AMUL ICE CREAM

Presented By: Hiral Mehta Saurabh Mehta Poonam Mishra Parinaaz Mistry Hemal Muchalla Bhakti Shah 61 62 63 64 65 89

Contents
Overview of the Industry About the Company

About Amul Icecream

Cost sheet and analysis SWOT analysis of AMUL

Overview of Ice Cream Industry

Indian ice-cream industry is very old started in unorganized developed into an organised sector. Ice Cream market is growing at 26% market size -1200 crores Major players: Amul HLL - Kwality Walls Mother Diary

Ice Cream Consumption in the Regions

east 10% south 20% west 40% west 40 north 30 south 20 east 10

north 30%

About The Company

Gujarat Cooperative Milk Marketing Federation (GCMMF)
AMUL means "priceless" in Sanskrit.

Turnover of Amul was Rs. 52.55 billion in 2007-08

Various other products under brand name amul.

Various products under the brand name Amul

Amul products have been in use in millions of homes since1946. Amul Butter Amul Milk Amul Cheese

 Amul Chocolates
Amul Shrikhand,

Amul Ice creams

Amul Masti Dahi

Amul Ghee
Amul Kool Cafe

About Amul Icecream

Amul Ice Cream was launched on 10th March, 1996 in Gujarat. Amul - Market Leader with share of 38% HLL - Kwality Walls - 2nd biggest player Has combated competition like Walls, Mother Dairy and achieved the No 1 position in the country in 2001 . -reasons:reasonable pricing, quality of products & the brand name.

Various Ice Cream Range of Amul

Market Share of Amul Ice Cream against kwality walls

Assumptions

All raw materials consumed in production of ice cream.

The production and sales units are same.

Cost Sheet

Cost Sheet Cont.

Classification of Total Cost

Series1, INDIRECT COST, 45.45, 45%

DIRECT COST

INDIRECT COST

Series1, DIRECT COST, 55.55, 55%

ANALYSIS OF COST SHEET

Direct Cost

Analysis of Cost Sheet

Direct materials
To manufacture one ice cream cup below are the components or raw materials required with their unit cost : Dry Fruits 3 % Milk 70% Flavours 5 % Sugar 16 % Cup 2 % Other ingredients 4 %

Analysis of Cost Sheet

Direct Labour There are 17 workers employed in the production of the ice cream and each worker is paid Rs 2000 per month .

Direct Costs or expenses

The direct cost includes costs incurred in bringing the raw materials into the factory ie. Carriage inward. The raw materials are purchased every month and costs involved for carriage are Rs 1840.

Distribution of Indirect Cost

Series1, selling and administrative overheads, 44.2147, 44%

factory/works overheads Series1, factory/works office and administrative overheads, overheads 49.2134, 49% selling and administrative overheads

Series1, office and administrative overheads, 6.5725, 7%

ANALYSIS OF COST SHEET

Indirect Cost Factory Overheads

Analysis of Cost Sheet

Indirect Costs 1. Factory Overheads The Factory Overheads includes the indirect labour, factory rent, insurance and depreciation on machinery, power, factory supervisors salary ,packing material, ware house expenses and other factory expenses.

Indirect labour : This includes 3 sweepers whose average salaries are Rs. 1000 each.

Analysis of Cost Sheet

Insurance: The total insurance amount is Rs 15000. Break up of the total insurance amount for Machinery 1200000.
Land : 500000(1000 sq. ft. * Rs. 500 per sq. ft.) Depreciation on machinery : There are 6 machines in the factory ,one machine is used for making ice creams which is Boiler and other are Refrigerators . The cost of Boiler is Rs 300000 and Refrigerators are worth of Rs. 900000. The depreciation method followed is SLM @ 7%.

Analysis of Cost Sheet

Power & Fuel: The monthly average cost of power consumption of the factory is Rs 42375. Supervisors salary : The factory has 2 supervisors and salary of each supervisor is Rs 2500. Cost of maintenance : oiling and cleaning of machinery and other miscellaneous expences for maintainance

ANALYSIS OF COST SHEET

Indirect Cost Office & Administrative Overheads

Analysis of Cost Sheet

2.

Indirect Cost
Office and administration overheads

Office and administration overheads include office rent, salary to staff, office and general expenses, printing and stationary, telephone expenses, electricity and lightings.
Office rent: The per sq.ft rate of the Office is Rs 18.The area of the factory is 300 sq.ft.

Analysis of Cost Sheet

Salary to staff : the office staff has three employees. A peon, clerk and an Accountant and the salaries are Rs 800, Rs 2200 and Rs 4000 respectively. Office and general expenses: This comprise refreshments(tea and snacks). Telephone Expenses:- Calls made by the staff members. Electricity and lightings:- It consists of office lighting and air conditioning expenses.

ANALYSIS OF COST SHEET

Indirect Cost Selling & Distribution Overheads

Analysis of Cost Sheet

3.

Indirect Cost
Sales and distribution overheads Sales Commission : As a part of encouragement for sales people ,they are given commission of 2.5 % of the total sales done by them. Discount allowed : To attract retailer to buy the product they are offered a discount of 5% on the selling price.

Analysis of Cost Sheet

Salary of salesmen : The company has 5 sales persons and they are paid a salary of Rs 3500 each per month.

Carriage outward: To carry the finished goods to the whole sellers , the transportations charge per unit/product is set as Re 1.24

STRENGHTS

WEAKNESS

It is a family brand. Available in many flavors and sizes. They have sugar free probiotioc icecreams. Low calorie ice-cream. Available in reasonable prices.

Does not have many outlet centers. Poor Packaging . Durability (melts very fast).

OPPORTUNITIES

SWOT ANALYSIS

THREATS

Come up with more fruit flavors. Having more number of amul outlets. Better advertising. Changing the target audience (focusing more on youth and children).

Competition from existing players Branded and Unbranded (mewad). Foreign players entering the market (Geleto , Baskin Robbins).

Refrence

www.amulicecream.in

Annual report of Amul

Cost accounting and financial management-Ravi kishore edition 5