1.35 MT MINI ICE PLANT
BUSINESS OPPORTUNITY PROJECT SUMMARY
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SOPREX Foundation
SOPREX/MIND-BIOS Bldg., MSU-IIT Campus
A. Bonifacio Ave. Tibanga, Iligan City. 9200
(063) 223-8077 / FAX: (063)2238481
Partnerships in Local Enterprise Development
and Governance Sustainability (PLEDGES) Program
BUSINESS OPPORTUNITY PROJECT SUMMARY
1.35 MT Mini Ice Plant
PROJECT CONCEPT/DESIGN:
The 1.35 MT Mini-Ice Plant is designed to produce both crystal cube ice to meet the requirements of food establishments
for high-quality beverage cooling ice and iced foods, e.g., halo-halo, and regular block ice for general home consumption
as well as for preservation and transport of highly perishable goods such as fish and meat. For both ice products, the
system filters and purifies the raw water supply, hence both are actually food-grade. However, to meet the quality
standards of high-end markets, e.g., hotels and restaurants, the system incorporates the technology of crystallizing the ice
to produce the crystal ice cubes in demand in these special establishments.
Using a V-type or belt-driven 5HP compressor, the plant can operate continuously during power outages by using a
small stand-by diesel generating set of 7HP or more. For this reason, the Mini-Ice Plant can also be located in remote
fishing villages where electricity is not available.
DAILY/ANNUAL ICE PRODUCTION CAPACITY: 1.35 MT/486,000 MT
SELLING PRICES: Crystal Cube Ice – PhP 35 per 10 kg bag; Mini-Block Ice (15 kg) – PhP 22.50 (PhP 1.50/kg)
ANNUAL GROSS INCOME: PhP 1.2 million
ANNUAL OPERATING INCOME: PhP 342,378
ESTIMATED TOTAL PROJECT COST: PhP 1.62 million
COST OF ICE-MAKING PLANT MACHINERY & EQUIPMENT: PhP 870,000
RETURN ON INVESTMENT RATE (R0I) /PAYBACK PERIOD: 21.1% p.a. / 4.7 years
FOR MORE INFO, PLEASE CONTACT:
SOPREX Foundation The LogoTRIPhilNet member organization nearest you.
MSU-IIT Campus, Tibanga, Iligan City 9200 Contact SOPREX Foundation for this member’s contact
Tel./Fax: (063)223-8481/223-8077 person(s), agency, address and contact phones/fax.
Cell Phones: 0918933172 (Maya); 09189420065 (Yesnoy)
1.35 MT MINI ICE PLANT
Cost and Returns Analysis
Table 1.
Production and Operating Parameters
360 Days Per Year Operation
Daily Annual
1. Production Volume
a. Min-Blocks (pcs) 90 32,400
b. Ice Volume (kgs) @ 15 kg/can 1,350 486,000
c. Crystal Cube Ice @ 60% of total volume 810 291,600
d. Regular Ice @ 40% of total volume 324 116,640
2 Water Consumption (CM) @ 110% of ice volume 1.49 535
3 Power Consumption (kwhrs)
a. Ice Making @ 114 kwhrs/day 114 40,867
b. Ice Cutting/Crushing @ 5 kwhr/day 5 1,800
c. General Use @ 5 kwhr/day 5 1,800
Total: 124 44,467
4 Packaging Materials @ PhP10.00 /10 kg bag of ice cubes 81 29,160
5 Labor Cost
1 Proprietor/Cashier 250 75,000
1 Plant Operator/Clerk 200 60,000
2 Laborer 150 45,000
Total Basic Salaries & Wages 600 180,000
ADD: 15% SS & Other Benefits 90 27,500
Total Labor Cost 690 207,000
Table 2. Projected Income and Returns
Gross Sale of Ice:
Crystal Cube Ice @ PhP 3.50 /kg 2,835 1,020,600
Regular Ice @ PhP 1.50 /kg 486 174,960
Total Sales 3,321 1,195,560
LESS: Production Expenses
Production Labor Salaries/Wages & Other Benefits 403 120,750
Materials & Supplies 81 29,160
Water @ PhP 20.00 /CM 30 10,692
Power @ PhP 4.50 /kwhr 556 200,102
Repair & Maintenance Exp. @ 5% of F.A. except land 196 58,913
Depreciation Exp. @ 10 yrs average eco-life of F.A. excluding land 384 115,325
Miscellaneous Production Overhead @ PhP 20/day 20 6,000
Total Production Expenses 1,670 540,942
Gross Profit 1,165 479,658
LESS: Administrative & Selling Expenses
Proprietor/Cashier Salaries & Other Benefits 288 86,250
Other Adm./Selling Overhead @ 5% of gross sales 142 51,030
Total Administrative & Selling Expenses 429 137,280
Operating Income 736 342,378
ROI on Total Project Cost (% Per Annum) 21.1%
Payback Period (Years) 4.7
1.35 MT MINI ICE PLANT
Cost and Returns Analysis
Table 3. Estimated Total Project Cost
ITEM COST
(PhP)
A Pre-Operating Expenses
1 Business Organization & Registration/Licensing 50,000
2 Construction Supervision @ 25% of Fixed Assets except land 100,000
3 Training & Technology Transfer 50,000
Total 200,000
B. Fixed Assets Acquisition Cost
1 Land and Land Improvements
a. Land: 100 sqm @ P250/sqm 25,000
b. Site Dev't. (earthworks): 100 sqm @ P500/sqm 50,000
c. Plant & Office Building: 40 sqm @ 4,500 180,000
d. Water & Power Service Connections 5,000
Sub-Total 260,000
2 Plant Machinery & Equipment
a. Mini Ice Plant 750,000
b. Ice Crusher 2,500
c. Assorted Materials Handling Tools & Equipment 2,500
d. Add: Freight/Handling & Installation/Test Run @ 15% 113,250
Sub-Total
3 Office Equipment/Furniture/Fixtures 50,000
Sub-Total 868,250
Total 1,178,250
C. Initial Working Capital (2 Months) 93,816
TOTAL PROJECT COST BEFORE CONTINGENCY 1,472,066
ADD: 10% contingency 147,207
TOTAL PROJECT COST INCLUDING CONTINGENCY 1,619,273