INTRODUCTION Cost volume profit (CVP) analysis generally defined as a planning tool by which manages can evaluate the effect of a change(s) in price, volume, variable cost or fixed cost on profit. Additionally, CVP analysis is the basis for understanding contribution margin pricing, related short-run decisions, target costing and transfer pricing. In the marginal costing varies directly with the volume of production or output. On the other hand, fixed cost remains unaltered regardless of the volume of output. In net effects, if volume is changed, variable cost varies as per the changes in volume. In this case, selling price remains fixed, fixed remains fixed and then there is a change in profit. Cost – Volume profit Analysis is a logical extension of Marginal costing. It is based on the same principles of classifying the operating expenses into fixed and variable. Now-a-days it has become a powerful instrument in the hands of policy makers to maximum profits.
Transcript
INTRODUCTION
Cost volume profit (CVP) analysis generally defined as a planning tool by which
manages can evaluate the effect of a change(s) in price, volume, variable cost or fixed
cost on profit. Additionally, CVP analysis is the basis for understanding contribution
margin pricing, related short-run decisions, target costing and transfer pricing. In the
marginal costing varies directly with the volume of production or output. On the other
hand, fixed cost remains unaltered regardless of the volume of output. In net effects, if
volume is changed, variable cost varies as per the changes in volume. In this case, selling
price remains fixed, fixed remains fixed and then there is a change in profit.
Cost – Volume profit Analysis is a logical extension of Marginal costing. It is
based on the same principles of classifying the operating expenses into fixed and
variable. Now-a-days it has become a powerful instrument in the hands of policy makers
to maximum profits.
There elements need to be related ion order to achieve the maximum profit. Apart
from profit projection, the concept of cost volume profit is relevant the short run. The
relationship among cost, revenue and profit at different levels may be expressed in graphs
such as breakeven charts, profit volume graphs or in various statements forms.
Earning of maximum profit is the ultimate goal of almost all business
undertakings. The most important factors influencing the earning of profit is the level of
production. (I.e. Volume of production).
Profit depends on a large number of factors, most important of which are the cost
of manufacturing and the volume of sales, volume of sales depends upon the volume of
production and market forces which turns in related to costs.
Management has no control over market. In order to achieve certain level of
profitability, it has to exercise control and management of costs, mainly variable cost.
This is because fixed cost is a non-controllable cost.
It helps to find out the profitability of a product, department of division to have
better product mix, for profit planning and to maximize the profit of a concern.
These decisions can include such crucial areas as pricing policies, product mixes,
market expansion or contractions, outsourcing contracts, idle plant usage, discretionary
expenses planning and a variety of other important considerations in the planning
process. Given the broad range of context in which cost volume profit can be used.
In other words, it helps in locating the level of output which evenly breaks the
cost and revenues used in its broader sense, it means that system of analysis which
determine profit, cost and ales value at different levels of output. The cost Volume profit
analysis establishes the relationship of cost, volume and profit.
Thus cost volume profit furnishes the complete picture of the profit structure. In
other word, cost volume profit is a management accounting tool that expresses
relationship among sales, volume, cost and profit. The cost volume analysis uses the
techniques of breakeven analysis, operating leverage, margin of safety and effect of
changes on sales and contribution on margin and net operating income. The level of sales
needed to achieve desired target profit, in order to predict changes in net operating
income. The data are cost sheet and balance sheet collected from the company.
COMPANY PROFILE
MANAGEMENT
BOARD OF DIRECTORSThe company is managed by the Managing Director, Joint Managing Director and Executive Director - Operations subject to the superintendence, control and direction of the board of directors.The board of Directors of the company have an optimum combination of executive, Non-Executive and independent directors, which compels with clause 49 of the listing requirements as well. The entire board of the company is involved in selection, Orientation and succession of directors.
EXECUTIVE DIRECTORS
Shri R.G.Chandramogan Chairman & Managing Director Shri R.G.Chandramogan is the promoter of the company. He is the chairman and managing director of the company. He has initially started icecream business in early 1970s and later ventured into milk and milk related products. In the year 1986 he formed the business into a private limited company, which was later converted into a public limited company.
Shri K.S.Thanarajan Joint Managing DirectorShri K.S.Thanarajan is a post-graduate in economics and is in-charge of day-by-day operations of the dairy division of the company. Shri Thanarajan has had more than 30 years of experience.
Shri C.Sathyan Executive Director-OperationsShri C.Sathyan, a Company Executive, is a Bachelor of Business Management with specialization in Marketing. He has held various executive positions during his career spanning over 10 years.
NON - EXECUTIVE DIRECTORS
Shri P. VaidyanathanShri P.Vaidyanathan is a fellow member of The Institute of Chartered Accountants of India and associate member of The Institute of Company Secretaries of India and The Institute of Cost and Works Accountants of India. Shri Vaidyanathan is the Chairman of M/s Integrated Enterprises (India) Limited. He is also on the Board of reputed companies viz., City Union Bank Limited, Economist Communications Limited and Templeton Asset Management Pvt. Limited. Shri Vaidyanathan has had more than 32 years of experience in the Finance functions.
Shri Kirti P ShahShri Kirti P Shah, an Industrialist, is an Engineering Graduate. Shri Shah is a Non-Resident Indian. At present he is the President of M/s Custom Magnetics Inc., U.S.A. Shri Shah has had more than 40 years of experience in the field of Engineering.
Shri S. Thiagarajan
Shri. S.Thiagarajan is a post graduate in Economics and a Certified Associate of the Indian Institute of Bankers. He has over four decades of experience in the financial services sector and has held various senior positions in Reserve Bank of India, Industrial Development Bank of India and Small Industrial Development Bank of India.
Shri B. S. ManiShri. B.S.Mani is a post graduate in Literature and has a Diploma in Journalism from Cardiff England. He has over 4 decades of experience in the Journalism. He is the Chairman of Karnataka News Publications Private Limited, which publishes a Tamil Daily outside Tamilnadu.
Shri N ChandrasekaranShri N.Chandrasekaran is a Mechanical Engineering Graduate with about 38 years experience. He has held various executive positions during his career. He is the Managing Director of M/s Fichtner Consulting Engineers (India) Pvt. Ltd. and M/s Fortune Valley Agro Forms Pvt. Ltd. He is also on the Board of reputed companies viz., M/s EPT Engineering Services Pvt. Ltd. and M/s Enmas Process Technologies Pvt. Ltd.
Infrastructrue
MILK PROCUREMENT
The Company has an excellent milk collection system with chilling centers in more than 36 locations and a fleet of more than 1348 vehicles on contract for procurement.
Its milk shed area is spread over 10 districts in Tamilnadu and 3 in Karnataka and covers over 52,000 milk producers and 2000 medium and bulk milk vendors.The Company is also involved in dairy extension services to farmers for the development of livestock quality and yields.Besides this the company also has tie up with banks for arranging agricultural loans to milk producers.More than 110 veterinary doctors under direct employment rendering full-scale animal care to the milk producers.
PROCESSING
Hatsun's state of the art processing and packaging plants are located in Salem, Kancheepuram, Madurai, Palacodu in TamilNadu and Honnali, Belgaum in Karnataka. After procurement, milk vans then take the procured milk to these plants where the milk has to undergo a quality test again to enter the plant. Then the weight is checked. After that, using superior technologies milk is subjected to pasteurisation, homogenisation, and bacteria clarification.Hatsun is a pioneer in India of the world-acclaimed homogenisation processes where the fat globules are broken and evenly distributed in the milk making it rich and wholesome. An unyielding commitment to quality has formed the backbone of Hatsun's business ethics right from its start. At every stage, intensive procedures to preserve quality are undertaken to ensure the purity of the milk. The entire Hatsun staff work in harmony as one family in enforcing the tough standards that Hatsun set for itself as basic guidelines.Each milk packet packaged-using German technology-reaches the consumer with this assurance: The Hatsun Quality.
DISTRIBUTION
Everyday Hatsun's fleet of puff-insulated trucks travel 3.9 times the distance around the world, i.e. 1,82,730 km taking milk for consumption by homes across the states of Tamilnadu, Karnataka, Goa and Kerala. Hatsun takes pride in having its large cold-chain
network in India ensuring that each and every one of its consumers gets fresh milk day after day.
LOGISTICS
The company has a strong logistics and distribution network in icecream and milk. Around 1100 exclusive Arun Icecreams parlours spread over the entire Tamilnadu and parts of Andhra Pradesh and Karnataka.The company has six cold room distribution points, strategically located for quick and easy distribution of its products.In the milk segment, the Company's distribution network comprises of 150 wholesale distributors and above 10,000 dealers for Arokya and around 850 direct selling agents for Hatsun Komatha milk.More than 1348 vehicles handling distribution, and each covering a distance of 200 to 250 km every day.The total distance travelled by company vehicles in procurement, marketing and other administrative activities per day comes close to 1, 82, 730 km, which is equivalent to going around the world 3.9 times a day.
RECOGNITION
Hatsun's dairies are ISO 9001:2000and HACCP (Hazard Analysis Critical Control Point) certified. The Salem plant has received ISO 14001and been certified eco-friendly. The quality assurance of Hatsun ensures that stringent quality standards and norms of American Dairy Products Institute (ADPI) are fully met. The success of Arun Icecreams has been taken as a case study by the Indian Institute of Management, Ahmedabad, India's leading business school.
OUR NETWORK
The company has achieved excellence in establishing an extremely efficient supply chain management, better logistics and widespread distribution network spearheaded by exclusive franchisee outlets. All the brands of the company enjoy very strong brand equity and despite being in a price sensitive market, its brands command a premium.ARUN Icecream is sold through exclusive franchisee outlets and is occupying the top slot in Tamilnadu and figures within the top three in the south India. With the commissioning of plant in Belgaum, the company has entered into the Goa, Pune and southern districts of Maharashtra markets. The company has also entered into International markets during the financial year (2004-05). The company has implemented an arrangement, whereby Arun icecream is now available in Seychelles. Arun Icecream is also being exported to Brunei.
CORPORATE MILESTONES
Arun Icecream Launch.
1970
M/s. R.G. Chandramogan & Co. set up.
1986
March- M/s. Hatsun Foods (HFPL) incorporated as a private limited company. The same year HFPL was admitted as a partner in M/s. R.G. Chandramogan & Co.
1986
April HFPL takes over M/s. R.G. Chandramogan & Co. HFPL was allowed to register the brand name 'Arun' in its own name subject to a royalty payment of 1% on the gross icecream sales.
The company's sales have grown from a level of INR 190.9 million (approx. USD 4 million) in 1997 to INR 8694 million (approx. US$ 183 million) in 2008. The company's PBDITA has increased from INR 25.14 million (approx. US$ 0.53 million) in 1997 to INR 614 million (approx US$ 12.92 million) in 2008.The equity base with reserves stand at Rs.481 million (approx US$ 10.12 million) and gross asset base of more than Rs.2332 million (approx US$ 49.09 million).SHARE CAPITALThe Company made its maiden public issue of 18,00,000 equity shares of Rs.10/- at a premium of Rs.35/- per share. The issue was well subscribed. The present listed and paid-up Equity Share Capital of the company is Rs.6.79 Crore with a shareholder base of 3,772 as of 30th September, 2008.LIST OF SHARESThe Company's Equity Shares are listed on Bombay Stock Exchange Limited and the shares are regularly traded.
PROCURING WITH CARE
The company procures around 1.65 million litre of liquid milk per day by directly collecting it from farmers spread over 4500 villages in south India. Hatsun has its own infrastructure of milk collection centre & chilling centre for procuring & handling of raw milk.Over 350 field's staffs are employed to ensure timely collection, testing of milk at the point of collection, weekly payment; cattle feed sales, encouraging farmers to grow their herd size, bank loans, animal insurance, training farmers on a better animal management and clean milking.Over 100 veterinary doctors and 160 inseminators under direct employment, assist in artificial insemination, feed management, breed management, vaccination program and render full scale animal health care.
HIGHLY SOPHISTICATED PROCESSING FACILITIESWith high-tech processing plants operating at 7 locations, Hatsun ensures rigors testing of milk before processing.Intensive procedures to ensure the purity of milk with handling capacity of 1.7million litre of milk per day, proves Hatsun's unyielding commitment to quality. The facilities comprise of highly advanced technology from westfalia called Bactofuge which bacteria clarifies the milk resulting in a high quality end product.There are state-of-the-art laboratories (chemical & microbiological) for process control, product quality control and product development. Validations of critical parameters are also done at our fully quipped central lab located at Chennai. These ISO 22000:2005; 9001:2000, 14001:2004 and HACCP certified manufacturing facilities have been regularly upgraded to meet the requirement & standards of various large multinational companies.
Milk process
Hatsun operates state of the art processing plants at 6 locations. Rigorous milk testing is done at each of these locations. The raw milk when received is bacteria clarified by use of west Falia Bactofuge. The milk is then sent either for fresh product processing or for manufacturing of dairy ingredients.An unyielding commitment to quality has formed the backbone of Hatsun's business ethics right from its start. Intensive procedures to pressure the quality are undertaken to ensure the purity.Handling capacity of 1.7 million litre of milk per day, including Fresh milk and Dairy ingredients.ISO 22000:2005, ISO 14001:2004 and ISO 9001:2000 certified manufacturing facilities that have been extensively upgraded in the last three years.Only company in India using Bactofuge Technology (from West Falia-Germany) to clarify liquid milk.State-of-the-art laboratory for process control, product quality control including Micro Biological lab and product development.Capable of being scaled up for higher volumes and enhanced product range.Well - maintained assets.Top
Arun: An insight Arun Icecreams believes in the motto "Customer is the King". Arun Icecreams, a feather in the cap of Hatsun is a brand leader in the icecream market. Today, Arun is the largest selling icecream brand in south India. It sells its icecreams through exclusive parlours spread all over Tamilnadu, and parts of Karnataka, Kerala and Andhra Pradesh. With over 70 unforgettable varieties, Arun continues to delight millions of customers.Arun Icecreams success was due to the below said reasons Pure Milk based Icecreams with rich and creamy taste. Range of flavours and varieties Innovative product concepts Packaging at par with International standards
Arun: First to Take the Parlour RouteArun introduced the concept of exclusive franchise parlours selling only Arun Icecreams. This is admittedly one of the major reasons for Arun Icecreams' strong performance over the years. By reaching out to towns with a population of 30,000 and in some cases even smaller towns, Arun has boldly taken a path that is less traveled. Arun Icecreams continue to come up with new varieties and flavours which should help it maintain its strong performance and brand image.Arun: Parlour StandardisationArun has now brought about standardisation of its parlours. This will help maintain the unique identity of the parlours. This, in turn, enhances uniformity in the image of the brand among the consumers leading to utmost satisfaction.Arun Icecreams parlours have been hugely successful. The reasons for this are explained briefly: Ideal and convenient location Well-decorated parlours where cleanliness given top priority Convenient working hours (10 A.M to 10 P.M.) Regular maintenance of freezer to keep them functioning at optimum levels Courteous and unmatched service Knowledge of product/variety among the staff Ability to understand customers' needs so as to satisfactorily cater to their tastes
More
Arun Icecream UnlimitedAnd now Arun introduces the whole new concept in icecream retailing in south India, the Unlimited concept.Arun unlimited offers the customer a wide range of flavours with unlimited options of creating ones own sundaes. The customer is given the option to choose his own choice of icecream and toppings or sauces to go with it. In addition to allowing customers to create
their own combinations, The Arun unlimited has a sundae menu of proprietary and innovative creations ready for customers to enjoy. We even offer take away icecreams.
The parlours are decorated to offer a vibrant,fun and friendly experience.Currently operational at Chennai's leading shopping mall - Spencer plaza and also stand alone parlours at Annanagar, R.K.Salai , Besant nagar, Egmore etcArun Unlimited also operates inside the most renowned IT parks like Chennai one and IT giants like Accenture.Arun unlimited is very much on its way marching ahead to become the leading icecream Retail chain in south India in years to come.
ICECREAM / ARUN UNLIMITED
And now Arun introduces the whole new concept in icecream retailing in south India, the Unlimited concept.Arun Unlimited offers the customer a wide range of flavours with unlimited options of creating ones own sundaes. The customer is given the option to choose his own choice of icecream and toppings or sauces to go with it. In addition to allowing customers to create their own combinations, The Arun Unlimited has a sundae menu of proprietary and innovative creations ready for customers to enjoy. We even offer take away icecreams.
The parlours are decorated to offer a vibrant, fun and friendly experience.Currently operational at Chennai's leading shopping mall - Spencer plaza and also stand alone parlours at Annanagar, R.K.Salai , Besant nagar, Egmore etc...Arun Unlimited also operates inside the most renowned IT parks like Chennai one and IT giants like Accenture.Arun Unlimited is very much on its way marching ahead to become the leading icecream Retail chain in southIndia in years to come.
MILK / AROKYAOVERVIEWArokya - Milk that suits children & adults alike !!!
Arokya has more nutrition and butterfat. Growing children can consume Arokya because it's wholesome and nourishing. It fortifies the bones with calcium, proteins and minerals. In case of adults, Arokya can be diluted with water & used.Arokya is a healthy and ready nourishment for growing children. Fortified with 4.5% butterfat, Arokya helps in the growth of vital strengths of a child - both physical and mental. It contains adequate quantities of calcium and phospholipids for development of the bones and brain respectively. Unlike toned milk where butterfat is removed to make it only 3%, Arokya has 4.5% butterfat. Hence the catchy slogan attached to it: Nothing added. Nothing removed. Nobody underscores the need for healthy foods more than the World Health Organisation (WHO). In fact, World Children's Fund (WCF)-a body recognized by WHO-believes that milk with 4.5% butterfat is best for growing children.It is very critical to give every child the right kind of food and nutrients, and to give the child just when he needs them the most. If you are looking to make your child skilled, agile and admired, switch to Arokya. And watch your child excel.
MILK PRODUCTS / HATSUN COOKING BUTTER
Hatsun Cooking ButterHatsun's all-natural high-quality Cooking Butter has something that makes it stand out from the crowd - it has dollops of 'zeal' in it. Hatsun Pasteurised Cooking Butter is made from the choicest of creams, churned from pure farm fresh milk. It is then processed in a high-tech dairy plant where hygiene and quality are given utmost importance. This ensures that sweets, savouries and cakes have a great taste and aroma. Pack sizes: 200g and 500g
THE LARGEST DAIRY IN THE LAND OF MILKIndia, the largest producer of milk in the world produces over 97 million annually. For the past 4 years India has been a consistent exporter of Fairy Ingredients to the world.The average growth rate of milk production in India is 4%. The Northern & Western part of India is a major producer of Buffalo milk and the South of India produces cow's milk.Hatsun, based in South India is the largest private sector dairy company in India and hence has a distinct advantage of dealing in cow's milk.Hatsun Agro Product Limited is a public limited company that was founded by Mr. R.G.Chandramogan, who is also the present Chairman & Managing Director.In 1970, Hatsun began with the pioneering effort of producing Arun icecream, which stil continues to be the most popular icecream brand in South india.
Hatsun started marketing fresh milk in pouches from 1993 and manufacturing dairy ingredients from 2003.Today, Hatsun is a USD 185 million company, listed in the Mumbai Stock Exchange.
DAIRY INGREDIENTS PRODUCTS
OVERVIEWQuality that's perfect for the World
Hatsun's Range of Dairy Ingredients is made directly from Liquid Milk and contains all the premium qualities and Nutritional benefits of Fresh COW'S MILK.Hatsun's Procurement team ensures timely collection, testing of milk at the point of collection, cattle feed sales, encouraging farmers to grow their herd size, training farmers on a better animal management and clean milking. Over 110 veterinary doctors under direct employment assist in artificial insemination, feed management, breed management, vaccination program and also render full-scale animal care.Hatsun's Dairy Ingredients are processed at the state-of-the-art processing technology run by people with strong technological capabilities. These, together with an innovative and flexible approach, enable us to manufacture a range of high quality products.Hatsun has an annual production of 20,000 MT of Milk Powders and 11,000 MT of milk Fat at present.
QualityQUALITYPreamble: We at "Hatsun" from management to down the line i.e. land/floor are conscious and continue to strive hard to achieve high level of pledge in obtaining pure milk and safe products. Scruple sly & sincerely IS standard of analysis are followed "before - during - after"; at procurement point, collection bank point, raw fresh milk reception point, Chilled milk point, market milk point, dairy ingredients point, dairy by-products point. Particularly physical, chemistry, microbiology, residue monitoring are applied at all necessary point in order to comply & to provide comfortable milk & milk products. This applies from cow to commercial. COW TO COMMERCIAL ANALYSIS SUBJECTIVE STRATEGY:At Fresh milk collection centre i.e. Hatsun Milk bank (HMB) First stage analysis):-Fresh Milk is procured and poured at our dedicated (major) fresh milk collection centre i.e. Hatsun Milk Bank (HMB).PHYSICAL EVALUATION: Organ optic evaluation i.e. sensory evaluation is carried out by our trained HMB
personal Milk is measured i.e. computerized. Cleanliness of milk cans.
CHEMICAL ANALYSIS: Gerber method applied to find out fat percentage Lactometer method is applied to find out Solid non fat
At Chilling centre raw fresh milk reception dock (Second tire analysis): -PHYSICAL EVALUATION: Organ optic evaluation i.e. sensory evaluation is carried out by our trained HMB
personal Milk is measured i.e. computerized. Cleanliness of milk cans.
CHEMICAL ANALYSIS: Gerber method applied to find out fat percentage Lactometer method is applied to find out Solid non fat Adulteration test are carried out. MBRT is conducted. COB is conducted.
At Dairy chilled fresh milk reception dock (Third tire analysis): -PHYSICAL EVALUATION: Sensory evaluation is carried out by our trained HMB personal Milk is measured i.e. computerized. Cleanliness of milk cans.
CHEMICAL OF MILK: Gerber method applied to find out fat percentage Lactometer method is applied to find out Solid non fat Adulteration test are carried out. COB is conducted. Acidity test
MICROBIOLOGY OF MILK: MBRT of milk Antibiotic residue test CAP residue test Standard plat count enumeration Coli form enumeration
DURING AND AFTER PROCESS OF MARKET MILK: Homogenization efficiency The entire test stated above to confirm its declaration on the package.
DURING AND AFTER PROCESS OF DAIRY INGREDIENTS: Entire IS standard of analysis and enumerations (Chemistry, microbiology,
residue monitoring both quantitative and qualitative) are carried out scrupulously with out any deviations.
Shelf-life studies are in place. Third party analyses are in place. Third party frequent audit are in place.
Constant monitoring, feed-back and collection of various datas have played and playing a major roll in our assurance of safe products to our royal - real ultimate customers.
CLIENTELE
We have prestigious customers who are very satisfied with our consistent quality and services spread across 40 countries around the world.
Ice Cream Manufacturing procedure
The 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
Process flow diagram for ice cream manufacture: the red section represents the operations involving raw, unpasteurized mix, the pale blue section represents the operations involving pasteurized mix, and the dark blue section represents the operations involving frozen ice cream.
Blending
First the ingredients are selected based on the desired formulation and the calculation of the recipe from the formulation and the ingredients chosen, then the ingredients are weighed and blended together to produce what is known as the "ice cream mix". Blending requires rapid agitation to incorporate powders, and often high speed blenders are used.
The mix is then pasteurized. Pasteurization is the biological control point in the system, designed for the destruction of pathogenic bacteria. In addition to this very important function, pasteurization also reduces the number of spoilage organisms such as psychrotrophs, and helps to hydrate some of the components (proteins, stabilizers).
Pasteurization (Ontario regulations): 69° C/30 min. 80° C/25s
Both batch pasteurizers and continuous (HTST) methods are used. Batch pasteurizers lead to more whey protein denaturation, which some people feel gives a better body to the ice cream. In a batch pasteurization system, blending of the proper ingredient amounts is done in large jacketed vats equipped with some means of heating, usually steam or hot water. The product is then heated in the vat to at least 69 C (155 F) and held for 30 minutes to satisfy legal requirements for pasteurization, necessary for the destruction of pathogenic bacteria. Various time temperature combinations can be used. The heat treatment must be severe enough to ensure destruction of pathogens and to reduce the bacterial count to a maximum of 100,000 per gram. Following pasteurization, the mix is homogenized by means of high pressures and then is passed across some type of heat exchanger (plate or double or triple tube) for the purpose of cooling the mix to refrigerated temperatures (4 C). Batch tanks are usually operated in tandem so that one is holding while the other is being prepared. Automatic timers and valves ensure the proper holding time has been met.Continuous pasteurization (see schematic diagram for mix here) is usually performed in a high temperature short time (HTST) heat exchanger following blending of ingredients in a large, insulated feed tank. Some preheating, to 30 to 40 C, is necessary for solubilization of the components. The HTST system is equipped with a heating section, a cooling section, and a regeneration section. Cooling sections of ice cream mix HTST presses are usually larger than milk HTST presses. Due to the preheating of the mix, regeneration is lost and mix entering the cooling section is still quite warm.Homogenization
The mix is also homogenized which forms the fat emulsion by breaking down or reducing the size of the fat globules found in milk or cream to less than 1 µ m. Two stage homogenization is usually preferred for ice cream mix. Clumping or clustering of the fat is reduced thereby producing a thinner, more rapidly whipped mix. Melt-down is also improved. Homogenization provides the following functions in ice cream manufacture:
Reduces size of fat globules Increases surface area Forms membrane makes possible the use of butter, frozen cream, etc.
By helping to form the fat structure, it also has the following indirect effects: makes a smoother ice cream gives a greater apparent richness and palatability better air stability increases resistance to melting
Homogenization of the mix should take place at the pasteurizing temperature. The high temperature produces more efficient breaking up of the fat globules at any given pressure and also reduces fat clumping and the tendency to thick, heavy bodied mixes. No one pressure can be recommended that will give satisfactory results under all conditions. The higher the fat and total solids in the mix, the lower the pressure should be. If a two stage homogenizer is used, a pressure of 2000 - 2500 psi on the first stage and 500 - 1000 psi
on the second stage should be satisfactory under most conditions. Two stage homogenization is usually preferred for ice cream mix. Clumping or clustering of the fat is reduced thereby producing a thinner, more rapidly whipped mix. Melt-down is also improved.Ageing
The mix is then aged for at least four hours and usually overnight. This allows time for the fat to cool down and crystallize, and for the proteins and polysaccharides to fully hydrate. Aging provides the following functions:
Improves whipping qualities of mix and body and texture of ice cream
.It does so by:
providing time for fat crystallization, so the fat can partially coalesce; allowing time for full protein and stabilizer hydration and a resulting slight
viscosity increase; allowing time for membrane rearrangement and protein/emulsifier interaction, as
emulsifiers displace proteins from the fat globule surface, which allows for a reduction in stabilization of the fat globules and enhanced partial coalescence.
Aging is performed in insulated or refrigerated storage tanks, silos, etc. Mix temperature should be maintained as low as possible without freezing, at or below 5 C. An aging time of overnight is likely to give best results under average plant conditions. A "green" or unaged mix is usually quickly detected at the freezer.
Freezing and HardeningFollowing mix processing, the mix is drawn into a flavour tank where any liquid flavours, fruit purees, or colours are added. The mix then enters the dynamic freezing process which both freezes a portion of the water and whips air into the frozen mix. The "barrel" freezer is a scraped-surface, tubular heat exchanger, which is jacketed with a boiling refrigerant such as ammonia or freon. Mix is pumped through this freezer and is drawn off the other end in a matter of 30 seconds, (or 10 to 15 minutes in the case of batch freezers) with about 50% of its water frozen. There are rotating blades inside the barrel that keep the ice scraped off the surface of the freezer and also dashers inside the machine which help to whip the mix and incorporate air.
Ice cream contains a considerable quantity of air, up to half of its volume. This gives the product its characteristic lightness. Without air, ice cream would be similar to a frozen ice cube. The air content is termed its overrun, which can be calculated mathematically.As the ice cream is drawn with about half of its water frozen, particulate matter such as fruits, nuts, candy, cookies, or whatever you like, is added to the semi-frozen slurry which has a consistency similar to soft-serve ice cream. In fact, almost the only thing which differentiates hard frozen ice cream from soft-serve, is the fact that soft serve is drawn into cones at this point in the process rather than into packages for subsequent hardening. Hardening
After the particulates have been added, the ice cream is packaged and is placed into a blast freezer at -30° to -40° C where most of the remainder of the water is frozen. Below about -25° C, ice cream is stable for indefinite periods without danger of ice crystal growth; however, above this temperature, ice crystal growth is possible and the rate of crystal growth is dependant upon the temperature of storage. This limits the shelf life of the ice cream.A primer on the theoretical aspects of freezing will help you to fully understand the freezing and recrystallization process.
Hardening invloves static (still, quiescent) freezing of the packaged products in blast freezers. Freezing rate must still be rapid, so freezing techniques involve low temperature (-40oC) with either enhanced convection (freezing tunnels with forced air fans) or enhanced conduction (plate freezers).
The rate of heat transfer in a frezing porcess is affected by the temperature difference, the surface area exposed and the heat transfer coefficient (Q=U A dT). Thus, the factors affecting hardening are those affecting this rate of heat transfer:
Temperature of blast freezer - the colder the temperature, the faster the hardening, the smoother the product.
Rapid circulation of air - increases convective heat transfer. Temperature of ice cream when placed in the hardening freezer - the colder the
ice cream at draw, the faster the hardening; - must get through packaging operations fast.
Size of container - exposure of maximum surface area to cold air, especially important to consider shrink wrapped bundles - they become a much larger mass to freeze. Bundling should be done after hardening.
Composition of ice cream - related to freezing point depression and the temperature required to ensure a significantly high ice phase volume.
Method of stacking containers or bundles to allow air circulation. Circulation should not be impeded - there should be no 'dead air' spaces (e.g., round vs. square packages).
Care of evaporator - freedom from frost - acts as insulator. Package type, should not impede heat transfer - e.g., styrofoam liner or corrugated
cardboard may protect against heat shock after hardening, but reduces heat transfer during freezing so not feasible.
Ice cream from the dynamic freezing process (continuous freezer) can also be transformed into an array of novely/impulse products through a variety of filling and forming machines, which have ben identified on a separate page.
OBJECTIVES
PRIMARY OBJECTIVE:
To analyze the Cost Volume Profit and its impacts at HUTSUN AGRO PRODUCT LTD.
SECONDARY OBJECTIVE:
1. To identify the effect of breakeven point for Arun ice cream and ascertain which
product is as advantages.
2. To analyze the level of sales needed to achieve a desired target profit.
3. To identify Margin of safety and it’s significance.
4. To measure the degree of leverages of Arun ice cream
5. To analyze the trend with regards to income, expenditure and profits.
SCOPE OF THE STUDY
This study is performed by using the Trading Account of HUTSUN AGRO
PRODUCT LTD. The analysis done in the cost sheet are Breakeven analysis, profit
volume, etc., these calculation cover the major areas like contribution margin, profit.
This would be useful for company to make new strategy to compete in the market by
adopting various controlling techniques in the process of manufacturing.
This study was conducted only on overall cost volume profit analysis and not on
each and every variables. This study to help to forecast profit fairly and accurately as it is
essential to know the relationship between profits and costs.
This study assists in evaluation of performance for the purpose of control and also
assists in formulating policies by showing the effect of different price structure on costs
and profits.
This study predetermined overheads rates are related to a selected volume of
production.
REVIEW OF LITERATURE
Cost volume profit analysis is one of the most hallowed, and yet one of the
simplest, analytical tool in management accounting. In a general sense, it provides a
sweeping financial overview of the planning process (Horngren Al., 1994).
That overview allows managers to examine the possible impacts of a wide range
of strategic decisions. These decisions can include such crucial areas as pricing policies,
