Cost Sheet

We take this hazard to thank Prof Jayesh Jain for giving us an insight , his expensive adv screwb on the whole , timely suggestions and constant support throughout the acoustic projection. We would also like to thank Mr. Raj Raut who is into the glassful- drub business for the valuable information that he sh ard with us ,which proven to be very helpful while preparing the project ABSTRACT This project report is prep ard to study the represent analysis of Amul ice skip and to formulate the cost sheet to find the per unit cost of a single Amul ice cream cupful of 100 gm(fruit and nut). Our colleagues uncle also helped us in finding the discordant cost knotty in manuf consummationuring ice cream and we also got information from www. amulicecream. in.OVERVIEW OF ICE-CREAM INDUSTRY History- The ice cream industry is mainly governed by the prevention of aliment and adulteration act (PFA)-1954 in India. The ice cream market growth picked up aft(prenominal) de-reservation of the sector in 1997. History of Indian ice-cream industry is very hoary started in un-organized sector and mainly the universal product was kulfi. New technologies and barrenzers are the main force behind the development. Future is bright for ice-cream industry in India. Production area- In rural areas, kulfis / ice creams made by fine / 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 ice- creams / kulfis in their home backyard and cater to the local market. Almost 40% of the ice creams sold in the republic are consumed in the western sandwich region with Mumbai being the main market, followed by 30% in the labor union and 20% in the south. Industry Snapshot- securities industry Size 1200 Crores crank Cream market is growing at 26% (yoy) Major players- 1. Amul commercialise Leader with trade of 36% 2. HLL Kwality Walls 2nd biggest player 3. M other(a) diary 4. Arun Chennai Based Hatsun Agro Product few Brands/ Target Consumers 1. Youth Centric Chillz 2. Kids let out 3. Teenagers Cornetto 4. Health Conscious Amul Sugarfree & Pro-Life Future of Ice Cream Market in India-Ice Cream market will expand with increase in number of malls. Also companies like HLL has been increasing their ice cream takes Swirl. Few years ago consumers use to go out for walk by and by dinner and use to taint ice creams from hawkers. But now consumer who oft visit malls for entertainment prefers to buy ice creams during diffe ask quantify of the twenty-four hour period as it is visible upfront and feel like spending Rs. 50 for that tasty chocolate swirl with cake and nuts. As marketers are collar the different needs of consumers, be it health conscious people- (Amul sugar free and pro-life ice-cream) , kids, youngsters, etc, and are coming up with products specific for them. with portfolio of flavors, consumer today has overplus of options at hand to choose from and therefore high probability of acquire one(a) more scoop of ice cream.Also with increasing wallet coat and innovative modern retail formats, it has definitely given a Philip to the ice cream industry in India. About the keep corporation Amul pic Gujarat Cooperative draw Marketing Federation- Gujarat Cooperative milk Marketing Federation (GCMMF) is Indias largest food products marketing organization. It is a state level apex body of take out cooperatives in Gujarat which aims to provide remunerative returns to the farmers and also serve the interest of consumers by providing graphic symbol products which are good value for money. Some statistics about the company- The Turnover of Amul was Rs. 52. 55 billion in 2007-08. Members 13 district cooperative milk producers Union 2. 7 one million million million no(prenominal) of Producer Members No. of Village Societies 13,141 Total Milk handling capacity 10. 21 million liters per day Mil k charm (Total 2007-08) 2. 69 billion liters Milk collection (Daily Average 2007-08) 7. million liters Milk Drying Capacity 626 Mts. per day Cattle lead manufacturing Capacity 3090 Mts per day AMUL the commemorate- Amul -the age old brand brand belongs to (GCMMF). AMUL means priceless in Sanskrit. The brand tell Amul, espouses from the Sanskrit word Amoolya, and was suggested by a quality control expert in Anand. Today Amul is a symbol of many things. Of high-quality products sold at reasonable prices. Of the genesis of a vast co-operative network.Of the triumph of indigenous technology. Of the marketing savvy of a farmers organization. And of a proven model for dairy development. Various products under the brand name Amul - Amul products have been in use in millions of homes since 1946. Amul Butter, Amul Milk Powder, Amul Ghee, Amul Cheese, Amul Chocolates, Amul Shrikhand, Amul Ice creams, Nutramul, Amul Milk and Amulya have made Amul a leading food brand in Indi a. Some facts about the Amul ice cream- Amul Ice Cream was launched on 10th March, 1996 in Gujarat. The portfolio consisted of impulse products like sticks, cones, cups as well as take home packs and institutional/catering packs. In 1997, Amul ice creams entered Mumbai followed by Chennai in 1998 and Kolkata and Delhi in 2002. Nationally it was rolled out across the country in 1999. Has combated competition like Walls, Mother Dairy and achieved the No 1 position in the country. This position was achieved in 2001 and it has continued to remain at the top. Today the market share of Amul ice cream is 38% share against the 9% market share of HLL, thus making it 4 times larger than its closest competitor. Amuls entry into ice creams is regarded as sure-fire due to the large market share it was able to capture within a short period of time due to price differential, quality of products and of course the brand name. Ice cream range- Royal care chain of mountains (Butterscotch, Ra jbhog, Malai Kulfi Nut-o-Mania Range (Kaju Draksh, Kesar Pista Royale, Fruit Bonanza, Roasted Almond) Royal make do Range (Butterscotch, Rajbhog, Malai Kulfi) Nut-o-Mania Range (Kaju Draksh, Kesar Pista Royale, Fruit Bonanza, Roasted Almond) Natures Treat (Alphanso Mango, Fresh Litchi, Shahi Anjir, Fresh Strawberry, s pottydalous Currant, Santra Mantra, Fresh Pineapple) Sundae Range- (Mango, Black Currant, Sundae Magic, Double Sundae) Assorted Treat (Choco bar, Dollies, Frostik, Ice Candies, Tricone, Choco crunch, Megabite, Cassatta) Utterly Delicious (Vanilla, Strawberry, Chocolate, Chocochips, Cake Magic) ost sheet analysis use up follow 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 % Other ingredients 4 % Sugar 16 % Cup 2 % 1) Direct Labour thither are 17 workers employed in the take of the ice cream and each worker is paid Rs 2000 per mont h . 2) Direct Costs or expenses The direct cost includes costs incurred in bringing the raw materials into the manufacturing plant ie. Carriage inward. The raw materials are purchased every month and costs involved for carriage are Rs 1840. Indirect Costs 1) Factory Overheads The Factory Overheads includes the confirmatory churn, factory rent, restitution and depreciation on machinery, office, factory supervisors net ,packing material, ware house expenses and other factory expenses. Indirect labour This includes 3 sweepers whose average salaries are Rs. 1000 each. Insurance The marrow insurance amount is Rs 15000. Break up of the total insurance amount for Machinery 1200000 tear 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 acting followed is SLM 7%. 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. 2) 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. profit 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. 3) sales and distribution overheads- Sales Commission As a part of cost increase 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 exchange price. 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 livelong sellers , the transportations charge per unit/product is set as Re 1. 24. Assumptions The company produces only one product All raw materials consumed in production of ice cream The production and sales units are same. In evaluation of plant, the rate per square feet has been assumed at Rs. 00. We gave a discount to retailer on 450000 units on bulk purchase. SWOT ANALYSIS STRENGTHS The amul ice-creams brand is one of the the top 3 brands . As its an Indian brand its popular as a family brand. Its available in all metropolitan cities and is in the reach of middleclass &above middleclass . Its available in many flavours and most of these are Indian flavours liked by Indians. They are available in various sizes. They are available in reasonable prices. They have launched brands such as sugar free probiotic ice-creams. There are many reward varieties. Its got good food energy value i. e calories per 100ml-196. 7. WEAKNESSThe strong point of amul ice-creams is not really good, it melts very soon. It does not have many outlet centers. Not a famous brand among youngsters who are the main customers of ice-cream. OPPORTUNITIES They bum come up with new flavours which would be able to attract the young person .They should not restrict themselves to departmental stores infact come with new luxury brands which can be available in hotels and they should come up with their own ice-cream parlours. They should focalisation more on their advertising and marketing strategies. They should use a strategy similar to what the y used in case of butter (Utly butterly girl ). They should come up with offers for purchase of ice-cream in whole market .Offers should run all throughout the year not only in winters. There should vehemence for special occasions. THREATS The biggest threat for amul ice-cream industry would be its competitors. Its ranked 3rd in the Indian market . It faces tough competition from the unorganized sector as well. A slight change in the price of the ice-cream would shift its customers to some other brand. Foreign players like Baskin- Robbins entering Indian market with new premium brands at feasible prices. pic Bibliography www. amulicecream. in www. google. co. in Annual report of Amul Cost accounting and financial management-Ravi kishore edition 5 THREATS OPPORTUNITIES WEAKNESS STRENGTHS