1. HR CONSULTANCY ASSIGNMENT
SUBMITTED BY: GROUP 5
Group Members
Monika Sinha
Raadhika Natarajan
Stuti Sood
Kratika Gulati
Shravanti Seela
Nikita Vijayvargiya
Rahul Chauhan
Andrews Koshy

2. ACTIVITY - ESTIMATE THE ANNUAL CONSUMPTION AND REVENUE OF ICE CREAM
WITHIN INDIA
The process of estimation is as follows:
1st STEP - Identifying the “Factors Affecting the Consumption of Ice-Cream”
1. Population
2. Demographics
3. Age Group
4. Health Issues
5. Season
6. Brands
7. Other Alternatives
2nd STEP – The total population of India is 1.2 billion. Now the population is
divided on the basis of “Demographics “i.e. rural and urban population.
Demographic Distribution of Indian
60
40
Population
Rural
Urban

3. 3rd STEP – Estimating the consumption level of ice cream according to the
“Age Factor”
Rural
Age
Group
% of
Consumption*
Population in each
age group
Per capita
consumption per year*
Total
Consumption
0-3 1% 7200000 30 216000000
4 - 18 55% 396000000 250 99000000000
19 - 50 40% 288000000 350 100800000000
51+ 4% 28800000 100 2880000000
720000000 In mililitres 202896000000
In litres 202896000
Urban
Age
Group
% of
Consumption*
Population in each
age group
Per capita
consumption per year*
Total
Consumption
0-3 2% 9600000 50 480000000
4 - 18 35% 168000000 400 67200000000
19 - 50 55% 264000000 600 158400000000
51+ 8% 38400000 150 5760000000
480000000 In mililitres 231840000000
In litres 231840000
Total Population of India* 1200000000
Category Percentage
Category wise
Population
Rural Population 60 720000000
Urban Population 40 480000000
Total Consumption of Icecream in India (By Category)
Category In ML In Litres
Rural 202896000000 202896000
Urban 231840000000 231840000
Total Consumption 434736000000 434736000

4. 4th STEP – Health Issues
India is the diabetes capital of the world. It is considered that every 1 in 4 has
diabetes or is vulnerable to diabetes. It comes as a shocking parameter as almost
30crores of the Indian population is effected thereby directly affecting the
icecream business in India. Also cases of thyroid complications, tonsillitis and
many other cases decreases the consumption of ice cream all over the world
We have considered this parameter in the previous table in determining the
percentage of consumption in respective age groups. The above mentioned
diseases are more likely to occur in the late 30s and early 40s. Hence while
determining the percentages of per capita consumption we have considered the
same. For example, the per capita consumption of early ages is more than in the
age bands of 40 onwards.
5th Step – Estimating the ice cream consumption pattern according to
“Seasonality Factor”. The common distribution of seasons in India is –
Region wise segmentation has multiple variables and therefore we have
distributed the year based on the seasons in India and assumed the level of
consumption in these months. Months like March to May and Oct- Nov record
maximum consumption of ice creams in India as the weather is on the hotter side,
whereas in the rainy season the consumption is relatively lesser as people are
more prone to flues and recurring sickness thereby reducing chances of high
consumption. Consumption in months like Dec to Feb is relatively higher, despite
the season many festivals and functions are held during these times and ice
cream ends up being a common offering in these places thereby increasing the
consumption of ice cream in these months. Kindly find in the below table the
percentages of consumption expected in the various seasons in India.

5. Seasonalty Factor Affecting Consumption
Pattern
Dec - Feb March - May June - Sept Oct - Nov
15%
60%
5%
20%
SEASON DISTRIBUTION % CONSUMPTION VOLUME OF CONSUMPTION
Dec - Feb 15% 65210400
March - May 60% 260841600
June - Sep 5% 21736800
Oct -Nov 20% 86947200
Total Consumption
434736000

6. 6th Step – Estimating the annual revenue generation according to the “Brands”.
Ice Cream Brands
In India
Local (Unorganised
Sector)
Rs 10/ 500ml
Basic (Amul,
Havmor, Mother
Diary)
Rs 50/500ml
Premium ( Baskins
& Robbins, Gelato,
Magnum)
Rs 100/500ml
We have broken down the iecream industry in India on the different level of
offerings available across India. We have identified that selling of icecream
happens at 3 levels namely Local, Basic and Premium Brands. We have assumed
an average costing of each level of offering and assigned an average value for
each level. We will now distribute the total consumption of india with these
average cost to determine the total Revenue generated from these brands in
India.
Local
(Rs 10/500ml) Consumption %
Basic
(Rs 50/500ml) Consumption %
Premium
(Rs 100/500ml) Consumption %
Urban 10% Urban 50% Urban 40%
Rural 55% Rural 35% Rural 10%
The above table signifies the distribution of consumption in percentages for the
various brands. Based on this assumption we will determine the annual
consumption of ice cream in India.

7. Local
(Rs 10/500ml)
Consumption
%
Category wise
consumption
Avg Cost - Local
Brands
Total Revenue
(in Rs)
Urban 10% 23184000 10 231840000
Rural 55% 111592800 10 1115928000
Basic
(Rs 50/500ml)
Consumption
%
Category wise
consumption
Avg Cost - Local
Brands
Total Revenue
(in Rs)
Urban 50% 115920000 50 5796000000
Rural 35% 71013600 50 3550680000
Premium
(Rs 100/500ml)
Consumption
%
Category wise
consumption
Avg Cost - Local
Brands
Total Revenue
(in Rs)
Urban 40% 92736000 100 9273600000
Rural 10% 20289600 100 2028960000
Annual Consumption Total Revenues
Urban 231840000 Urban 15301440000
Rural 202896000 Rural 6695568000
Total 434736000 Total 21997008000
Hence based on the assumptions we have taken, we have arrived that almost 44
crore liters of ice cream is consumed by India per year and the icecream business
is close to 2200 crore rupees in India. Based on our estimation and data beliefs we
see that the desserts market (as India has so many “Alternatives” starting from a
humble jalebi to expensive dry fruit embellished sweets and the entire industry is
over 7000 crores and icecream is single handedly one of the more dominant
player in this place considering the market dynamics.