Ice Cream Making Business Profitability

Introduction to profits in ice cream making business in India 

Who doesn’t love to have ice cream? Everyone likes to have it, nowadays it is available in different flavors with nutritious value. There are some of the popular flavors such as Chocolate! Vanilla! Strawberry! Black current! Two-in-one! Tender coconut! What not many more are available at an ice cream store in every locality. People of almost all ages relish the delightful taste of their favorite ice cream on a hot summer day.

Ideas to start and make profits in ice cream making business

The true ice cream lovers prefer to have it like a sweet treat for every season. No Indian occasion is considered to be complete without a scoop of ice cream at the end of a good meal. This blog helps you to know the small ice cream factory project cost. This shows that the ice cream has so much demand in the market and hence a great potential to be a perfect business idea. For any type of business first, you need to design a perfect ice cream making business plan.

List of license, permissions, and registration to initiate ice cream business 

You need to attain the below list of licenses to manufacture or sell ice cream in India. Some are issued by the state government while others are under the jurisdiction of the central authority. In case you have a small scale business, then you may not require all these permits. If you wish to get a franchise or sell packaged ice creams, then you will attain permits easily for establishing an ice cream manufacturing plant.

Company registration – Whether you opt for a franchise, or create your ice cream brand, you need to register it accordingly. The preliminary registration needs to be done at the local trade offices.

GST registration – Filling the documents to attain the GST certificate is another necessary step. If you do not fill this form, then you will not get the necessary permits. The GST permit is issued by the central government as well. Maintaining a GST account is mandatory for all business houses.

Sale tax registration – If you open a permanent ice cream parlor, then you need to get sale tax registration papers.

PAN card – Both ice cream truck owners and shop owners will have to opt for a PAN card, issued in the name of the company. The PAN card will give authenticity to the business. You will have a proper representation in the government books.

Bank account – If you want to maintain a separate bank account for the ice cream business, then you must open a bank account.

FSSAI License – In case your ice cream truck or parlor succeeds in making a yearly turnover of 12 lakhs or more, then you need to attain the FSSAI permit. The license is issued by the central government’s Health and Family Welfare Ministry. It will ensure that the food quality is good and appropriate for consumption.

Ice cream manufacturing process

The ice cream manufacturing process includes the steps below-

Adding all ingredients – Ice cream making is all about adding the proper amount of ingredients. If the proportions are up to the mark, then you will not feel the creamy taste, texture, and consistency. Thus, you must measure and pour all ingredients carefully in the ice cream machine.

Churning them in the blender – Once entire ingredients are fed to the machine, it is time to switch on the blender. The ice cream making machine takes some time to churn and blend the ingredients. This duration is based on the ingredient’s quantities.

Churning continues – The mixture needs to be churned in the machine, at a reduced temperature for many hours. Then the flavor is included, and the mixture is now allowed to churn again for the whole night.

Setting at low temperature – Once the mixture has reached the required consistency, it is now allowed to rest at low temperatures. This aids the ice cream to freeze for setting it properly which is then sent for packaging.

Packaging and preservation of ice cream

Pack the ice creams properly – If you have a franchise, then the original company will support with packaging. In case you are selling your ice creams, then you must contact proper wrapper manufacturers. Attractive packaging will grab the attention of the customers.

Preserve them for a long time – The ice cream will stay fresh in proper freezers or coolers. In most Indian regions, the climate is extremely hot in the summer season. Thus, all ice cream manufacturers and sellers should keep freezers.

List of ingredients and cost

Milk and milk powder, cream, granulated sugar, eggs, and various ice cream flavors are needed for making different amazing sweet creamy delights. These are seen in small as well as large packs. The charges of these ingredients fluctuate from region to region and from time to time. Milk, sugar, and egg process tend to rise up and down as per market fluctuations. In case you want to acquire these ingredients at fewer prices, it’s recommended to heading towards the wholesale markets. When you have to pay less for your components, then your profits will automatically rise.

List of ice cream manufacturing equipment

Some tools like whiskers, mixing bowls, mesh strainers, saucepans, and wax paper are readily available in the supermarket. These are not so expensive and are available in kitchens. If you wish to start the business on a small scale, then purchasing mini ice cream makers is the best idea. It can cost anything around Rs. 2500 to Rs. 7,000. But to purchase a commercial machine, you must spend out around Rs. 40,000 lakhs to Rs. 1 lakh. You will also require an ice cream freezer. The charge of small commercial ice cream freezer begins from Rs. 72,000 and maybe up to Rs. 3.5 lakhs. You can avail of these from suppliers or from online like Indiamart.

The selection of location for ice cream making business

Proper supply of amenities – You must always choose a location with a proper supply of electricity, abundant water, and transportation provision. Without these, the ice cream manufacturer will be in trouble.

Adequate exposure – Opening an ice cream store at famous places will increase your chances of sale and returns. Malls, theatres, colleges, schools, and places with high footfall are perfect areas.

Less competition – It is recommended to choose a location that does not have an ice cream store already. It will help in a better inflow of clients and thereby high profit.

Low expenses – It is suggested to start your ice cream manufacturing unit at a region that will offer all required ingredients at a reasonable cost.

The cost or investment to start a small ice cream factory in India

It is a common fact that opting for a franchise is easy, but the expenses will be high. Most reputed ice cream manufacturing companies will charge anything between 3 – 5 lakhs. The amount differs from one brand to another. If you do not wish to spend so much, then you should manufacture and sell your ice creams. A rough approximation if you can set up all equipment, supplies, and begin own production could be 1.5 to 2.5 lakhs. The amount might differ from one state to another. If that sounds high, then you may initiate as small scale ice cream manufacturing business with only Rs. 70,000 to1 lakh.

Profit margin in ice cream manufacturing business

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Profit margin in ice cream manufacturing business.
Profit margin in ice cream manufacturing business.

The selling price of ice creams should be determined based on several aspects. The profit margin for franchise owners is somewhat low, as they must provide a certain percentage of the total sale amount to the main ice cream factory. But surveys recommend that a small independent ice cream shop owner can gain about 20% and 40%. It differs as the cost of ingredients is not similar in all the regions in India. People in cities may pay Rs. 130 for one scoop of chocolate ice cream. But you cannot keep the same charge in rural regions and villages.

Strategized marketing places for ice cream

School, college and office canteens – Children as well as adults are fond of these creamy treats. Brand promotion and sales will be more if you establish a fair deal with canteen owners at colleges, schools, and offices.

Cafes – Cafés that sell cold or hot beverages have several options, which comprise the use of ice cream. Thus, café owners can be possible customers. If the customers relish the taste and quality of your ice cream, then café managers will approach you again and again.

Restaurants – Both big and small restaurants accommodate ice creams in the menu part of the dessert section. No meal is accomplished without eating something sweet. Thus, you can also approach ice cream in such eateries.

Popular hangouts – Malls, museums, movie theatres, or any other popular shopping space, where people can be seen in high could be a potential ice cream selling segment in case you have an ice cream truck.

Fairs – Carnivals are one more selling point for ice-cream sellers. People want to dig into something sweet and savory while using thrilling rides. So, you will get a large count of customers for your product.

Event planning agencies – Wedding, housewarming parties, birthdays, and other gatherings should include ice cream on the menu. Dealing with a proper contract along with even planners will give numerous opportunities and thereby increase sales.

Risks in the ice cream making business 

Similar to various other businesses, the ice cream business is subjected to various risks. Some are seasonal and cannot be optimized by the owner as well. Few risks are artificial and methods are there to overcome these risks so that they do not harm the business majorly. South and central Indian states have about nine months of summer. Thus, it is very easy to determine the market availability. But ice cream manufacturers sometimes do not gain a high profit because there are regions that are still seen with a long duration of power cuts. Only a few owners keep an inverter. Apart from this, the inconsistency between supply and demand is huge. Most people have personal favorites and are not ready to adopt new flavors. Proper planning and management will available in handy to reduce these challenges.

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