Ice Cream Cones
Project cost : 29 lakh
Uploaded on : September 2009
Product and its Applications
Ice cream cone is a favourite food in any store or restaurant. This tasty treat is known to cool down in the summer and makes an edible container for a cold snack. The frosty smoothness of the ice cream complements the crispy crunch of the cone for an interesting taste combination. There are almost as many stories of how the ice cream cone was invented as there are flavours that it holds.
Ice-creams of many varieties, flavours and in different forms (cones, cups, slices, bulk packing, candies, etc) are served round the year and demand is going up year after year. Possibly the most popular mode of serving is in cones as it is neat & clean, easy to store and there is no disposal need. With continuous increase in sale of ice-creams, demand for cones is increasing. It is a mass consumption item. Ice-cream cones are prepared from wheat & corn flour and they are eaten along with the ice cream.
Pre-determined quantity of ice-cream is automatically filled in each cone. Cones are not only convenient but there is no residual waste as well. They are of different colours and flavours. This is a very common product and can be produced all over the country. Nearness to urban market should be the main guiding factor.
Market Potential
Consumption of ice-cream has been increasing steadily over the years. With changing life styles and food habits, this trend would continue even in future. Majority of the consumers prefer ice-cream in cups or cones and party or bulk packs or serving in glass bowls or plates is very limited. Serving in paper-cups requires a spoon to eat and disposal is a problem. But in case of cones there is no need to have a spoon and they are eaten along with the ice cream. Thus, this is the most convenient way of serving and also preferred by customers. Ice cream candies result in waste while eating and there is consumer resistance. The local brands, ice-creams prepared by local dairies and parlours are the major players. Ideally, some marketing tie-up can be made with these local players as they are easily approachable and contemplated production capacity may not permit regular and large supplies to big manufacturers. The ice cream cone is such a fixture of worldwide desserts, entertainment, amusement, and relaxation that it is unlikely to fall out of favour. Ice cream and its cone are consumed year-round.
Basis and Presumption
- The unit will work for 300 days per annum on single shift basis.
- The unit can achieve its full capacity utilization during the 3rd year of operation.
- The wages for workers are taken as per prevailing rates in this type of industry.
- Interest rate for total capital investment is calculated @ 12% per annum.
- The entrepreneur is expected to raise 20-25% of the capital as margin money.
- The unit would construct its own building.
- Costs of machinery are based on average prices of machinery manufacturers.
Implementation schedule
Project implementation will take a period of 8 months. Break-up of the activities and relative time for each activity is shown below:
| Scheme preparation and approval | 01 month |
| SSI provisional registration | 1-2 months |
| Sanction of financial supports etc | 2-5 months |
| Installation of machinery and power connection | 6-8 months |
| Trial run and production | 01 month |
Technical aspects
Location
The plant can be located at any suitable place keeping in view the marketing convenience, availability of power, water and skilled manpower.
Salient Features of Process / Technology
Three main dry ingredients compose all types of cones. Wheat flour, corn /tapioca flour, and sugar are chosen for baking quality, strength, and relative sweetness, respectively. The quantity of sugar is a major distinguishing feature between cone types. Sugar and waffle cones are made of one-third sugar. Not only does this influence the sweet flavour, but it affects the brown finished colour and the crispy texture. Cake cones have less than 5% sugar.
Wet ingredients (and others added with the wet materials) include water, shortening (edible fat or grease), baking powder , colouring, flavouring, and salt. Both the colouring and flavouring are natural products made by outside specialists. Before any liquid is added, air compressors are used to mix these dry ingredients in large coolers.
There are three principal types of ice cream cone; the cake cone (also called a moulded or flat-bottomed cone), the waffle cone, and the sugar cone. The waffle cone is characterized by a rough or unfinished top edge. The sugar cone is made with the same ingredients and process as a waffle cone but has a finished top edge and sometimes a chocolate lining.
The waffle pattern on all types of cones, the finished edge of the sugar cone, and the shape of the flat-bottomed cone (as well as comet varieties of the cake cone) greatly influence the ease with which the finished cones pop out of their moulds. Cone designers refine the waffle pattern and other shape characteristics and make trial batches to find the best design that releases from the mould without burning, breaking, or creating weak spots that won't hold ice cream or will break when the scoop is applied. The moulded cone has a lip around the top that keeps drips contained inside the cone. The row of teeth helps firmly seat the scoop of ice cream and provides added strength where the upper lip of the cone meets the cylindrical base.
Shapes and patterns also affect baking characteristics. The finished cone should be uniform in colour as well as shiny on the outside. It should bake uniformly so that all sides (including the bottom) are thoroughly cooked. The size is important because cones are expected to hold single, double, and triple scoops. The first scoop has to fill the cone and weight the bottom without vanishing completely into the cone, and the third scoop should not overpower the cone and cause it to break or tip too easily. The filled cone should look equally appetizing whether it has one, two, or three flavours atop it. Strength is an important characteristic, not only to the consumer who holds it. Cones must withstand pre filling in the factory if they are used for frozen treats like the Drumstick. Unfilled cones have to be packed together by mechanical devices. The cones must "nest" (fit one inside another) neatly to allow efficient packing. Minimal packing materials are used to cushion the cones, mainly because of cost.
Taste is the key design factor. Cake cones should be crisp instead of spongy and tasty like a mild cereal. Waffle cones should be crunchy and sweet but not too hard or over-powering in sugar content. The ice cream is the featured food, and the cone must complement its quality.
Automatic ice-cream cone makers are available. The dough is fed to the cone making machine. The machine makes cones as per the mould they are baked-in and ready cones come out of it. 50 or 100 cones are packed in polythene bags.
Finally, packaged cones are sold in bulk to retail businesses like grocery, chain, convenience, and drug stores. These retailers usually do not fill or modify the cones; they sell the boxed cones directly to the consumer who can make custom desserts and snacks with the cones at home.
Quality Control : The correct addition of ingredients is the most obvious quality control step, but throughout the process specially trained quality control inspectors watch cone making and baking, taste-test cones occasionally, and reject any that are misshapen, broken, or over/under-cooked. Whole cones are also removed from the process and cut and broken apart to check that cones are truly perfect inside and out.
Pollution Control
There is no major pollution problem associated with this industry except for disposal of waste which should be managed appropriately. The entrepreneurs are advised to take "No Objection Certificate" from the State Pollution Control Board.
Energy Conservation
There should be no power leakage and adequate attention should be provided.
Production Capacity
| Quantity | 100 lakh cones per year |
| Installed capacity | 35,000 cones per day |
| Optimum capacity utilization | 70% |
| Working days | 300 |
| Manpower | 13 |
| Utilities | |
| Motive Power | 250 kWh |
Financial Aspects
Fixed Capital
Land & Building Amount (Rs. lakh)
Particulars |
Amount |
| Land 150 m 2 | 00.60 |
| Built up area 100 m 2 - | 05.00 |
| Total cost of land and building | 05.60 |
Machinery and Equipment Amount (Rs. lakh)
Description |
Amount |
| Sifter, dough kneader, Cone making machine automatic, sugar pulveriser, weighing scales, quality control lab, carton stapler, etc. | 10.50 |
| Erection & electrification of @10% cost | 00.90 |
| Office furniture & fixtures | 01.10 |
| Total | 12.50 |
Pre-operative Expenses Amount (Rs. lakh)
| Consultancy fee, project report, deposits with electricity department etc | 00.90 |
Total Fixed Capital Amount (Rs. lakh)
| (9.1.1+9.1.2+9.1.3) | 19.00 |
Recurring expenses per annum
Personnel Amount (Rs. lakh)
Designation |
No. |
Salary Per month |
Amount |
| Factory Manager | 1 | 10,000 | 01.20 |
| Office Assistant | 2 | 6,500 | 01.56 |
| Technician | 2 | 6,500 | 01.56 |
| Skilled workers | 3 | 4,000 | 01.44 |
| Unskilled workers | 5 | 3,000 | 01.80 |
| 07.56 | |||
| Perquisites @15 % | 00.94 | ||
| Total | 13 | 08.50 |
Raw Material including packaging materials Amount (Rs. lakh)
Particulars |
Qty (t) |
Rate/t (Rs.) |
Amount (Rs. lakh) |
| Raw material & packing material | LS | LS | 24.50 |
| Total | 24.50 |
Utilities Amount (Rs. lakh)
Particulars |
Amount (Rs. lakh) |
| Power 250 kWH | 02.40 |
| Water | 00.10 |
| Total | 02.50 |
Other Contingent Expenses Amount (Rs. lakh)
Description |
Amount (Rs. Lakh) |
| Repairs and maintenance @3.3% | 00.48 |
| Consumables & spares, others | 00.80 |
| Transport & travel | 00.60 |
| Publicity, postage, telephone | 01.36 |
| Insurance @ 1% | 00.16 |
| Total | 03.50 |
Total Recurring Expenditure Amount (Rs. lakh)
| (9.2.1 + 9.2.2 + 9.2.3 + 9.2.4) | 39.00 |
Working Capital Amount (Rs. lakh)
| Recurring expenses for 3 months | 10.00 |
Total Capital Investment Amount (Rs. lakh)
| Fixed capital (Refer 9.1.4) | 19.00 |
| Working capital (Refer 9.3) | 10.00 |
| Total | 29.00 |
Financial Analysis
Cost of Production (per annum) Amount (Rs. lakh)
| Recurring expenses (Refer 9.2.5) | 39.00 |
| Depreciation on building @ 5% | 00.25 |
| Depreciation on machinery @10% | 01.05 |
| Depreciation on furniture @ 20% | 00.22 |
| Interest on Capital Investment @ 12% | 03.48 |
| Total | 44.00 |
Sale Proceeds (Turnover) per year Amount (Rs. lakh)
Item |
Qty |
Rate/t (Rs.) |
Amount |
| Ice cream cones | 10 million | 0.55 each | 55 |
Net Profit per year
= Sales - Cost of production |
Net Profit Ratio
Net profit X 100 Sales 11 X 100 55 = 20% |
Rate of Return on Investment
Net profit X 100 Capital Investment 11 X 100 29 = 38 % |
Annual Fixed Cost Amount (Rs. lakh)
| All depreciations | 01.52 |
| Interest | 03.48 |
| 40% of salary, wages, utility, contingency | 05.80 |
| Insurance | 00.16 |
| Total | 10.96 |
Break even Point
Annual Fixed Cost X 100 Annual Fixed Cost + Profit 10.96 X 100 10.96 + 11 = 49.9% |
Addresses of Machinery and Equipment Suppliers
- Amrit Engineering Works,
Plot No. 139, Industrial Area, Phase-2,
Chandigarh-160 002. - VCS INDIA Pvt. Ltd.,
VCS India House, 96/7, B/h.Shiv Estate,
Nr. Ravirandal Society, Nr. Jasodanagar Cross Road , N.H.No.8, C.T.M,
Ahmedabad- 380 026 - Ultra Worldwide Private Limited
502, Maganlal Chambers, Iron Market, Near Masjid East,
Mumbai-400 009 - A-One Engineers
Plot No. 117, Indl. Area, Phase II, opp. ESI Hospital ,
Chandigarh -160 002. - K. G. N. Engineers
Plot No. 174 & 175, Opposite Masjid Lane , Old Airport Road , Gauthamnagar,
Secunderabad - 500 011 - R & D Engineers
A-41, Kukatpally Phase II,
Road No.4 via. I. E, Gandhi Nagar
Hyderabad - 500 037
Contact for more information
Information Manager
TIMEIS Project
E-mail: timeis@ficci.com
