COST ANALYSIS OF AMUL ICE CREAM- FRUIT AND NUT

COST SHEET FOR

AMUL ICE-CREAMS

PRESENTE D BY

HIRA L MEHTA 61 SAU RAV MEHTA 62 POO NAM MISHRA 63 PARI NAAZ MISTRY 64
IES PGDM-B Page 1

COST ANALYSIS OF AMUL ICE CREAM- FRUIT AND NUT

HEM AL MUCHHALA 65 BHA KTI SHAH 89

Table of Contents

Sr.No 1 # " $ & ' % *

Title ACKNO LED!E ABSTRACT OVERVIE OF ICE CREAM INDUSTRY ABOUT THE COMPANY AMUL COST SHEET COST SHEET ANAL(SIS S)OT ANAL(SIS BIBLIOGRAPH(

Page Nu !er " " $ % 11 1# 1' 1*

IES PGDM-B

Page #

COST ANALYSIS OF AMUL ICE CREAM- FRUIT AND NUT

ACKNOWLEDGEMENT
We take this opportunity to thank Prof Jayesh Jain for giving us an insight , his valuable advice , timely suggestions and constant support throughout the project. We would also like to thank Mr.Raj Raut who is into the ice-cream business for the valuable information that he shared with us ,which proved to be very helpful while preparing the project

ABSTRACT

This project report is prepared to study the cost analysis of mul ice cream and to formulate the cost sheet to find the per unit cost of a single mul ice cream cup of !"" gm#fruit and nut$. %ur colleagues uncle also helped us in finding the various cost involved in manufacturing ice cream and we also got information from www.amulicecream.in.

IES PGDM-B

Page "

COST ANALYSIS OF AMUL ICE CREAM- FRUIT AND NUT

OVERVIEW OF ICE-CREAM

INDUSTRY

History:The ice cream industry is mainly governed by the prevention of food and adulteration act #&' $-!()* in +ndia. The ice cream market growth picked up after de-reservation of the sector in !((,. -istory of +ndian ice-cream industry is very old started in un-organi.ed sector and mainly the popular product was kulfi. /ew technologies and free.ers are the main force behind the development. 'uture is bright for ice-cream industry in +ndia.

Production area:+n rural areas, kulfis 0 ice creams made by small 0 cottage industry are popular. The market for organi.ed sector is restricted to large metropolitan cities. +n small towns and villages, there are thousands of small players who produce ice- creams 0 kulfis in their home backyard and cater to the local market. lmost *"1 of the ice creams sold in the country are consumed in the western region with Mumbai being the main market, followed by 2"1 in the north and 3"1 in the south.

IES PGDM-B

Page $

COST ANALYSIS OF AMUL ICE CREAM- FRUIT AND NUT

Industry Snapshot: Market 4i.e - !3"" 5rores +ce 5ream market is growing at 361 #yoy$

Major players:!. mul - Market 7eader with share of 261 3. -77 - 8wality Walls - 3nd biggest player 2. Mother 9iary *. run - 5hennai :ased -atsun gro &roduct

Few Brands/ Target onsu!ers !. ;outh 5entric - 5hill. 3. 8ids - Moo 2. Teenagers - 5ornetto *. -ealth 5onscious - mul 4ugarfree < &ro-7ife

IES PGDM-B

Page &

COST ANALYSIS OF AMUL ICE CREAM- FRUIT AND NUT

Future of Ice Cream Market in India:-

+ce 5ream market will e=pand with increase in number of malls. lso companies like - -77 has been increasing their ice cream outlets 4wirl. 'ew years ago consumers use to go out for walk after dinner and use to buy ice creams from hawkers. :ut now consumer who often visit malls for entertainment prefers to buy ice creams during different times of the day as it is visible upfront and feel like spending Rs. )" for that tasty chocolate swirl with cake and nuts. s marketers are understanding the different needs of consumers, be it health conscious people- # mul sugar free and pro-life ice-cream$ , kids, youngsters, etc, and are coming up with products specific for them., with portfolio of flavors, consumer today has plethora of options at hand to choose from and therefore high probability of buying one more scoop of ice cream. lso with increasing wallet si.e and innovative modern retail formats, it has definitely given a &hilip to the ice cream industry in +ndia.

IES PGDM-B

Page '

COST ANALYSIS OF AMUL ICE CREAM- FRUIT AND NUT

Abo t t!e "o#$an% A# l

Gujarat Cooperative Milk Marketing Federation:Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's largest food products marketing organization. It is a state level apex od! of milk cooperatives in Gujarat "#ic# aims to provide remunerative returns to t#e farmers and also serve t#e interest of consumers ! providing $ualit! products "#ic# are good value for mone!.

"o!e statistics a#out the co!pany:%#e %urnover of &mul "as 's. ().(( illion in )**+,*-.

IES PGDM-B

Page %

COST ANALYSIS OF AMUL ICE CREAM- FRUIT AND NUT

Members:

./ district cooperative milk producers' 0nion ).+ million

o! of "roducer Members: o! of #illage Societies: ./1.2.

$otal Milk handling capacity: .*.). million liters per da! Milk collection %$otal - &''(')*: Milk collection %+aily ,verage &''(-')*: Milk +rying Capacity: Cattle feed manufacturing Capacity: ).34 illion liters

+.2 million liters

3)3 Mts. per da! /*4* Mts per da!

$M%& --the #rand:-

&mul ,t#e age old rand rand elongs to (GCMMF). ,M-. means 'priceless' in 5anskrit. %#e rand name 6&mul16 comes from t#e 5anskrit "ord 6&mool!a16 and "as suggested ! a $ualit! control expert in &nand. Today mul is a symbol of many things. %f high->uality products sold at reasonable prices. %f the genesis of a vast co-operative network. %f the triumph of indigenous technology. %f the marketing savvy of a farmers? organi.ation. nd of a proven model for dairy development.
IES PGDM-B Page *

COST ANALYSIS OF AMUL ICE CREAM- FRUIT AND NUT

(arious products under the #rand na!e $!ul :&mul products #ave een in use in millions of #omes since .423. &mul 7utter1 &mul Milk 8o"der1 &mul G#ee1 &mul C#eese1 &mul C#ocolates1 &mul 5#rik#and1 mul +ce creams, 9utramul1 &mul Milk and &mul!a #ave made &mul a leading food rand in India.

"o!e facts a#out the $!ul ice crea!:-

$!ul )ce rea! was launched on *+th March, *--. in /ujarat.

The portfolio consisted of impulse products like sticks, cones, cups as well as take home packs and institutional0catering packs. In .44+1 &mul ice creams entered Mum ai follo"ed ! C#ennai in .44- and :olkata and ;el#i in )**). 9ationall! it "as rolled out across t#e countr! in .444.

IES PGDM-B

Page +

COST ANALYSIS OF AMUL ICE CREAM- FRUIT AND NUT

<as com ated competition like =alls1 Mot#er ;air! and ac#ieved t#e 9o . position in t#e countr!. %#is position "as ac#ieved in )**. and it #as continued to remain at t#e top.

$oday the market share of ,mul ice cream is /)0 share against the 10 market share of 2..3 thus making it 4 times larger than its closest competitor!

mul@s entry into ice creams is regarded as successful due to the large market share it was able to capture within a short period of time A due to price differential, >uality of products and of course the brand name.

)ce crea! range:-

0oyal Treat 0ange - #:utterscotch, Rajbhog, Malai 8ulfi 1ut-o-Mania 0ange #8aju 9raksh, 8esar &ista Royale, 'ruit :onan.a, Roasted lmond$ 5oyal $reat 5ange - #:utterscotch, Rajbhog, Malai 8ulfi$

ut-o-Mania 5ange - #8aju 9raksh, 8esar &ista Royale, 'ruit :onan.a, Roasted lmond$

IES PGDM-B

Page 1,

COST ANALYSIS OF AMUL ICE CREAM- FRUIT AND NUT

ature6s $reat - # lphanso Mango, 'resh 7itchi, 4hahi njir, 'resh 4trawberry, :lack 5urrant, 4antra Mantra, 'resh &ineapple$

"undae 0ange- #Mango, :lack 5urrant, 4undae Magic, 9ouble 4undae$

$ssorted Treat - #5hoco bar, 9ollies, 'rostik, +ce 5andies, Tricone, 5hoco crunch, Megabite, 5assatta$

%tterly 2elicious - #Banilla, 4trawberry, 5hocolate, 5hocochips, 5ake Magic$

IES PGDM-B

Page 11

COST ANALYSIS OF AMUL ICE CREAM- FRUIT AND NUT

"ost s!eet anal%s&s

D&'e"t Cost (

*3 2irect !aterials To manufacture one ice cream cup below are the components or raw materials re>uired with their unit cost C 9ry 'ruits A 2 1 Milk A ,"1 'lavours A ) 1 %ther ingredients A * 1 4ugar A !6 1 5up A 3 1
IES PGDM-B Page 1#

COST ANALYSIS OF AMUL ICE CREAM- FRUIT AND NUT

43 2irect &a#our : There are !, workers employed in the production of the ice cream and each worker is paid Rs 3""" per month .

"-

2irect osts or e5penses C

The direct cost includes costs incurred in bringing the raw materials into the factory ie. 5arriage inward. The raw materials are purchased every month and costs involved for carriage are Rs !D*".

)ndirect

osts:

*3 Factory 67erheads:

The 'actory %verheads includes the indirect labour, factory rent, insurance and depreciation on machinery, power, factory supervisor@s salary ,packing material, ware house e=penses and other factory e=penses.

+ndirect labour C This includes 2 sweepers whose average salaries are Rs. !""" each.

IES PGDM-B

Page 1"

COST ANALYSIS OF AMUL ICE CREAM- FRUIT AND NUT

+nsuranceC The total insurance amount is Rs !)""".

:reak up of the total insurance amount for Machinery - !3"""""

7and - )"""""#!""" s>. ft. E Rs. )"" per s>. ft.$

9epreciation on machinery C There are 6 machines in the factory ,one machine is used for making ice creams which is :oiler and other are Refrigerators . The cost of :oiler is Rs 2""""" and Refrigerators are worth of Rs. (""""". The depreciation method followed is 47M F ,1.

&ower < 'uelC The monthly average cost of power consumption of the factory is Rs *32,).

4upervisor@s salary C The factory has 3 supervisors and salary of each supervisor is Rs 3)"".

5ost of maintenance C oiling and cleaning of machinery and other miscellaneous e=pences for maintainance.

#-

6ffice and ad!inistration o7erheads:-

%ffice and administration overheads include office rent, salary to staff, office and general e=penses, printing and stationary, telephone e=penses, electricity and lightings

IES PGDM-B

Page 1$

COST ANALYSIS OF AMUL ICE CREAM- FRUIT AND NUT

%ffice rentC The per s>.ft rate of the %ffice is Rs !D.The area of the factory is 2"" s>.ft.

4alary to staff C the office staff has three employees. peon, clerk and an ccountant and the salaries are Rs D"", Rs 33"" and Rs *""" respectively.

%ffice and general e=pensesC This comprise refreshments#tea and snacks$.

Telephone G=pensesC- 5alls made by the staff members.

Glectricity and lightingsC- +t consists of office lighting and air conditioning e=penses.

83 "ales and distri#ution o7erheads:-

4ales 5ommission C s a part of encouragement for sales people ,they are given commission of 3.) 1 of the total sales done by them.

9iscount allowed C To attract retailer to buy the product they are offered a discount of )1 on the selling price.

4alary of salesmen C The company has ) sales persons and they are paid a salary of Rs 2)"" each per month.

IES PGDM-B

Page 1&

COST ANALYSIS OF AMUL ICE CREAM- FRUIT AND NUT

5arriage outwardC To carry the finished goods to the whole sellers , the transportations charge per unit0product is set as Re !.3*.

$ssu!ptions : The company produces only one product ll raw materials consumed in production of ice cream

The production and sales units are same. +n Baluation of plant, the rate per s>uare feet has been assumed at Rs. )"". We gave a discount to retailer on *)"""" units on bulk purchase.

IES PGDM-B

Page 1'

COST ANALYSIS OF AMUL ICE CREAM- FRUIT AND NUT

SWOT ANALYSIS

S$57 G$2S: %#e amul ice,creams rand is one of t#e t#e top / rands .&s it>s an Indian rand its popular as a famil! rand. Its availa le in all metropolitan cities and is in t#e reac# of middleclass ?a ove middleclass .Its availa le in man! flavours and most of t#ese are Indian flavours @liked ! Indians. %#e! are availa le in various sizes. %#e! are availa le in reasona le prices.%#e! #ave launc#ed rands suc# as sugar free pro iotic ice, creams. %#ere are man! premium varieties. It>s got good food energ! value i.e calories per .**ml,.43.+.

87,9 7SS: %#e dura ilit! of amul ice,creams is not reall! good1 it melts ver! soon. It does not #ave man! outlet centers.9ot a famous rand among !oungsters "#o are t#e main customers of ice,cream.

:"":5$- I$I7SA %#e! can come up "it# ne" flavours "#ic# "ould e a le to attract t#e !out# .%#e! s#ould not restrict t#emselves to departmental stores infact come "it# ne" luxur! rands "#ic# can e availa le in #otels and t#e! s#ould come up "it# t#eir o"n ice,cream parlours. %#e! s#ould focus more on t#eir advertising and marketing strategies. %#e! s#ould use a strateg! similar to "#at t#e! used in case of utter (0tl! utterl! girl ).%#e! s#ould come up "it# offers for purc#ase of ice,cream in "#ole market . Bffers
IES PGDM-B Page 1%

COST ANALYSIS OF AMUL ICE CREAM- FRUIT AND NUT

s#ould run all t#roug#out t#e !earC not onl! in "inters. %#ere s#ould emp#asis for special occasions.

$257,$S : %#e iggest t#reat for amul ice,cream industr! "ould e its competitors. Its ranked /rd in t#e Indian market . It faces toug# competition from t#e unorganized sector as "ell. & slig#t c#ange in t#e price of t#e ice,cream "ould s#ift its customers to anot#er rand. Foreign pla!ers like 7askin, 'o ins entering Indian market "it# ne" premium rands at feasi le prices.

STRENGTHS

)EA.NESS

OPPORTUNITIES

THREATS

IES PGDM-B

Page 1*

COST ANALYSIS OF AMUL ICE CREAM- FRUIT AND NUT

Bibliography

;;;!amulicecream!in ;;;!google!co!in ,nnual report of ,mul Cost accounting and financial management-5avi kishore <edition =

IES PGDM-B

Page 1+

COST ANALYSIS OF AMUL ICE CREAM- FRUIT AND NUT

IES PGDM-B

Page #,

COST ANALYSIS OF AMUL ICE CREAM- FRUIT AND NUT

IES PGDM-B

Page #1

COST ANALYSIS OF AMUL ICE CREAM- FRUIT AND NUT

IES PGDM-B

Page ##

COST ANALYSIS OF AMUL ICE CREAM- FRUIT AND NUT

IES PGDM-B

Page #"

COST ANALYSIS OF AMUL ICE CREAM- FRUIT AND NUT

IES PGDM-B

Page #$

COST ANALYSIS OF AMUL ICE CREAM- FRUIT AND NUT

IES PGDM-B

Page #&

COST ANALYSIS OF AMUL ICE CREAM- FRUIT AND NUT

IES PGDM-B

Page #'

COST ANALYSIS OF AMUL ICE CREAM- FRUIT AND NUT

IES PGDM-B

Page #%

COST ANALYSIS OF AMUL ICE CREAM- FRUIT AND NUT

IES PGDM-B

Page #*