How to Start an Ice-Cream Parlour Business in India

Start an Ice-Cream Parlour
Gonica Verma
| Updated: Jun 20, 2019 | Category: FSSAI

Ice-cream is almost loved by every age group of people and is preferred as one of the most loved desserts in every season. Therefore, if you are wandering to start an Ice-cream parlour business in India, then you must go with it. It can bring you good revenue every month if the business is carried out strategically.

Hence, in this blog, we are mainly going to focus on ways to start an ice-cream parlour in India. Let’s first find out the scope-

Market overview of Ice-cream Industry in India

According to Marketwatch, it was found that-

  • The total revenue generated by the ice cream industry in India was 1.5 billion USD in 2016 and
  • Furthermore, it is projected to generate revenue of 3.4 Billion USD by 2021.

The major key players of this industry in India are Amul, Vadilal, Kwality Walls, Baskin Robins, Cream Bell, and Mother Dairy.

However, a few ice cream parlors like Hokey Pokey, Mama-Mia, Scoops & Sticks, Brain Freeze, Goosebumps etc. have also strongly established themselves in this market.

Things you should consider while opening your Ice-cream Parlour

Start an Ice-Cream Parlour

1.    Doing proper Research

The investor should do a proper market research about the industry, the market share occupied by the industry and progress of the industry in India and innovations in the products.

2.    Deciding the form of ice cream

If you consider opening your own ice cream parlour, then you should decide that in which format you are going to offer ice-creams, like, ice-cream rolls, scoops, waffles cream etc. it will depend on the location where you are going to open your own parlour.

3.    Investment required                                    

This is also an important thing you should consider before opening your own ice-cream parlour. The capital required for starting up the business or purchasing resources and how much area you should require for opening a parlour. The average investment to open an ice-cream parlour is about 5-10 lacs depending on the ambience you want to provide to your customers and it will stretch the best to 15 lacs with good ambience and facilities.

4.    Deciding the location

This is another important point in which you have to decide where you want to open your ice cream parlor, the kind of audience you want to target for your product. For example if you are opening a parlor in posh locality then your target audience would be high class and you have to provide them good ambience accordingly.  

5.    Form of ownership

Whether you want to invest fully in the business or partly with our partner i.e. whether you want to register your company as proprietorship or partnership.

6.    Taste and preferences

You should know the taste and preferences of your customers. It will depend on the targeted audience and may vary accordingly.

7.    Nationality

The most important thing is that the investor or owner, at least one of them should be the resident of India.

How to open an Ice-cream Parlour?

Ice-cream parlour

1. Create a formal business plan

The investor should firstly create an efficient business plan in which they need to mention the following:

  • The size of your local market
    • The form of business in which you want to register themselves; whether partnership or sole proprietorship.
    • No. of employees you want to hire
    • The business model you want to adapt to whether franchise of a brand, opening an independent ice-cream parlour, ice cream trucks etc.
    • SWOT (Strength, Weakness, Opportunities, Threats) analysis
    • Investment and area required for the business.
    •  Expected returns from the business.
    • Location in which you want to operate.
    • How much you are going to charge

 2. Registering and obtaining license

Company Registration

The first and foremost step is that the entrepreneur should register themselves whether as private limited or partnership depending on the form of their business ownership. If the entrepreneurs have a manufacturing unit which doesn’t exceed the investment of 20 crore, then they have to obtain MSME registration certificate.

FSSAI License (Food Safety and Standards Authority Of India)

 It is the most important license one should obtain to run a food business in the country. FSSAI License gives approval by the authority to food entrepreneurs that they affirm the security standards. It has a 14 digit registration number which should be printed in each and every food packaging.

Documents required for the FSSAI license:

  1. Id Proof and Address Proof
  2. Valid Email Id
  3. Phone Number
  4. Affidavit
  5. Declaration Of Food Safety Management Plan
  6. List Of Food Category
  7. Water Testing Report from ISI approved Facility
  8. No Objection Certificate (NOC) from the owner or the partner
  9. Medical Certificates of Employee

Health/Trade License

Entrepreneurs must register under local civil authorities like the State’s Municipal Corporation or the Health Department to obtain Health/ Trade License. This License came in existence after giving public health as supreme importance.

Documents required obtaining Health/Trade License:

  1. Sanction and Completion (Includes Ownership proof, Rent Agreement or NOC from landlord)
  2. Three copies of the site plan and layout
  3. Indemnity bond for Rs.100
  4. Power and Water paid Bill
  5. Water Testing Reports
  6. Plan of the Premises
  7. Medical Certificates of Employees
  8. Proof of Property Tax
  9. Medical Fitness Certificate of Workers

Shop & Establishment Act License

Documents required obtaining Health/Trade License:

  1. The name of the shop,
  2. The postal address of the establishment and the proof of ownership such as the Rent Agreement or Shop Lease Papers.

The documents must be submitted to the local chief inspector or other inspectors. Once the government has verified all the documents, you can register under Register of establishment and get a Registration Certificate.

GST Registration

This registration came into existence since July1, 2017 and changes the way of doing business for every entrepreneur.                                                                                                                 

   Documents required for GST Registration:                       

  • Pan Card of the Director/Proprietor/Partnership Firm.
  • Copy of the Partnership Deed.                                                                        
  • Copy of Aadhaar Card of Proprietor/all partners
  • One passport size-photo of proprietor/all partner.
  • Mail ID and Mobile No. to receive OTP & Verification links of all partners
  • Latest Bank Statement containing Name, Address and IFSC Code [1] of Branch of Bank.
  • List of Item to be traded (if you want to sell stuff over the counter also)
  • List of Item to be traded/manufactured
  • Digital Signatures of authorized partners
  • Authority Letter in favour of dealing partner

So, what are you waiting for? Opening an ice-cream parlour could be the best decision if you want to open your own venture in the food industry as its market is innovating day by day and has various opportunities for small and medium entrepreneurs. It is easy to get incorporated under this business and obtain licenses for the same. So, this summer earn profits by giving delicious happiness and a sweet smile to others.

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