Amul ("priceless" in Sanskrit.

The brand name "Amul," from the Sanskrit "Amoolya,"

(meaning Precious) formed in 1946
The portfolio consisted of impulse products like sticks, cones, cups as well as take
home packs and institutional/catering packs.
It achieved the No 1 position in the country. This position was achieved in 2001 and
it has continued to remain at the top.
Today the market share of Amul ice cream is 38% share against the 9% market share
of HUL (Kwality Walls), thus making it 4 times larger than its closest competitor.

 COST SHEET

Particulars

------------------- in Rs. Cr. ------------------Mar '14 Mar '13 Mar '12 Mar '11 Mar '10

Raw Materials Consumed

31,997.30 33,218.00 28,736.30 28,890.90 23,017.00

Direct Wages

Power & Fuel Cost

1,423.70 1,120.20
877.9
731.9
545.7
33,421.0 34,338.2 29,614.2 29,622.8 23,562.7
0
0
0
0
0
595.7
495.1
229.5
210.2
216.6

Manufacturing Costs

5,209.70 5,123.50 3,854.40 3,701.60

Depreciation

2,116.00 1,889.70 1,162.70 1,031.30

841.4
41,342.4 41,846.5 34,860.8 34,565.9 25,879.0
0
0
0
0
0
378.63
342.15
303.44
287.62
239.44
41,721.0 42,188.6 35,164.2 34,853.5 26,118.4
3
5
4
2
4

Prime Cost

Works Cost Incurred

Miscellaneous Expenses
Cost of Goods Sold
Selling and Distribution
Expenses
Cost of Sales
Profit
Sales

1356.82

1293.45

1268.3

1123.42

1258.3

1,041.60

43,077.8 43,482.1 36,432.5 35,976.9 28,982.1

5
0
4
4
0
4,204.35 3,270.90 1,290.96 3,485.96 3,000.00
47,282.2 46,753.0 37,723.5 39,462.9 31,982.1
0
0
0
0
0

Direct Cost :

Indirect Costs:

1) Direct materials

1) Factory Overheads: ( Per Factory )

To manufacture one ice

cream cup below are the
components
or raw materials
required with their unit
cost :
1. Milk 70%
2. Sugar 16 %
3. Flavors 5 %
4. Other ingredients 4 %
5. Dry Fruits 3 %
6. Cup 2 %

Indirect labour : This includes 3 sweepers whose average

salaries are Rs. 1000 each.

2) Direct Labour : ( Per

Factory )
There are 170 workers
employed in the production

Insurance : The total insurance amount is Rs 1,50,000.

Depreciation on machinery : There are 6 machines in the
factory ,1 Boiler making ice cream & 5 are
refrigerators. The cost of Boiler is Rs 3,00,000 and
Refrigerators are worth of Rs. 9,00,000. The depreciation
method followed is SLM @7%.
Power & Fuel: The monthly average cost of power
consumption of the factory is Rs 42,375.

2) Office and administration overheads:( Per Factory )

3) Sales and distribution overheads:- ( Per

Factory )

Office rent : The per sq.ft rate of the Office

is Rs 90. The area of the factory is 3000
sq.ft.

Sales Commission : 2.5 % of the total sales done

by them.
Discount allowed : 5% on the selling price.

Salary to staff : the office staff has 15

employees. A 3peon, 8 clerk and an 4
Accountant and the salaries are Rs 8000,
Rs 15000 and Rs25,000 respectively.
Office and general expenses : This
comprise refreshments(tea and snacks).
Telephone Expenses :- Calls made by the
staff members.
Electricity and lightings :- It consists of
office lighting and air conditioning
expenses.

Salary of salesmen : The company has 25 sales

persons and they are paid a salary of Rs 30,000
each per month.

Cost Sheet Analysis

Determination
price

of

selling

The Company is producing 1,00,000 units of

ice cream at Rs. 98.05 Which the total cost
incurred is Rs.98,05,000 and the total cost
sales profit being made is Rs. 24,51,250.

Amul Ice cream has marked the selling

price of their product roughly 25%
above the cost price.

The Company is producing a single cup of ice

cream at Rs 98.5625 which includes the cost of
a cup ice cream at Rs. 74.05 Which again
Implies that the Profit of Rs. 24.5125 is earned
on a single unit of Amul Ice Cream.

This implies that they are making a

profit on each unit of output that is
sold which can be ploughed into the
business again to create more output.

Since the company is earning some

percentage of Profit above the cost, it means a
slight increase in the cost will not have
too much of an effect on the profit since
there is a large margin of safety.

Since the company is earning some

amount of profit, the business is capable

COEFFICIENT OF DETERMINATION

Coefficient of
determination is a
statistical tool that helps
us understand the
relationship between two
variables

Here, r2 is 0.25 which

means 25% of profit is
explained by sales

Usually this equation is

given by y=a+bx

Here a is 31448 n bx is
It's a positive relation