How To Start Ice Cream Business In India In 6 Most Effective Steps.

Hello curious businessman, I know you eagerly want to know about how to start ice cream business. But before we go deep down into this let’s understand some brief points about the ice cream business industry. Also here is the table of contents available, by which you can directly go to the part you want to know about.

  • In India, Ice cream means one thing: “The great Indian Kulfi/Qulfi”. Ice Cream was introduced by Mughal Empire in the 16th century when they used relays of horsemen to bring ice from the Hindu Kush to its capital Delhi. And the ice was used in fruit sorbets. It was also used to create kulfi, a popular frozen dairy dessert.
  • Some multiple health benefits of eating ice cream are loaded with vitamins & minerals, stimulates the brain, calcium helps strengthen our bones, gives you high energy and makes you happy.
  • The Ice Cream business seems to be the most lucrative food business as summer is India’s most considerable tropical weather. However, the consumption of ice cream in the winter months has been increasing in recent times thanks to many new flavours and types of ice cream, and the growth of the food truck industry.
  • Do you know? In 2020, the Indian ice cream market was worth ₹20140 crores. Experts expect it to grow at a CAGR of 14% from 2021 to 2026 and hit the worth value of  ₹44200 crores by 2026. In comparison, the global ice cream market is expected to grow at a CAGR of 4%. So, now you know the potential of the ice cream business plan.
So if you are thinking of ice cream business ideas or ice cream parlour and want to make your own ice cream brand then lets us know how to start ice cream business in this article of Bazaar Neeti. Let’s Go! We also have covered How To Start Softy Ice Cream Business, this can help if sounds interesting to you.
How To Start Ice Cream Business
 

Initial Guide to How To Start Softy Ice Cream Business:-

Choose The Ice Cream Type You Want To Sell-

  • Gelato
  • Kulfi
  • Frozen Yogurt
  • Sorbet
  • Soft Serve
  • Mochi Ice Cream
  • Sherbet
  • Philadelphia Style
  • Rolled Ice Cream
  • Italian Ice
  • Shaved Ice
  • Faloodeh or Falooda
  • Ice Popsicle

Most Popular Ice Cream Flavors-

  • Vanilla
  • Strawberry
  • Chocolate
  • Blueberry
  • Butterscotch
  • Cassata Ice Cream
  • Different Fruits & Dry Fruits Flavour

Location For Ice Cream Business-

Now ice cream is loved by people of all ages, teenagers, kids and adults as well. In India, youth under 26 years old account for 53% of the population, making them the key demographic for the ice cream and frozen dessert sector. On average, an ice cream business requires a 400-500 SqFt carpet area shop and for medium size, ice cream business land requirement will be 2000-4000 SqFt. As every business location always matters to showcase your product to the right customers, you can go through these locations to start ice cream business.
  • Street Vendors: You have often seen in your locality there are some local ice cream carts selling their ice cream. Either you can be movable with your ice cream cart or immovable by opening an ice cream parlour to reach a vast number of customers.
  • Market Place: Shopping Malls, Movie Theatres, Parks, Railway Stations, Schools-Colleges, Restaurants and Canteen come under market place. A very good number of customers from different segment visits malls, theatres and parks, and they can be your targeted customers. Also, you can choose the canteen which can easily sell ice cream with multiple menus.
  • Carnivals & Events: This kind of location might depend on a specific seasonal opportunity. But if can network with multiple caterers, event managers, and wedding planners then you can not just showcase your brand but also can charge a good amount for ice cream serving.

License Required For Ice Cream Business-

If you are owning an ice cream business you should focus on some mandatory licenses, that can protect your business in future. Never avoid this. You have to be well-informed about the current regulations of the city you are operating in. And have to follow several rules and regulations laid down by the local authorities. Failure to which can attract penalties and challans. Here are some of them :
  • Registration of company
  • Trade license from the municipality
  • FSSAI
  • Udyam registration
  • GST
  • Fire Safety License
  • Pollution Certificate from SPCB

Ice Cream Manufacturing Process-

  • Blend the Ice Cream mixture
  • Pasteurize Mix
  • Homogenize
  • Cooling & Ageing the Mix
  • Partial Freezing
  • Flavours & Colors Addition
  • Packaging
  • Hardening & Storage of Ice Cream

Ice Cream Making Machine-

This ice cream business plan is a very vast and rapidly growing business. So, in this ice cream business, you need some advanced technology, a sharp mindset and strong machinery to be no.1 in this market. Again it completely depends on your business size and requirements. But here are some of them you can consider regarding ice cream making machine;
  • Pasteurize Tank
  • Homogenizer
  • PHE (Heat Exchanger)
  • Ageing Tank
  • Continuous Freezer
  • Cup/Cone Filling
  • Deep Freezer

Man Power Required For Ice Cream Business-

Well, most business people took the wrong step here by thinking they alone can do it all by themselves or with family support. In the Ice cream manufacturing process, colour, flavour and taste should all match very well. Hence, to ensure the wow quality of the product, you would require 4-5 skilled workers, who have enough experience and can add value to your business. Also, hire 5 unskilled staff for packaging and all for your ice cream business.

Ice Cream Business Raw Materials-

  1. Fat
  2. Milk Solids Non-Fat (MSNF)
  3. Sugar/Non-Sugar Sweeteners
  4. Emulsifiers/Stabilizer
  5. Flavours
  6. Colours
  7. Other Ingredients (Chocolate, Dry Fruits, Candies, Cookies, Smarties, Caramel Pieces)
  8. Preservatives
  9. Cups & Cones
  10. Packaging Wrapper
Ice Cream Business Profit

   

Read more: How To Start Mineral Water Bottle Business

Ice Cream Business Investment:-

Now after the initial guide to how to start ice cream business or ice cream parlour. You have to do some investments in multiple assets. We will all take a rough idea, so it might be something different in your numbers but yes calculation is quite similar. You have to do some investments in multiple assets. Let’s understand one by one;

Ice Cream Business Setup Cost-

  • Land Rent: You can start from 500 sqft but as your business will expand you have to move for 2000-4000 sqft. So here we take an example of a big-size ice cream business.
  • Ice Cream Business Machine: Ice cream plant, Deep freezer, Cartoon packaging machine.
  • Total License Fee: Mentioned in the below table.
Total Set-up Cost₹21,67,500
ParticularsAmount
Monthly Rent₹20,000
Ice Cream Plant₹20,00,000
Deep Freezer₹1,00,000
Cartoon Packaging Machine₹40,000
Total License Fee₹7,500

Ice Cream Business Making Cost-

  • Raw Material Cost For 200kg Ice Cream: To make 200kg ice cream we need 100kg of raw materials which is mentioned below and with this ratio. So, your quantity and ratio depend.
  • Wrappers Packaging: In 1 Cup/Cone of ice cream we put 120ml of the mixture. And to cover it from paper cone sleeve we have to take the same size of wrapper. And the average price for 1 paper cone sleeve is ₹0.86.
Total Making Cost ₹12,109
Items ratioPer Unit PriceTotal Amount
Milk- 54.09kg 54.09×60₹3245.4
Cream- 25.13kg25.13×60₹4020.8
Skim Milk Powder- 5.28kg5.28×260₹1372.8
Stabilizer- 0.5kg0.5×300₹150
Sugar- 15kg15×40₹600
Chocolate Syrup ₹500
Dry Fruits ₹500
Wrappers- 2000Cone/Cup2000×0.86₹1720

Ice Cream Business Profit Calculation:-

As we have taken an example for 200kg of ice cream and the mixture will be 120ml per cup/cone. Then let’s find out how many cups/cones we can make from 200kg (2,00,000g) of ice cream;
  = 200,000÷120  = 1666 pcs of cups/cones
 
Now if the retail price for 1 cup/cone of ice cream is ₹25 and you sell it through a distributor at the cost of ₹15, then;
  = 1666×15 = ₹24,990
 
As, Profit = Selling Price – Making Price
     = ₹24990 – ₹12109
     = ₹12,881/day
 
If you can expand your ice cream business by 2x and sell 400kg of ice cream per day, then;
  = ₹12,881 × 2 = ₹25,762/day
  = ₹25762 × 30 = ₹7,72,860/month

Ice Cream Business Profit-

 Monthly Expenses Calculation,
  • Electricity            = ₹20,000
  • 5 Skilled Staff     = ₹90,000
  • 5 Unskilled Staff = ₹45,000
  • Transportation   = ₹20,000
  • Land Rent           = ₹20,000
  • Advertisement   = ₹5,000
  • Other Expenses  = ₹20,000

Total Monthly Expenses = ₹2,20,000

So, Final Profit = ₹7,72,860 – ₹2,20,000

                           = ₹5,52,860

Marketing Strategy For Ice Cream Business:-

So, there is a very famous quote for marketing;

“Build something 100 people love, not something 1 million people kind of like.”

To increase sales of your ice cream business you have to keep these points always in your mind.

  • USP (Unique Sellling Proposition)
  • Branding
  • Supreme Hygiene And Cleanliness
  • Strong Distribution Channel
  • Ads in Local Newspaper
  • Offers, Discounts & Loyalty Programs
  • Social Media Marketing
  • Introduce online orders then send them special discounts by SMS/Whatsapp

Major Challenges in Ice Cream Business:-

  • Lack of Ice Cream Business Plan
  • Laws & Regulations
  • Cash Crisis
  • Weak Distribution
  • Low Sell in the off-season
  • Employees Management
  • Natural Factors

Solutions for the Ice Cream Business:-

  • Lack of Ice Cream Business Plan
  1. Ice Cream business plan is the most useful term that many entrepreneurs neglect in starting and this always leads to their business failure. Firstly you should have a clear vision of your business’s present position and its future position, where you want to see your business be reached. 
  2. Start writing about your complete ice cream business plan, like, initial set-up cost, target customer, location for your business, pricing for your softy ice cream, quality, etc.
  • Laws & Regulations
  1. Whenever you start any business you should always know about the laws and regulations in your business. As we have touched on some of the required licensing for the ice cream business.
  2. You must have to aware of your local authorities and regulations to start any kind of business. All you can do is get in touch with a government official for more details.
  • Cash Crisis
  1. You know as per the study 82% of business failures are due to poor cash flow management. What you should focus on is every single expense when you start ice cream business and on investment that leads to an outcome.
  2. You should focus on pricing, raising funding, supplier money, and crediting to customers.
  • Weak Distribution
  1. If you set up an ice cream manufacturing plant, you must have to build strong distribution channels to keep your ice cream available in the market.
  2. Meet your distributors, talk to them, take feedback from them, and understand what your end customers want in your product.
  • Low Sell in the off-season
  1. You should never compromise your product quality.
  2. You should keep an eye on the market and accordingly put the price of your ice cream.
  3. Your behaviour should be good towards your customer and distributor. Because they will be your first promoter.
  4. There might be a chance you will lose some customers in the winter season. So, keep patience and try to offer some discounts to attract new footfall.
  • Employees Management
  1. Don’t rush to hire. Take your time and hire well-skilled employees who should be hard-working as well.
  2. To retain your employees you should focus on their pain points. Make a good relationship with them.
  • Natural Factors
  1. Weather can play a spoilsport for your ice cream business. The footfall might not be the same every day. Start home delivery for the customers.
  2. You should be prepared financially for natural disasters.

Conclusion:- 

By considering all these points, starting an ice cream business will be a good business idea. However, running an ice cream business needs a lot of groundwork. But if you work with all the hard work and dedication and take care of every aspect, from the manufacturing process to cash handling, you definitely will succeed. If you have any doubts regarding your business you can contact us. Good luck!

FAQs:-

Q. How profitable is an ice cream business?

Ans. Today Ice Cream is becoming very lucrative even for the winter season as well. So, you can easily make somewhere between 30% to 40%. But it also depends upon the market, location, city you are operating in, selling price, target customer, etc.

Q. How much does it cost to start selling ice cream?

Ans. It completely depends upon you, and what type of ice cream business you want to do. If you choose for ice cream parlour then the investment in ice cream parlour will be 5 lakhs to 10 lakhs. But if you want to start an ice cream manufacturing business then it will cost you around 25 lahks to 40 lahks.

Q. Is selling ice cream a good business?

Ans. I don’t think any human being child to old age refuses to eat ice cream unless he/she has allergies to this. And in today’s era, some people love to eat ice cream in winter. It was a close race, but ice cream is the most popular dessert in the world.

Q. How to start ice cream parlour?

Ans. If you are thinking of ice cream business ideas then the very first thing you have to do is make a complete ice cream business plan. Go for market research, where and who will be your target customer, the Best location, the type of ice cream you want to sell, investment, making process, profits, etc. and these are all terms we have covered in this article.

Q. What is the necessary equipment I should have in my ice cream parlour?

Ans. Well, the required equipment for the ice cream business will be an ice cream maker machine, refrigerator, freezer, cups and utensils, packaging materials, weighing scale, etc.

Q. How do I succeed in the ice cream business?

Ans. Here is the guide; Make a USP (Unique Selling Proposition), Standardize the process, Focus on R&D and reduce the product waste, Maximize the ice cream production uptime, Choose your machine with advanced features and technology, and last but not least hire good people for your ice cream business whose vision can match to you.

3 thoughts on “How To Start Ice Cream Business In India In 6 Most Effective Steps.”

Leave a Comment