PROJECT FEASIBILITY REPORT ON ICE PLANT

PRESENTED BY Anita MujaldaMT14IND004

Project concept

The key points to the concept are as follows:-

I. Fulfill the ever growing requirement of ice.

II. For fish preservation in hot climate.III. To provide ice at reasonable rate.IV. To make good relation with buyers.

Demand study

A study found that Indore city requires 1000 ton/day ice .

During the peak time requirement goes up to value of 1500 ton/day ice.

Ice is in very much demands in following fields :-1. Occasions and ceremonies .2. Fish preservation.3. Raswanti sellers.4. Ice cream parlors .5. Cold storages.

STRATEGY FOR ACQUIRING CUSTOMERS

At beginning work as retailer

Provide ice to all buyers at benefit of 3%

Provide maximum customer satisfaction

By doing so make good relation with buyers

Once contact are generated stop supply of ice from source and start supplying from own plant

requirements

Suitable Location Land Structural construction of ice plant Utilities Machineries Management Labour

PLANT LAYOUT

• Air Cooled or Water Cooled or with Evaporative Condensers

• Any Environment-compatible Refrigerant (ammonia or halocarbons)

• Standard Ice Cans Square or Rectangular for 25 kg or 50 kg Blocks

Technology & Manufacturing Process

Due to cost competitiveness and ease of operation Ammonia base refrigeration system is suggested for ice plant.

Main components of Ammonia based refrigeration system, including Blast freezer and Ice plant are:

a) Ammonia compressorsb) Condensers / heat exchangersc) Ammonia receiversd) Cooling coils and Evaporatorse) Chilling tanks For Ice plant & preparatory

for freezing plant

Plant and Machinery

Sr.No.

Particulars Quantity Suppliers/Technology provider

1. Ammonia compressor 5×5 2 Neer sales,Ahmedabad

2. Cooling Coil/Evaporator 2 Neer Sales, Ahmedabad

3. Condenser and Heat Exchanger

1 Neer Sales, Ahmedabad

4 .

Ammonia Receiver 2 Neer Sales, Ahmedabad

5. Chilling tank 3 Neer Sales, Ahmedabad

Plant and Machinery

Ammonia compressorCooling coils/

evaporator

Chilling tankAmmonia receiver

UTILITIES

50 KVA power and 20 KL water as per day basis will be the basic requirement for the proposed unit.

MAN POWER REQUIREMENT

The unit would require total 10 persons that will include 1 managers, 2 supervisors, 4 plant operators and 3 semi skilled labourers.

SUGGESTED LOCATION

The suggested location for the ice plant is Indore. Due to less competitors and having opportunity to maximise the profit.

PROJECT TIME LINE

The proposed project will have cumulative implementation period of 12 - 15 months of which 5 to 6 months would entail obtaining the obligatory clearances from various authorities.

IMPLEMENTATION SCHEDULE

In graphical view

PROJECT COST AND FINANCE SR. NO PROJECT SPECIFICATION COST IN RS.

1) Land and land development 5,00,000/-

2) Building and civil works 2,50,000/-

3) Plant & Machinery 8,00,000/-

Total Fixed Assets 15,50,000/-

4) Margin Money for working capital 20000/-

Estimated Block Capital Cost of Project

15,70,000/-

Means of Finance SBI Indore

5) Promoters contribution 10,00,000/-

6) Term loan 6,00,000/-

Total Means of Finance 16,00,000/-

Gross income in one year

No of ice slabs manufacture per day = 35 ( slabs )

Weight of 1 slab = 160 ( kg )

Selling price of 1 slab = 250 ( INR )

Total no of slabs manufactured in 1 month= 1050 (slabs )

Gross income in 1 month = 2,62,500( INR )

----------------------- Gross income in one year = 31,50,000

(INR)

ROI CALCULATION

Sr.No. SPECIFICATIONS COST IN INR

1) Starting Investment 15,70,000/-

RUNNING COST P.A.

2) Workers expenditure 6,60,000/-

3) Electrical expenditure 1,80,000/-

4) Maintenance charges 1,90,000/-

TOTAL RUNNING COST 10,30,000/-

RETURN ON INVESTMENT 31,00,000-(15,70,000+10,30,000)= 5,00,000/-

PROFIT RATIO = Profit x 100 = 5,00,000x100 = 16.22 % Turnover 31,00,000

 RATE OF RETURN = profit x 100 = 5,00,000x100 = 19.23% Investment 26,00,000

BREAK EVEN POINT = Fixed cost x 100 = 75.60 % Fixed cost + profit

Conclusion The main reason for planning for establishment of ice

manufacturing firm is because it is highly profitable, it has lower capital investment.

Therefore, money invested can be recovered quickly and high profits can be released within a couple of years of setting of the business.

This project will be successfully implemented within the 3 months after approval of concerned authorities. The commercial production from the unit may be started within 6 months of approval if everything goes right.

Addresses of Plant and Machinery Suppliers

1. M/s. Jai Industrial Works 22-26 A, Industrial Estate, 22, Godam, Jaipur.2. M/s. N.A. Corporation 3725, GIDC, Phase IV, Vatva, Ahmedabad-382445.3. M/s. fixopan Machine Pvt. Ltd. 71, Nehru Place, New Delhi-110019.

Thank you.....