ICE CREAM PLANT, BATCH TYPE

1. INTRODUCTION:

Ice Cream is a popular food product. It was considered as a luxury food for summer
season only. However, with the development of Dairy and Milk processing industry it has
also found use as a Dessert. The Bureau of Indian Standards have formulated
IS2802:1964 for performed Ice Cream and IS5839:1970 for hygienic conditions for
manufacture, storage and sale of Perfumed Ice Cream. Average Ice Cream and Premium
Ice Cream differ in solid content as below:

No. Ingredient Content as percent in

Average Ice Cream Premium Ice Cream
1. Milk Fat 10.5% 16.0%
2. Non Fat Milk solids 11.0% 9,0%
3. Sucrose 12.5% 16.0%
4. Corn syrup 5.5% -
5. Stabilizers 0.3% 0.1%
6. Emulsifier 0.1% -
Total solids 39.9% 41.1

One hundred grams of Ice Cream contain more than 200 calories and 4% protein,
besides Minerals and Vitamins.

2. PRODUCT & ITS APPLICATION:

The ice cream makes easy and quick to serve like popcorns, in pre formed paper or
thermocol disposable cups or plastic containers, to maximize its sales at site like
shopping malls, amusement parks, air ports and railway stations etc. It also make it
much cleaner than “ordinary” ice cream, especially with young kids, as unlike regular ice
creams, it can be eaten using ordinary spoons easily, without creating a mess. Ice
creams are popular and commonly available in the form of cups, bars and candies.
 3. DESIRED QUALIFICATIONS FOR PROMOTER:

Do not require any specific qualification.

4. INDUSTRY LOOKOUT AND TRENDS

Ice cream market in the following regions – Asia Pacific, North America, Europe, Latin
America and Middle East & Africa. According to the report, Asia is currently the biggest
market of ice cream followed by North America, Europe, Latin America and Middle East &
Africa. For each of the regions, this report provides both historical (2009-2016) and future
(2017-2022) trends in the ice cream market. Other important market engineering aspects
such as the competitive landscape, margin analysis, import and export, porters five forces
analysis, value chain analysis, etc. have also been thoroughly evaluated in this report.
The report also provides a detailed technical insight on setting up and operating an ice
cream manufacturing plant. This includes the manufacturing process, machinery
requirements, land requirements, labour requirements, packaging requirements,
transportation requirements, power requirements, incomes, expenditures, profit margins,
NPV, IRR, etc. In order to provide a clearer picture, the report has also presented this
information in the form of a dynamic excel model where users can analyze the entire
information and also change various inputs according to their requirements.

5. MARKET POTENTIAL AND MARKETING ISSUES, IF ANY:

Ice Cream is consumed as Dessert as well as anytime snacks. Its demand peak in Summer
months. Railways are the most important bulk consumer of Ice Cream. Hotels,
Restaurants, Resorts and flight kitchens are other bulk consumers. Sales through vendors
and shops attract other consumers the most. Street vendors find good market for Ice
Creams among school children.

Increase in population, fast changing life style increasing percentage of youths in

population in north eastern states will result a satisfactory growth in current market. Ice
cream finds round the year market and is consumed in all class of people as readily
available hygienic food for all ages. Ice cream is consumed more in cities. However,
particularly in marriages, meetings and social gatherings, i t is being used even in villages
and towns. The consumption of ice cream is likely to increase in future. There is good
scope for any new entrepreneur to venture in this field.

6. RAW MATERIAL REQUIREMENTS:

The Unit shall need the following raw- materials per annum at the installed capacity:

No. Raw/Packing Materials Quantity

1. Milk 54000 Liters
2. Cream 6,300 Kilograms
3. Butter 2,200 Kilograms
4. Sugar 10,900 Kilograms
5. Stabilizers & Emulsifiers & flavor 3,225 Kilograms
6. Corn syrup 4,200 Kilograms
7. Printed Ice Cream cups 7,50,000 No’s
8. Ice cream sticks 7,50,000 No’s
9. Printed paper cover 7,50,000 No’s
Total

Packing materials shall be stored for 3 months. Milk shall be stored for one day only. Other
raw-materials shall be stored for a week.

7. MANUFACTURING PROCESS:

The process suggested here is the one tested and practiced all over India. Milk shall be
pasteurized in Steam- Jacketed SS Vessel. Milk, Cream, Butter and Sugar in exact
quantities shall be mixed in a SS Homogenizer. The Mix shall be pasteurized again.
Emulsifiers and Stabilizers shall be added to the mix and blended. This mix is further
homogenized so that the globule sizes are 4 microns or less. The mixture is cooled again
and kept cool for at least 24 hours at 4C to 0C. Flavors and colors are added prior to
cooling. The mixture is cooled again below 0C for hardening in a Batch Freezer. Ice
 Cream is packed in small cups and as cones with Wooden/Bamboo handles. For cups and
cubes the above process suffices. For cones the Ice Cream is placed inside moulds with
the handle for deep freezing. Such cones are packed in Plastic/Paper packets. Ice Cream
in Cups and Cones shall be vended in Cooled Hand Carts by authorized vendors.
Vendors are given 35% of sales realization as Commission and they work for the
Commission only. Basic steps in the manufacturing of ice cream are generally as follows:

• Blending of the mix ingredients

• Pasteurization
• Homogenization
• Aging the mix
• Freezing
• Packaging
• Hardening

8. MANPOWER REQUIREMENT:

The enterprise requires 15 employees as detailed below:

Sr. No Designation of Salary Per Monthly

Number of employees required
Employees Person Salary
Year-1 Year-2 Year-3 Year-4 Year-5
1 Un-Skilled Workers 8,000 56,000 7 7 7 7 7
2 Accountant 8,000 8,000 1 1 1 1 1
3 Store Keeper 6,000 6,000 1 1 1 1 1
4 Production Supervisor 9,000 9,000 1 1 1 1 1
5 Security Personnel 6,500 6,500 1 1 1 1 1
6 Manager 20,000 20,000 1 1 1 1 1
7 Skilled Labour 10,000 30,000 3 3 3 3 3
Total 135,500 15 15 15 15 15

9. IMPLEMENTATION SCHEDULE:
The project can be implemented in 13 months’ time as detailed below:

Sr. No. Activity Time Required

(in m onths)
1 Acquisition of premises 3.00
2 Construction (if applicable) 5.00
3 Procurement & installation of Plant & Machinery 2.00
4 Arrangement of Finance 2.00
5 Recruitment of required manpower 1.00
Total time required (some activities shall run concurrently) 13.00

10. COST OF PROJECT:

The project shall cost INR 31.26 lacs as detailed below:

Sr. No. Particulars INR in Lacs
1 Land 7.50
2 Building 3.20
3 Plant & Machinery 6.88
4 Furniture, Electrical Installations 1.00
Other Assets including Preliminary / Pre-operative
5 0.69
expenses
6 Margin for Working Capital 12.00
Total 31.26

11. MEANS OF FINANCE:

Bank term loans are assumed @ 60% of fixed assets. The proposed funding pattern
is as under:
Sr. No. Particulars INR in Lacs
1 Promoter's contribution 7.81
2 Bank Finance 23.44
Total 31.26

12. WORKING CAPITAL CALCULATION:

 The project requires working capital of INR 12 lacs as detailed below:

Sr. No. Particulars Gross Amt Margin % Margin Amt Bank Finance
1 Inventories 6.00 0.25 1.50 4.50
2 Receivables 3.00 0.25 0.75 2.25
3 Overheads 3.00 100% 3.00 0.00
4 Creditors - 0.00 0.00
Total 12.00 5.25 6.75

13. LIST OF MACHINERY REQUIRED:

A detail of important machinery is given below:

Value
Sr. No. Particulars UOM Qtty Rate (INR)
(INR in lacs)
(a) 2 No’s of 300 Ltr. Capacity SS Milk Storage Tanks
(b) One 400 Ltrs capacity SS steam Jacketed Pan (c)
One ss steam Jacketted Pasteuriser of 320 Ltrs.
Capacity with 6 HP Motor for Agitator (d) One SS Two
stage Homogeniser of 350 Liter capacity with water
cooling system operating at 300 PSI with 4.5 H.P.
Motor, pressure gauge etc. (e) One SS Surface Cooler INR
1 NOS. 1 6.44
(4.4°C to 0°C) in two sections: water cooled and gas 644,400.00
cooled. (f) One SS Agency vat/storage Tank of 300
Liters capacity with copper coil of 50 ft. length (g)
One 35 Liter capacity Batch freezer with 9.0 TR and
6HP Compressor (h) One Deep Freeze (i) One
volumetric filling machine (j) One Baby Boiler (Non-
IBR)
Freight, Packing & forwarding, CST, local handling, INR
2 0.43
etc. costs of above machinery 43,200.00
sub-total Plant & Machinery 6.88
Furniture / Electrical installations
a) Office furniture LS 1 50000 0.50
b) Stores Almirah LS 1 0 0.00
c) Computer & Printer L. S. 1 50000 0.50
sub total 1.00
Other Assets
a) preliminary and preoperative 0.69
sub-total Other Assets 0.69
Total 8.56

All the machines and equipments are available from local manufacturers. The entrepreneur
needs to ensure proper selection of product mix and proper type of machines and tooling to
have modern and flexible designs. It may be worthwhile to look at reconditioned imported
machines, dies and tooling. Some of the machinery and dies and tooling suppliers are listed
here below:

1. Fry-Tech Food Equipments Private Limited

S. No. 4, Raviraj Industrial Estate,
Bhikhubhai Mukhi Ka Kuwa Bharwadvash,
Ramol, Ahmedabad - 380024,
Gujarat, India

2. Hindustan Vibrotech Pvt. Ltd.

Office No. 2, Ground Floor,
Vrindavan Building, Vile Parle East,
Mumbai – 400057,
Maharashtra, India

3. Electrons cooling systems Pvt. Ltd.

 S-27, SIDCO Industrial Estate
Kakkalur Industrial Estate
Tiruvallur – 602003,
Tamil Nadu, India

4. Springboard Enterprises India Ltd.

1st, 2nd & 3rd Floor,
Plot No. 7, 8 & 9,
Garg Shopping Mall,
Service Centre, Rohini Sector 2
New Delhi – 110085

5. Flour Tech Engineers Private Limited

Plot No. 182, Sector 24,
Faridabad - 121005,
Haryana, India

6. P Square Technologies
3, Swami Mahal,
Gurunanak Nagar,
Off. Shankarsheth Road Bhavani Peth,
Pune - 411002,
Maharashtra, India

7. Ricon Engineers
10 To 13, Bhagwati Estate,
Near Amraiwadi Torrent Power,
Behind Uttam Dairy,
Rakhial, Ahmedabad - 380023,
Gujarat, India

8. Kamdhenu Agro Machinery

 Plot No. 6, Near Power House,
Wathoda Road Wathoda,
Nagpur - 440035,
Maharashtra, India

14. PROFITABILITY CALCULATIONS:

Sr. No. Particulars UOM Year-1 Year-2 Year-3 Year-4 Year-5

1 Capacity Utilization % 60% 70% 80% 90% 100%
2 Sales INR In Lacs 67.50 78.75 90.00 101.25 112.50
Raw Materials & Other direct
3 INR In Lacs 34.47 40.22 45.96 51.71 57.45
inputs
4 Gross Margin INR In Lacs 33.03 38.53 44.04 49.54 55.05
5 Overheads except interest INR In Lacs 15.36 16.32 18.24 18.82 19.20
6 Interest @ 10 % INR In Lacs 2.34 2.34 1.56 1.17 0.94

7 Depreciation @ 30 % INR In Lacs 4.81 3.44 2.41 1.72 1.55

8 Net Profit before tax INR In Lacs 10.51 16.43 21.83 27.83 33.36

The basis of profitability calculation:

The growth of selling capacity will be increased 10% per year. (This is assumed by various
analysis and study, it can be increased according to the selling strategy.)

Energy Costs are considered at Rs 7 per Kwh and fuel cost is considered at Rs. 65 per litre.
The depreciation of plant is taken at 10-12 % and Interest costs are taken at 14 -15 %
depending on type of industry.

15. BREAKEVEN ANALYSIS:

The project shall reach cash break-even at 36.59% of projected capacity as detailed below:
Sr. No. Particulars UOM Value
1 Sales at full capacity ₹. In Lacs 112.50

2 Variable costs ₹. In Lacs 57.45

3 Fixed costs incl. interest ₹. In Lacs 20.14

4 BEP = FC/(SR-VC) x 100 = % of capacity 36.59%

16. STATUTORY / GOVERNMENT APPROVALS

The Ministry of Food Processing Industries has been operating several plan schemes for the
development of processed food sector in the country during the 10th Plan. One of the
schemes relates to the Technology Up-gradation/ Establishment/ Modernization of food
processing industries.

The Indian food processing industry is regulated by several laws which govern the aspects of
sanitation, licensing and other necessary permits that are required to start up and run a food
business. The legislation that dealt with food safety in India was the Prevention of Food
Adulteration Act, 1954 (hereinafter referred to as "PFA"). The PFA had been in place for
over five decades and there was a need for change due to varied reasons which include the
changing requirements of our food industry. The act brought into force in place of the PFA is
the Food Safety and Standards Act, 2006 (hereinafter referred to as "FSSA") that overrides
all other food related laws.

FSSA initiates harmonization of India's food regulations as per international standards. It

establishes a new national regulatory body, the Food Safety and Standards Authority of India
(hereinafter referred to as "FSSAI"), to develop science based standards for food and to
regulate and monitor the manufacture, processing, storage, distribution, sale and import of
food so as to ensure the availability of safe and wholesome food for human consumption.
Entrepreneur may contact State Pollution Control Board where ever it is applicable.
All food imports will therefore be subject to the provisions of the FSSA and rules and regulations
which as notified by the Government on 5th of August 2011 will be applicable.

Key Regulations of FSSA

A. Packaging and Labelling

B. Signage and Customer Notices
C. Licensing Registration and Health and Sanitary Permits

17. BACKWARD AND FORWARD INTEGRATIONS

The objective of the scheme is to provide effective and seamless backward and forward
integration for processed food industry by plugging the gaps in supply chain in terms of
availability of raw material and linkages with the market. Under the scheme, financial
assistance is provided for setting up of primary processing centres/ collection centres at farm
gate and modern retail outlets at the front end along with connectivity through insulated/
refrigerated transport.

The Scheme is applicable to perishable horticulture and non-horticulture produce such as,
fruits, vegetables, dairy products, meat, poultry, fish, Ready to Cook Food Products, Honey,
Coconut, Spices, Mushroom, Retails Shops for Perishable Food Products etc. The Scheme
would enable linking of farmers to processors and the market for ensuring remunerative
prices for agri produce.

The scheme is implemented by agencies/ organizations such as Govt./ PSUs/ Joint Ventures/
NGOs/ Cooperatives/ SHGs / FPOs / Private Sector / individuals etc.

Backward Linkage:
 Integrated Pack-house(s) (with mechanized sorting & grading line/ packing line/
waxing line/ staging cold rooms/cold storage, etc.)
 Pre Cooling Unit(s)/ Chillers
 Reefer boats
 Machinery & equipment for minimal processing and/or value addition such as cutting,
dicing, slicing, pickling, drying, pulping, canning, waxing, etc.
 Machinery & equipment for packing/ packaging.

Forward Linkage:
  Retail chain of outlets including facilities such as frozen storage/ deep freezers/
refrigerated display cabinets/cold room/ chillers/ packing/ packaging, etc.
 Distribution centre associated with the retail chain of outlets with facilities like cold
room/ cold storage/ ripening chamber.

18. TRAINING CENTERS AND COURSES

There are few specialised Institutes provide degree certification in Food Technology,
few most famous and authenticate Institutions are as follows:

1. Indian Institute of Food Science & Technology,

Plot No.1, Near Maa-Baap ki Dargah,Opp to Nath Seeds,
Paithan Road Aurangabad
Aurangabad - 431005
Maharashtra, India

2. MIT College of Food Technology, Pune

Gate.No.140, Raj Baugh Educational Complex,
Pune Solapur Highway,
Loni Kalbhor, Pune – 412201
Maharashtra, India

3. CSIR - Central Food Technological Research Institute (CFTRI)

Cheluvamba Mansion, Opp. Railway Museum,
Devaraja Mohalla, CFTRI Campus, Kajjihundi, Mysuru
Karnataka – 570020

Disclaimer:
Only few machine manufacturers are mentioned in the profile, although many machine
manufacturers are available in the market. The addresses given for machinery manufacturers
have been taken from reliable sources, to the best of knowledge and contacts. However, no
responsibility is admitted, in case any inadvertent error or incorrectness is noticed therein.
Further the same have been given by way of information only and do not carry any
recommendation.
Use all the templets provide below to
design your own
BUSINESS PLAN
EXECUTIVE SUMMARY

This business plan is a projection for the period from ____ / ____ / 20____ till ____ / ____ / 20____

Name of the business: ____________________________________________________________________________________________________________

Contact address: _______________________________________________ Telephone: ____________________________________________

Type of business: Legal form: _____________________________________________

•• Manufacturer of the following good(s): Owners:_____________________________________________

•• Service operator to provide the following service(s):

_____________________________________________
•• Retailer running the following type of shop:
Managers: ____________________________________________
•• Wholesaler running the following wholesale business:
_____________________________________________
•• Other (please specify):
_____________________________________________
______________________________________________________________ Qualifications and experience in attached CVs

: Sources of start-up capital:

Customers: ____________________________________________________
___________________________________ ____________________
_______________________________________________________________
___________________________________ ____________________
Staff: _________________________________________________________
___________________________________ ____________________
______________________________________________________________
___________________________________ ____________________
______________________________________________________________
___________________________________ ____________________
 1. BUSINESS IDEA

Name of the business: ____________________________________________________________________________________________________________

Type of business:

Manufacturer Service operator Retailer Wholesaler Other: ___________________________________________________

The business is going to produce the following products: _____________________________________________________________________________

_______________________________________________________________________________________________________________________________

The customers will be: ___________________________________________________________________________________________________________

_______________________________________________________________________________________________________________________________

The business will sell in the following ways: _________________________________________________________________________________________

_______________________________________________________________________________________________________________________________

The business will satisfy the following needs of the customers: ________________________________________________________________________

_______________________________________________________________________________________________________________________________

My personal motivation to retain this business idea: _________________________________________________________________________________

 2.1 MARKET RESEARCH

Needs and preferences of Gaps (that competitors

Products Customers Competitors
customers have not fulfilled)
Product 1:

Product 2:

Product 3:

Product 4:
 2.2 Marketing Plan
Product

Good, service or range of products:

1.______________________ 2. ______________________ 3. ______________________ 4. ______________________

Quality

Colour

Size

Packaging

Certification
 2.3 Marketing Plan
Price

Good, service or range of products:

1.____________________ 2. ____________________ 3. ____________________ 4. ____________________

Cost

The price that customers are willing to

pay

Competitors’ prices

Price

Reasons for setting this price

Discounts will be given to the

following customers

Reason for giving discounts

Credit will be given to the following

customers

Reason for giving credit

 2.4 MARKETING PLAN
Place

Location:

_______________________________________________________________________________________________________________________________

_______________________________________________________________________________________________________________________________

This location is chosen for the following reasons:

_______________________________________________________________________________________________________________________________

_______________________________________________________________________________________________________________________________

The monthly cost of this location is: ____________________( → section 6.3) This cost includes: _________________________________________

Method of distribution:

The business will sell to:

Direct Retail Wholesale Others (please specify): __________________________________________

This method of distribution is chosen for the following reason:

_______________________________________________________________________________________________________________________________

_______________________________________________________________________________________________________________________________

_______________________________________________________________________________________________________________________________
 2.5 MARKETING PLAN
Promotion

Means Details Costs

Direct marketing

Advertising

Publicity

Sales promotion

→ section 6.3)
Total promotion costs (
 2.6 MARKETING PLAN
People

Position Recruiting criteria Training plan

 2.7 MARKETING PLAN
Process

Steps Description

1.

2.

3.

4.

5.

6.

7.
 2.8 MARKETING PLAN
Physical Evidence

Physical Evidence Description

Office premises and interior decoration

Internet presence and website

Packaging

Signage

Employee uniforms

Business cards

Mail boxes, etc.

 3. SALES ESTIMATION

Product Distribution Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec TOTAL
1. Direct

Retail

.....

Total

2. Direct

Retail

.....

Total

3. Direct

Retail

.....

Total

4. Direct

Retail

.....

Total

Total sales volume

Total sales in the market

Market share
 4.1 ORGANIZATION STRUCTURE

Tasks and responsibilities Position Staff

1.

2.

3.

4.

5.

6.

7.
 4.2 STAFF REQUIREMENTS AND COSTS
Contributions to
Task Required skills and experience Performed by Monthly pay pension fund and health
insurance

Total number of permanent staff

→ Section 6.3)
Total staff cost per month (
 5.1 LEGAL FORM OF BUSINESS

The business will operate as a: Sole Proprietorship Partnership Cooperative Limited Company

Other: __________________________

The reason for choosing this form of business is:

_______________________________________________________________________________________________________________________________

_______________________________________________________________________________________________________________________________

The owners will be:

Name: ___________________________________________________ Name: ___________________________________________________

Position in the business: ____________________________________ Position in the business: ____________________________________

Description of skills: Description of skills:

__________________________________________________________ __________________________________________________________

__________________________________________________________ __________________________________________________________

__________________________________________________________ __________________________________________________________

Relevant experience: Relevant experience:

__________________________________________________________ __________________________________________________________

__________________________________________________________ __________________________________________________________

__________________________________________________________ __________________________________________________________
 5.2 LEGAL RESPONSIBILITIES AND INSURANCE

The following taxes apply to the business: ___________________________________________________________________________________________

_______________________________________________________________________________________________________________________________

_______________________________________________________________________________________________________________________________

The following regulations apply to the employees: _____________________________________________________________________________________

_______________________________________________________________________________________________________________________________

_______________________________________________________________________________________________________________________________

The business will need the following licences and permits: Cost:

__________________________________________________________________________________________________ ___________________________

__________________________________________________________________________________________________ ___________________________

The business will have the following insurance:

__________________________________________________________________________________________________ ___________________________

__________________________________________________________________________________________________ ___________________________

Other legal responsibilities of the business:

__________________________________________________________________________________________________ ___________________________

__________________________________________________________________________________________________ ___________________________
 6.1 PRODUCT COSTING FORM
(for manufacturers and service operators)

Product 1:

1. VARIABLE COST PER ITEM

1 2 3 4
Estimated Estimated cost
Input Cost of purchase
quantity per item per item

Estimated Variable Cost per item (1) ( → section 6.5)

2. FIXED COST PER ITEM

Estimated total Fixed Cost per month (2) (see section 6.3)
Estimated total Variable Cost of the business per month (3) (see section 6.5)
Fixed Cost per Variable Cost (4) = (2)/(3)
Estimated Fixed Cost per item (5) = (4) x (1)

3. TOTAL COST PER ITEM (6) = (1) + (5)

 6.1 PRODUCT COSTING FORM
(for manufacturers and service operators)

Product 2:
1. VARIABLE COST PER ITEM

1 2 3 4
Cost of Estimated Estimated cost
Input
purchase (RS) quantity per item per item (RS)

Estimated Variable Cost per item (RS) (1) ( → section 6.5)

2. FIXED COST PER ITEM

Estimated total Fixed Cost per month (RS) (2) (see section 6.3)
Estimated total Variable Cost of the whole business per month (RS) (3) (see section 6.5)
Fixed Cost per Variable Cost (4) = (2)/(3)
Estimated Fixed Cost per item (RS) (5) = (4) x (1)

3. TOTAL COST PER ITEM (RS) (6) = (1) + (5)

 6.1 PRODUCT COSTING FORM
(for manufacturers and service operators)

Product 3:

1. VARIABLE COST PER ITEM

1 2 3 4
Cost of Estimated Estimated cost
Input
purchase (RS) quantity per item per item (RS)

Estimated Variable Cost per item (RS) (1) ( → section 6.5)

2. FIXED COST PER ITEM

Estimated total Fixed Cost per month (RS) (2) (see section 6.3)
Estimated total Variable Cost of the business per month (RS) (3) (see section 6.5)
Fixed Cost per Variable Cost (4) = (2)/(3)
Estimated Fixed Cost per item (RS) (5) = (4) x (1)

3. TOTAL COST PER ITEM (RS) (6) = (1) + (5)

 6.1 PRODUCT COSTING FORM
(for manufacturers and service operators)

Product 4:

1. VARIABLE COST PER ITEM

1 2 3 4
Cost of Estimated Estimated cost
Input
purchase (RS) quantity per item per item (RS)

Estimated Variable Cost per item (RS) (1) ( → section 6.5)

2. FIXED COST PER ITEM

Estimated total Fixed Cost per month (RS) (2) (see section 6.3)
Estimated total Variable Cost of the business per month (RS) (3) (see section 6.5)
Fixed Cost per Variable Cost (4) = (2)/(3)
Estimated Fixed Cost per item (RS) (5) = (4) x (1)

3. TOTAL COST PER ITEM (RS) (6) = (1) + (5)

 6.2 PRODUCT COSTING FORM
(for retailers and wholesalers)

FIXED COST CHARGE (%)

TOTAL FIXED COST PER MONTH (2) (see section 6.3)

= x 100 = %
TOTAL VARIABLE COST PER MONTH (3) (see section 6.6)
FIXED COST CHARGE (4)

1 2 3
Fixed Cost per item (RS) Total Cost per item (RS)
Product Variable Cost per item (RS) (1)
(5) = (1) x (4) (6) = (1) + (5)
 6.3 FIXED COST FORM

Details Cost per month (RS)

Rent (see section 2.4)

Electricity and water including waste water

Licences

Insurance

Labour (see section 4.2)

Consumables including recycling and disposal

Depreciation ( see section 6.4)

Transport

Repairs

Marketing (promotion) costs (see section 2.5)

Total Fixed Cost per month

 6.4 DEPRECIATION FORM

Equipment Estimated cost of purchase (RS) Estimated life of the equipment Depreciation per year (RS)

Total

Depreciation per month

 6.5 TOTAL VARIABLE COST PER MONTH

Quantity produced per month Variable Cost per item (RS)

Products Total Variable Cost per month (RS)
(see section 3) (see section 6.1)

Product 1:

Product 2:

Product 3:

Product 4:

Total Variable Cost per month

 6.6 MONTHLY PURCHASE FORM

Estimated number of items sold Variable Cost per item Total Variable Cost
Product
per month (RS) (see section 3) (purchase price) (RS) per month (RS)

Total Variable Cost per month

 7.1 SALES PLAN
Product Details Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Product 1:
Sale volume

Sales price (RS)

Sales value (RS) (1)

Product 2:
Sale volume

Sales price (RS)

Sales value (RS) (2)

Product 3:
Sale volume

Sales price (RS)

Sales value (RS) (3)

Product 4:
Sale volume

Sales price (RS)

Sales value (RS)

(4) Total sales value (RS)
(5) = (1) + (2) + (3) +(4)
 7.2 COST PLAN
Product Details Jan Feb Mar Apr May Jun July Aug Sep Oct Nov Dec Total
Product 1: Production volume

Variable Cost per item (RS)

Total Variable Cost (RS) (1)

Product 2: Production volume

Variable Cost per item (RS)

Total Variable Cost (RS) (2)

Product 3: Production volume

Variable Cost per item (RS)

Total Variable Cost (RS) (3)

Product 4: Production volume

Variable Cost per item (RS)

Total Variable Cost (RS) (4)

Total Variable Cost of the business (RS)

(5) = (1) + (2) + (3) + (4)

Total Fixed Cost (RS) (6)
Total cost (RS) (7) = (5) + (6)
 7.3 PROFIT PLAN
(Unit: )

Details Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Total sales value (1)

(see section 7.1)

Total Variable Cost (2)

(see section 7.2)

Gross Profit
(3) = (1) – (2)

Total Fixed Cost (4)

Net Profit
(5) = (3) – (4)
 7.4 CASH FLOW PLAN
(Unit: )
Details Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

1. Cash at the beginning of the

month (1)

2. Cash from cash sales

CASH IN

3. Cash from credit sales

4. Other cash in

5. Total cash in (2)

6. Purchase of goods

7. Payment of wages
CASH OUT

8. Purchase of equipment

9. Loan repayment

10. Other payments

11. Total cash out (3)

12. Cash at month end

(4) = (1) + (2) - (3)
 8. REQUIRED START-UP CAPITAL
For the period from: _______________________ to: _______________________
(Unit: )

INVESTMENTS Amount

Business premises

•• Construction or purchase of a building

•• Conversion or reconstruction of business premises

Equipment

•• Machinery and Tools

•• Furniture

WORKING CAPITAL

Stock of raw materials or finished goods

Licenses and fees

Marketing expenses

Salaries

Rent

Electricity and water

Contingency for emergency

TOTAL START-UP CAPITAL

 9.1 SOURCES OF START-UP CAPITAL
( Unit: )

Amount

Required start-up capital

Sources of start-up capital

•• Owner’s equity

•• Other sources

Total (must be the same amount as the required start-up capital)

Collateral (if applying for a loan)

 9.2 LOAN REPAYMENT SCHEDULE

Loan provider: _________________________________________________________________________________________

Total amount borrowed: _______________ Loan period: _______________ Instalment period: _______________

Interest rate: _______________ Grace period: _______________ 1st year capital cost: _______________ ( see section 7.2)

Insurance policy: __________________________________________________________________________________________

Instalment period Outstanding capital Instalment Capital repayment Interest Insurance

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
Total