Cold storage

Meaning
• Cold storage is basically a term used for refrigerated of frozen storage
facilities,usually used to storefood or pharmaceuticals.
• Storage of food products under low tempratures using temperature
and relative humidity controllers to maintain the desired conditions
inside the cold rooms as well as ventilations systems to provide
adequate storage conditions
Reasons to add a cold storage room
• Multi functioning
• Completely adjustable
• Accessible
• Ideal for storing vegetables
Situational analysis
• India ranks first in the world in production of fruits and second in
vegetables.
• Total value of India's cold chain industry
• Growing at an annual rate 20-25 percent.
•
strategies
• Product- quality product to our esteem client will be its preference &
major focus area
• Pricing- price will be initially less to enter the market &later as per
demand &quality the charges in price be decided.
• Promotion and marketing communication
• B2B marketplace: webpage,
• Direct marketing: hiring a sales & marketing professional to
individually generates the leads & sending them the detailed
proposal.
Product offering
• Cold storage racks will have
i. Different chambers
ii. Lock &key facility
iii. 24/7 security
iv. Good sorting
• Insurance against natural calamities
• Systematic warehousing
• 100% quality assurance
• Technical assistance
Financial
• Financial analysis of the investment of xyz cold storage unit of 50000 MT
capacity
• Project has a margin money component of 25% with the rate of interest
on term loan and working capital as 15%with and 185 respectively.
• Rental charges have been considered at Rs.700 per MT and the profit
margin on self storage is Rs 3000 per MT.
• Financial indicators of the investment are as under:
1. Net present value@15%DF= Rs 67.09 lakh
2. Internal rate of return(IRR)=25.75%
Product mix
• Fruits – apples
cherries
kiwi
pears

• Vegetables- potato
capsicum
tomato
Target customers
• Farmers
• Retailers
• Mandis
Management of cold storage
• Temperature control- is important to avoid chilling injury to the produce
because each variety of the produce needs different temperature.
• Mix of storage- storing multiple items together is a complex task because the
different items require different temperature.
• Stacking – while storing the produce flow of air and its proper distribution are
important.
• Operation- it is a costly and energy intensive business so it should ne handled
with care.
• Hygiene- use of proper sanitizers, ozone generators and ventilators are highly
important to prevent the growth of molds, fungi and carbon dioxide in the
cold storage area.