ICE FACTORY

Introduction: Water when made into a solid mass by the application of cooling is known as
ice. It is one of the essential medium for short-term preservation of highly perishable
commodities such as marine foods, fresh meat and poultry products, dairy products and fruit
and vegetables. These goods can be stored for about 2 to 3 days with ice. This fact facilitate the
transportation of these foods to the consumer market. Ice is also used in the chemical,
pharmaceutical, canning and freezing industries. Besides, it is being used for children and
serving synthetic or fruit beverages, Jellies, etc.
Market: Except for upper middle class and rich house-holds, who own refrigerators, there is
hardly any household who may not be using ice during summer season in one form or the other
in this country. It is also used by the tea-stalls, hoteliers, restaurants, clubs and industrial
houses for storage and hilling purposes. In short, it is being used extensively in all urban areas,
small towns or even villages especially during the summer season. Thus there is a good scope
for at least one ice plant in a town having a population of 20 thousand which will also cater to
the needs of the nearby areas.
Target: Assuming that the Unit shall operate for single shift of eight hours per day for three hundred
days per annum the annual installed capacity is estimated at
Quantity
200 M.T.
Value
Rs.15,84,000/Process: The ammonia or feron gas coming from the cooling coil at low temperature and
pressure is compressed into liquid and is passed through the cooling coil fixed in the freezing
tank. Due to the low boiling point of ammonia it changes its shape from liquid to vapour and is
condensed in side the condenser. The tank contains brine of 30% salt, the cold brine is
circulated by agitation to maintain uniform temperature through out the tank. The brine
temperature is considerably reduced to as low as 15F, this will take about 24 hours. After the
brine reaches the operating temperature the ice cans are filled with water and are immersed
inside the brine tank in such a way that the level of the brine should be below the level of the
top of the ice can. Due to the high freezing point of water comparing to brine, the water in the
can is solidified at 30F to from ice. To get clear solidised a small quantity of air is passed into
the cans. It takes about 18 hours to freeze a 50 kg. ice can. 24 hours to freeze 70 kg can and 48
hours to freeze 140 kg can.
Process Flow:
Filling Moulds
with water

Cooling by
Compressor

Ice

Raw Material (Annual): Water required for ice making is 10.5 kilo litres and for make up purposes
another 4 kilo litres per day in full swing. After initial change of gas and salt, additional charge is
necessary to compensate for losses.
(i) 2800 kilo litre water
Rs. 16,500.00
(ii) 4 Cylinders Ammonia gas of 60 kg.
Rs. 11,000.00
(iii) Salt 6 M.T.
Rs. 7,260.00
Rs. 34,760.00

Power: The power is available from the state Electric supply corporation Grid. The
consumption of power is estimated 85500 unit. Annual estimated cost Rs. 2,91,555/-.
Water: The unit will need 15 kilo liter water per day. Cost of drawing of water is shown in power cost
Manpower: Manpower required by the unit including skilled workers is locally available.
The requirement and annual costs of manpower at the installed capacity is shown below:
Sl.No.
1.
2.
3.

Category of Manpower
Manager
Skilled Worker
Unskilled worker
Total:

No. of Persons
1
2
2
5

Financial Aspect :
1)
Land & Building :- 90 sq.ft.
(i)
Construction of tube well & overhead storage tank
2)
Plant & Machinery
1.
6x6 Heavy Daty, double cylinder Reciprocating ammonia
compressor
2.
40 Hp slipring induction meter suitable for Hperation on 400/440
3 phase, 50 Hiz, complete with starter and capacitor
3.
Ammonia oil separator 300 mm dia x 900 mm length complete
With flanges, oil drain value
4.
2 sets of atmosphere type ammonia condensers each having
2 rows of 12 pipes, 6 m long and made of 50 m pipe, complete
5.
Ammonia receiver
6.
Freezing tank
7.
refrigeration coil made of 32 mm black heavy pipe
8.
Brine agitator complete with 3 Hp induction meter
9.
Low pressure rotary air blower
10.
Condenser water circulating pump
11.
240 nos. seam welded ice cans 20cm x 40 cm x 80cm deep
12.
250 nos. air fittings consisting of tubes brackets, elbows, hoses
And supply headers
13.
150 mm thick thermo foam insulation false ceiling
14.
Hand Hoist with crane ends, beam rail and can dump for
Single can
15.
First charge of refrigerant & salt
16.
Hydrometer thermometer, tool kit etc.
3)
a)
b)
4.
5.

Miscellaneous Fixed Asset

Electrification
Furniture & Miscellaneous others
Provision for contingencies
Preliminary & pre-operative expenses

Annual Cost
Self
1,32,000/92,400/2,24,400/-

2,41,000/1,20,000/-

1,32,000/-

1,26,000/-

3,960/-

2 sets 1,20,000/1
1
1
1
1
1

32,400/2,40,000/78,000/9,360/12,000/9,240/1,92,000/15,000/1,17,600/18,000/-

12,000/3,600/Total: 11,21,160/-

Rs. 71,500/Rs. 22,000/Rs. 55,770/Rs. 1,49,270/Total Fixed Cost Rs.12,70,430/-

6.
a)
b)
c)
d)

Working Capital (P.M.)

Raw Material
Utilities
Salary & Wages
Other expenses

Rs. 8,690/Rs. 72,710/Rs. 56,100/Rs. 55,000/Total working capital: Rs. 1,92,500/Total Project Cost: Rs. 14,62,930/Urban
Rural
10,23,400/8,77,800/73,150/73,150/3,65,750 /5,12,050/2.33:1
1.50:1

Means of Finance:
1.
Composite loan
2.
Promoters contribution
3.
Subsidy
4.
Debt equity ratio
Profitability:
Sl.No. Description
1.

4.
5.
6.
7.

Capacity utilized as percent of

installed capacity
Annual Sales Realization in Rs.
Annual Costs in Rs.
Raw Materials
Utilities
Selling expenses
Variable Cost
Wages & Salaries
Administrative expenses
Depreciation
Interest on Composite Loan
Fixed & Semi Variable Cost
Total Cost
Annual Profit
Return on Investment
Return on sales

8.
9.
10.
11.
12.
13.
14.
15.

Annual contribution
Break Even Point
Cash accrual
Debt Servicing Capacity
Repayment of Composite Loan
Debt Serviced
Pay Back Period
Debt Service Coverage Ratio

2.
3.
a)
b)
c)
d)
e)
f)
g)

1st

2nd

year

year

3rd

(Rs. in Thousands)
year
4th year
5th year

60%

70%

80%

80%

80%

950

1109

1267

1267

1267

21
175
64
260
135
132
127
127
521
781
169
11.55%
17.78%

24
204
75
303
157
154
127
103
541
844
265
18.11%
23.89%

28
233
85
346
180
176
127
75
558
904
363
24.81%
28.65%

28
233
85
346
180
176
127
45
528
874
393
26.86%
31.01%

28
233
85
346
180
176
127
15
498
844
423
28.91%
33.38%

520
565
221
266

550
565
221
236

690
296
423
166
293

45.30%
392
420
495
565
194
227
297
297
1 year 5 months 8 days
1.44:1

Cash Flow Statement

Sl.
No.

Description

1.

Increase in Promoters
contribution
Increase in Term loan
Subsidy
Depreciation
Profit before interests
TOTAL SOURCES
Increase
in
capital
investment
Increase in working capital
Interest
Repayment of Term Loan
TOTAL DISPOSALS
OPENING BALANCE
NET SURPLUS
CLOSING BALANCE

2.
3.
4.
5.
A.
6.
7.
8.
9.
B.
C.
D.
E.

(Rs. in Thousands)
Preoperative
Period

2.

Surplus from operation

NET WORTH:
Subsidy
Term loan outstanding

3.
4.

Second

Third

Fourth

Fifth

1024
366
1463
1270

127
296
423
-

127
368
495
-

127
438
565
-

127
438
565
-

127
438
565
-

193
1463
NIL
NIL
NIL

127
166
293
NIL
130
130

103
194
297
130
198
328

75
222
297
328
268
596

45
221
266
596
299
895

15
221
236
895
329
1224

1st
Capital Account of Promoter

First

73

Projected Balance sheet:

Sl.No. Description
1.

Operating Years

Amount in Rs. Thousnad as at the end of the

Yr.
2nd Yr.
3rd Yr.
4th Yr.
5th Yr.
73
169
242

242
265
507

507
363
870

870
393
1263

366
858

366
664

366
442

366
221

1263
423

1686
366
-

TOTAL LIABILITIES

1466

1537

1678

1850

2052

2.

Gross Block
Less Depreciation
NET BLOCK
Working capital

1270
127
1143
193

1270
254
1016
193

1270
381
889
193

1270
556
762
193

1270
683
635
193

3.
4.

Cash & Bank Balance

TOTAL ASSETS

130
1466

328
1537

596
1678

895
1850

1224
2052

1.

Machinery Suppliers:
1) HAV N ICE, 19 Ballygunge Circular Road, Kolkata-19
2) ICE CASTLE, Lansdowne Court, 5 B, Sarat Bose Road, Kolkata-20.