Detailed Project Report (DPR)

₹10 Crore Ice Cream Manufacturing Plant Setup

Project Type: Integrated Ice Cream Manufacturing Unit
Location Assumption: Uttar Pradesh (can be modified for any state)
Product Category: Premium Ice Cream, Kulfi, Frozen Dessert, Dairy-based Frozen Products
Plant Capacity: Approx. 10,000–15,000 Litres Per Day (LPD)

Subsidy assumptions used:

  • UP Food Processing Policy: 35% subsidy on eligible plant, machinery and technical civil work, maximum ₹5 crore. (Invest UP)

  • Cold chain/frozen storage component: eligible projects may receive 50% assistance for frozen storage/deep freezer and value addition infrastructure, up to ₹10 crore under applicable schemes. (Invest UP)


1. Project Cost Estimate – ₹10 Crore

A. Land & Civil Construction

Particular Cost
Land development ₹25 lakh
Factory building (15,000–20,000 sq ft) ₹1.25 Cr
Production area ₹40 lakh
Cold room area ₹50 lakh
Office & utility building ₹15 lakh
Total Civil Work ₹2.55 Cr

B. Ice Cream Manufacturing Machinery

Machinery Estimated Cost
Milk reception & storage system ₹20 lakh
Milk pasteurizer (5000–10000 LPH) ₹50 lakh
Homogenizer ₹35 lakh
Ageing vats ₹25 lakh
Continuous ice cream freezer ₹1.20 Cr
Batch freezer ₹35 lakh
Mix preparation tanks ₹25 lakh
Fruit/flavour dosing system ₹20 lakh
Filling & packaging machine ₹80 lakh
Cup/cone packing line ₹50 lakh
Hardening tunnel ₹1.00 Cr
CIP cleaning system ₹35 lakh
Laboratory equipment ₹25 lakh
Material handling equipment ₹15 lakh

Machinery Subtotal:

₹5.35 Crore


C. Refrigeration & Cold Chain Infrastructure

Equipment Cost
Refrigeration plant ₹75 lakh
Ammonia refrigeration system ₹60 lakh
Frozen storage (-25°C) ₹50 lakh
Deep freezer storage ₹40 lakh
Electrical panels ₹25 lakh
DG backup ₹35 lakh

Total Refrigeration:

₹2.85 Crore


D. Pre-Operational Expenses

Particular Cost
Consultancy & DPR ₹10 lakh
Installation ₹20 lakh
Trial production ₹15 lakh
Licensing & approvals ₹10 lakh
Staff training ₹10 lakh

Total:

₹65 lakh


Total Project Cost

Component Amount
Civil Construction ₹2.55 Cr
Machinery ₹5.35 Cr
Refrigeration & Cold Chain ₹2.85 Cr
Pre-operative Expenses ₹65 lakh
TOTAL PROJECT COST ₹10.00 Cr

2. Government Subsidy Calculation

Option 1: UP Food Processing Policy

Eligible:

Plant + Machinery + Technical Civil Work

Assumed eligible investment:

Machinery:
₹5.35 Cr

Technical Civil:
₹2.55 Cr

Total Eligible:
₹7.90 Cr

Subsidy:

35% × ₹7.90 Cr

= ₹2.76 Crore

UP Capital Subsidy:

₹2.76 Crore

(Within ₹5 crore maximum limit)
(Invest UP)


Option 2: Cold Chain Subsidy Component

Eligible:

  • Frozen storage

  • Deep freezer

  • Cold chain infrastructure

Assumed:

Cold chain investment:
₹2.00 Cr

Subsidy:

50%

= ₹1 Crore

(Invest UP)


Total Possible Subsidy

Scheme Amount
UP Food Processing Capital Subsidy ₹2.76 Cr
Frozen Storage / Cold Chain Subsidy ₹1.00 Cr
Total Government Support ₹3.76 Cr

3. Bank Loan Structure

Project Cost:

₹10 Crore

Recommended Funding:

Source Amount
Promoter Contribution ₹3 Crore
Bank Term Loan ₹7 Crore
Total ₹10 Crore

After Subsidy Adjustment

Government subsidy:

₹3.76 Cr

Effective project burden:

₹10 Cr - ₹3.76 Cr

= ₹6.24 Cr


Loan Repayment Example

Bank Loan:

₹7 Crore

Interest assumption:

10%

Tenure:

7 years

Approx EMI:

₹11.6 lakh/month


4. Production Capacity

Assumption:

Production:
12,000 litres/day

Working days:

300 days/year

Annual Production:

36 lakh litres/year


5. Sales Projection

Average selling price:

₹180/litre

Annual Sales:

36 lakh litres × ₹180

Revenue:

₹64.8 Crore/year


6. Operating Cost

Expense Annual Cost
Milk & dairy ingredients ₹20 Cr
Sugar/flavours/additives ₹8 Cr
Packaging ₹5 Cr
Labour ₹2 Cr
Electricity/refrigeration ₹3 Cr
Distribution ₹5 Cr
Other expenses ₹3 Cr

Total Operating Cost:

₹46 Crore


7. Profit Projection

Revenue:

₹64.8 Cr

Less Cost:

₹46 Cr

EBITDA:

₹18.8 Crore

After interest/depreciation:

Expected PAT:

₹8–10 Crore annually


8. Employment Generation

Direct employment:

Department People
Production 40
Quality 10
Maintenance 10
Packaging 25
Warehouse 15
Admin 10

Total:

100+ jobs

Indirect:

  • Distributors

  • Retailers

  • Transporters

  • Cold chain operators


9. Application Roadmap

Step 1

Company preparation:

✅ GST
✅ Udyam Registration
✅ FSSAI Central License
✅ Land documents

Step 2

Prepare DPR:

Include:

  • Machinery quotations

  • Plant layout

  • Financial projections

  • Market study

Step 3

Bank Loan Approval

Approach:

  • SBI

  • Bank of Baroda

  • PNB

  • HDFC Bank

  • ICICI Bank

Step 4

Apply Subsidy

UP:

Invest UP / Food Processing Department
(Invest UP)

Central:

MoFPI portal for eligible schemes
(Ministry of Food Processing Industries)


 

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