Ajay Cold Storage is expanding its operations to Haryana. It aims to maintain quality of fruits and vegetables through refrigerated storage. The company uses "Zindagi" as its tagline to give new life to produce. It plans to import more efficient refrigeration equipment to reduce emissions. Ajay Cold Storage will seek TEC green certification for sustainability efforts. The marketing plan analyzes the company's strengths, weaknesses, opportunities and threats. It also outlines the financial requirements and controls for the new facility.

1. Marketing Plan
Ajay Cold Storage
Phase 1 and Phase 2
Under the guidance of: - PresentedBy:
Prof. Mr. Sharad Gupta Parvesh Mittal

2. Overview
One of the major tagline which we have in our company for all the fruits and vegetables is
Zindagi. We have given this name in our company so as to give new life to the fruits and
vegetables and could maintain the quality of products. Fruits and vegetables have a very short
shelf 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 degrees centigrade is advantageous. Further cooling and storage at minus 8 to minus 10
degrees centigrade enhances the shelf life of the product. And we are one of the leading
providers of the cold store facilities. Our headquarters is New Delhi and we are on a road of
expansion of our business. Our recent plant in being opened up in Haryana (Rai, Kundli).
 Packaging: - In terms of packaging we store the material in the cold store which is
normally in crates.
 Market:-Cold storage is a facility normally held by an individual to be provided to
retailers to store their raw materials. The market is therefore specific to users and not
wide as a consumer market.
 Storage capacity: - The material to be kept under cold storage is received from the
farms. It is stacked and cooled to a temperature of 8 degrees centigrade. The plant will be
in continuous operation for three shifts a day with each shift of 8 hours duration. The
storage capacity of the unit is 3000 tones.
 Storage process outline:-The material received from the farms will be weighed and
placed in crates with a customer and material code tag. The gross and net weights of the
crate will also be recorded. Stacking will be in pallets with a supporting frame.
Vision
 Doing our business in such a way that we will set the industry standards in service
excellence by satisfying the needs and demands of our customers.
 Also we will focus on service quality and efficiency.
Mission
We want to eradicate the wastage of fruits and vegetables by developing the reliable and timely
cold chain stores so that customers are satisfied.
Scope of the study
To assess the requirements predominantly for fruits and vegetables and other products in the
chill, mild-chill and frozen categories of cold-chain1. High value dairy products like ice-cream is
included under frozen category in this study. Since no consumption statistics are available for
floriculture, the same was not considered in this study.

3. Technology
A cold storage unit incorporates a refrigeration system to maintain the desired room environment
for the commodities to be stored. A refrigeration system works on two principles:
1. Vapour absorption system (VAS), and
2. Vapour compression system (VCS)
VAS, although comparatively costlier, is quite economical in operation and adequately
compensates the higher initial investment. Wherever possible such a system should be selected to
conserve on energy and operational cost.
VCS is comparatively cheaper than VAS. There are three types of VCS systems available
depending upon the cooling arrangements in the storage rooms i.e., diffuser type, bunker type
and fin coil type. Diffuser type is comparatively costlier and is selected only when the storage
room heights are low. The operational cost of such units is also higher. Bunker type is the
cheapest and is preferred when storage room heights normally exceeds 11.5 m. Its operational
cost is also low. Fin coil type, although about 5% costlier than the bunker type, is very energy
efficient with low operational cost and higher space availability for storage of produce. Such
system is used for units with room heights of 5.4m onwards.
On, the left and above are the pictures of
equipment’s which are used in cold storage
warehouses to freeze the the fruits and vegetables.
On, the left side is the equipment knows as
AMONIA and on the above the equipment is known
to be FEON. In, a survey and by visiting of cold
storage it is found that now industry is using more
of the feon plant as compared to amonia as feon
technology is new in nature. This technology also
helps in reducing the CO2.
When we are talking about CO2 we should
understand how much co2 is releasedfrom cold
storage in per hour time
One Kilo-Watt Hour of Energy Produced = 1.55 lbs. of CO2 Emissions into the Air

4. MajorStep towards CSR & Sustainability
Des Moines Cold Storage Company receives Tec green certification for “Going Green”. And
Ajay cold storage will be importing such machines from foreign countries so that we could
reduce the CO2 emissions that comes out from cold storage machineries that we currently have.
Ajay Cold Storage Company is also planning to import machinery to receive Tec green
certification. We can also team up in future with Total Energy Concepts to save energy with the
installation of a Power Quality Protection and Electrical Motor Optimization System Solution.
These units protect electrical equipment from lightning strikes, dirty power, and poor efficiency.
The net result is optimized system performance.
Source: http://totalenergyconcepts.com/news/PostId/25
TEC CERTIFIED GREEN PROGRAM
Becoming TEC Certified GREEN gives you the following benefits:
 GOING GREEN RECOGNITION
 PRESS RELEASE IN THE LOCAL PAPER
 DOOR STICKER
GO GREEN
Our Environment is important and everyone needs to do their part in helping protect what we have.
Reducing energy consumption is a MAJOR step in the right direction as it directly helps prevent
toxic emissions from being released into our atmosphere from power plants.

5. How Does Purchasing the TEC System take your facility GREEN?
 Lower your electrical usage: - thereby conserving energy which increases your bottom line
and reduces the amount of energy the utility company needs to generate, thereby reducing
greenhouse gas emissions and carbon footprints.
 Increase the useful life of your equipment: - motors, compressors, lamps, ballasts. This also
improves your bottom line and decreases the wasted energy necessary to manufacture new
equipment.
 Umbrella of Electrical Protection:-Protects all of your electrical equipment to eliminate any
downtime and maintenance and repair costs, therefore reducing the amount of operation time
needed when trying to catch up.
 HVAC and Refrigeration Optimization With Smart Cool and Endo Cube units to optimize
the cycles of refrigeration compressors…therefore reducing the amount of run time without
affecting the temperature inside your facility so when we say "Turn down the A/C"…we are
talking about the compressor run time which equals big savings!

Going Green has never been easier! You save money, save the environment, and support the
Green Power and Building Initiative. That is what we call a win/win situation every time! Get your
facility TEC Certified Green today and be recognized as a business that appreciates our
environment and has done their part in protecting what we have!!!
Total Energy Concepts (TEC) is a national leader in Power Protection, Energy Management,
Power Quality, Refrigeration and A/C Optimization and Control, Facility Grounding, and
Lighting Solutions that help companies improve their bottom line by reducing expenses that
drastically cut into company profits. They offer a complete system through a systematic
approach that will reduce the amount of energy your electrical system uses without changing a
thing with our operations and the best part is, it will completely pay for itself.

6. SWOT ANALYSIS
Product Offerings
 24/7 Security
 Different chambers
 Lock & key facility
 Technical assistance
 100% Quality Assurance
 Target Markets
Food Retail Chains Format Outlets
Food World Food Supermarket 113
Reliance Fresh Convenience Store 93 cities (700+ stores)
Spencer’s Retail Retail Store 400
Big Bazaar Hypermarket 250(2013)
More Retail Store Department Store 500 +
Food Bazaar Supermarket 50+
Source:
 http://www.moneycontrol.com/news/business/big-bazaar-direct-to-have-250-outlets-by-
oct-end-biyani_969162.html
 https://en.wikipedia.org/wiki/Big_Bazaar
 http://www.reliancefreshdirect.com/mumbai/AboutUs
 https://en.wikipedia.org/wiki/More_(store)
STRENGTHS
 Large domestic consumption
market
 Large productionbase of raw
material
 Breadth in crop base offering
scopefor varied processing
activities
WEAKNESS
 Inadequate infrastructure facilities
 High capital investments
 Lack of adequate quality control&
testing protocols
 Fragmented, inefficient supply chain
and increase in prices
 Seasonality of crops
OPPORTUNITIES
 Government incentives
 Increasing western influence on
Indian taste preferences driving the
demand for processed foods
 Increase in nuclear families and
working population who prefer
ready-to-eat/cook foods
THREATS
 Traditional preference for freshly
cooked food especially in rural
areas
 Affordability (e.g., processed fruits
are significantly higher than fresh
fruits)
 High supply chain costs

7. Desired Storage Environment of Fruits and Vegetables in the cold storage
Commodity Temperature (oC) Relative Humidity (%)
Apple -1 - 3 90 - 98
Apricots -0.5 - 0 90 - 95
Beet root 0 - 2 95 - 97
Broccoli 0 - 2 90 - 95
Black berry -0.5 - 0 95 - 97
Cabbage 0 - 2 90 - 95
Carrots 0 - 2 90 - 95
Cherries 0.5 - 0 90 - 95
Grapes -1 - 1 85 - 90
Lemons 4 - 15 86 - 88
Lettuce 0 - 1 95 - 98
Lime 3 - 10 85 - 90
Mango 11 - 18 85 - 90
Melon water 2 - 4 85 - 90
Orange 0 - 10 85 - 90
Peach -1 - 1 88 - 92
Potato 1.5 - 4 90 - 94
Marketing Research
 Regular Surveys and tele-feedback
 Site visit in various cold storage warehouses

8. Findings:-
 The major factor in deciding the next location for Ajay cold
Storage in (Rai, Kundli, Haryana) was the KPM project i.e. the
Highway which is in process of becoming a business corridor b/w
Kundli-Gurgaon, Kundli-Noida-Faridabad.
 Gap Analysis of Infrastructure Components and ACS is ready to
Fill that gap
Type of Infrastructure All India
Requirement (A)
All India Created
(B)
All India Gap
(A-B)
Pack-house 70,080 nos. 249 nos. * - 69,831 nos.
Cold Storage (Bulk) 341,64,411 M 31823700 MT - 32,76,962 MT
Cold Storage (Hub) 9,36,251 MT
Reefer Vehicles 61,826 nos. 9000 nos. - 52,826 nos.
Ripening Chamber 9,131 nos. 812 nos. - 8,319 nos.
Source:-
 NABARD Consultancy Services
 NCCD

9. Financials
Land and construction cost for the proposed unit
Storage area is 11000 square feet as detailed below.
Sl. Description Square Feet
1 Cold store for fruits and vegetables 8000
2 Administrative office 500
3 Machinery spares store 200
4 Refrigeration room 2000
5 Toilet space 200
6 Miscellaneous space 100
7 Total 11000
 Construction cost – Rs. 900 per square foot per floor.
 Total value of civil works – Rs. 99.00 lakhs
 Total cost of land and civil works is Rs. 101.00 lakhs.
Costing of machinery and equipment
Sl. Description Rs. lakhs
1 Refrigeration equipment for cooling 250 tons of fruits and 250 tons
of vegetables stored in 5500 square feet each and to provide a
temperature of 2 to 8 degrees centigrade
20.00
2 Ducting and wall paneling 10.00
3 Stand by equipment 5.00
4 Total 35.000
5 Cost of pallets and stacking trays 2.000
6 Fork lift vehicle 10.000
7 Grand total machinery and equipment 47.000
Utilities per month
Sl. Description Rs. lakhs
1 Power 111500 kwh @ Rs. 5.50 per unit 6.133
2 Water 0.100
3 Refrigeration gas 1.000
4 Total utilities 7.233
Means of finance
Sl. Description Rs. lakhs
1 Total Project Cost 167.200
2 Equity 55.733
3 Debt 111.467
4 Working capital margin money 2.000
Source http://hsiidc.org.in/latest_announcements and
http://hsiidc.org.in/sites/default/files/E%20Documents/APPROVED%20ALLOTMENT%20RATES-2015.pdf

10. Controls
Implementation
 Tight controlling measures for close monitoring of quality issues
 5 active landline numbers for on the go assistance
 Quality testing and ensuring proper working of the product before supplying
 Online query solving
 Weekly monitoring of the reports from the personnel handling the online queries and
calls
Marketing Organization
Name Designation Role
Parvesh Mittal Chief Marketing Officer Responsible for marketing
activities of organization in
growing and promoting the
company.
Vibhor Garg Finance and employee
manager
Provide financial assistance
and help to ACS and will
engage in HRM
Prateek Parihar Regional Sales Manager Keep an eye on sales over all
the regions

11. Appendix

12. SCHEME FOR FINANCING CONSTRUCTION OF COLD STORAGES/ GODOWNS
PURPOSE BEHIND SCHEME FOR FINANCING CONSTRUCTION OF COLD STORAGES
/GODOWNS:-
 To meet the production, investment, and consumption needs of the farmer, i.e. cultivation of crop,
purchase of farm equipment, etc.,allied activities and consumption needs like marriage, medical
treatment, education, etc.
 To cover farmers having proven track record and also new farmers who are either not availing any loan or
if availing finance from some other Bank, can be taken over if the repayment record is clean and their
existing loan account is standard asset. Alternatively they can close their account with their existing
Banks and switch over to us.
Eligibility:-
All Co-Operatives, Companies, Corporations, Partnership and Proprietary Firms, Agriculture Produce
Marketing Committees/Boards, Agro Industries Corporations and Growers' Associations, Individuals.
Quantum of loan:-
50% of the project cost may be considered as term loan. The eligible amount of subsidy also would be
allowed as term loan as the subsidy is back ended.
Margin:- 25% of the project cost to be contributed by the applicant
Repayment Period:- Maximum 120 months with 18 months moratorium
Subsidy: - Cold storage unit is eligible for subsidy of 25% of the project cost.
Source:- http://www.unionbankofindia.co.in/RABD_Long_Construction_Cold_Storage.aspx

13. Purpose  To maintain the quality and extend the shelf life of fruits/
vegetables/ perishable agricultural products and to reduce losses
after harvest.
 To provide farmers an opportunity to realize better price for their
produce.
 Construction of storage chambers alongwith concrete racks &
staircases.
 Installation of machineries/ plant required for running cold storage
unit.
Eligibility Individuals, group of individuals, co-operative societies, proprietary/
partnership concerns and joint sector companies in public or private
sector.
Security  For limits upto Rs.1.00 lakh –
a. Hypo. of assets created out of bank finance
 For limits over Rs.1.00 lakh -
a. Hypo. of assets created out of bank finance
b. Mortgage of property and/or
c. Third party guarantee of adequate worth.
Margin 15% to 25% of the project cost
Rate of interest Interest Rate as decided by the Bank from time to time.
Repayment Repayment period upto 9 years is allowed including a grace period of
one year.
.
Insurance Assets created out of Bank finance, assets hypothecated/mortgaged to
the Bank to be fully insured with Bank clause.
Source:- www.bankofindia.co.in/english/coldstorage.aspx

14. Cold Storage Finance
Eligibility
All private cold storages/warehouses which are either debt free or financed by us subject to the
following conditions:
I. The promoters of the cold storage/warehouse are persons of good repute and integrity.
II. The capacity of the cold storage should be more than 5000 MT.
III. The cold storage/warehouse should be in good running condition and should have registered post-tax
profits for the last 3 years
IV. Conduct of the accountsof the cold storage/warehouse with our bank/other banks should be satisfactory
and all their existing accounts classified as “standard asset”.
V. New cold storages can also be considered for finance under the scheme subject to the controlling
authority being satisfied about the promoter’s integrity and the project’s viability.
Features
Purpose : For financing private cold storages/warehouses for on lending to farmers against
agricultural commodities stored in the cold storage/ warehouse.
Assessment of
credit limit
: Equivalent to 60% of the value of their operating capacity or 60% of the average value
of produce/commodities stored during the past 12 months whichever is lower. The
sanction of limit is subject to the cold storage/warehouse submitting an undertaking to
the Bank covering the points as detailed in Cir. No. AGR/2008-09/35 Dt. 29.11.2008
Disbursal : The disbursal of the loan amount will be restricted to 60% of the value of
produce/commodities stored and belonging to farmers to whom onlending has been done
by the cold storage/warehouse.
Ceiling on loan
amount
: Minimum: `25.00 lacs;
Maximum: `100.00 lacs
Security : Primary: NIL

15. Collateral : I. Equitable mortgage of the warehouse/cold storage i.e. they need to be debt free or
financed by us. Equitable mortgage of the warehouse/cold storage should be
compulsory and the value of the collateral coverage (inclusive existing and proposed
loan) should be 100%. This is important.
II. Personalguarantee of the proprietor/partners/directors of the cold
storage/warehouse.
Interest rate : CRA as applicable to Agricultural advances. Units with CRA of SBH (AGR-4) and
below SHOULD NOT be financed i.e. only with CRA of AGR 1-3 may be financed.
Repayment : The cash credit account should be brought into credit balance by the end of November
each year and will continue with the credit balance till the commencement of the next
season.
Insurance : The structure as well as the commodities/produce stored should be insured by the owners
of cold storage/warehouse for its full value and a copy of the insurance policy should be
kept on record by the Bank.
Sanctioning
authority
: These advances are to be treated as clean. Therefore,the sanctioning powers have to be
exercised as per the powers delegated to the authority for sanction of “clean advances”
i.e. by HOCC III / HOCC II / HOCC I.
Segmentation : The loans sanctioned under the scheme are to be classified as “Indirect Agricultural
Advances” under priority sector.
Renewal : The limit is valid for 12 months and needs to be renewed every year.
Renewalof the limit is subject to satisfactory conduct of the facility.
Source: - https://www.sbhyd.com/cold-storage-finance/

16. Questionnaires
1. Account Name & Address: ______________________________________________________
2. Are you the building owner or tenant?
3. Who is responsible for equipment and systems? ______________________________________
4. Describe operations and type of goods in cold storage: _________________________________
______________________________________________________________________________
________ ____________________________________________________________________
5. Are goods stored fresh or frozen: __________________________________________________
6. How are goods packaged? _______________________________________________________
7. Number of Cold Storage rooms: ____________Value in each $ ________________________
8. Is there a “Peak Storage Season”? Yes ____ No _____ If yes,what is the length of the peak
season and value during that time:
_______________________________________________________
9. Controlled atmosphere? Yes ____ No ____ please explain: __________________________
10. Cryogenic storage (Flash Freeze) operations? _______________________________________
11. Is ammonia used as refrigerant? Yes __ No __ _ Largest Single Exposure to Ammonia: $______
12. If yes, are ammonia detectors installed “in rooms”?
13. Are Piping & Coils protected from impact?
14. Frequency of re-calibration of detectors?
15. Will ammonia system automatically shut down if alarm is activated? Yes ____ No ____
16. Are Isolation valves present? If not ammonia, type of refrigerant used? (i.e. R-22)
__________________________________________________
List Critical Refrigeration/Other Equipment:
Machine Mfg. Size/Capacity %Refrigerator Age Repl. Value
$
$
$
17. Is there spare, back-up or redundant equipment? ______ if yes,explain _________________
____________________________________________________________________________
18. List all incidents in the past 5 years: _______________________________________________
19. What is the hold time for both fresh and / or frozen goods, should the power be down?

17. Questionnaires