Ice Cream Cones Manufacturing

Uploaded on : May 2010

Product and its applications

Ice cream cones are a mass consumption item. Ice creams are available in many varieties and flavors and are served in many ways such as cups, cones, bricks, candies, slices etc. With the change in life style ice creams are now consumed round the year. The most popular method of serving ice-cream perhaps is in cones as it is neat & clean, easy to store, and does not have any disposal problem.

Ice-Cream cones are prepared from wheat and corn flour and they are eaten along with the ice-cream. Pre determined quantity of ice-cream is filled in the cone these cones are not only convenient to handle but there is no residual waste as well. These can be manufactured in different colours and have both urban as well as rural market.

Compliance of the product with FPO is essential.

Industry Profile and Market Assessment

The changing life style and habits have given rise to the increase in demand of ice-cream. Now days it is a common sight of ice cream being served at marriage parties even during winter. Majority of the consumers prefer ice creams in cups or cones for convenience. Serving in cups requires additional spoons for eating and disposal of the cup after consumption, while service in cones is hassle free as cones are eatable and consumed along with the ice cream. Ice creams are now popularly marketed under brand names as well as unbranded variety locally manufactured in semi urban areas. There is a good market for local variety in both semi urban and rural areas. The unbranded local variety is cheaper and hence is preferred particularly by the middle claas families with limited means. In rural areas also children prefer the cheap ice creams as compared to the branded costly variety. Thus, there appears to be a good market for the product in semi urban and rural areas. The marketing strategy should focus on such locations and the approach the big branded manufacturers for a possible tie-up.

Manufacturing Process & Know How

The process of edible cone making is basically a mechanical press operation. Initially corn and wheat flour is mixed with water and required quantity of colours and flavour are added. This dough is then fed to the mould of the cone making machine. The press is operated and the moulded cones are baked separately and packed.

Know how is available with Central Food Technology Research Institute Mysore and the machinery suppliers. The machinery is all indigenously available.

The production capacity envisaged is 48000 cones per shift of 8 hours or 144 lac nos per annum for 300 days.

Plant and Machinery

Automatic cone making machines are available with varying capacity which can be finalized keeping in view the market size.

The total cost of machinery for this capacity of 48000 cones per shift is estimated to be Rs.2.00 lakhs.

The unit will also require miscellaneous assets such as SS utensils, furniture, fixtures, storage facilities, weighing scales etc. the total cost of these is estimated to be Rs. 35,000/-.

The total cost of machinery is estimated to be Rs.2.65 lakhs. The unit will also require miscellaneous assets such as furniture, fixtures, storage facilities etc. the total cost of these is estimated to be Rs. 50,000/-.

Utilities

Power requirement is estimated to be 5 H.P. Water for manufacturing and drinking purpose will be 700 lits per day.

Raw material and Components

The basic raw materials for the unit are wheat and corn flours and some colors and flavors for taste. The raw material is all easily available in open market. The unit will also require packing material like plastic bags etc. The total cost of raw material and packing material is estimated to be Rs. 25.92 lacs for an annual production of 144 lac nos. The same is estimated as cost of raw material per cone 15 paise and packing 3 paise.

Land and Building

For smooth operation of the unit, it will require a built up shed of 50 sq. mts. The total cost of building shall be Rs. 1.25 lakhs.

Manpower

For smooth functioning of the unit the requirement of man power is expected to be around 5 persons.

Technical staff	self
Skilled workers	1
Helpers	2
Sales person	1
The annual salary bill is estimated to be around	Rs.0.90 lakhs.

Sales Revenue: (100% capacity)

Selling price varies depending on quality and product mix, Average has been taken as 30 paise per cone. The annual sale revenue consider a wastage of 5% will be Rs. 41.04 lakhs.

Cost of Project

Particulars	Rs. lakhs
Land & Building	1.25
Plant & Machinery	2.00
Other assets	0.35
Contingencies & pre-expenses	0.95
Total	5.37

Means of Finance

Promoters Contribution	1.61 (Rs. lakhs)
Term Loan	3.76
Total	5.37

Profitability:(60%capacity)

Sales	24.62 (Rs. lakhs)
Raw material	15.55
Salary	0.90
Utilities	0.36
Repairs & Maintenance	0.24
Selling expenses	3.69
Administrative expenses	0.36
Depreciation	0.60
Interest on T.L	0.34
Interest on W.C	0.25
Cost of production	22.29
Profit	2.33

Requirement of Working Capital

		Margin	W.C	Margin Money
Raw material	15 days	30%	0.65	0.20
Stock of finished goods	15 days	25%	0.80	0.20
Working expenses	1 month	100%	0.30	0.30
Sale on credit	15 days	25%	1.00	0.25
Margin money for W.C				0.95

Break Even point

56%

Machinery Suppliers

• M/S T.Alimohammad & Co. MJ Phule market, Mumbai.
• M/s Sujata Enterprises, Laxmi Road, Poona.
• M/S Techno Eqpt., 31, Parekh Street, Mumbai.
• M/S S.R. Engineering Works, MIDC, Satpur, Nasik

Contact for more information

Information Manager
TIMEIS Project
E-mail: timeis@ficci.com