Ice cream is no longer just a luxury treat in Bangladesh — it has become a year-round favorite. Urbanization, rising middle-class income, and growing café culture have made ice cream a profitable business venture. An Ice Cream Production Factory can ensure steady profits with strong branding, hygienic standards, and proper distribution channels.
This detailed project profile explains the investment cost, production process, machinery, raw materials, manpower, and expected return for starting an Ice Cream Factory in Bangladesh.
1. Industry Overview
Bangladesh’s ice cream market has grown rapidly over the last decade. Major players like Igloo, Polar, Bellissimo, and Bloop dominate the formal market, but local and regional brands are expanding fast.
Market drivers include:
- Increasing disposable income.
- Expanding supermarket and café networks.
- Youth-driven lifestyle changes.
- Rising demand for premium and fruit-based ice creams.
The total market is estimated to exceed BDT 2,000 crore annually, and it grows at 10–12% per year. This makes an ice cream production project highly viable for entrepreneurs.
2. Project Summary
| Particulars | Details |
|---|---|
| Project Title | Ice Cream Production Factory |
| Proposed Capacity | 3,000 liters per day |
| Location | Savar / Gazipur / Narayanganj (industrial area) |
| Land & Building | 10,000 sq.ft factory area |
| Major Products | Vanilla, Chocolate, Mango, Strawberry, Kulfi, Stick Ice Cream, Cup & Family Packs |
| Project Cost | Approx. BDT 6.50 Crore |
| Employment | 35 persons |
| Project Implementation Time | 8–10 months |
| Project Return (ROI) | 28–35% per annum |
| Break-Even Point | Around 60% capacity utilization |
3. Production Capacity and Product Mix
A standard medium-scale ice cream factory operates with 3,000 liters/day capacity. The product mix usually includes:
| Product Type | Flavor Variants | Packaging Size | Market Price (BDT/unit) |
|---|---|---|---|
| Stick Ice Cream | Vanilla, Chocolate, Mango | 60–100 ml | 25–40 |
| Cup Ice Cream | Chocolate, Strawberry, Butterscotch | 100–200 ml | 40–60 |
| Family Pack | Vanilla, Chocolate, Mixed | 500–1000 ml | 150–300 |
| Premium / Fruit Ice Cream | Pistachio, Kulfi, Mango | 200–500 ml | 80–150 |
Annual production potential: 900,000 liters (approx.)
4. Required Machinery and Equipment
Modern ice cream factories require automatic and semi-automatic machinery for pasteurization, mixing, aging, freezing, and packing.
| Machinery Description | Qty | Estimated Cost (BDT) |
|---|---|---|
| Pasteurizer (500L/hr) | 1 | 15,00,000 |
| Homogenizer | 1 | 10,00,000 |
| Aging Vat (500L) | 2 | 8,00,000 |
| Ice Cream Freezer Machine | 2 | 18,00,000 |
| Fruit Feeder & Ripple Machine | 1 | 7,00,000 |
| Continuous Freezer | 1 | 12,00,000 |
| Filling and Packing Machine | 2 | 22,00,000 |
| Blast Freezer | 1 | 10,00,000 |
| Cold Storage Room | 1 | 40,00,000 |
| Refrigerated Van | 2 | 50,00,000 |
| Water Treatment Unit | 1 | 5,00,000 |
| Laboratory Equipment | – | 4,00,000 |
| Utility Equipment (Boiler, Compressor, etc.) | – | 15,00,000 |
Total Machinery Cost: ≈ BDT 2.16 Crore
5. Raw Materials and Packaging
The main ingredients for ice cream production include milk, cream, sugar, stabilizers, emulsifiers, flavors, and colorants. Local sourcing is possible for most ingredients.
| Raw Materials | Annual Requirement | Approx. Cost (BDT/Year) |
|---|---|---|
| Whole Milk / Milk Powder | 150 MT | 75,00,000 |
| Sugar | 100 MT | 40,00,000 |
| Cream / Butter Fat | 30 MT | 30,00,000 |
| Stabilizers & Emulsifiers | 2 MT | 5,00,000 |
| Flavors & Colors | 1 MT | 8,00,000 |
| Fruit Pulps & Syrups | 10 MT | 12,00,000 |
| Packaging Materials (cups, cones, lids, wrappers) | – | 25,00,000 |
| Refrigeration Chemicals | – | 5,00,000 |
| Miscellaneous | – | 10,00,000 |
Total Annual Raw Material Cost: ≈ BDT 2.10 Crore
6. Utility Requirements
| Utility Item | Requirement | Monthly Cost (BDT) |
|---|---|---|
| Electricity | 30,000 kWh | 2,40,000 |
| Water | 25,000 liters/day | 50,000 |
| Diesel for Generator | – | 40,000 |
| Refrigeration Maintenance | – | 30,000 |
Total Monthly Utilities: ≈ BDT 3.60 Lakh
7. Manpower and Human Resources
A well-trained and motivated workforce ensures consistent product quality.
| Category | No. of Staff | Average Monthly Salary (BDT) |
|---|---|---|
| Factory Manager | 1 | 60,000 |
| Production Supervisor | 2 | 40,000 |
| Technicians | 3 | 30,000 |
| Machine Operators | 6 | 25,000 |
| Quality Control Officer | 1 | 35,000 |
| Packaging Staff | 6 | 18,000 |
| Cold Storage & Dispatch Staff | 4 | 20,000 |
| Sales & Distribution Staff | 6 | 25,000 |
| Admin & Accounts | 3 | 30,000 |
| Security & Cleaning | 3 | 15,000 |
Total Monthly Manpower Cost: ≈ BDT 5.70 Lakh
Annual HR Expense: ≈ BDT 68.40 Lakh
8. Project Cost Breakdown
| Particulars | Amount (BDT) |
|---|---|
| Land & Building | 1,00,00,000 |
| Machinery & Equipment | 2,16,00,000 |
| Vehicles & Refrigerated Vans | 50,00,000 |
| Office & Lab Setup | 10,00,000 |
| Furniture & Fixtures | 10,00,000 |
| Pre-Operating & Training Expenses | 8,00,000 |
| Working Capital (3 months) | 56,00,000 |
Total Project Cost: ≈ BDT 4.50 Crore
Add contingency (10%) and finance charges → Final Total: BDT 6.50 Crore
9. Financial Projection (3 Years)
| Particulars | Year 1 | Year 2 | Year 3 |
|---|---|---|---|
| Capacity Utilization (%) | 60% | 80% | 90% |
| Production (liters) | 540,000 | 720,000 | 810,000 |
| Sales Revenue (BDT) | 5.4 Crore | 7.2 Crore | 8.1 Crore |
| Cost of Production | 3.9 Crore | 4.6 Crore | 5.0 Crore |
| Gross Profit | 1.5 Crore | 2.6 Crore | 3.1 Crore |
| Operating Expenses | 0.8 Crore | 1.0 Crore | 1.2 Crore |
| Net Profit Before Tax | 0.7 Crore | 1.6 Crore | 1.9 Crore |
| ROI (%) | 20% | 28% | 32% |
10. SWOT Analysis
| Strengths | Weaknesses |
|---|---|
| High demand all year | Seasonal supply of milk |
| Easy raw material availability | Requires cold chain logistics |
| Wide market potential | High electricity cost |
| Fast ROI | Perishable product shelf life |
| Opportunities | Threats |
|---|---|
| Export to nearby countries | Rising energy costs |
| Franchise and retail outlets | Strong competition |
| Product diversification | Regulatory issues on dairy standards |
11. Marketing and Distribution Strategy
To succeed in the ice cream business, effective marketing and brand visibility are essential.
Marketing Strategy:
- Create a fun, youth-oriented brand identity.
- Distribute through supermarkets, schools, cafés, and local retailers.
- Offer seasonal flavors during Eid, Puja, and summer months.
- Engage digital marketing — Facebook, Instagram, YouTube ads.
- Introduce franchise and street cart models in major cities.
Distribution:
- Use refrigerated vans for cold chain distribution.
- Maintain regional depots in Dhaka, Chattogram, and Rajshahi.
- Partner with e-commerce food delivery apps.
12. Project Implementation Schedule
| Activity | Duration (Months) |
|---|---|
| Project Planning & Approval | 1 |
| Land Purchase & Building Construction | 3 |
| Machinery Procurement & Installation | 3 |
| Utilities & Cold Room Setup | 2 |
| Staff Recruitment & Training | 1 |
| Trial Production & Market Launch | 1 |
Total Implementation Time: 8–10 months
13. Profitability Analysis
| Key Indicators | Value |
|---|---|
| Break-Even Point | 60% capacity |
| Payback Period | 3–4 years |
| Internal Rate of Return (IRR) | 30% |
| Gross Profit Margin | 35–38% |
| Net Profit Margin | 20–25% |
The investment is attractive due to short payback, high return, and growing consumer base.
14. Risk Factors and Mitigation
| Risk | Mitigation Strategy |
|---|---|
| Power interruption | Backup generator and cold room backup |
| Raw milk shortage | Use milk powder and long-term supplier contracts |
| Seasonal demand fluctuation | Offer ice lollies and frozen desserts year-round |
| Competition from big brands | Focus on local branding and niche flavors |
| Logistic failure | Maintain spare vans and strong service network |
15. Environmental & Social Impact
Ice cream manufacturing produces minimal pollution if waste and wastewater are managed properly. Cold storage and refrigeration gases must follow eco-friendly standards.
The project creates employment, enhances the dairy value chain, and supports rural farmers supplying milk — contributing to sustainable rural development.
16. Bank Loan and Financial Assistance
Banks and financial institutions in Bangladesh offer SME loans or industrial term loans for dairy and food projects.
Key Documents Required:
- Detailed project profile
- Trade license and TIN certificate
- Land ownership or lease documents
- Machinery quotation
- Environmental clearance
Interest rates typically range from 8%–10% per annum depending on the bank and loan category.
17. Future Expansion Possibilities
- Ice cream stick and cone automation.
- Export to Nepal, Bhutan, and India’s northeast region.
- Low-fat and sugar-free variants.
- Franchise-based Ice Cream Parlors.
- Value addition through frozen desserts, milkshakes, and yogurt.
18. Conclusion
The Ice Cream Production Factory project is an excellent investment opportunity in Bangladesh’s growing FMCG and dairy sector. With the right branding, cold storage system, and quality assurance, it can secure a strong foothold in both urban and semi-urban markets.
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