A

PROJECT REPORT
ON

NEW PRODUCT DEVELOPMENT

Of
Low Calorie, Creamy & Excellent
Ice-Cream
Present to
Ms. Jyoti Ghanchi
Faculty Member,
S.K. School of Business Management
Hemchandrachary North Gujarat University, Patan
On
April 11th, 2014
In partial fulfillment of the requirement for the Production & Operation Management
Course in the Master of Business Administration Programme

Submitted By:-

Submitted By:
Akhani Ronak

(01)

Nayee Vivek

(21)

Patel Falguni

(31)

Chandrakant

(41)

Thakor Daksha

(51)

Yadav Manmohan ( )

PREFACE

Experience is the best teacher so far as solution of any problem is concerned

This experience is not an accessible to student in the class room field work is necessary for
gaining the experience
Spend time to observeIt is to rectify the mistakesSpend time to readIs foundation of
knowledgeSpend time to practiceFoundation of learning
Useless Theory put in practice it is of no use. The purpose of project is unable to put all theories
and concept that we have learnt in Sessions.

EXECUTIVE SUMMARY

CVF ltd is mainly FMCG product company which will enlarge the opportunity for small as well
as large business to reach the untouched markets.

We want open low celery ice-cream Business but, this idea arise in our mind due to some
specific reasons.

1. It also controls fatness of people.

2. It helpful for the daibities problem people.
3. It beneficial for the Heart problem people.
4. The second target segment is a select group from within the first segment of individual
customers.

5. The customers for our product at a start would be the small businesses and retail shops.

Mission
We want creating successful company in the market.

Vision
Our company becomes best company in the world.

Keys to Success

Distribute only law calaries ice-cream quality, healthy products.

Recruit new people to assist in the sales of the products.

Build the company on a solid basis of integrity.

Start own ice-cream business

So we want to start an ice cream and Gelato shop business?
The purpose of this article is to help anyone interested in starting their own ice cream business to
get started. I am an artisan ice cream maker with extensive experience of industrial scale ice
cream making. While I will discuss both artisanal or traditional and industrial or large scale ice
cream manufacture, the main emphasis will be on artisanal production.
In the India, Ice cream is a multi-million pound growth industry, generally recession proof and
genuinely customer focused. When people buy ice cream its always a treat and often a
celebration. As a Gelato-Artisan youll provide your customers with a product that brings them
happiness. But you will need to put in long hours too, its common for owners to work until
10pm at night during the busy season, but in return you will unleash your inner creativity,
growing your own lifestyle business, where your friends and family can surround you, and make
a comfortable income in the process.

If there was an ice cream bible it would probably contain the proverb
Give someone an ice cream and youll make them happy all day
Give them an ice cream shop and youll make them happy for life!
So you have the desire and energy to create your own ice cream-Gelato business but first you
must consider some important aspects, not least your unique selling point
Some Important questions to ask you before start Business
Do I want to focus on organic products, all natural ice cream, and yogurt or low-fat premium
ice creams?
Will I sell from a high street location, farm-shop, and beauty spot or simply wholesale my
produce?
What extra equipment will be needed to help me sell the ice cream such as display freezers,
trick, old fashioned barrow, and van or delivery truck?
What prices will I need to charge in the market place to make a profit and still be competitive,
and how much will I need to sell to cover my fixed costs?
Do I know what my mix will cost to make and what percentage of profit will I need to
achieve?

COMPANY PROFILE
Company Name:-

CVF Pvt. Ltd.

Product Name:-

Low Calorie, Creamy & Excellent Ice-Cream

Organization Structure :Name

Designation

Patel Falguni

Owner

Thakor Daksha

CEO

Nayee Vivek

Executive Manager

Akhani Ronak

Director

Chandrakant

Auditor

BANKERS:Bank of baroda.
State Bank Of India. ICICI Bank
Website:-

www.cvfice-cream.com

Address of company:Manufacturing Unit

Selling Unit

Nik-ice Company Ltd.,

At post- 175/Palika bazaar,

At post- Chansama highway, Rajpur

Patan-384265

Dist- Patan-384265

COMMERCIALIZATION / PRODUCT LAUNCH

Demographic Segmentation Upper, middle income groups

Geographical segmentation Upper, middle income groups.

SWOT ANALYSIS
Strength

New concept

Reasonable Price

Value for Money

Every human consume

Weakness

Concept is easy to copy

Opportunity

An opportunity to be the first to introduce eco-friendly paper toys

To take advantage being first in the Local market.

Potential market growth.

Go green concept awareness in society

Threat

Other player may also enter in the same business because the cost for starting up the
business is very less.

Substitute plastic bag sellers may reduce the price of their product to give tough
competition.

How ice cream is made

There are 3 stages of production
Firstly, the raw ingredients mainly low fated milk, added milk powder, sugars free and fats such
as cream, butter or vegetable, must all be heat treated (cooked) and blended through heating to
emulsify the fat in the mix. The mix is heated to a temperature of 65-85C for a specific time to
achieved pasteurization which then kills harmful-bacteria present in the pre-heated ingredients.
The heat treatment is usually defined in the Food Regulations that apply in the country of
production. During this heating and cooling phase, flavorings can be added to the mix in the
pasteurizer, such as cocoa to make chocolate ice cream or nut pastes to make hazelnut and other
flavors. Sometimes vanilla pods are also added, although in most cases the vanilla is only added
to the mix once cooled. This is almost always the case when industrial scale methods of
production are used.
Secondly, the heated mix must be cooled rapidly, regulations normally specify this must be done
within 1.5 hours, to the required temperature, usually 7C or lower, and most equipment
will usually continue this cooling down to 4C. Once cooled the mix is allowed to age before
flavors such as strawberry, mint, vanilla and other fruit pastes are added. Usually smaller
quantities of the mix are separated to make many different flavours from this one batch. With the
industrial method described below, during the second stage the mix is pumped from the
pasteuriser vat through a homogeniser (a high pressure pump with an orifice). This forces the fat

globules present to be broken down into smaller regular sized globules and to form a
homogenous mix structure. The mix is then pumped through a plate-cooler and into the ageing
vat to be further cooled for storage. The advantage gained by homogenisation is a smoother
texture for the product and helping to make it more suitable for long-term storage.
Finally, the chilled mix is frozen to -6C to -9C, very quickly within 5-10 minutes in either a
continuous or batch freezer by way of a churning/whipping process. During this freezing cycle
the complete mixture is poured or pumped into the freezing chamber of the freezer to be frozen.
Inside this chamber the mix, now containing sugars, water, fats and proteins is partially frozen
incorporating air bubbles, resulting in a finished ice cream similar in consistency to a soft-serve
ice cream.
The correct quantity of each of these components listed above is very important, to the
production of a smooth, dry, creamy, textured product. Too much of any one component in the
formula will cause negative effects to the product, these can be sandiness, iciness or fast melt
down, and will not help you establish a quality standard with your customers. It is then further
hardened for storage, down to a temperature of -18C to -20C, prior to its eventual distribution
and sale.

What equipment is needed for production?

In the industrial method the focus is on the wholesale market. Using this method you will
need to sell large volumes of product, and your approach to production issues should reflect this.
The amount of investment will be higher than the artisan or traditional method described later.
Initial set up cost will typically be a minimum of Rs.50,000 and is normally much higher, around
Rs.100,000 - Rs.200,000.

Basic production kits, (see photo above), will consist of at least one pasteurizer linked to an
homogenizer along with a cooler and an ageing vat to complete the first stage of the process. The
heated mix will be homogenized and cooled prior to pumping to an ageing vat for hygienic
storage. This is usually complete in 1-2 hours with a further 2-4 hours of ageing.
Next the chilled mix is frozen using a continuous freezer or a large batch freezer before placing
for storage. Continuous freezers contain an air-pump, which forces air into the mix during the
freezing phase. This increases the volume of the product but not the weight. Each litre of liquid
mix originally weighed around 1 kg, but each finished litre of ice cream now weighs less, the
actual weight depending on the amount of air incorporated. This process is called overrun. Most
ice cream is sold by volume in litres, and not by weight. This overrun gives you much
more finished ice cream than you had liquid mix, at virtually no added cost. Note this feature of
the industrial processing method unfortunately restricts the addition of natural flavourings as any
small seed or nut will block the air pump. However, this essential feature gives your business a
much needed competitive edge in the wholesale market.

If pieces are to be added to the final product such as fruits, sauces and nuts this is usually added
via a filler pipe (see photo) as the ice cream exits the freezer. These pieces can be difficult to add
unless you have a fruitfeeder and a ripple-pump. Because these tend to cost 10s of thousands
of pounds, many ice cream makers add pieces manually, however this is not easy to do
consistently. Often the ice cream is then blast-frozen. This is a process in which the packaged

product passes through a freezing tunnel operating at temperatures of -35C to -40C. There the
core temperature of the product reaches temperatures of around -20C in a matter of minutes
before being finally placed in a cold store.
Perhaps the simplest method of manufacture is the artisan or traditional method; many artisans
would say it also offers better quality finished ice cream. Small batches can be produced easily
using just 2 machines. A 3-in-1 machine will process individual recipe batches very quickly, in
10 minutes or so. The first stage is completed in a batch pasteuriser, where the mix is
hygienically heated to cook and blend, as previously discussed; it will also cool the mix (second
stage), store and hold the mix prior to the final stage of freezing. Modern batch pasteurisers have
many pre-set programmes for pasteurisation and ageing the mix in one continuous programme
cycle. A high speed emulsifying stirrer acts like a homogeniser during the cooking and blending
phase, before cooling, at which point the stirring speed slows down to enable ageing to take
place. The advantage of one machine doing two jobs, and completing both stages in the same
machine is a considerable cost saving over the industrial method where you need 3-4 machines.
This hygienic cooking and maturing phase carried out by the batch pasteuriser will usually take
2-4 hours. It can also age further if left to complete overnight. Because you will not be using an
air pump during the final stage you will have the added benefit of being able to add natural
flavourings.
Finally the mix is frozen in a batch freezer where it is transformed into a complete finished ice
cream. If extra-large pieces and sauces are desired you can add these as the product is drawn
from the machine.
Because the artisan batch freezer has no air-pump lower levels of overrun will be obtained. This
is not a concern if you are going to sell directly to customers but pricing will have to be adjusted
accordingly.
As discussed, all three stages of ice cream manufacture can be combined using a 3-in-1
machine. This equipment has been available since around the 1970s and now widely used in the
industry. It can be used in start-up businesses, farms, shops, parlours, restaurants and just about

any setting offering exceptional flexibility, hygiene and flavour creativity, combined with low
investment cost. These are very important considerations for a fledgling Gelato business.

Firstly the ice cream mix ingredients are heated together in the top cylinder which acts as a batch
pasteuriser in the usual way until the correct temperature is reached. Secondly you allow the mix
to flow to the lower cylinder acting as a batch freezer where the mix now cooling, is quickly
frozen to a finished product ready for final extraction. This complete process from first to final
stage can take as little as 10 minutes per batch.
Gelato display cabinets are used to enhance the presentation of the product. Cabinets holding 12
pan/containers cost in the region of Rs.6-Rs.8,000 and 24 pan units are Rs.12-14,000 but can go
up to Rs.30.000. Blast hardening freezers or shock freezers are very useful but not
essential. These units will add to the quality of the product and extend its keep-ability or shelf
life under frozen conditions. Prices start from Rs.2,000-Rs.2,500, for a 2-3 pan version, enough
for a smaller artisan operation. Storage freezers like chest freezers are adequate for a start-up.
Later a walk in cold store may be required.

What size of Machine do I need?

A 3-in-1 machine with a production capacity of 10-30 kg/h will enable most start-up businesses
to get up and running, but larger equipment may be needed, if you wish to sell as a wholesaler or
have an existing customer base. Larger ice cream equipment will allow you to freeze multiple
pans of each flavour in the same batch cycle together with faster production. The size of
equipment you need will depend not just on the amount of product you need to produce, but on
the available workshop space, storage area and if a 3-phase electricity supply is available at your
premises, and not least your budget.

Income expected
Ice cream making has the potential to generate a good income and in this section I will give an
indication of the net income that might be made based on using 3 L of ice cream liquid mix to
make scoops or cones. This volume of mix will make 4.5 L (35-40% air) of ice cream or 6 L
(100% air). To simplify this task I will work with the 4.5 L mix.
One L of ice cream mix (including flavour) costs approximately Rs.1.50-Rs.1.90.
The cost of 4.5 L (35-45% overrun) is Rs.4.50-Rs.5.70.
The wholesale price of 4.5 L is approximately Rs.16, so the net income is Rs.16.00 -Rs.4.50 =
Rs.11.50 net.
The income increases markedly if scoops are sold. The 4.5 litre pan of ice cream will produce
approximately 43 scoops of 70-85g.
Retailing a single scoop at Rs.1.50 net (Rs.1.80 gross) gives Rs.60.00 net. Subtracting the cost of
43 cones at 5p (Rs.2.15) the net income is Rs.60 -Rs.4.50- Rs.2.15=Rs.53.45.
So for every liters of mix at Rs.1.50 you have generated a net income of Rs.17.81. Thats
approximately 1200% or a 12 fold increase!

The above figures are based on the ingredient cost only and are not profit. No account has been
made for fixed costs such as (premises, utilities etc) or variable costs (staff, electric,
packaging etc.). You will need to calculate these into your actual business plan cash flow
forecasts to calculate profit.

Your business is going so well that you need to expand

Success can result in you no longer being able to keep up with your production requirements in
the time available. You can increase your capacity by upgrading to a larger machine; or by
simply adding another batch pasteuriser; or a further 3-in-1 machine to work alongside the
equipment you already have.
Additional storage freezers, blast freezers, a walk-in cold store may also be required. Artisan
producers believe that best results are achieved by making ice cream fresh every day. But you
may prefer to make and store your ice cream in a freezer and build up stocks prior to display and
sale. This will be a necessity if you wholesale.

More information on equipment and getting started

3-in-1 machines
Icetech TP3

Rs.24,800 (10-30 kg/h)

Bravo Trittico Startronic 305

Rs.25,300 (20-30 kg/h)

Icetech TP4

Rs.28,800 (15-45 kg/h)

Bravo Trittico Startronic 610

Rs.30,900 (40-60 kg/h)

Icetech TP5

Rs.31,800 (20-60 kg/h)

Batch Pasteuriser
60 litres Bravo Pastotronic 60

Rs.18,180

60 litre Icetech easy 60

Rs.16,400

60 litre Icetech PST 60*

Rs.21,200

60+60 liter Icetech easy 60* 60

Rs.26,800

This unit has a high-speed stirrer

Batch Freezers
Vertical model Gel 5

Rs.12, 600 (12-40 kg/h)

(Icetech easy 3*

Rs.16,800 (10-30 kg/h)

Bravo Startronic 305*

Rs.21,150 (25-38 kg/h)

Icetech MT3*

Rs.19,200 (10-30 kg/h)

Horizontal batch freezer

Display cabinets for Napoli dishes
Bravo Rotonda 12 dish

Rs.16,600

Bravo Rotonda 24 dish

Rs.19,900

La Squadra Elena 12 dish

Rs.6,980

Elena 16 dish

Rs.7,960

La Squadra Bella 24 dish

Rs.14,000

La Squadra 24 dish Adriana

Rs.12,560

Blast freezers
T5

Rs.5,350 (6 dish)

T14

Rs.10,300 (6 dish)

La Squadra

Rs.4100 ( dish)