Operation Reasrech On Igloo

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Introduction
Smile have common meaning to everyone around the globe. Like a smile an Ice Cream also have
common indication of joy & pleasure to all. An Ice cream can be a best way of sharing taste &
emotion with our loving one. We have made our study on Igloo Ice Cream Factory Bangladesh.
In Bangladesh Igloo is a name of feelings, its a symbol of taste among all age of people. It will
not possible to find a single person in our country who did not wanted to get a byte of Igloo. Igloo
its not only a name of a company, its a mouthwatering taste and a byte of smile in todays life.
Abdul Monem Group have many business unit and Igloo is a single Strategic Business Unit under
this Umbrella. Honorable Managing Director and Chairman Mr Abdul Monem, is the founder of
this Group.

Igloo milk and dairy products unit is one of his prestigious Brand in Bangladesh market. The
journey of Abdul Monem Ltd (AML) was started with the hand of greatest Entrepreneur in 1956
as a construction company. Gradually his strategic planning power, dynamic & versatile
personality giving him return of his labor. Word Bank, ADB, JICA standing with him for funding
which is clear indication to all about his expertise and modesty.
Factory Background:
In 1960 named K Rahman (Pakistan) establish Igloo Ice Cream Factory in Chittagong. In 1982 by
acquiring the plant from Bangladesh Government he starts production there. He made an
aggressive move to expand the market share in 1985 by reallocating that factory in Shampur,
Narayangonj.
Over a successful period, AML has not just developed a wealth of experience in infrastructure at
the same time he created Igloo milk and dairy products unit in FMCG arena in order to provide
the international standards of quality and services, AML also become the bottler of Coca Cola, the
producer of number one ice-cream brand Igloo, Igloo food items and snacks, manufacturer of
pharmaceuticals, maker of auto bricks, bitumen and other selected construction materials. It also
established AM Sugar Refinery Ltd., AM Rice Bran Oil), Servic Engine BPO, AM Securities and
Financial Services Ltd., etc. In 2015, it was awarded to develop one of the first private economic
zones of the country i.e. Abdul Monem Economic Zone (AMEZ) in Daudkandi, Munshiganj on
its land of 216 acres. All these strategic units are established with a view to leveraging the strength
of the parent company.
Objectives: From this large group of companies we had a short visit in Igloo Milk and Dairy Unit
at 25 November 2017. In light of that experience we tried to provide complete production process
of Ice Cream & Dairy Unit.

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Ingredients

Standing in front of the frosted glass doors at the grocery store, sometimes I have an important
decision to make: What ice cream flavor will now I can taste?
Can I go with a classic, trusty vanilla, or maybe I will prefer something a little more sophisticated.
Sometime I get confused about to take my favorite one or testing new one would be great.
Igloo is a brand who have that much strength to compete with his own products and timely
introduced new variants of ice cream for ice cream lovers.
To satisfy different ice cream lovers recently Igloo have introduced 5 flavor.
1. Icecaf 2. Nutricks 3. Caramel Crunch 4. Play Time 5. Lite Vanilla
They are giving guaranty about to choose any one without regret. To give such guarantee there is
a wide range of ingredients and formulations (recipes) that have to use in ice cream. The most
common ice cream Flavors are Vanilla, Nougat, Chocolate, Strawberry and Nut. As dairy item
there must have some common raw materials for every products.
For Ice Cream and Dairy Manufacturing Products there have some basic ingredients to use, those
are-
*Milk (Liquid & MSNF) *Sugar/ Non-sugar sweetener *Chocolate bar/ Candies

*Almond *Peanut *Dry Fruits

*Flavor/ Food graded color *Cookies *Syrups & Chemicals

*Emulsifiers/stabilizers *Fat/ Dry Fruits *Whey

Liquid Milk collection center is situated in Baghabari, Sirajgonj, and Chabbismile, Sujanagor,
Pabna. Regular sugar they collect from AML Sugar refinery factory.

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GM Kamrul Hasan, Chief Executive Officer, said, Milk is the most significant part of ingredients
of ice cream which helps us maintain our quality and taste. That's why Milk solids non-fat (MSNF)
and all other main ingredients such as milk powder, nuts, chocolates, sticks, tetra packs, various
essences and flavors they import from Australia, New Zealand, UAE and Dubai.

To enhance the decoration of Ice cream have some dried ingredients are either added through an
ingredient dozer or as top decoration matter on cones and cups. Have some ingredients like Nuts,
Dried fruit pieces, Candies, Cookies, Smarties, Syrups & Caramel pieces, etc.

As per plan and sales forecasting timely they store all raw materials in their own cold storage for
ensuring error free production. So, they have to depend on Import from abroad and had to keep
strong relationship with them to keep the quality of raw ingredients standard constant. To
maximize the longevity of raw ingredients and minimize the import transportation time they use
Air Cargo. They never consider their quality over costing.

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Machinery & Equipment

Todays production capacity to ensure sufficient supply in market is a very clear indication of
world class Machineries and equipments of Igloo. As well as standing as market leader is really
challenging for such competitive penetration.
Machines are imported from Denmark, Italy and Switzerland.
Depending on the mechanism, design, packaging, flavor & recipe of Ice Cream we have to use
different equipments. Through our expert engineering teams ensure customized multi task able
machineries from Europe. Only changing mold is the task for produce different types of products.
Current production capacity of Igloo is 300,000 liters with 100+ flavor & variation.
From mixing to putting 12-20 products in a single cartoon only a few task is done manually.

For Age the Mix :

Ice cream mix is aged at 40F (5C) for at least 4 hours or overnight. Aging the mix cools it down
before freezing, allows the milk fat to partially crystallize and the gives the proteins stabilizers
time to hydrate. This improves the whipping properties of the mix.

Igloo Comet C-2:

Generally, it produces Cone (Cornell - Classic, Premium, Belgian & Chocolate) also it produces
Cup (Vanilla, Mango, Strawberry, Chocolate & Orange). Its capacity is 14400 pcs/hr.

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Igloo SL-600: It produces Mega, Macho, Mini Choc Exotic (Almond Split, Swiss Chocolate)
Ripple Cake. Capacity: 600 Ltr/hr

IglooRollo-27: It Produces Chocbar, DudhMalai, Shell & Core Lolly (Orange & Lemon)
Capacity: 18000 pcs/hr

Igloo FM-6000: It Produces Cup (Vanilla, Mango, Strawberry, Chocolate & Orange)
Capacity: 6000 pcs/hr

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Igloo FM-3000: It Produces Cup (Mango, Vanilla, Snowball & Pista Kulfi)
Capacity: 3000 pcs/hr

Igloo TI-6000: It Produces Cup (Vanilla, Mango, Strawberry, and Chocolate & Orange) Single
Sundae (Chocolate cheers, Caramel combo) Capacity: 6000 pcs/hr

Igloo Tanks & Freezers Mixing Tanks:

The process involves temperature reduction the combo and incorporating air. ice cream combine
may be frozen in batch or continuous fridges and also the conditions used can rely upon the kind
of freezer. Batch freezers accommodate a rotating barrel that's typically stuffed third to half full
with ice cream combine. Because the barrel turns, the air within the barrel is incorporated into the
frozen dessert combine. Frozen dessert freezers designed for home use ar batch freezers.
Continuous freezers accommodate a set barrel that contains a blade within that constantly scrapes
the surface of temperature reduction barrel. The frozen dessert combine is pumped-up from a bulk

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tank to the temperature reduction barrel and also the air is incorporated with another pump simply
before it enters the temperature reduction barrel. The continual temperature reduction method is
far faster than the batch freezing method.

3 Mixing Tanks, Total capacity- 5400 Liters


Capacity varies from 1200 to 3000 Liters Mix Storage Tanks:
18 Mix Storage Tanks, Total capacity- 51,600 Liters
Capacity varies from 600 to 6000 Liters Freezer:
13 Freezers, Total capacity- 11,400 Liters
Capacity varies from 500 to 1500 Liters

Yogurt Processing Fig:

Flow diagram of Yogurt Processing Milk Receiving Cleaning of pan Keeping the milk in pan
Heating for 7-8 hours Addition of culture media Cooling at 45c Stirring up to development of
color Addition of sugar Incubation at 45c for 6 hours Dosing Packaging Storage at 3-4c

Ghee Processing Fig:

Flow diagram of Ghee Processing Milk Receiving Separation of Cream Keeping Cream in pan
heating for 3-4 hours Sorting Storing in tank (two days)

Production Unit (Milk) :

The products produced by milk unit are:


Fresh milk (white milk)
Flavored milk i. Chocolate milk ii. Mango milk
Dahi Sweet curd ii. Sour curd
Ghee

Clean in Place (CIP):


Provide faster cleaning, less labor intensive and more repeatable, and possesses less of a chemical
exposure risk to people.
Perform cleaning for two times a day, before and after production.

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Production process

In Ice-Cream plant, Igloo ice-cream has different processing steps thats includes: Blend
ingredients, Pasteurize mix, Homogenize, Age the mix, Add colors and liquid flavors, Freeze, Add
nuts, fruits and bulky flavorings, Package, and Hardening.
Bellow flow chart can give us a clear thought about this entire procedure.

1. Blend Ingredients: (Raw material mixing unit) The milk fat source, nonfat solids, stabilizers
and emulsifiers are blended to ensure complete mixing of liquid and dry ingredients re mixing
together at a 550C temperature which is known an ice cream mix.

2. Pasteurize Mix: Ice cream mix is pasteurized at 82 to 850C of 42 to 45 seconds (pasteurization


is the biological control point in the system design for the destruction of bacteria in addition it is

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very important function that pasteurization also helps to harden some of the important components
like proteins and stabilizer).

3. Homogenize: Following pasteurize the mix is going to be high pressure at the level of 150 to
170 power pressure and the it is past the cross hit exchange double or triple tube for the propose
the cooling the mix which is called homogenization. Homogenization reduced the size of fat and
it also helps to increase the resistant to maintain and also helps making ice cream.

4. Age the Mix: The mix is than aged at least 6 to 8 hours at 4 to 6 degree centigrade at least four
hours and usually overnight. This allows time for the fat to cool down and crystallize, and for the
proteins and polysaccharides to fully hydrate. Aging t also provides to improve the whipping
qualities of mix and body and texture of ice cream and providing time for fat crystallization, so the
fat can partially coalesce.

5. Add Colors and Liquid Flavors: Colors and Liquid Flavors may be added to the mix before
freezing. Only ingredients that are liquid can be added before the freezing, to make sure the mix
flows properly through the freezing machines.

6. Freeze: The process involves freezing the mix and incorporating air. Ice cream mix can be
frozen in batch or continuous freezers and the conditions used will depend on the type of freezer.
Continuous freezers consist of a fixed barrel that has a blade inside that constantly scrapes the
surface of freezing barrel. At the point of discharge from the freezer (draw temperature), only
about 50% of the water in ice cream is frozen. Soft serve ice cream is generated at this point in the
freezing process.

7. Add Nuts, Fruits and Bulky Flavorings: Fruits, swirls, and any bulky type of flavorings
(candy pieces, nuts, and etc.) are added at this point. These ingredients cannot be added before
freezing or they would interfere with the smooth flow of the mix through the freezer.

9. Harden: The ice cream is cooled as quickly as possible down to a holding temperature of less
than -25C (-13F). The temperatures and times of cooling will depend on the type of storage
freezer. Rapid cooling will promote quick freezing of water and create small ice crystals. Storage
at -25C (-13F) will help to stabilize the ice crystals and maintain product quality.

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Quality Control

Quality and control these two word is like hundred page of books. Quality gives clear indication
of a level of standard and as per standard every task should be confirmed is called control.
As a market leader of Ice Cream industry most challenging task of igloo is to provide above
standard quality to delight its customer. Igloo counts its quality in the fulfillment of customer
expectation, building trust through service and keep updated with new products development.
Where assuring quality of raw materials goes to core inherent part of production process.
Igloo controls its standard in every steps of production process.
1. Checking raw material to store
2. Checking stored raw materials before mixing and aging.
3. Batch wise microbiological taste.
4. Color, Structure and Taste check
5. Keeping standard of weight and size before packaging each item.
6. Control on wastage and maximum utilization of resources.
As per BSTI and ISO standard Igloo produce and distribute all products all over the country.
Government given guideline BSTI(BDS 1083:2006)
Confirming International Standard HACCP, ISO 22000-2005
Microbiological Test a. standard or total plate count
b. yeast-mold count
c. coliform count
Chemical Test a. Acidity test
b. Fat test
c. Milk adulteration Test
Raw Materials World classified food flavor provider
Batch Testing Viscometer taste for mixing and stabilizing
Weight test Over weight and under weight
Packaging Faded printed pack, Cup, stick and foil paper

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TQM

Igloo ice cream delivers its commitment for quality for each product by maintaining total quality
management (TQM). All the law and packing materials are procured from the best European
sources.
Strictest Quality control is done in every aspect of the manufacturing process from procurement
of materials, blending, material flow, manufacturing, packaging, storing, distributing and market
shelving by the quality control department.

The Standard ingredients of igloo ice cream certified by HACCP, ISO 22000-2005, BSTI (BDS
1083:2006). The standard ice cream ingredients are given below

Ingredient name Requirement

Fat 10-12%

Milk solids not fat 09-11%

Sugar 10-14%

Total solids 35-36%

Fig. standard of ice cream ingredients

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Packaging

Depending on the structure & size Igloo have to change its packaging materials. Better packaging
reduce the percentage of damage in transportation of ice cream.

Packaging, the newly added element of the marketing mix is important to both sellers and
customers. Good packaging makes products easier to identify and promotes the brand at the point
of purchase and even in use. Igloo tries to create an effective packaging system through importing
all its packaging materials from Dubai. Constant research is conducted in developing new
packages and consultants from various countries as India and Pakistan contributes toward the
package design. Hence, from here it can be concluded that Igloo believes that good packaging can
make the important difference in a marketing strategy by meeting consumers needs better.

Igloo follows and maintains the BSTI standard for their ice-cream packaging. They produce
different types of packaging materials for their different types of product, like: plastic cup, spoon
and box for vanilla, mango and chocolate cup/box ice-cream and wood stick for choc-bar.
The major ingredients, raw materials and the wood materials are procured from the best European
sources. Strict quality control is done at every stage of the manufacturing different type of
packaging materials like cup, box, spoon, cartoon, stick and rapping at main warehouse.
In 1999, the company entered a packaging contract with the Ballantyne Foods Pvt. Limited of
Australia for marketing Igloo Butter.
Igloo is the pioneer in providing ice cream with fresh taste and modern packaging. Igloo has
wonderfully attractive, colorful and animated packaging and ice creams that take the form of
Disney characters for the kids of all income groups. For the above reasons, Igloo achieves their
massive success in the market.

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Distribution

The main function of the distribution unit of Igloo is to create a sequence of effective network so
that an important strategic edge over competing channels are created and ensure a continuous flow
of its products to the ultimate consumers target market.

Store Keeping Unit (SKU) and from there they are distributed through three effective distribution
systems

Channel Zone Wise Point Ownership


Direct Distribution System Rajshahi, Barishal, Khulna, Comilla, Igloo owned
(DDS) Chittagong warehouse & 5%
commission
Redistribution System (RDS) RDS is also used in Khulna, Rajshahi Local Distributor
and in some other areas where DDS 7%
cannot enter. Commission
Super Distribution System Sole responsibility to Distributor Local Distributor
(SDS). 7% Commission

In Sylhet, a self-created concept known as Super Distribution System (SDS) is put into practice.
In this system, the super distributor holds the title of the product and is given the sole responsibility
of selling only Igloos products. Super distributors are given a 7% commission and they distribute
products to retailer and wholesalers on their own accord.

Direct Distribution System uses Freezer On Wheeler (FOW). Large refrigerated vans with
temperature under 200 centigrade and strict regularity is maintained to ensure proper temperature
levels so as not to cause any deterioration in the quality of ice cream

In Rajshahi, Barishal, Khulna, Comilla, Chittagong, Igloo uses the DDS system only just to take
its products to the different depot of the regions where Igloo has their warehouse. Every sales
officers of the warehouse covers a number of areas, distribute the goods themselves to the
distributors. Distributors are given a 5% commission as sales incentives to take the goods to the
shop on behalf of Igloo.

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DDS is applicable mainly for city areas, and roads where one can easily access the retail shops by
means of FOW. Moreover, Igloo provides retail shops with attractive deep freezers containing
logo of different ice cream so as to ensure proper storage and display of the products. Chittagong
covers south and southwest parts of the country and due to its status as nationals business capital,
Igloo puts high emphasis in distributing its products to some of the retail outlets through DDS.

The DDS network is spread over six regions of the country. In Dhaka, Gulshan, Banani,
Dhanmondi, Uttara, Baily Road, Mirpur Road, and some areas of Mohammadpur falls under the
DDS network. In these areas FOW supplies the retailers with the required lot. Each retail shop has
their own Dealer Record Cards (DRC) through which they are graded as A plus, B plus, C plus
retailers and through which they assess whether to provide cash discounts, volume incentives
scheme or some other means of discounts. In Rajshahi, Barishal, Khulna, Comilla, Chittagong,
Igloo uses the DDS system only just to take its products to the different depot of the regions where
Igloo has their warehouse. Every sales officers of the warehouse covers a number of areas,
distribute the goods themselves to the distributors. Distributors are given a 5% commission as sales
incentives to take the goods to the shop on behalf of Igloo.

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Compliance
Amount of employee: In Milk and dairy unit 600 worker involved in production but in winter it
get down to 250. The ration of men and women is 80/20. Also have permanent and casual
employee. In summer need more employee to involve for meet up market demand. Attachments
and some safety issue was introduced with new comers for health safety.

Apron, Hand wash and emergency exit door facilitate overall production as employee friendly
environment. Automated sensor used to give alarm to stop the smoke of fire. Timely the check all
fire extinguisher and firefighting equipment useable for any emergency.
They are organized with all modern facility. All permanent employee gets group insurance, finger
print attendance for proper utilization resources. All of this works together to bring the operation
successful over year after year.

Findings
Opportunities

Igloo have strong Brand value


Strong market coverage.
Well equipped with all modern facilities to compete its competitor.
Standard factory and easy access to capital and all other region.
Igloo have lots of opportunity of getting more market share through strong sales channel.
They produce less than their factory capacity.
They have to build strong relationship with their target market by adding value of their
brand.
They have to be more involved with their customer through CSR & Campaign.
Need strong R&D team to find out latent demand of its potential customer.

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Challenges

Uninterruptible power supply is the big challenge for frozen food industry.
New comers in the industry with new technology increases the penetration in market.
New machineries costing is very high to provide new size and module of ice cream.
Comparatively week sales channel to utilize its maximum capacity of the factory.
High expectation from brand.
Dependence on the Import effect the price in market.

Conclusion
Overall development of our economy gives some advantage and challenges in business field which
is common for every company. Economic development enrich our living standard which directly
related with the raising of demand of Ice Cream Industry. Competition and Market demand both
are growing simultaneously. In that particular case Igloo losing its market share but the annual
sales is increasing surprisingly. So, in reference of our study we can say that to grab new customer
they have to emphasis on their R&D and Sales team to get the best return on investment. New taste
and unique offer is the way to get attention of Ice Cream lovers. In context of Bangladesh market
Igloo have much attachments with Ice Cream lovers thats the prime reason of Brand Value of
Abdul Monem Ltd.

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Reference

In this study we would like to give thanks to


A.K.M Ali Reza Mahmoodul Hoque Khan

Senior Manager (QA) Assistant Manager (QA)

Abdul Monem Ltd Abdul Monem Ltd


Igloo Ice-Cream & Milk Unit Igloo Ice-Cream & Milk Unit

They shared with us all necessary information about this entire production process.

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