Cold storage

Contents

1. Executive Summary

2. Organization background

2.1 Current status

2.2 Vision and mission
2.3 Management Team
3 Marketing Plan
3.1 Objectives
3.2 Strategy
3.3 unique selling price
3.4 target customer
3.5 product mix
3.6 value chain

4 Operation plan

4.1 product offering

4.2 development plan
4.3 cold storage design
5 H R plan

6 Financial Plan

6.1 Current financing

6.2 Funding plan

7. SWOT Analysis

8 Exit Strategy
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9 Conclusion

Executive summary
Now a days coldstorage is very essential because of storing
the vegetables, fruits, marine products etc, because of storing
then in a very hygine and proper place, though because of
these are perishable goods it is very important.
We are making a cold storage warehouse for reserving the
goods because of their nature. We are planning to introduce
the coldstorage in shivamogga so as to the people in
shivamogga get benefit of them. We are mainly focusing on the
vegetable because their consumption is very high in the city.

Introduction
Fruits and vegetables have a very short life
after harvest. In order to prevent post harvest losses,
they have to be processed immediately or stored under
refrigerated conditions. Immediately after harvest, precooling
to about 10 centigrade is advantageous. Further cooling and
storage at minus 8 to minus 10 degrees centigrade enhances
the life of the product.

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Organizational Background
Current Status:
The total number of cold storages in India is 5,381 with
total installed capacity of 24.45 million MT. Uttar Pradesh and
West Bengal account for more than 60 percent of the cold
storage capacity followed by Punjab, Bihar, Gujarat, Andhra
Pradesh and Madhya Pradesh. Over ninety five percent of the cold
storages are in the private sector
As per the Report of the Task Force on Development of
Cold Chain in India, the all India capacity utilization is around 48
percent. Andhra Pradesh has the highest capacity utilization at 92
percent followed by Karnataka (60%), Maharashtra (55%), Gujarat
(51%) and Rajasthan (52%) .Uttar Pradesh (46%), West Bengal
(29%), Bihar (35%) and Punjab (43%) are lower than the national
average. This is due to significant number of potato stocking cold
storages in these states (which remain closed during the lean
seasons). The capacity utilization in Andhra Pradesh is higher
due to storage of red chilies, usually stored round the year.

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Vision
To a Continuous focus on services and quality we will
set the standard in service excellence by partnering with
customers through distribution process to their products.

Mission
Providing and developing a Reliable timely cold chain
solution in order to satisfy the customers and to control the
wastage of fruits and vegetables.

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Marketing Plan
Objectives
 First year: reaching out to the three states selected as
targets.
 Second year: expand our operations and facilities to
other states which have hyper market.
 Third year: maintenance and stabilization.
 Fourth year: diversify the product line, expanding to
drugs and floriculture business.
 Fifth year: also look to expand future in other state
and eventually the entire nation.

Strategies
Product

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Quality product of our esteem client will be its

preference and major focus area.

Pricing
Price will be initially less to enter the market and later
as per the demand and quality the changes in price be
decided.

Production and marketing communication

B2B Marketplace : webpage, “indiamart.com”
Direct Marketing: Hiring a sales and marketing
professional to individually generate the leads and
sending them the detailed proposal.

Distribution
Online portal for ordering so that we can provide
cold storages as and when the order arrive.
Outsourcing warehousing as and when required.

Unique Selling Point

 Refrigerated Values
 GO Green Concept
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 Pillar Less Structure

 Systematic Warehousing

Target Customers

Farmers

Retailers

Mandis

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Product Mix

Apples

Fruits Cherries

Kiwi

Pears

Potato

Vegetables
Capsicum

Tomato

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Value Chain

Building
Relationship

Harvesting

Ripening

Packaging

Transport

Cold Storage

Shops

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Operation plan
Product Offering
 Cold storage racks will have
 Different chambers
 Lock and key facilities
 24/7 Security
 Goods Storing / Grading
 Stock maintenance by client or by Cold storage
as required
 Insurance against natural calamities
 Refrigerated vans in village
 Systematic warehousing
 100% Quality assurance
 Technical assistance

Development Plan
 Total land 1 acre
 Land Cost at 25 Lakhs
 Building and Equipment set up time 6
months
 Capacity will be of 500 MT
 Latest Technology
 Go green Concept

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Refrigeration:
Refrigeration is a process in which work is done to
move heat from one location to another. The work of heat
transport is traditionally driven by mechanical work, but can also
be driven by heat, magnetism, electricity, laser, or other means.
Refrigeration has many applications, including, but not limited to
household refrigerators, industrial freezers, cryogenics, and air
conditioning. Heat pumps may use the heat output of the
refrigeration process, and also may be designed to be reversible,
but are otherwise similar to refrigeration units.

Cold storage design

1. Selection of site
2. Orientation and building form
3. Size
4. Space requirement
5. Design of building
6. Thermal insulation
7. Refrigeration system for cold store
8. Heat Load calculation

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General conditions for cold storage projects

For credit linked projects, credit components as
means of finance of the project should be term loan
from banking or non banking financial institutions. For
credit linked projects under NHB, eligible subsidy
amount to be capped at par with term loan sanctioned
by the lending Banks.
Assistance for setting up of new Cold Storage
infrastructure will be available only to Multi Chamber
cold Storage units with technologies which are energy
efficient with provision of thermal insulation, humidity
controlled, advance coolling systems, automation, etc,
having specification and standards approved by the
Ministry. To ensure, compliance of notified standards, all
projects will be subjected to technical scrutiny by NHB
empanelled Technical appraisal agency.
Extant specifications standards and protocols
on cold storage and cold-chain components will be
adhered to while approving cold storage projects

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Fruit and Vegetable Cold Storage

How can cold storage affect storage life?
– Mangoes 7 weeks
– Pineapples 4 weeks
– Cabbage 3-4 months
– Onions 4-8 months
– Potatoes 12 months
Using proper temperature and relative humidity, the
shelf life of fruits and vegetables can be extended.

Generator
A generator system should have the
capacity to maintain critical temperatures within
the cold storage facility .
If there is insufficient generator capacity to
maintain all room temperature, priority should be
given to rooms storing products that are very
sensitive to room temperature changes or high
value products.

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Swot Analysis
Strengths:
Firm plan of expansion in all over India with a
stipulated time frame.
No heavy expenditure require for advertising. As
major selling can be done via sales calls, positive industry
connections, online B2B B2C portals.Presence of huge
market potential.

Weakness
Lack of experience in working with different regions
New in market

Opportunities
The Indian cold chain industry is excepted to
grow at a compound annual growth .
The rate of 25.8%, over the next 4 to 5 years.(till 2021 to
2022)
Concentric diversification into having fully fledged
stores of there own .

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Threats
Power shortages.
Fragmented nature of industry and the lack of
integrated players.
Poor infrastructure at the farm level is also posing to
be problem.
Duplication of technology by store owners and developing
their own cheaper alternatives.
Lack of backward and forward linkages to supplement cold
chain.

H R PLAN
Statement of workers:
Description No of workers Salary
Manager 1 18000 pm
Workers 10 9500 pm
Temporary (wages) 9 350 per day

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Financial Plan
Government to give 40% capital at subsidy
for construction of cold storage:
Government has to give 40 percent capital
subsidy for the construction of cold storage. Subsidy of
Rs 1 crore will be given for the construction of cold
storage with a capacity of 5,000 metric tonne. Cabinet
also gave administrative approval for a special scheme to
increase the storage capacity of the perishable goods in
the State.

Construction and Requirements for cold

storage:
PARTICULARS AMOUNT
Land 1acr and registration 2500000
Permission and license 1000000
Insurance 1200000
Building 3000000
Generator 700000
Canter plus lory cooler 2500000
Lights and bulbs 20000
Glass wall 50000
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Exustors 50000
Systems and cctv 50000
Fans 5000
Furniture 80000
A/c 85000
Plastics plus cloths 100000
Papers 20000
Plastics creats 450000
Wood creats 100000
TOTAL 11360000

Calculation of Capacity for subsidy:-

SN Description Cost Norms

1 Cold storage units Type 1 -
basic mezzanine structure with
large chamber (of > 250 MT)
type with single temperature
zone.
• @ Rs. 8000/ MT for capacity upto 5000
MT.
• @ Rs. 7600/ MT for capacity between
5001 to 6500 MT.
• @ Rs. 7200/MT for capacity between
6501 to 8000 MT.
• @ Rs. 6800/MT for capacity between
8001 to 10000 MT.

2 Cold storage units Type 2 – Pre • @ Rs.10000/ MT for capacity upto 5000
Engineering Building (PEB) MT.
Type for multiple temperature • @ Rs. 9500/ MT for capacity between

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and product use , more than 6 5001 to 6500 MT.

chambers of <250 MT) and • @ Rs. 9000/MT for capacity between
basic material handling 6501 to 8000 MT.
equipment • @ Rs. 8500/MT for capacity between
8001 to 10000 MT.

3 Cold Storage Units Type 2 with Additional Rs. 10,000/MT for add on
add on technology for components of controlled atmosphere
Controlled Atmosphere technology as per component wise cost
(Appendix- 1-D)

4 Technology induction and • @ Rs. 5000/MT, for capacity between

modernization of cold-chain
5001 to 10000 MT.
• Components of modernization includes
PLC equipment,packaging lines, dock
levelers, advanced graders, alternate
technologies, stacking system,
modernization of insulation and
refrigeration etc. Details are in Appendix-
1-D.

Exit strategy

If we didn’n captured the shivamogga market we

diversify our operations in nearby the other districts like
Dharwad. we sell our entire business to other private

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players through that we clear all the loans and other

liabilities.

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