sell well. Bulk consumption of Ice Cream in hotels, Restaurants, etc. is by far less than national average. Capacity: The Unit shall single shift of eight hours per day for three hundred working days per annum. Accordingly it will have an annual installed capacity to produce 75,000 kgs of Ice Cream per annum. Process of Manufacture: the process suggested here is the one tested and practiced all over India. Milk shall be pasteurized in Steam Jacketed SS Vessel. Milk, Cream, Butter and Sugar in exact quantities shall be mixed in a SS Homogenizer. The Mix shall be Pasteurized again. Emulsifiers and Stabilizers shall be added to the mix and blended. This mix is further homogenized so that the globule sizes are 4 microns or less. The mixture is cooled again and kept cool for at least 24 hours at 4 C to 0 C. Flavors and colours are added prior to cooling. The mixture is cooled again below 0 C for hardening in a Batch Freezer. Ice Cream is packed in small cups and as cones with Wooden/Bamboo handles. For cups and cubes the above process suffices. For cones the Ice Cream is placed inside moulds with the handle for deep freezing. Such cones are packed in Plastic/Paper packets. Ice Cream in Cups and Cones shall be vended in Cooled Hand Carts by authorized vendors in and around towns. Vendors are given 35% of sales realization as Commission and they work for the Commission only. Basic steps in the manufacturing of ice cream are generally as follows: Blending of the mix ingredients Pasteurization Homogenization Aging the mix Freezing Packaging Hardening

4 Process Flow:

5 Printed Ice Cream cups, paper cover and sticks shall be bulk purchased from outside the state and these packing materials shall be stored for 3 months. Milk shall be stored for one day only. Other raw materials shall be stored for a week. FINANCIAL ANALYSIS COST OF PROJECT S.NO. PARTICULARS AMOUNT 1 Land & Building Plant and Machinery Furniture & Fixture Other Tools and Fixtures Other Assets Margin for Working Capital 3.80 Total MEANS OF FINANCE S.NO. PARTICULARS AMOUNT 1 Own Contribution Term Loan Total PRODUCTION CAPACITY(Per annum) Working Days : 300 days S.NO. PARTICULARS Production/year Weight/unit(gms) Quantity(Tonnes) 1 Ice cream kg 75 Total 75 TOTAL CAPITAL INVESTMENT 1 Total Fixed Capital Working Capital for 3 Months Rs. Total 35.89

6 (i) FIXED CAPITAL Land and building Amount (In Rs.) Rented : 105 sq mtr area On rent (Workshop, Office and store) (per month) (ii) Machinery and Equipment S.no. Description Qty. nos. Price/unit Amount (In Rs.) 1 2No of 300 Ltr. Capacity SS Milk Storage Tanks 2 2 One 400 Ltrs capacity SS steam Jacketed Pan 1 3 One ss steam Jacketted Pasteurizer of 320 Ltrs. Capacity with HP Motor for Agitator 1 One SS Two stage Homogenizer of 350 Liter capacity with water 5 cooling 1 system operating at 300 PSI with 4.5 H.P. Motor, pressure gauge 6 etc. 1 One SS Surface Cooler (4.4 C to 0 C) in two sections: water cooled 7 and gas cooled 1 One SS Agency vat/storage Tank of 300 Liters capacity with 8 copper coil of 50 ft. length 1 9 and condensation unit One 35 Liter capacity Batch freezer with 9.0 TR and 6HP 10 Compressor 1 11 One Deep Freeze 1 12 One volumetric filling machine 1 13 One Baby Boiler (Non IBR) 1 Total 1,370, Freight, Packing & forwarding, CST, local handling, etc. costs of above machinery 1,05,000 Total Electrification and water installation 2.00 Furniture and Fixture/ Office Equipment 1.00 Vehicles 3.00 Computers 1.00 Total Fixed Capital 20.70

7 TOTAL WORKING CAPITAL 1 Salary and Wages (i) 1,212, Raw Material (ii) 3,998, Utilities (iii) 232, Other Contingent Expenses (iv) 631, Rs. Total Working Capital for 3 months (i) WORKING CAPITAL( Per Month) Staff and Labour S.No. Designation No. Salary(Rs.) Total(In. Rs.) 1 Manager 1 11, , Production Supervisor 1 10, , Machine Operators 2 9, , Skilled Workers 3 9, , Semi Skilled workers 5 6, , Peon/Watchmen 1 4, , , Total Annual Salary 1,212, (ii) Raw Materials S.No. Particulars Rate(Rs) Quantity(Tonnes) Total(In. Rs.) 1 Milk Liters 1,425, Cream 6,300 Kilograms Butter 2,200 Kilograms sugar 10,900Kilograms Stabilizers & Emulsifiers & flavor 3,225 Klograms Corn syrup 4,200 Kilograms Printed Ice Cream cups 7,50,000 No.s Ice cream sticks 7,50,000 No.s Printed paper cover 7,50,000 No.s Total 3,998,555.00

8 (iii) Utilities CALCULATION OF POWER EXPENSE Total Power Load Required 20 HP No of Days 300 No of Hours 8 Total Power Expense KWH (i) Power Supply from UPPCL 100% COST OF POWER (I) Cost of power from UPPCL 207, per Unit) Add : Fixed Cost 25, Add : Lubricants Total Annual Power Expense 232, (iv) Other Contingent Expenses S.No. Particulars Amount(In.Rs) 1 Rent Repair and Maintenance Postage and Stationery Telephone Charges Transportation and Freight Insurance Sales Expenses Other Manufacturing Expenses Miscellaneous Expenses Total

9 FINANCIAL ANALYSIS (i) Cost of Production S.No. Particulars In. Rs. 1 Total Recurring Expenditure Depreciation on Plant and 15% Depreciation on Other Tools and 15% Depreciation of Furniture/Fixture & Office 10 % Depreciation of 25% Depreciation of 60 % Finance Cost 2.26 TOTAL COST OF PRODUCTION (in Lacs) (ii) Turnover (per annum) S.No. Particulars Qty(tonnes) Qty(Nos.) Rate (in Rs) In. Rs. 1 Ice cream TOTAL TURNOVER Or Say (In Lacs) (ii) Profit [ii i] (In Lacs) percentage profit on sales 19.03%

10 RATIOS : i) Rate of Return on Total Capital Investment = Net Operating Profit/ Invested Capital = 44% ii) Return on Assets = Sales/Average total Assets = 0.76 iii) Return on Equity = Sales/ Stockholder's Equity = 1.29 iv) Debt to Equity Ratio = Total Term Liabilities/Total Shareholder's Equity = 1.02 v) Interest Coverage Ratio = Earnings before Interest & Tax/ Interest Expense = 7.96

11 Supplies of Machinery & Equipments: 1. Light Foot refrigation Co India Pvt ltd, Karinji House, 59, Sir P.M. Road, Mumbai 2. Parkash & Co. Coudrey Chowk, Kolkata 3. Sigma Sales service 3544, Nicholson Road, Mori Gate, Delhi (INDIA) Akshar Industries No. 94 C, Shankar Estate, Near Reva Bhai Estate, C. T. M., Amraiwadi Ahmedabad , Gujarat, India +(91) /

SWEET CURD AND BUTTERMILK

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