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Product Code	:	741000008 (Cold Storage) 215001001 (Ice Blocks)
Quality and Standards	:	(a) The Directorate of Marketing and Inspection, Govt of India, Ministry of Rural and Employment, is regulating Cold Storage industry under Cold Storage Order, 1980 promulgated under Essential Commodities Act, 1955 all over India except in the States of UP, West Bengal, Punjab and Haryana.
		(b)For Ice Blocks BIS Specification No. IS 3957
Product Capacity	:	Cold Storage -4000 MT (per annum) Ice Blocks -7500 MT (per annum)
Uploaded on	:	January 2006

Introduction

Cold Storage is a special kind of room, the temperature of, which is kept very low with the help of machines and precision instruments. India is having a unique geographical position and a wide range of soil thus producing variety of fruits and vegetables like apples, grapes, oranges, potatoes, chillies, ginger, etc. Marine products are also being produced in large quantities due to large coastal areas. The present production level of fruits and vegetables is more than 100 million MT and keeping in view the growth rate of population and demand, the production of perishable commodities is increasing every year. The cold storage facilities are the prime infrastructural component for such perishable commodities. Besides the role of stabilizing market prices and evenly distributing both on demand basis and time basis, the cold storage industry renders other advantages and benefits to both the farmers and the consumers. The farmers get opportunity of producing cash crops to get remunerative prices. The consumers get the supply of perishable commodities with lower fluctuation of prices. Commercially apples, potatoes, oranges are stored on large scale in the cold storages. Other important costly raw materials like dry fruits, chemicals, essences and processed foods like fruit juice/pulp, concentrate dairy products, frozen meat, fish and eggs are being stored in cold storages to regulate marketing channels of these products.

Market Potential

Cold storages are essential for extending the shelf life, period of marketing, avoiding glut, reducing transport bottlnecks during peak period of production and maintenance of quality of produce. The development of cold storage industry has therefore an important role to play in reducing the wastages of the perishable commodities and thus providing remunerative prices to the growers.

Basis And Presumptions

(i) The project is based on an average 90 percent capacity utilisation, three shifts working per day and 300 working days per annum.
(ii) The project is based on renting of the chambers for the growers, traders and industry.
(iii) The rate of interest has been taken @ 12 percent on an average.
(iv) Labour wages have been taken as per market rates.
(v) 25 percent margin money has been taken both for fixed investment and working capital.
(vi) For economic viability an Ice Block Manufacturing Unit has also been included in the project.

Implementation Schedule

The approximate time required for various activities is given below. However, it may vary from place to place depending upon the local circumstances
and on the enthusiasm of the entrepreneurs:

Selection of Site	1 month
Preparation of Project Report	1 month
Registration as SSI/Other legal formalities	15 days
Availability of Finance	3 months
Machinery procurement, erection and commissioning	2 months
Trial Run	1 month

Technical Aspects
Process of Manufacture

At present there are two popular refrigerants in the market. One is Freon and the other is Ammonia. Ammonia and Freon compressors are being manufactured indigenously. Ammonia refrigerant is cheaper, easily available and is of high latent heat of evaporation but it has certain disadvantages like being highly toxic in nature. It also forms explosive mixture when mixed with oil containing high percentage of carbon.

Rooms of different temperature must be separated by insulation and should be protected from moisture. Whenever possible, one coating of foam glass with vapour proof material should be used against the outside wall.

While fixing the insulation, the points to be kept in mind are:

(a) The surface to be insulated should be completely moistureproof and be reasonably even, free of lump or hole plaster on the walls. The ceiling must be cured before surface is insulated.

(b) Precaution may be taken to ensure that the moisture from outside can not penetrate through the wall, ceiling or floor. The partition wall between two chambers should be insulated both sides.

Fruits and vegetables which are to be kept in cold storage, are sorted out and the bad ones removed. The sorted material is packed preferably in wooden/ plastic carton boxes and then kept in cold storage chambers. The temperature and humidity is to be maintained depending upon the commodity kept in the store. The requirements for successful storage of important fruits and vegetables are shown in Table I and II.

Table I
Sl.No.	Name of Fruit	Storage Temp ºF	Cold Storage life (in weeks)	Remarks
1.	Apple	32-35	7-26	Small fruits keep better than large ones
2.	Apricot	30-32	2-4	-
3.	Berry Fruits	30-32	2-3	-
4.	Bananas	55-60	2-3	-
5.	Cherries	30-32	2-3	-
6.	Guavas	47-50	3-4	-
7.	Grapes	30-32	4-6	Fumigation with 1-2% sulphur dioxide before storage reduces decay and storage life can be increased to 8-12 weeks.
8.	Lemon	50-55	9-13	Lemon for storage should be picked at the greenish yellow colour.
9.	Lime	50-55	4-5	-
10.	Mangoes	45-50	4-6	-
11.	Mandarin Oranges (Nagpur) Coorg (Assam)	40-42	9-13	Mandarin oranges can be kept satisfactorily at lower temperature if to be stored for less than 4 weeks.
12.	Oranges (Tight skinned)	36-39	13-17	Tight skinned oranges can also be kept at lower temperature if to be stored for less than 8 weeks.
	Malta (Punjab)	36-39	13-17
	Sathgudi (Chennai)	39-42	13-17
	Mussambi (Mumbai)	42-45	13-17
13.	Pears	30-32	2-4	-
14.	Peaches	30-32	2-4
15.	Plums	30-32	2-4	If fruit is to be stored for jam making, the storage life can be extended by another two weeks.
16.	Pineapple	50-55	3-4	-
17.	Quinces	30-35	9-17	-

Table II
Optimum storage conditions for vegetables R.H. 85-90% except Beet root, Cabbage, Raddish, Turnips and Peas where R.H. is 90-95%
Sl. No.	Name of Vegetable	Storage Temp (ºF)	Cold Storage Life (in Weeks)	Remarks
1.	Beans	32-35	2-3	Beans are liable to be sweet in storage. Need more ventilation, should be in crates and not in bags.
2.	Beet Root	32-35	6-8	-
3.	Brinjals	47-50	3-4	Big brinjals keep better than small ones
4.	Carrots	32-35	13-17	-
5.	Cauliflower	34-35	4-6	Only firm and compact heads should be stored as loose heads shrivel badly.
6.	Cabbage	32-35	9-13	Only firm and compact heads should be stored.
7.	Onions	32-35	17-26	-
8.	Potatoes	37-38	26-35	In cold storage potatoes become sweet due to accumulation of sugars. This could be avoided by keeping potatoes at ordinary room temperature for 1-2 weeks before they are processed.
9.	Raddish	32-35	6-8	-
10.	Turnips	32-35	13-17	-
11.	Tomatoes Ripe Mature (Greenish Yellow)	40-45 55-60	1-1½ 3-4	Tomatoes should not be stored in temperature lower than 40º F because they show tendency to break down. Green but matured tomatoes can be ripened satisfactorily with the development of attractive red colour by storing at 60-70 ºF
12.	Peas	32-35	2-3	Green peas loose part of their sugar content unless they are promptly cooled to 32O F. They also need more ventilation.

Motive Power

250 HP

Pollution Control

There are no harmful effluents in the process. However, NOC may be taken from the concerned State Pollution Control Board.

Energy Conservation

Proper insulation should be given to avoid loss of heat/temperature.

Quality Control and Standards

The Directorates of Agricultural Marketing and Inspection in State Governments and Govt., of India are regulating cold storage industry under Cold Storage Order, 1980, promulgated under Essential Commodities Act, 1955 all over India except in the States of UP, West Bengal, Punjab and Haryana and provisionally in Bihar. State Governments are regulating the industry in their respective States under their respective Acts/Orders. The Ministry of Agriculture has now repealed the Cold Storage Order and advised the State Governments also to repeal it totally. With the repeal of this Order, the cold storage industry will now be able to enter the market free from all kinds of administrative interference.

Financial Aspects
A. Fixed Capital

Sl. No.	i) Land and Building		Rate (In Rs.)	Total (In Rs.)
	Land 5000 sq.mtr.@ Rs. 2800 per sq. mtr.			1,40,00,000
(a)	Cold Storage Chamber (35×25×15)	13125 Cu Mt.	600/Cu Mt.	78,75,000
(b)	Sorting Verandah (25×9×5)	225 Sq.Mt.	5000/Sq.Mt.	11,25,000
(b)1	Sorting Verandah on 1st and 2nd floor	450 Sq.Mt.	5000/Sq.Mt.	22,50,000
(c)	Ice Tank Room	81 Sq.Mt.	10000/Sq Mt.	8,10,000
(d)	Packing and insulation on Walls, Ceiling Floorsuch as Wood Racking and insulation with fibre glass wool bitumen Jalli	40000 Qtls.	90/Qtls.	36,00,000
(e)	Machine Room 12m × 10m × 4m	120 Sq. mt.	8000/Sq. Mt.	10,80,000
(f)	D.G. Room 8m × 4m × 4m	32 Sq. mt.	8000/Sq. Mt.	2,56,000
(g)	Bore Well	L.S.		300,000
(h)	Administration 10m × 4m × 3m	200 Sq.mt.	9000/Sq. Mt.	18,00,000
(i)	Stair Case	L.S.	–	5,00,000
(j)	Condenser cooling pad and Sanitation, etc.	L. S.	–	5,00,000
Total				2,00,96,000
Total Land & Building				3,40,96,000

Sl. No.	Particulars	Qty.	Amount (In Rs.)
i)	Super freeze Refri-compressor Model SRA-4000	1 No.
ii)	100 HP screen protected induction Motor	1 No.
iii)	Suitable hand operated oil immersed starter/ motor starter	1 No.
iv)	Ammonia oil separator Size 18" ×48"	1 No.
v)	Atmospheric Type Ammonia condenser	12 No.
vi)	Valves and fittings for the condenser	1 lot
vii)	Ammonia Air Cooling units	16 No.
viii)	Ammonia Receiver size 16"×24" without standard Ammonia Fittings	1 No.
ix)	Valve and fittings for the above Receiver	1 lot
x)	Instrument comprising of dry and wet thermometers	6 No.
xi)	Ammonia valves and fittings	1 lot
xii)	5 HP mono block centrifugal pump set for condensers water circulation	2 No.
xiii)	Insulated cold storage door made of wooden frame with GI Sheets Metal Cladding. Hinger Latches, Push Bar Size 28" ×36" ×4" thick	4 No.	50,00,000
xiv	Slide rail for compressor motor	2 No.
xv)	Ammonia pipe to interconnect high and low side equipment of refrigeration machine	1 lot
xvi)	Water pipe lines and fitting	1 lot

Sl.No.	Particulars	Qty.	Amount (In Rs.)
1.	Super freeze refrigeration compressor	1 No.
2.	75 HP screen protected induction motor	1 No.
3.	Suitable hand operated oil immersed starter/ motor starter	1 No.
4.	Super freeze refri- compressor	1 No.
5.	50 HP screen protected delivery induction motor	1 No.
6.	Suitable hand operated oil immersed starter	1 No.
7.	Ammonia oil separator (Size 16"×48")	12 No.
8.	Atmospheric type Ammonia condensers	15 No.
9.	Valves and fitting for the condenser	1 lot
10.	Cooling oil trunk type duly tested by hydraulic pressure	1 No.
11.	Ammonia receiver size 18" ×24"	1 No.
12.	Valves fitting for above receiver	1 No.
13.	Hand hoist and trolley wheel fitted both sides	1 No.
14.	Mono block agitator fitted with suitable electric motor	1 No.
15.	Condump with stand	1 No.	55,00,000
16.	Ice can size 11"×22" ×48" from G.I. Sheet 16 gauges	540 Nos.
17.	Ammonia valves and fitting	1 lot
18.	Ammonia gas charging pipe	1 No.
19.	5 HP Mono block centrifugal pump set for condenser water circulation	2 No.
20.	Material of freezing bring tank	1 lot
21.	Ammonia pipe for inter-connection	1 lot
22.	Water pipe lines fittings	1 lot
23.	M.S. slide rail for comperessor motor	4 Bo.
24.	Water hose pipe	1 No.
25	Instrument Brine thermometer and hydrometer	1 No.
	Bore well and other accessories like pump, piping and storage tank		5,00,000
	DG set of 300 KVA		15,00,000
	Transformer and other electrical expenses		10.00,000
	Excise duty CST, Packing freight and transit insurance @ 24%		32,40,000
	Electrification and Installation charges @ 10% of cost of Machinery		16,74,000
	Total cost of Plant and Machinery		1,84,14,000
	Office Furniture and Equipment		5,00,000
Total			1,89,14,000
iii.) Pre-operative Expenses			5,00,000
Total Fixed Cost (i + ii + iii)			5,30,10,000

B. Working Capital (Per month)

i) Personnel

Sl No.	Designation	Number	Salary /month (In Rs.)	Total (In Rs.)
1.	Manager	1	30,000	30,000
2.	Maintenance Deptt.	5		50,000
3.	Marketing and Sales Storekeeper	2		20,000
4.	Stores, Purchase and Accounts	4		30,000
5	Skilled Workers	8		40,000
6.	Unskilled Workers	15	3000	45,000
7.	Watchman	4	3500	14,000
Total				2,29,000
Perquisites @ 22%				50,000
Total				2,79,000

Raw Material	Total (In Rs.)
Water 9000 KL @ Rs. 10/KL	90,000
Add back of Salt and Ammonia	10,000
Total	1,00,000

(iii) Utilities	Amount (In Rs.)
Power 300 x 0.8 x 24 x 4 x 300KWH @ Rs. 4.0 unit	57,60,000
Raw Water	5,000
Total	57,65,000

Sl. No.	Other Contingent Expenses	Amount (In Rs.)
1.	Postage and stationery	5,000
2.	Telephone	10,000
3.	Consumable stores	35,000
4.	Repair and maintenance	46,000
5.	Transport	1,00,000
6.	Insurance	33,000
7.	Miscellaneous	45,000
	Total	2,71,000
iv)	Working Capital (per month)	64,15,000
v)	Working Capital for 3 months	1,92,45,000

C. Total Capital Investment

		Amont (Rs. In Lakhs)
1.	Fixed Cost	5,30,10,000
2.	Working Capital for 3 Months	1,92,45,000
	Total	7,22,55,000

(1)	Cost of Production (per annum)	(Rs. in Lakhs)
1.	Total recurring cost	7,69,80,000
2.	Depreciation on building @ 5%	10,05,000
3.	Depreciation on machinery @ 10%	18,91,000
4.	Depreciation on Furniture @ 20%	1,00,000
5.	Interest on total investment @ 12%	86,70,000
	Total	8,86,46,000

(2)	Turnover (per annum)	Total (In Rs.)
1.	3600 M.T. Vegetables, fruits and chemicals @ Rs.17588.00 M.T.	6,33,19,000
2.	Ice Blocks 6750 M.T. @ Rs.7000/M.T	4,74,89,000
	Total Turnover	11,08,08,000
3.	Net Profit (per annum)	2,21,62,000

(4) Net Profit Ration
	=	2,21,62,000 x 100 -------------------
		11,08,08,000
	=	20%

(5) Rate of Return
	=	2,21,62,000 x 100 --------------
		7,22,55,000
	=	30.6%

(6) Break-even Point

Fixed Cost (Per annum)	Ammount (Rs. )
Depreciation on M/c & civil construction	28,96,000
Depreciation on Furniture	1,00,000
Interest on Total investment	88,70,000
40% of Salary and Wages	13,39,000
40% of other expenses	13,01,000
Total	1,45,06,000

B.E.P.
	=	F.C. × 100 --------------
		F.C. + Profit

	=	1,45,06,000 × 100 -------------------------
		1,45,06,000 + 2,21,62,000

	=	39.5%

Addresses of Machinery Suppliers

1. M/s. Bombay Ammonia
Refrigeration Company
G-32, Kirti Nagar,
New Delhi-110015.

2. M/s. Sunder Singh and Sons
1/6 Roop Nagar,
Delhi-110006.

3. M/s. Guru Nanak Refrigeration
Corporation
18/30 Street No. 5,
New Rohtak Road,
New Delhi.
Addresses of Raw Material Suppliers
Locally available.