C A storage bussines unit powerpoint presentation

1. SHER E KASHMIR UNIVERSITY OF AGRICULTURAL
SCIENCES & TECHNOLOGY
Shalimar Srinagar

2. COLD STORAGE BUSINESS
UNIT
 Course title.: Horti-Business Management
 Prepared & presented by.: Sheikh Naseer ul Haq
(Hort 2015-309)

4. ICE SCAPE COLD STORAGE

5. Introduction
 Cold storage unit incorporates a refrigeration system to
maintain the desired room environmental conditions
 Cold storage facility for perishable products under
controlled conditions

6. Scope
 Total apple production in the year 2015-2016 was 19.66
LMT in Kashmir
 Post harvest loss estimated was 9% due to improper
storage
 Cold storage capacity presently available in the valley is
0.60 LMT against requirement of 3.0 LMT

7. State wise current
capacity of cold storage

8. Market opportunities
0.60LMT
• Cold storage
facility
3.0LMT • Requirement
2.4LMT • opportunity

9. Business model

10. Shareholding pattern
Name Amount of share
Sheikh Naseer Ul Haq 16.66%
Shahijahan Rashid 16.66%
Tahir Rashid Dar 16.66%
Parvaiz Ahmad Theekry 16.66%
Shakeel Ahmad 16.66%
Arif Rashid 16.66%

11. Location
 The project may be located anywhere in the country
suitably either near the producing farms or consumer
centres.
 Better road connectivity, electricity & land availablity
 For our project, we have selected INDUSTRIAL ESTATE,
LASSIPORA, PULWAMA

12. Project cost
 project cost for setting up of 5000 MT
Cold Storage may be in the range of Rs.5.00 –
6.00 Crore, including cost of the land.

13. Quantum of subsidy
 Back- ended subsidy @ 40% of the project
cost for general and 55% in case of hilly and
scheduled areas for maximum storage
capacity up to 5,000 per ton under the Govt.
of India / NHB Capital Investment Subsidy
Scheme

14. Funding pattern under
Capital Investment Subsidy
Scheme
NCDC to state govt. State govt. to society Direct
Assistance General
states
H S areas General
states
H s
areas
Loan 50% 35% 40% 25%
BES 40% 55% 40% 55%
Share
capital
**** *** 10% 10%
Total 90% 90% 90% 90%
General
states
H S areas
35% 20%
40% 55%
*** ***
75% 75%

15. Capital expenditure
Indicative project outlay Rs.(in lakh)
FIXED CAPITAL
Land and land development 140.00
Building and civil works 150.00
Machinery 175.00
WORKING CAPITAL
Labour 10.00
Electricity & energy 15.00
Publicity 5.00
Management 5.00
Total 500 .00

16. Unit size
Capacity
5000 MT
Operatio
n
10
hours/d
ay
Land
1 acre

17. Financial snapshots
Particulars Amount (in crores)
Equity 2.70
Loan 2.00
Creditor 0.30
Grand total 5.00

18. Rate
 Rent charges @Rs 0.50 per kg per day
 If product is stored for 180 days with 70% occupancy
collected revenue will be :
3500000*0.5*180=31500000

19. Break even analysis
Variable cost Fixed cost/ season
Electricity /kg of fruit =Rs 80 Work force =Rs 10 lakh
Publicity =Rs 15 lakh
Management =Rs 5 lakh
Total VC =Rs 80 total FC =30 lakh

20. Break even analysis
 Price per kg of fruit in a season =0.5*180 = 90 (Rs)
 Contribution of 1 kg to ice scape storage (price –
Vc ) = Rs 90-80
= Rs 10
 BEP =FC/Contribution = 30 lakh / Rs 10
=3000000/10
= 300 MT
 So for profitable business, occupancy must be more
than 300MT.