How to Start Ice Cream Making Business in India – Costs, Profits, ROI | StartupYo
How to Start Ice-cream Making Business in India
Be it winter, summer, or even monsoon, nobody likes to miss eating ice cream on random occasions, gatherings, and even on festivities. Ice cream is rather a consumable product of choice, it has huge demand throughout all the seasons, especially in the Summer. Thanks to the various types of Ice creams and brands emerging daily, the trend and demand for Ice Cream are increasing every day, thereby increasing the growth and turnover rate of the Ice cream Industry.
Thanks to social media and better marketing, the growth of the Ice Cream industry has increased over the years, making more consumers and attracting people to make it a consumable snack to be used on various occasions, and even during outings and get-togethers.
In terms of value and numbers, the Ice Cream market has been increasing its total turnover every year with a great feat. The Ice Cream Market alone segments around 3000 Crore Rupees of Market value so far. And surprisingly, over the last 5 years, the growth percentage of the Ice Cream Industry has been more than around 19.5% a year.
Despite the heavy competition and the emerging of new brands almost every month, the Ice cream industry is performing very well. And that does not include just the well-known and established brands, but also new businesses and brands that are starting their own Ice creams on a smaller or a larger scale, together they contribute to around 3000 Crore Rupees, as mentioned above.
After understanding the overview, let us move on ahead to grasp about the required technicities to start Ice Cream Making business.
License Required for Ice Cream Making Business
A. FSSAI License
B. Firm Registration
C. Current Bank Account
D. Trade Mark
E. GST Registration
F. Trade License
G. Business Pan Card
H. Sales tax Registration
Raw Materials required
Raw materials are the basic ingredients that would act as the base for your end product and decide the quality of your Ice Cream at the end. The following are the various types of raw materials that are required for the Ice Cream Making business in India.
B. Milk Powder
E. Granulated sugar
F. Ice Cream Flavours
J. Approved Additives
L. Fruit Purees
Raw materials may require small amounts of funds, but you would also require various equipment that would help you to manufacture your Ice cream. For Ice creams of different colours and different tastes, equipment would play a major role. This equipment would amount to most of your funds. The Equipment ranges from various start to end processes.
B. Mixing Bowls
D. Mesh Strainers
E. Weighing scale
F. Wax Paper
G. Mini Ice Cream Makers
J. Commercial Ice Cream making machines
K. Packaging materials
M. Miscellaneous Equipment
In Ice cream manufacturing process, the colour, flavour and taste should all match very well. Hence, to ensure the quality of the product, you would require skilled workers, who have enough experience, the same goes for packaging, as Ice cream can melt away quite easily. To summarize, the manpower required is mentioned as follows.
- For setting up a small scale-based Ice-cream making business, with the best flavour and multiple types, the necessary manpower that you should go for would be around; 2 to 4 skilled workers.
- And if we talk about a business that is on a medium-scale level, the required manpower would be; 5 to 7 workers at the most and around 8 to 10 workers in a large-scale Ice cream making business, with a variety of flavours.
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The investment required for Ice Cream Making business is not major, it would only require most of the funds for the equipment, that is the various machinery, freezer or a refrigerator, and marketing as well. The Rest of all the factors would not consume much of the funds. But, to summarize the necessary investment required in small and large-scale Ice Cream Making business, the table is as follows.
|Small Scale (Multiple Flavours)||60,000 to 2 lakhs|
|Medium or Large Scale||3 to 20 lakhs|
Expected Profits from Ice Cream Making Business
With all the Investment or funds on the line, any businessman would have some expectations when it comes to the profits that can be earned through the Ice Cream Making Business, especially with all the competition that is present.
Now, depending on the branding that the business is able to set for themselves and the flavours of Ice Cream they deal with, the profits would vary. The profit margins are different for all the different types of packages and Flavours. On average, the expected profits that even a small Ice Cream Making business owner can hope to earn is around 45000 to 1.2 lakh.
If we talk about an Ice Cream making business that is competing and performing really well, with a good brand name and market, they can earn more than 2 lakhs per month.
Local shops: Most of the local shops always have a small freezer or a cooling machine in their stores, for storing dairy products. Hence, these shops can be your primary target.
Shopping malls/ Supermarkets: The Primary focus of shops inside shopping malls or supermarkets is to display consumable goods. However, they also have various sections where they display and sell Ice Cream. If your marketing campaign is good enough, they’d be willing to sell your product.
Ice Cream Stores: Needles to say, Ice Cream Stores would be your crucial target shop for showcasing and selling your product. However, it would take a lot of convincing, as most of the shops hold franchises of just one brand, but you can always try your luck.
Dairies: Dairy shops have many different brands of Ice Cream displayed in their stores. You can definitely approach them, good thing is that there are many dairies in each locality, giving you good exposure to market your product.
The Profit margin in Ice Cream making business would vary, as each business would have a different cost of production, yet on an average the profit margin
goes around 15% to 35%
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