Ice cream-balls-26


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Ice cream-balls-26

  1. 1. Project Profile on Mott MacDonaldIce Cream Balls iNDEXTbSector Agro and Food ProcessingSub - sector Food ProcessingProfile No. AF-26Project Title Ice Cream Balls – IFT PlantProject DescriptionThe proposed project envisions setting up of an Ice cream balls manufacturing unit. This is aninnovative concept for Ice cream product in India and Gujarat.In this project, 6 to 8 mm size (BB size Pellets) ice cream balls are formed from Ice cream mix, usingIndividual Freezing Technology (IFT), where in each individual Ice cream ball is formed, in cryogenictemperature range (below -30 to 40ºC), the environment created by using Liquid Nitrogen Vapors inclosed chamber. Liquid Nitrogen creates coldest temperature for instant freezing of Ice cream balls.These ice cream balls are stored at -20 to 30ºC and to make it appealing, they are made colorful andcontaining blends of exotic flavors. Ice cream balls are uniquely shaped and can be produced in awide variety of colors, flavors and coatings.This technology can also be used for forming balls from Fruit juices, Flavored & Colored syrups(Sherbet) and Yogurt, to add more variety in total product range. Sugar free (no sugar) products arealso available in the global markets.Product ApplicationThis unique shape of Ice cream balls makes it easy and quick to serve like Popcorns, in pre formedpaper or thermocol disposable cups or plastic containers, to maximize its sales at sites like shoppingmalls, multiplexes, amusement parks, air ports and railway stations etc;. It also makes it much cleanerthan "ordinary" ice cream, especially with young kids, as unlike regular Ice creams, it can be eatenusing ordinary spoons easily, without creating a mess.Ice cream is consumed more in cities. However, occasionally, particularly in marriages, meetings andsocial gatherings, it is being used even in villages and towns. The consumption of ice cream is likelyto increase in future. There is good scope for any new entrepreneur to venture in this field.Market & Growth DriversMarket The ice-cream business in India was approx. INR 8955 million in the year 2005-06 and out of this, the per capita consumption is the highest in Gujarat. Gujarat has more than 500 small, medium and big ice-cream manufacturing units contributing INR 12000 million, out of the state’s GSDP of INR 1675000 million in the year 2003-04.AF-26 1
  2. 2. Project Profile on Mott MacDonaldIce Cream Balls iNDEXTb Ice cream balls is totally a new product for India, but it will carve its niche in the market and based on the market response in established markets like USA, Japan and Philippines this product will have higher market penetration than general Ice cream being marketed in India. Due to its wider reach the product will also fetch higher unit value than other Ice cream products. In the year 2003, purchase of sweet and savory snacks by Indian consumers was valued at INR 7.09 billion of which West India took the lead of being the largest market in terms of value purchasing product worth INR 2.30 billion followed by North India with a purchase of INR 2.26 billion. As per an estimate made the Indians will purchase confectionary items and savory snacks worth INR 11.12 billion, by 2009. It is expected that North India would purchase 25.47 thousand tons worth INR 3.49 billion of snacks followed by West India with a purchase of 23.12 thousand tons valued at INR 3.32 billion. The lead in per capita consumption would be taken by West India with a consumption of 97 gms per person valued at INR 13.89, followed by North India at 73 gms per person valuing INR 9.95.Minimelts Ice Cream India Pvt. Ltd. Mumbai is one of the manufacturers of ice cream balls in India.Growth Drivers Per capita consumption of ice-creams in India is approx. 200 ml per annum, while the average global per capita consumption is 2 liters. The lowest per capita consumption of Ice cream in the world leaves ample scope for Ice cream products in general in India and particularly in Gujarat. Increase in population, fast changing life style and increasing percentage of youths in the population in Gujarat and also in India, will result in 9 to 12 % growth in the current market. This is in line with growth expected for other food products’ market in India. Ice cream finds round the year market as widely accepted dessert and is consumed in all class of people as readily available hygienic food for all ages.Why Gujarat? Gujarat consumes 60 per cent of the total production of ice-cream in the country, hence ready market is available round the year. Availability of the main raw material – Liquid Milk – Gujarat is the second largest milk producer and processor state in India. Estimated milk availability in Gujarat is approx. 181 Lac Liters per Day (LLPD) as against total milk production of 2483.6 LLPD at India level. In the year 2004-05 milk production reached to 67.45 Lac MT. Other raw materials like sugar, Fruits & dry fruits and food colors are readily available in Gujarat. Gujarat is having ready availability of technical manpower as it has a well developed milk processing industry, both in the co-operative and private sector. Well developed transport infrastructure like road, rail and air connectivity Offers opportunities for domestic and export market development. This will be supplemented by cool chain proposed inAF-26 2
  3. 3. Project Profile on Mott MacDonaldIce Cream Balls iNDEXTb Gujarat and will increase the product reach, at distant and remote places within and outside Gujarat.Technology/ProcessIce cream is defined as a frozen dairy product, made by suitable blending and processing of milkcream and other milk products with sugar, flavors, stabilizer and creamy texture is formed byincorporation of air by agitating during the freezing process. Ice cream, which was considered a luxuryfood earlier, is now regular frozen dessert food and its popularity is increasing rapidly.Ice Cream Ball is manufactured using cryogenic techniques. Cryogenics process uses liquid Nitrogen(which is totally inert and tasteless) to instantaneously freeze Ice Cream Balls, to a temperature of -187 ˚C (-304˚ F.). This rapid freezing process enables to "lock in" the flavor. Special storage freezersare required to guarantee the highest flavor quality.The technology for this new product is cryogenic technology and Ice cream balls are flash frozen tomaintain the individual shape in specified size, which also locks in the flavor. Since, this ice cream isstored at - 40 degree Celsius, no bacteria can survive. Proposed ice cream will have about 14 percent fat as compared to the range of 5 to 11 per cent, usually observed in other ice cream products.“Ice cream balls” is a totally new product and technology, for the Indian market. There is only onetechnology supplier in Mumbai offering technology for this product. It will be appropriate to havetechnology tie-up with established manufacturer or technology suppliers, from USA, Japan or Europewhere this technology is well established.Suggested Plant Capacity and Project CostThe Indicative project cost for manufacturing unit of Ice cream Balls, with suggested capacity of10000 Tons per annum is INR 100 Million (i.e. US $ 2.25 Million). Estimated Project cost & Means of financeSr. No Cost of project INR in million 1 Land and Land development 3.20 2 Building & Civil works 9.00 3 Plant & Machinery 54.00 4 Misc. Fixed Assets 4.00 5 Preliminary & preoperative inlc. technology 3.50 6 Provision for contingencies 2.86 Fixed Cost of Project 76.56 7 Margin Money for working capital 23.44 Block Capital Cost of Project 100.00 Means of Finance 8 Promoters contribution 33.33 9 Term loan 66.67 Total 100.00AF-26 3
  4. 4. Project Profile on Mott MacDonaldIce Cream Balls iNDEXTbAs indicated above, the proposed project will require an approx 8000 sq. mt of land with an proposedbuilt up area of 2000 sq. mt. The unit is proposed to have an installed capacity of 10000 TPA. Thetotal fixed cost of the project is estimated at INR 76.56 million and INR 23.44 million is the workingcapital margin which adds up to total capital cost of INR 100 million. The unit being proposed to caterto domestic as well as to International demand and hence it is suggested to have a Debt equity ratioof 2:1. Thus, the estimated term loan amounts to INR 66.67 million and Equity at INR 33.33 million.Plant and Machinery RequiredThe proposed project would require the following as basic and necessary plant and machinery: List of Main Plant and Machinery Sr. No Particulars Quantity Suppliers Ice cream Mix Preparation Indian Dairy Machinery Company Ltd, Vithal 1 2 tanks 2000 Liters each Udyog nagar GIDC, 388121, 2 Turbo blender complete 2 Indian Dairy Machinery Company Ltd (IDMC) Milk recirculation pump with in 3 2 Indian Dairy Machinery Company Ltd (IDMC) line strainer 5 KLPH Milk / Water heater Plate Heat 4 2 Indian Dairy Machinery Company Ltd (IDMC) Exchanger Butter Melting Vat with molten 5 2 Indian Dairy Machinery Company Ltd (IDMC) butter transfer pump set 6 Ice cream mix transfer pumps 2 Indian Dairy Machinery Company Ltd (IDMC) Ice cream mix pasteurization 7 2 Indian Dairy Machinery Company Ltd (IDMC) plant 2000 LPH 8 Ice Cream Mix homogenizer 2 Indian Dairy Machinery Company Ltd (IDMC) 9 Ice cream Mix aging tanks 3 Indian Dairy Machinery Company Ltd (IDMC) Flavoring SS tank 500 Liter 10 2 Indian Dairy Machinery Company Ltd (IDMC) capacity Fruit pulp, powder/ granules 11 mixing SS tank with hopper , 2 Indian Dairy Machinery Company Ltd (IDMC) stirrer and insulation Chocolate Liquid preparation 12 plant SS, with melting tanks / 1 Panchal Engineering Works, Anand. pumps etc; Ice cream Ball s making 13 Individual Freezing technology 1 Space Dots foods Pvt. Ltd, Mumbai (IFT) Plant Liquid Nitrogen storage tank 14 3 Indian Oxygen Ltd, Ahmedabad double wall Liquid Nitrogen Pump and 15 Lot Indian Oxygen Ltd, Ahmedabad cryogenic line Ice cream Balls packing line 16 With Cryo fluid circulation 2 Space Dots foods Pvt. Ltd, Mumbai system 17 Quality control equipments Lot Sunjay Tehnologies Pvt.Ltd-Mumbai HT / LT Electrification including Kirloskar Electricals Ltd, Mumbai / 18 Lot control panels Ahmedabad DG 75 KVA set for Stand by Kirloskar Electricals Ltd, Mumbai / 19 power including changeover Lot Ahmedabad switchAF-26 4
  5. 5. Project Profile on Mott MacDonaldIce Cream Balls iNDEXTbSpaces Dots Food Pvt. Ltd, Mumbai provides cryogenic manufacturing technology for Ice cream Ballson turnkey basis.UtilitiesThe unit would require basic utilities like water, electric power, liquid Nitrogen for Cryo cooling in IFTplant manufacturing Ice cream balls and fuel for steam generation boiler. The estimated requirementis 140 HP power and 2 MTPD LDO/ HSD as fuel for steam boiler.Estimated Man power requiredThe proposed unit would require 40 persons and this will include 4 managerial level people, 4Supervisors, 8 plant operators, 4 office assistant cum account staff and 16 unskilled workers and 4security staff.Suggested LocationThe preferred location can be, North, Central and Saurastra region in Gujarat as major Dairy farmingactivities are conducted in this area and also consuming market is available all over state. Proposedlocation can be in the district of Mehsana, Patan, Banaskantha, Sabarkantha, Kheda, Anand,Vadodara, Surat, Rajkot and Ahmedabad.Project Time LineThe proposed project will have cumulative implementation period of 10 – 12 months of which 5 to 6months would entail obtaining the obligatory clearances from various authorities.Financial IndicatorsBased on the profitability projections worked out for the proposed project, key financial indicators areas summarized below: Key Financial Indicators st nd rdSr. No. Financial Ratios 1 Year 2 Year 3 Year A Break-Even Point in % Capacity 39.9 36.2 33.4 B Debt-service Coverage Ratio 1.78 2.24 2.80 C Average DSCR 2.27 D Return on Investment (ROI) 33.5% 36.7% 40.1% E IRR for a 10 years Project Period 48%As perceived from the Project cost and Means of finance table, the suggested Debt Equity Ratio forthe proposed project is 2:1. The IRR (Internal Rate of Return) for the proposed project is approx. 48%projected for a period of 10 years.AF-26 5
  6. 6. Project Profile on Mott MacDonaldIce Cream Balls iNDEXTbClearance RequiredIce cream, which was earlier reserved for manufacturing in the small-scale sector, has now been de-reserved, hence no license / clearance is required for setting up of a Ice cream plant by medium andlarge scale company. However, being a medium scale unit it will require filing IEM (IndustrialEntrepreneur’s Memorandum) with Secretariat of Industrial Approvals, Ministry of Industries, and NewDelhi.The unit will also have registration with state Foods and drugs administration and will approach statenodal agency GAIC (Gujarat Agro Industries Corporation) for availing incentives under Ministry ofFood Processing Industries, Government of India.Agencies to be contactedIndustrial Extension BureauMott MacDonald IndiaGujarat Agro Industries Corporation Ltd.AF-26 6