ice-cream industry

                                                       ACKNOWLEDGMENT

         It is really a matter of pleasure for me to get an opportunity to thank all the persons who contributed directly or indirectly for the successful completion of the project report, “Ice Cream Industry”.

         First of all I am extremely thankful to my (SCHOOL NAME) for providing me with this opportunity and for all its cooperation and contribution. I also express my gratitude to my Project mentor and guide (NAME). I am highly thankful to our respected project guide for giving me the encouragement and freedom to conduct my project.

VIJAY NAND JHA

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                                                                            Content

sl no.                                    Title                                                      page no.

1                                    Ice Cream Industry Profile

2                                    Industry Analysis Overview

3                                    SWOT Analysis of Ice Cream Industry

4                                    Top Ice Cream Companies list

5                                    Short Profile of Ice Cream Companies                     

6                                    Ice Cream Industry Growth

7                                    Industry Competition

8                                    Market Share of Ice Cream Industry

9                                    Conclusion

10                                  Reference

1. Ice Cream Industry Profile:

           The ice cream industry in India is in many ways, reflective of the overall population distribution. The country’s population is primarily rural with approximately 65% of the population living in villages with a population of less than 5,000; this means there are well over 150,000 villages with a combined population in excess of 650 million. This has contributed to a highly fragmented industry that by many estimates has over 70,000 ice cream entities. It is estimated that only 30% of the entire market is “organized” and the industry meets the classic definition of a fragmented industry, that is, one where there is an absence of market leaders with the power to shape industry events.

2. Industry Analysis Overview:

            The main objective of industrial analysis is to assess the prospects of various industrial groupings. At any stage in the economy there are some industries which are growing while others are declining, the performance of companies will depend among other things upon the state of the industry as a whole and the economy. The share price of the company is empirically found to depend up to 50% on the performance of the industry and economy.

To analysis the industrial performance one should follow three steps:

                 Industry life cycle analysis

                 Study of the structure& characteristics of an industry

                 SWOT analysis

•  Industry life cycle analysis: (Product life cycle theory) 

 Rapid growth stage: (Expansion stage)   
            Firms which enter in pioneering stage will concentrate on expansion of their sales & profits in this stage. The market continues to grow but slowly offering steady and slow growth to sales of industry. It is a phase of consolidation wherein companies establish durable policies relating to dividends and investments.

Maturity stage:

         This stage show sign of slow progress and also prospects of decay. After enjoying an above average rate of growth during the rapid growth, the industry enters the maturity stage. In this stage the growth of the industry is more or less developed, it is growth rate is comparable to that of the economy of a country it is suggested to hold the investment in this period.

   
 Declining stage:

        The stage is existed due to the changes in the consumer performance competition from new product etc. In this stage the industry may grow slightly during prosperous periods, stagnate during normal periods and during recessionary periods.

• Study of the structure and characteristics of an industry:  

Structure of industry & nature of competition:   
 (a) Licensing policy of the government.

 (b) Entry barriers, if any

 (c) Pricing policy of the firm.

 (d) Degree of homogeneity or differentiation among products.

 (e) Competition from foreign firms.

         
Nature & prospects of demand:

 (a) Major customers and their requirements.

 (b) Key determinants of demand.

 (c) Degree of cyclicality in demand.

 (d) Expected rate of growth in the foreseeable future.

         
Cost, efficiency, and profitability:

  (a) Proportions of the key cost elements namely raw material, labour, utilities, and fuel.

 (b) Productivity of labour.

 (c) Turnover of inventory, receivables, and fixed assets.

 (d) Control over prices of outputs & inputs.

 (e) Gross profit, operating profit, and net profit margins.

 (f) Return on assets, earning power, and return on equity.

  Technology & research:

 (a) Degree of technological stability.

 (b) Important technological changes on the horizon & their implications.

 (c) Research & Development outlays as a percentage of industry sales.

 (d) Proportion of sales growth attributable to new products.

3. SWOT analysis: 
                   

                                       
                A SWOT analysis must first start with defining a desired end state or objective. A SWOT analysis may be incorporated into the strategic planning model. An example of a strategic planning technique that incorporates an objective-driven SWOT analysis is Strategic Creative Analysis (SCAN). Strategic Planning, including SWOT and SCAN analysis, has been the subject of much research.

•  Strengths: attributes of the person or company that, are helpful to achieving the objective.

•  Weaknesses: attributes of the person or company that, are harmful to achieving the objective.

•  Opportunities: external conditions that, are helpful to achieving the objective.                                                                   
•  Threats: external conditions which could do damage to the objective.

•  Use of SWOT Analysis:

           SWOT-landscape also indicates which underlying strength/weakness factors that have had or likely will have highest influence in the context of value in use (for ex. capital value fluctuations).

          Using SWOT to analyse the market position of a small management consultancy with specialism in HRM.

Strengths	Weaknesses	Opportunities	Threats
Reputation in marketplace	Shortage of consultants at operating level rather than partner level	Well established position with a well defined market niche.	Large consultancies operating at a minor level
Expertise at partner level in HRM consultancy	Unable to deal with multi-disciplinary assignments because of size or lack of ability	Identified market for consultancy in areas other than HRM	Other small consultancies looking to invade the marketplace

4. Top Ice Cream Industries List:

1.  Vadilal Ice Cream India 
2.  Amul Ice Cream 
3. Kwality Walls 
4.  Mother Diary 
5. Ben & Jerry 
6.  MTR

5. Short Profile of Ice Cream Companies:

•   Vadilal Ice Cream Ltd:

         Vadilal ice cream division has always been a hot favorite with the people both inside and outside the organization.  The Ice Cream industry in India today has a turnover of Rs. 15 billion [US$ 330 million]. But that’s no surprise, considering that we have the largest range of Ice Creams in the country – 120 – plus flavors, in a variety of more than 250 packs and forms. The range includes cones, candies, bars, ice-lollies, small cups, big cups, family packs, and economy packs.

•      Amul India Ltd:

           AMUL means "priceless" in Sanskrit. The brand name "Amul," from the Sanskrit "Amoolya," was suggested by a quality control expert in Anand. Amul products have been in use in millions of homes since 1946. Amul Butter, Amul Milk Powder, Amul Ghee, Amulspray, Amul Cheese, Amul Chocolates, Amul Shrikhand, Amul Ice cream, Nutramul, Amul Milk and Amulya have made Amul a leading food brand in India. (Turnover: Rs. 67.11 billion in 2008-09). Of the  genesis of a vast co-operative network.     

•      Kwality Walls Ltd:

        Kwality Ice Cream is the pioneer in the Indian ice-cream manufacturing industry and in 1956 became the first company in the country to use imported technology for manufacturing ice-cream on a commercial scale. As the ice-cream industry exploded in India, in 1995 Kwality Group joined hands with Hindustan Lever Limited and then there was no looking back.

•        Mother Diary Ltd:

         The company markets an array of fresh and frozen fruit and vegetable products under the brand name SAFAL through a chain of 400+ own Fruit and Vegetable shops and more than 20,000 retail outlets in various parts of the country. A state-of-the-art fruit processing plant of fruit handling capacity of 120 MT per day, a 100 per cent EOU, setup in 1996 at Mumbai supplies quality products in the international market. With increasing demand another state-of-the-art fruit processing plant has been set up at Bangalore with fruit handling capacity of around 250 MT per day.

•     Ben & Jerry Ltd:    

         In 2002, Ben & Jerry's in the USA committed to reducing carbon dioxide emissions by 10% by 2007, and by investing in a variety of efficiency measures, this target was achieved with ease - the USA now produce 32% less carbon dioxide emissions (per pint of ice cream) today (in 2008) than in 2002. 

•      MTR Pvt Ltd:

         MTR Foods Private Limited is amongst the top five processed food manufacturers in India. We manufacture, market and export a wide range of packaged foods to global markets that include USA, UK, Australia, New Zealand, Malaysia, Singapore, UAE, Japan and Oman.

6. Industry Growth:

       The three factors of growth, population, per capital consumption, and price are all projected to increase over the next six years. Population is projected to grow at 1.8%, per capital consumption is projected to grow at 5%, and prices are projected to increase at just over 1% per year. (Overall the long-term projection for consumer prices is expected to rise at 3.5%, however, given the intense level of competition Ben & Jerry's does not think it likely that ice cream prices will rise that fast.) Overall the market will grow from $245 million to $360 million, a compound growth rate of 8%. Of the $115 million in growth, 60% will come from increased per capita consumption, 24% from increased population, and 16% from increase in price.

7. Industry Competition:

      As the industry evaluation would indicate the competition is significant. The 70,000 some participants is a large number but the more serious challenge comes from the top six national firms; Amul, Kwality Walls, Mother Dairy, Vadilal, Dinshaw, and Arun. These top six firms dominate the market and essentially control the organized market. Detail statistics are not available to indicate market share but Ben & Jerry's estimates that these six firms control 40% to 50% of the urban market.

8. Market Share of Ice Cream Industry:

 Market Share of Ice Cream Industry is shown in the table:

9. Conclusion:

      Following are the concluding points taken into consideration after the conduct of the Industry Analysis:

           Advertisement acts as a very important role here. So if heavy advertisements are carried out it will definitely increase purchase.

          Due to the changing in climate, life style and preferences, it was not necessary that they will consume same product every time. The Ice Cream Industry had to further focus on:

          Strengthen communications

          Multi v/s sole dealer

          Training to dealers

10. Reference:

          Books: 1) Prasanna Chandra: Investment analysis & portfolio management, 2nd Edition

          Tata Mc Grill Hill, New Delhi.

Journal: The Brand Reporter

Web Sites:

 1) www.moneycontrol.com

 2) www.reportbuyer.com

 3) www.indiatodaygroup.com

 4) www.moneycontrol.com

 5) www.indiainbusiness.nic.in

 6) www.google.co.in 


                                     (THE END)