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written by | October 11, 2021

How to Start an Ice Cream Business in India?

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Ice cream parlour can be an ideal retail food venture since India's dairy industry has gained a foothold and the weather is scorching. The popularity of eating outdoors and having a surplus of money among the younger generation is the primary reason behind the rising demand for ice cream shops.

Ice cream is usually thought of as a seasonal food product that is most popular in the summers. However, the consumption of ice cream in the winter months has been increasing in recent times. A variety of factors are at the root of reducing the effect of the season and assisting in an overall increase in the nation's ice cream industry.

So, if you've got a smart and strong ice cream parlour plan, keep reading to know the intricacies!

Did You Know?

In 2020, the Indian ice cream market was worth ₹20140 crores. Experts expect it to grow at a growth speed of 14% from 2021 to 2026 and hit the worth value of  ₹44200 crores by 2026. In India, ice cream is currently one of the most popular desserts.

How to Begin Your Own Ice Cream Business in India?

Steps to Begin Your Ice Cream Business

Below are the steps to open an ice cream store in India:

Also Read: How to Start The Naturals Ice Cream Franchise?

Know the Local Market

The ice cream industry in India has undergone many changes in the last few years. There is no longer a time when ice cream was available in small carts on the side of the road. Today's ice cream industry is more structured, and various methods of selling ice cream have developed.

There are several ice cream parlours and food trucks in towns and cities all over the country. It is recommended to conduct thorough market research and collect as much information as possible about the ice cream market in the area before starting your ice cream business.

Make a Business Plan

If you'd like to guarantee the maximum success of your new ice cream company, the first thing you'll need to begin is to create a business plan.

A business may include anything from your budget ingredients to your flavour. This is the outline of your company. It allows you to see all your goals, desires and achievements on one sheet of paper.

Making a business plan is the most difficult phase; however, once you're up and running, you'll be in a position to get your ice cream business off the ground without hesitation.

Ice Cream Business Registration and License

If you want to start an ice cream shop in India, you will have to obtain the required license and registration:

  • Business registration: If you're just starting and have a modest budget, start your ice cream business by registering your company as a Person Company. If you have partners, you may create your company as a Private. Ltd. or an LLP.
  • FSSAI license: Possessing a certificate from FSSAI is required to operate an ice cream shop in India
  • Trade license: Obtain the trade license from your Municipal Authority in your area. 
  • GST registration: GST registration is necessary to begin and operate an ice cream shop.
  • Shop & Establishment Act License: It is essential to operate a shop that sells retail.
  • Current bank account
  • Business PAN card

Estimated Investment in the Company

There is no point in thinking that choosing a franchise is easy. However, the costs are likely to be huge. Many reputable manufacturing companies for ice cream could be charging around ₹5 lacs. The cost varies from one company to the next. 

An approximate estimate is that you'll be able to start your ice cream business on a medium or large scale varies between ₹3-20 lakhs. The exact amount could differ between states. If this sounds too much to you, you should consider starting a small scale ice cream business that will cost you no more than about ₹60,000 to ₹2 lakhs.

Select the Products

It is always possible to make a lot of improvements, but you should choose an easy variety that you're certain will please your guests. Consumers enjoy numerous flavours of ice creams, but a few are the most popular, like vanilla, butterscotch, strawberry, chocolate, etc. 

There are many other different flavours, some of which can be costly; however, people will still buy the flavours. Make sure that the items on the menu are on hand and give your customers time to get used to your product. To ensure that these items are kept safely, you must have a good refrigeration system and keep the high quality of the products. Don't compromise on this.

There are many other items you can offer in addition to ice creams, choc-ices, sweets, lollies, etc. You could also serve hot food items like hot dogs and burgers to increase your revenue during the winter months. This requires additional training, cleaning and equipment.

Be aware that there's a limit to the amount of equipment you can put into an ice cream van, so it's crucial only to carry top-selling items. The key is not to be afraid to experiment with something new but remember to keep on testing to determine which products are the most popular.

Other products to think about:

  • Semi-frozen, slushy drinks, and cold drinks
  • Snacks, e.g. crisps, sandwiches
  • Sweets & confectionery

Include Ingredients and the Cost

Milk powder, granulated sugar, eggs (occasionally), milk powdered sugar and a variety of flavours of ice cream are essential to make these delicious sweet and creamy desserts. They can be found in smaller and large-sized packs. The price of these ingredients is subject to change from time to time and location to location. 

Sugar, milk and egg processes can go either way, depending on the market conditions. If you're looking to buy these ingredients at a low cost, going to the wholesale market is an excellent alternative. If you can pay less for the ingredients, your profit will rise automatically.

Adjust the Profit Margin for Your Ice Cream Business

If you're selling your own unique manufactured flavour ice creams, you can determine your profit margin according to an approach to pricing based on value. If you are selling ice creams from an established third-party brand, you can anticipate an income margin between 20-30%, based on the product.

Also Read: How to acquire an Amul Franchise?

Equipment Required to Open an Ice Cream Shop

It is necessary to have a wide variety of Equipment to manage an ice cream store for seamless operation. The most basic kinds of equipment are:

  • Ice cream machines( If you intend to make ice cream on your own)
  • Cups and utensils
  • Packaging materials
  • Ice cream dipping cabinets
  • Refrigerators
  • Storage cabinets
  • Blenders
  • Packaging materials
  • Weighing scale

Additionally, you should also purchase an unobtrusive generator. This is because you require your freezer to operate throughout the day to prevent melting ice creams. It is essential to have a 24-hour electric power source. In addition, you'll have to purchase reliable software for financial billing.

Install Your Interior & Exterior and Start Selling

Create your ice cream shop to attract your customers who want to spend time in your store. It is best to employ an experienced interior designer to design your store.

Make attractive banners with enough illumination to make the shop an enthralling spot.

After all that, it's finally time to start selling.

Promotional Tips for Ice Cream Business

  1. Online promotion: Publishing online advertisements is a great way to draw the attention of potential customers to your ice cream store or truck. Make sure to target websites with an impressive amount of user traffic.
  2. Distribute pamphlets: Hand-to-hand distribution is never out of style. Create the handouts so that readers take a peek at the information before discarding it.
  3. Advertising in audio-visual media: Radio and T.V. commercials are an effective promotion method. Send genuine information to the audience you want to reach.
  4. Use social media for your advantage: Don't forget to post stunning images of ice creams to your social media profiles and share them with friends. Separate accounts about the brand's ice cream on social media are also good.
  5. Advertisements on vehicles: Placing small ads on the rear of public transport is great to announce your new ice cream shop or even your company's name. The vehicle can travel all over the region, and more people are exposed to the advertisements.
  6. Print ads in local magazines and newspapers: Now, that can also be used as tremendous promotional channels. They are a great way for gaining exposure to your local marketplace.

Conclusion

Ice cream shops are very labour-intensive and, therefore, may not be the best choice for an easy side business. They need a lot of initial costs and planning, even for smaller ventures such as a basic ice cream stand.

However, they could be a lucrative business idea if you've got enough time and money to put into this particular project. In addition, free ice cream that you can consume is a great bonus! 

So, now you know everything about starting an ice cream parlour!

Follow Khatabook for the latest updates, news blogs, and articles related to micro, small and medium businesses (MSMEs), business tips, income tax, GST, salary, and accounting.

FAQs

Q: What are the necessary equipment I should have in my ice cream parlour?

Ans:

Required equipment includes refrigerators, freezers, ice cream makers and supplies inventory (ingredients, containers, ice cream utensils, etc.)

Q: How to start an ice cream business with less investment?

Ans:

If there's a somewhat shortage of investment, you can decrease the scale of the business. You can start as an ice cream vendor and later get into the manufacturing line.

Q: How much is the ice cream parlour business profit margin?

Ans:

This business is considered lucrative because the profit margin in the ice cream business in India is around 20-30%, and sometimes even more.

Q: Is starting an ice cream business in India beneficial?

Ans:

A small ice cream business can conveniently gross around ₹45000 to ₹1.2 lacs profit per month on average. In comparison, a competing ice cream making business with a good enough reputation in the market manages to gross over ₹2 lakhs per month.

Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.
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Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.