Ice Cream Project- Final

ABOUT ICE-CREAM INDUSTRY History of Ice-cream The history of ice cream in the 20th century is one of great change and increases in availability and popularity. In the United States in the early 20th century, the ice cream soda was a popular treat at the soda shop the soda fountain, and the ice cream parlor. During American Prohibition the soda fountain to some extent replaced the outlawed alcohol establishments, including bars and saloons. Ice cream became popular throughout the world in the second half of the 20th century after cheap refrigeration became common. There was an explosion of ice cream stores and of flavors and types. Vendors often competed on the basis of variety. Howard Johnson's restaurants advertised "a world of 28 flavors." BaskinRobbins made its 31 flavors ("one for every day of the month") the cornerstone of its marketing strategy. The company now boasts that it has developed over 1000 varieties. George and Davis' Ice Cream Cafe on Little Clarendon Street, Oxford. One important development in the 20th century was the introduction of soft ice cream. A chemical research team in Britain (of which a young Margaret Thatcher was a member) discovered a method of doubling the amount of air in ice cream, which allowed manufacturers to use less of the actual ingredients, thereby reducing costs. This ice cream was also very popular amongst consumers who preferred the lighter texture, and most major ice cream brands now use this manufacturing process. It also made possible the soft ice cream machine in which a cone is filled beneath a spigot on order. In the United States, Dairy Queen, Carvel, and Tastee Freez pioneered in establishing chains of soft-serve ice cream outlets. Technological innovations such as these have introduced various food additives into ice-cream, notably the stabilizing agent gluten to which some people have an intolerance. Recent awareness of this issue has prompted a number of manufacturers to start producing gluten-free ice-cream. The 1980s saw a return of the older, thicker ice creams being sold as "premium" and "superpremium" varieties under brands such as Ben and Jerry's and Häagen-Dazs.

History of ice-cream in India As early as the sixteenth century, the Mughal emperors used relays of horsemen to bring ice from the Hindu kush to Delhi where it was used in fruit sorbets Kulfi is a type of ice cream which is very closely related to the Persian ice cream and is still sold by road side vendors and in restaurants. 1

INDUSTRY PROFILE History of Indian Ice-cream industry is very old started in un-organised sector and mainly popular product was kulfi. New technologies and freezers are the main force behind the development. Future is bright for Ice-cream Industry in India. Many MNCs and Cooperative sector companies will play a major role. Focus in India will be regional markets. Covering national market with one plant and one brand will be difficult. Needs huge investments. The ice cream market in India is currently estimated to be 210mn liter valued at Rs 450 crores (MRP Rs9bn). The market growth during the late '80s and in the early '90s was very low at around 2-3% pa. Since the last two years, the market has been witnessing a much faster growth at around10-12%pa. The growth rate could have been even higher but for poor infrastructure, (still) high excise duty/ sales tax etc. Excise on ice cream was increased from 13% to 16% in the 2003-04 budget. Market growth historically was stunted by Government policies. Till 1997, ice cream manufacture was reserved for small-scale sector. The leading players were unable to invest adequately to develop an infrastructure of cold chain for storage and distribution. Erratic supply and shortage of power in most parts of the country have been the major factors limiting growth of a cold chain. As a result, there was a dearth of good quality products in the market and also lack of adequate infrastructure to distribute the same. Cadbury had entered the market in 1992 with its Dollops brand, but was unsuccessful in building up a significant franchise and withdrew two years later. In the absence of any competition from MNCs, local players were able to build up a strong franchise in respective local areas. Some of the players built up their market through exclusive parlors. But in most cases parlor network also could not extend beyond local limits. At the beginning of first phase of liberalization, Hindustan Lever (HLL) entered the market through frozen dessert route.Frozen desserts were technically not reserved for small scale. Amul ice cream,manufactured by the largest milk-producing co-operative was introduced in Mumbai market in 1996, intensifying the competition. Removal of licensing restrictions and investment by new players in capacity and market expansion is expected to lead to rapid demand growth in the sector. A 10 12% pa volume growth can be sustained for a very long period, say 2-3 decades, due to the fact that current base of consumption is extremely small. Ice creams are available in various forms such as cone, cups, bar (candy), party pack etc. Candy sticks account for about 25-30% of volumes, whereas cups and other novelties contribute the rest. Frozen desserts market in India is very small and refers to oil fat based ice creams.

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IMPORTANT PLAYERS IN THE ICE CREAM INDUSTRY

In 1996, GCMMF launched its Amul brand ice cream. India’s ice cream market was estimated to be around Rs.8 billion in the year 2000. GCMMF launched its ice creams in fourteen flavors in the city of Mumbai and the State of Gujarat. It was priced at about 30 percent less than the prevailing prices, and it also emphasized that it was fully vegetarian, i.e., it did not contain any gelatin. This was an important attribute to many consumers in Gujarat, which was a predominantly vegetarian state. In less than a year, Amul ice cream commanded a share of about 55 percent in Gujarat and 30 percent in Mumbai; by the year 2007, its share in India as a whole had reached 30 percent. In 1997, GCMMF also scored a major achievement when it managed to get some of the cooperatives in the other States of the country, trying to launch their own ice cream brands, to sell all their ice creams under the Amul brand name. This enabled GCMMF to leverage the capacity of more than 180 co-operatives in the country, with a milk procurement of more than 11 million litres per day, and located close to the markets.

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Kwality Wall's, launched in 1995, is the company's master brand for ice cream. Kwality Wall's has combined state-of-the art technical know-how of Unilever - the global leader in ice cream - with a deep insight of the Indian market, to deliver a range of superior quality products under its international brands. Key launches include Cornetto, Feast, Viennetta, and a range of Sundaes, and also exciting eats for children specifically, like Lime Punch or Sunshine Zing Cone. Kwality Wall's ensures that while each of its offerings is unique in taste and flavour, they are also accessible to more consumers through breakthrough cost reengineering and value Kwality Wall’s has emerged as the trendsetter in product innovation by bringing never- before flavours and desserts to the consumer. The double sundae tub has been introduced after a stringent product development process and extensive consumer sampling. The flavours that have emerged combine the best international flavours that appeal to the Indian palette in a completely new packaging format. Kwality Wall’s, a brand of Hindustan Lever (HLL), currently commands a market share of more than 50 per cent of the organised Indian ice-cream sector. Kwality Wall’s has combined the state-of -the-art technical know-how of Unilever, the global leader in ice-cream products, with a deep insight of the Indian market, to deliver a range of superior quality products under its international brands

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Vadilal Vadilal are one of the leading manufactures of Ice Cream in India with the brand name “Vadilal” since 1920. Vadilal Group is also engaged in Process Foods, Real Estate & Constructions, Chemicals & Super Specialty Gases & Forex Business. Vadilal Industries is the flagship company of the Group having primary interest in Ice Cream and Processed Foods. Vadilal enjoys one fourth of Indian Ice-Cream market share. Own largest cold chain strengthens the distribution network across the country The ice-cream division had introduced 300 flavours in 600 different packs. The company entered into a marketing arrangement with a leading Company in U.P. to manufacture and sell the products under the brand name and as per the quality stipulated. Similar arrangements are to be entered into with Companies in Tamil Nadu, Punjab, M.P., W.Bengal.

Real milk. Abundant toppings. And an utterly delectable taste. That's the secret of Mother Dairy's fascinating range of rich and creamy ice creams - a lipsmacking array of ice candies, milk lollies, bars, cones, real fruit ice creams, Sundaes, low fat desserts and take-home packs. Mother Dairy ice creams are now being enjoyed across the markets of Delhi/ NCR, Mumbai, Kolkata, Punjab, Rajasthan, UP & Uttaranchal.

Baskin Robbins

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Baskin Robbins is the diverse business of the Ghai group, a well known name in the hospitality industry. Today, they have spread across the country with 240 outlets and catering to all the premium channels like 5 star hotels, leading airlines, malls and top retail chains across India. Baskin Robbins has always been a leader in the ice cream industry with innovations such as hand packed quarts of ice cream, a unique flavour ribbon technique, the use of tradition desert. Every Baskin Robbins serves range of over a thousand different flavours ranging from delicious Sundae to Silky smoothies, mouth watering cones do tasty blasts and super shades to tangy scoops.

TOTAL MARKET SHARE

COMPANY

TOTAL MARKET SHARE

Kwality Walls

32.46%

Amul

23.14%

Pastonji

13.89%

Vadilal

13.40%

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SEGMENTATION Indian Ice Cream market can be segmented in three different ways, namely on the basis of flavors; on the basis of stock keeping units / packaging and on the basis of consumer segments. On the basis of flavors the market today has a number of flavors like vanilla, strawberry, chocolate, mango, butterscotch a number of fruit flavors, dry fruit flavors traditional flavors like Kesar- Pista, Kaju- Draksh etc. The market is totally dominated by Vanilla, Strawberry and chocolate, which together account for more than 70% of the market followed by butterscotch and other fruit flavors. On the basis of packaging ice cream is segmented in different quantities.i.e. ice cream is sold in different packages. e.g. a cup of ice cream of 100ml or cone or family pack of 750ml. Consumer segment is mainly dependent on purchasing power of consumer. Ice cream may cost at Rs.5/-and ice cream may cost at above Rs200/- also. It refers to which category or classes of people have been taken

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into consideration. Basically, the main center of attraction for the products will be small children’s and adults ageing from group of 18 years to age group of 58 years. As ice cream itself is a product where there are no restrictions as far as age limit is concerned. Even old age people feel free to consume it. As, in major metropolitan cities fun, taste and joy are main factors after long day of hard work

PRODUCTION AREA In rural areas, kulfis / ice creams made by small / cottage industry are popular. The market for organized sector is restricted to large metropolitan cities. In small towns and villages, there are thousands of small players who produce icecreams / kulfis in their home backyard and cater to the local market. Almost 40% of the ice creams sold in the country are consumed in the western region with Mumbai being the main market, followed by 30% in the north and 20% in the south.

RAW MATERIALS Today, ice cream is made from a blend of dairy products (cream, condensed milk, butterfat), sugar, flavorings, and federally approved additives. Eggs are added for some flavorings, particularly French vanilla. The broad guidelines allow producers to use ingredients ranging from sweet cream to nonfat dry milk, cane sugar to corn-syrup solids, fresh eggs to powdered eggs. Federal regulations do stipulate that each package of ice cream must contain at least 10% butterfat. Ice cream flavors have come a long way from the standard vanilla, strawberry, and chocolate. By the 1970s, the International Association of Ice Cream Manufacturers had recorded over 400 different flavors of ice cream. In an ever-expanding array of combinations, fruit purees and extracts, cocoa powder, nuts, cookie pieces, and cookie dough are blended into the ice cream mixture Makers of high-quality ice cream (sometimes known as gourmet ice cream) use fresh whole dairy products, a low percentage of air (approximately 20%), between 16-20% butterfat, and as few additives as possible

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PACKAGING Ice cream consumers in India are generally children or young people. To attract these consumers the manufacturers try hard to make the packaging attractive. Though outside attractiveness is not very important the size of the pack and handling comfort is important. The ice cream is packed in different attractive bowls, plastic containers, etc. and then supplied. The frozen treats usually are packaged and sold three ways: * Cups holding 100 to 150 ml. * Bars, sticks and cones * Family packs of 1 750ml in wax- coated paper or plastic cartons

OUR VISIT TO VINOD ICE-CREAMS

Vinod Ice-creams is located in Chembur at 13/10 St. Anthony Road, chembur. The industry manufactures various types of Ice-creams available in different flavours at lower rates with the brand named Good Day Ice-cream. The industry is a small scale industry and employs 18 workers out of which 10 men workers and 08 women workers are working on monthly salaries. The industry has well equipped machineries with good labour power. The industry manufactures its products in clean and hygienic conditions and use all techniques for good productivity and excellent quality of the product.

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RAW MATERIALS

Vinod Ice-cream requires raw materials daily. The company produces approx. 1000 boxes of ice-cream per day For this they require, • • • • • • • •

750 litres of milk 100 kg of Sugar 500ml of flavours for adding Cones ( for cone ice cream) Cream Stabilizer powder Cocoa (for chocolate ice cream) Dry fruits ( for dry fruit ice cream)

THE MANUFACTURING PROCESS

Blending the mixture •

750 litres of milk arrives at the ice cream plant in refrigerated tanker trucks from local dairy farms. The milk is then pumped into the gal storage silos that are kept at 2°C.Pipes bring the milk in pre-measured amounts to gal, stainless steel blenders. Premeasured amounts of sugar, and additives are blended with the milk for six to eight minutes.

Pasteurizing to kill bacteria

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300 litres of milk is put into the pasteurization machine which is composed of a series of stainless steel plates. Hot water, approximately 182°F (83°C), flows on one side of the plates. The cold milk mixture is piped through on the other side. The water warms the mixture to a temperature of 180°F (82°C), effectively killing any existing bacteria.

Homogenizing to produce a uniform texture •

By the application of intensive air pressure, sometimes as much as 2,000 pounds per square inch (141 kg per sq cm), the hot mixture is forced through a small opening into the homogenizer. This breaks down the fat particles and prevents them from separating from the rest of the mixture. In the homogenizer, which is essentially a high-pressure piston pump, the mixture is further blended as it is drawn into the pump cylinder on the down stroke and then forced back out on the upstroke.

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Cooling and resting to blend flavours After heating the milk is put into a special vessel where the milk is allowed to cool naturally. After 2-3 hrs the milk is cooled naturally at a temperature of 5°C6°C.and 100kgs of sugar and stabilizer powder is mixed with the milk, limited quantity of cream is added to the milk and at last the the variety of flavours are added to the milk.

Cooling in Special Cooling tank The mixture is then transferred to the Special cooling tank where it is cooled at a temperature of -5°C.

Milk Tank The cooled mixture is put into the MILK TANK where there are 2 tanks( capacity to have 60 litres of milk in each tank).

Contifeezing to soft serve cosistency

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The milk tank is connected to CONTIFREEZER. Contifreezing is the final process where the ice-cream gets ready. Now the mixture must be frozen. It is pumped into continuous freezers that can freeze up to 700 gal (2,650 1) per hour. The temperature inside the freezers is kept at -18°C), using liquid ammonia as a freezing agent. While the ice cream is in the freezer, air is injected into it. When the mixture leaves the freezer, it has the consistency of soft-serve ice cream.

Adding fruit and sweetened chunks •

If chunks of food such as strawberry or cookie pieces are to be added to the ice cream, the frozen mixture is pumped to a fruit feeder. The chunks are loaded into a hopper at the top of the feeder. Another, smaller hopper, fitted with a starwheel, is located on the front of the feeder. An auger on the bottom of the machine turns the hoppers so that the chunks drop onto the starwheel in pre-measured amounts. As the mixture passes through the feeder, the starwheel pushes the food chunks into the ice cream. The mixture then moves to a blender where the chunks are evenly distributed.

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INVENTORY MANAGEMENT The company purchases raw materials like milk on daily basis and the materials like flavours and sugar are bought on weekly and monthly basis respectively. The company uses materials as per the needs and take care that there is no wastage of materials. The materials are placed safely and carefully in the warehouse and proper care is taken to protect the materials from insects. The company purchases the materials in a more than required quantity as sometimes there may exist emergency requirement of raw materials.

WAREHOUSING Warehousing plays a significant role in production of Ice cream. The Warehouse of the company is located inside the factory. Warehousing is required only to store ice creams and other raw materials like milk and cream do not require warehouse as they are purchased on daily basis. Raw materials like sugar and flavours which are purchased on monthly and weekly basis are stored in one corner of the factory. Around 200sq.ft.of area inside the factory is occupied by the warehouse. The warehouse is well built in such a way that moving of ice cream from one place to another is done in an easy way so that there is no wastage of time and no harm is caused to the product. The company has well equipped and new available technology refrigerators for storing the ice cream. They have 9 different types of refrigerators for storage of ice cream. These refrigerators have the capacity to store the ice cream at a minimum temperature of -26°C. The manufactured ice-cream is well packed and stored in these refrigerators at a temperature of -26°C. The ice-cream can be stored in these refrigerators for maximum of 18 days. Many types of preservatives like calcium water are used to store ice-creams. As the ice-cream is a perishable item very less quantity of ice-cream is stored. It is seen that maximum quantity of icecream gets sold on the day of manufacturing.

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TRANSPORTATION & LOGISTICS Transportation plays a vital role in delivery from the place of production to the place of sales. Supply of ice cream mainly depends upon the efficiency of transportation facilities. Every day the company manufactures approx. 1000 boxes of variety of ice creams( the manufacturing depends upon season) out of which they target to sell minimum of 800 boxes per day. The product is supplied to all places in Mumbai. So, for a regular supply of ice creams Vinod ice creams have 4 different vehicles for transportation which have refrigeration facilities inside the vehicle so the ice cream is transported neatly and safely. 1 vehicle have the capacity to carry 100 boxes of ice cream. Everyday the each vehicle supplies 200 boxes of ice cream to the shops in 2 rotations. A proper care is taken while handling the material from the factory warehouse to the vehicle. No machines are used for material handling as the company is labour intensive.The ice creams are placed by the labours in the vehicle in systematic way because the ice cream should not cause any harm or it must not spoil while transporting. The product is sold in the local market and supplied to all places in Mumbai. It is seen that goods are delivered on time to the shops. The ice cream is then took out from the vehicle as per quantity ordered by the shop keeper and is put into another refrigerator of the shopkeeper. For supply of ice creams there are two employees on each vehicle who take the ice creams to the place of delivery and also handle the ice cream safely and deliver it to the shopkeepers.

PRODUCTIVITY

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The company produces approx. 1000 boxes of ice cream per day. The production is as per the demand. The demand for ice cream rises in summer and lowers in winter and rainy season, so in summer the company increases its production. The employees in the factory work on monthly salaries. The duration of the work per day is 12 hrs.i.e. from 8 a.m. to 8 p.m. The salary for employees range from Rs.4000/- to Rs.6000/- per employee. The contribution of employee to the work is 100%. They put all their efforts for a good productivity of ice creams. When there is a rise in demand for the ice creams, there is a need to produce more number of ice creams. So for the increase in production the company provides incentives to its employees and also provide overtime so that the employees increase their working speed and also work for more time which results in growth of production.

QUALITY CONTROL The ice cream is manufactured in hygienic conditions. A proper care is taken about the cleanliness of the factory. All workers are forced to wear hand gloves and caps. A good discipline is maintained in the factory. The surrounding of the factory is also kept clean and and it is also seen that no dust particles enter inside the factory. Cleaning is done from time to time. The milk which arrives to the factory in refrigerated tanker trucks from local dairy farms is pumped into the gal storage silos that are kept at 2°C. Every mixture is randomly tested during the production process. Butterfat and solid levels are tested. The bacteria levels are measured. Each mixture is also taste-tested. The company also carefully monitor the ingredients that they purchase from outside suppliers.

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TQM (TOTAL QUALITY MANAGEMENT) The company takes all measures to make its ice cream a quality product and keeps on making improvements in the quality. The company seriously takes all needs, wants and desires of the customer seriously and make the product as per the demand of the customer. They provide excellent quality to the customer as they want to maintain a relationship with the customer. The quality of raw materials is also tested and is then only allowed to use it for the purpose of manufacturing. The company takes appropriate measures to reduce cost of production and sees that they produce better quality of ice creams at lower costs. They main aim of the company is to provide better quality of ice creams at cheaper rates than other ice cream manufacturers and increase its market share in the local market.

JIT (JUST IN TIME) The company purchases raw materials like milk, cream, etc. on daily basis and raw materials like sugar, dry fruits, flavours etc. are purchased on monthly and weekly basis. Raw materials are purchased as per the requirements of the production. Sometimes the raw materials are purchased in advance but are used in limited quantity and appropriately. The company takes care that no raw material gets wasted. The raw required raw materials are delivered on time to the factory and it is seen that raw materials are available on time.

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SUGGESTION As per our observations we can suggest that though Vinod ice cream is small scale industry it has the potential to grow on large scale and has potential to sell product at national level.We can suggest the company to produce more of its products in way they are performing.The company should also try to expand its business by opening more such branches in other areas. We wish all the best to the company for its success in the future.

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INDEX Sr

TOPIC

Page no.

no.

1. History of Ice Cream

1

2. Industry Profile

2

3. Important players in the Ice cream

3

Industry 4. Total Market Share

6

5. Segmentation

7

6. Production Area

7

7. Basic Raw Materials

8

8. Packaging

8

9. Our visit to Vinod Ice creams

9

10. Raw Materials

9

11. The Manufacturing Process

10

12. Inventory Management

13

13. Warehousing

13

14. Transportation & Logistics

14

15. Productivity

15

16. Quality Control

15

17. TQM(Total Quality Management)

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18. JIT(Just In Time)

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19.Suggestion

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Productivity & Quality Management

s.y.b.m.s.

ICE CREAM INDUSTRY

A PROJECT COMPILED BY

ALHAD APTE

07

ABHIJEET CHAVAN

11

ABHISHEK MAKHIJA

26

ABHISHEK PANDEY TAKSHAK SHEGOKAR

37 49

SUMITTED TO PROF. RAJWADE

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THANK YOU

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