Ice age- The healthy ice cream parlour- Business plan presentation

• 1. ICE AGE The Healthy Ice-cream Parlour Presented by:- Bijayalaxmee Pradhan Tathagata Mahajan

2. SECTOR-Agro & Food Processing SUB SECTOR-Food Processing LOCATION-Gujarat state PRODUCT-Ice cream balls PROJECT TITLE-ICE AGE-the healthy ice cream parlour 3. PRODUCT INTRODUCTION The proposed envision of setting up an ice cream balls manufacturing unit. In this project 6-8 mm(BB size pellets)ice cream balls are formed from ice cream mix. They are made colourful & containg blend of exotic flavours. 4. Product ApplicationProduct Application This unique shape of Ice cream balls makes it easy and quick to serve like Popcorns. It can be served in pre formed paper or thermocol disposable cups or plastic containers, to maximize its sales at various sites. It also makes it much cleaner than "ordinary" ice cream. It is mainly consumed more in cities. However, occasionally, particularly in marriages, meetings and social gatherings, it is being used even in villages and towns. 5. Ice Cream Ball is manufactured using cryogenic techniques. Cryogenics process uses liquid Nitrogen to instantaneously freeze Ice Cream Balls, to a temperature of -187 C (-304 F.). This rapid freezing process enables to "lock in" the flavour. Special storage freezers are required to guarantee the highest flavour quality. Since, this ice cream is stored at - 40 degree Celsius, no bacteria can survive. There is only one technology supplier in Mumbai offering technology for this product. 6. MARKET & GROWTH DRIVERS Market:- The ice-cream business in India was approx. INR 2000 Crore in the year 2009-10 and out of this, the per capita consumption is the highest in Gujarat. It will carve its niche in the market based on the market response in established markets like USA, Japan and Philippines. Due to its wider reach the product will also fetch higher unit value than other Ice cream products. In 2009, purchase of sweet and Ice Cream by Indian consumers was valued at INR 12 billion of which West India took the lead with 4.5 billion followed by North India with a purchase of 3.9 billion. 7. Growth Drivers Per capita consumption of ice-creams in India is approx. 300 ml per annum, while the average global per capita consumption is 2.3 litres. With the lowest per capita consumption of Ice cream in the world, India leaves ample scope for Ice cream products. There will be 9 to 12 % growth in the current market due to increased population, fast changing life style & increased percentage of youths. Ice cream finds round the year market as widely accepted dessert and is consumed by all class of people. 8. LOCATION-Why Gujarat?LOCATION-Why Gujarat? Gujarat consumes 60 per cent of the total production of ice- cream in the country. Easy Availability of the main raw material Liquid Milk Gujarat is the second largest milk producer and processor state in India. Easy Availability of other raw materials like sugar, Fruits & dry fruits and food colours. Gujarat is having ready availability of technical manpower. Well developed transport infrastructure like road, rail and air connectivity. This will be supplemented by cold chain. 9. Suggested LocationSuggested Location The preferred location can be, North, Central and Saurastra region in Gujarat as major Dairy farming activities are conducted in this area and also consuming market is available all over state. Proposed location can be in the district of Mehsana, Patan, Banaskantha, Sabarkantha, Kheda,Anand,Vadodara, Surat, Rajkot and Ahmedabad. ProjectTime Line:- The proposed project will have cumulative implementation period of 10 12 months of which 5 to 6 months would entail obtaining the obligatory clearances from various authorities. 10. Suggested Plant Capacity and Project Cost The Indicative project cost for manufacturing unit of Ice cream Balls, with suggested capacity of 1000 Tons per annum is INR 10 Million. Estimated Project cost & Means of finance Sr. No Cost of project INR in million 1 Land and Land development 01.20 2 Building & Civil works 02.40 3 Plant & Machinery 02.35 4 Misc. Fixed Assets 01.15 5 Preliminary & preoperative inlc. technology 02.55 6 Provision for contingencies 01.35 Fixed Cost of Project 11.00 7 Margin Money for working capital 2.50 Block Capital Cost of Project 13.50 Means of Finance 8 Promoters contribution 5.00 9 Term loan 08.50 Total 13.50 11. Financial Indicators Based on the profitability projections worked out for the proposed project, key financial indicators are as summarized below: Key Financial Indicators Sr. No. Financial Ratio 1st Year 2nd Year 3rd Year Break-Even Point in % Capacity 39.9 36.2 33.4 Debt-service Coverage Rat 1.78 2.24 2.80 Return on Investment (ROI) 33.5% 36.7% 40.1% Average DSCR 2.27 IRR for a 10 years Project Period 48% 12. Utilities The unit would require basic utilities like water, electric power, liquid Nitrogen for Cryo cooling in IFT plant manufacturing Ice cream balls and fuel for steam generation boiler. The estimated requirement is 140 HP power and 2 MTPD LDO/ HSD as fuel for steam boiler Estimated Man power required:- The proposed unit would require 40 persons and this will include 4 managerial level people, 4 Supervisors, 8 plant operators, 4 office assistant cum account staff and 16 unskilled workers and 4 security staff. 13. Clearance Required No license / clearance is required for setting up of a Ice cream plant by medium and large scale company. However, being a medium scale unit it will require filing IEM (Industrial Entrepreneurs Memorandum) with Secretariat of Industrial Approvals, Ministry of Industries, and New Delhi. The unit will also have registration with state Foods and drugs administration and will approach state nodal agency GAIC (Gujarat Agro Industries Corporation) for availing incentives under Ministry ofFood Processing Industries, Government of India. 14. Whole sale supply Retail chain Franchise Establishing own outlets in the long run