FEASIBILITY REPORT BASED ON THE DESIGN OF COLD STORAGE FOR BANANA

ABSTRACT
This document discusses about the feasibility based on the design of ripening chamber of 2000 tonnes of banana.

INTRODUCTION
The banana plant is the largest herbaceous flowering plant. All the above-ground parts of a banana plant grow from a structure usually called a "corm. Plants are normally tall and fairly sturdy, and are often mistaken for trees, but what appears to be a trunk is actually a "false stem" or pseudo stem .When a banana plant is mature, the corm stops producing new leaves and begins to form a flower spike or inflorescence. A stem develops which grows up inside the pseudo stem; carrying the immature inflorescence until eventually it emerges at the top. Each pseudo stem normally produces a single inflorescence, also known as the "banana heart". The banana fruits develop from the banana heart, in a large hanging cluster, made up of tiers (called "hands"), with up to 20 fruit to a tier. The hanging cluster is known as a bunch, comprising 320 tiers, or commercially as a "banana stem", and can weigh from 3050 kilograms. Individual banana fruits (commonly known as a banana or "finger") average 125 grams, of which approximately 75% is water and 25% dry matter. The fruit has been described as a "leathery berry". There is a protective outer layer (a peel or skin) with numerous long, thin strings (the phloem bundles), which run lengthwise between the skin and the edible inner portion. The inner part of the common yellow dessert variety splits easily lengthwise into three sections that correspond to the inner portions of the three carpels. In cultivated varieties, the seeds are diminished nearly to non-existence; their remnants are tiny black specks in the interior of the fruit. Bananas are naturally slightly radioactive, more so than most other fruits, because of their potassium content and the small amounts of the isotope Potassium-40 found in naturally occurring potassium. This project is designed for cold storage of banana, where relative humidity and temperature for the product can be maintained. The major clientele of this business will be the farmers, export houses and the local trading and marketing units of bananas. The project will ultimately assist the clientele in maintaining market price equilibrium throughout the year for bananas.

Banana production in India and Tamil Nadu

Banana (Musa sp.) is the second most important fruit crop in India next to mango. Its year round availability, affordability, varietal range, taste, nutritive and medicinal value makes it the favorite fruit among all classes of people. It has also good export potential. Hi-tech cultivation of the crop is an economically viable enterprise leading to increase in productivity, improvement in produce quality and early crop maturity with the produce commanding premium price.

Banana evolved in the humid tropical regions of S. E. Asia with India as one of its centres of origin. Modern edible varieties have evolved from the two species Musa acuminata and Musa balbisiana and their natural hybrids, originally found in the rain forests of S. E. Asia. During the seventh century AD its cultivation spread to Egypt and Africa. At present banana is being cultivated throughout the warm tropical regions of the world between 300 N and 300 S of the equator. Banana and plantains are grown in about 120 countries. Total annual world production is estimated at 86 million tons of fruits. India leads the world in banana production with an annual output of about 14.2 million tons. Other leading producers are Brazil, Ecuador, China, Philippines, Indonesia, Costa Rica, Mexico, Thailand and Colombia. In India banana ranks first in production and third in area among fruit crops. It accounts for 13% of the total area and 33% of the production of fruits. Production is highest in Maharashtra (3924.1 thousand tones) followed by Tamil Nadu (3543.8 thousand tons). Within India, Maharashtra has the highest productivity of 65.70 metric tons /ha against national average of 30.5 tons/ha. The other major banana producing states are Karnataka, Gujarat, Andhra Pradesh and Assam. Table 1: State-wise Area, Production & Productivity of Banana during 2001-02 State Area (000 Ha.) 59.7 84.6 53.8 33.1 50.5 18.2 43.6 27.2 28.1 67.2 466.2 Production (000 MT) 3924.1 3543.8 1277.6 1154.3 1111.2 736.5 605.9 544.9 395.4 916.2 14209.9 Productivity (MT/Ha.) 65.7 41.9 23.8 34.8 22.0 40.5 13.9 20.0 14.1 30.5

Maharashtra Tamil Nadu Karnataka Gujarat Andhra Pradesh Madhya Pradesh Assam Bihar Kerala Others TOTAL

Source: Database of National Horticulture Board, Ministry of Agriculture, Govt. of India. Some of the major districts involved in production and marketing of Banana in Tamil Nadu are given in Table 2. Table 2: Major Banana growing and marketing districts in Tamil Nadu Growing Districts Major Markets in Tamil Nadu Coimbatore, Erode, Thoothukudi, Tirunelveli, Trichy, Vellore, Kanyakumari and Karur districts Trichy, Coimbatore, Theni

Banana varieties
Commercially, bananas are classified as dessert types and culinary types. The culinary types have starchy fruits and are used in the mature unripe form as vegetables. Important cultivars include Dwarf Cavendish, Robusta, Monthan, Poovan, Nendran, Red banana, Nyali, Safed Velchi, Basrai, Ardhapuri, Rasthali, Karpurvalli, Karthali and Grand Naine etc. Grand Naine, an imported variety from Israel is gaining popularity and may soon become the most preferred variety due to its tolerance to abiotic stresses and good quality bunches. Fruit develops attractive uniform yellow colour with better shelf life & quality than other cultivars. Important banana varieties cultivated in different states of India are given in Table 3. Table 3: Important Banana varieties in different states of India State Andhra Pradesh Varieties grown - Dwarf Cavendish, Robusta, Rasthali, Amritpant, Thellachakrakeli, Karpoora Poovan, Chakrakeli, Monthan and Yenagu Bontha - Jahaji (Dwarf Cavendish), Chini Champa, Malbhog, Borjahaji (Robusta), Honda, Manjahaji, Chinia (Manohar), Kanchkol, Bhimkol, Jatikol, Digjowa, Kulpait, Bharat Moni - Dwarf Cavendish, Alpon, Chinia , Chini Champa, Malbhig, Muthia, Kothia , Gauria - Dwarf Cavendish, Lacatan, Harichal (Lokhandi), Gandevi Selection, Basrai, Robusta, G-9, Harichal, Shrimati - Basrai, Singapuri - Dwarf Cavendish, Robusta, Rasthali, Poovan, Monthan, Elakkibale - Nendran (Plantain), Palayankodan (Poovan), Rasthali, Monthan, Red Banana, Robusta - Basrai - Dwarf Cavendish, Basrai, Robusta, Lal Velchi, Safed Velchi, Rajeli Nendran, Grand Naine, Shreemanti, Red Banana - Dwarf Cavendish, Robusta, Champa, Patkapura (Rasthali) - Virupakshi, Robusta, Rad Banana, Poovan, Rasthali, Nendran, Monthan, Karpuravalli, Sakkai, Peyan, Matti - Champa, Mortman , Dwarf Cavendish, Giant Governor, Kanthali, Singapuri

Assam

Bihar

Gujarat

Jharkhand Karnataka Kerala

Madhya Pradesh Maharashtra

Orissa Tamil Nadu

West Bengal

Some of the varieties of banana grown in Tamil Nadu are: Dessert Robusta, Dwarf Cavendish, Grand Naine, Rasthali, Vayal vazhai, Poovan, Nendran, Red Banana, Karpooravalli, Co.1, Matti, Sannachenkadali, Udayam and Neypoovan are popular varieties in banana. Cavendish groups are generally prefered in export market. Culinary Monthan, Vayal vazhai, Ash Monthan and Chakkia are cultivated for culinary purpose. Nendran is a dual purpose variety used for dessert and culinary.

Hill areas
The popular varieties of bananas suitable for hilly areas are Virupakshi, Sirumalai and Namarai. Red Banana, Manoranjitham (Santhana vazhai) and Ladan are also cultivated in hills.

Preferred Varieties
Grand Naine, Dwarf Cavendish, Robusta, Rasthali, Poovan, Nendran, Red Banana, Ney Poovan, Pachanadan, Monthan, Karpuravalli

Post-Harvest losses
There exists scope for increasing productivity in all producing zones of India by adopting improved cultivation practices. Besides production, there is need for equal emphasis on provision of facilities for adopting optimum post-harvest technologies. Low volume export of banana is due to nonideal post-harvest practices, transport procedures, lack of proper storage facilities, outdated banana handling practices etc. Due to mishandling of produce about 25-40% is being wasted and only 2% is processed into value added products, the remaining being used in the raw form. This leads to price imbalance and large price variations both spatial and temporal, which disheartens farmers. In order to sustain production and growth potential, it is essential to produce value added products based on banana, so that farmers get an assured price for their produce all the time. At present not much of product diversification of banana is done as only few industries are utilizing the fruits for dehydration, chips making and infant foods. Processing of banana for preparation of derivative products seems to be a promising area since bananas can be pulped, juiced or concentrated, canned, sliced and dried. Beverages such as banana wine & banana brandy as also vinegar can be made economically. There is need to promote and make available the tissue cultured plant material of all varieties for propagation. Quality control, packing and marketing are other problems faced by processing industries. In order to overcome these, clusters of cottage or small scale industries under a central unit need to be promoted for processing the fruit under standard specified conditions and practices. Packing, branding and marketing has to be done by the central unit. Efforts have also to be made to develop cost effective suitable packing material for banana export and standardize packaging techniques to have consistent quality.

Value added products of Banana

Banana is a very popular fruit due to its low price and high nutritive value. It is consumed in fresh or cooked form both as ripe and raw fruit. Banana is a rich source of carbohydrate and is rich in vitamins particularly vitamin B. It is also a good source of potassium, phosphorus, calcium and magnesium. The fruit is easy to digest, free from fat and cholesterol. Banana powder is used as the first baby food. It helps in reducing risk of heart diseases when used regularly and is recommended for patients suffering from high blood pressure, arthritis, ulcer, gastroenteritis and kidney disorders. Processed products, such as chips, banana puree, jam, jelly, juice, wine and halva can be made from the fruit. The tender stem, which bears the inflorescence is extracted by removing the leaf sheaths of the harvested pseudo stem and used as vegetable. Plantains or cooking bananas are rich in starch and have a chemical composition similar to that of potato. Banana fibre is used to make items like bags, pots and wall hangers. Rope and good quality paper can be prepared from banana waste. Banana leaves are used as healthy and hygienic eating plates.

Cold storage
With the advancement of technology and advent of modern appliances and equipment promising comfort, it has become almost impossible to stay without one of these even for a day. We are heavily dependent on appliances that provide use easy and convenient life. Refrigerator is known to be one of the most important pieces of equipment utilized on a daily basis. It is almost impossible to do without one for even an hour. In case, this appliance is removed from our houses for a day, we will be helpless in preserving all the perishable items from fruits, vegetables, milk and a lot of other things. The introduction of refrigeration dates back to the prehistoric era. It was the caveman who started realizing that the food caught from the jungle could be preserved in the best of its state only when stored in packed ice or caves. During the warmer months when there was a shortage of cool temperature and snow, ice was harvested from rivers and lakes in order to keep food items in consumable state. New York was the first known state to start shipment of ice to further locations. However, the problem faced was that ice shipment did not arrive frequently. The later years saw introduction of chemicals such as potassium nitrate and sodium in order to keep food under cool temperatures. As soon as the requirement for refrigeration was realized, industries associated with breweries and meat-packing started using the latest and unique method of preserving a products desired temperature. Expert compressing machines were installed at their plants. These machines were useful in eliminating heat from a substance, thereby keeping the perishable items in a safe and consumable state. Today, with the introduction of modern technology, we have far better and superior options for cold storage and refrigeration. Today, we heavily depend on refrigeration and cold storage for our daily life needs. These methods function towards keeping our food items in safe and consumable state. Cold storage can be defined as a large warehouse operating cold storage facility. Huge refrigerated units are installed in these warehouses. Many large distributing and manufacturing companies

utilize cold storage warehouse in order to keep their products safe. The nature of food and other products decide on the type of cold storage units that are kept at relatively lower temperatures can hold anything from wood to vegetables and pharmaceuticals. Frozen products are best stored at cooler temperatures. Cooler temperatures are also widely used in medical laboratories in order to store specimens in a safe manner. A lot of medical samples can also be preserved efficiently. We dont realize the importance cold storage hold in our lives. However, the truth is that the technique is utilized in every sphere including storage of frozen items, food articles, seasonal fruits and vegetables, medical samples, pharmaceuticals and much more.The technique can also be referred to as one of the most important and useful in our lives. India is the largest producer of fruits and second largest producer of vegetables in the world. In spite of that per capita availability of fruits and vegetables is quite low because of post harvest losses which account for about 25% to 30% of production. Besides, quality of a sizable quantity of produce also deteriorates by the time it reaches the consumer. Most of the problems relating to the marketing of fruits and vegetables can be traced to their perishability. Perishability is responsible for high marketing costs, market gluts, price fluctuations and other similar problems. At low temperature, perishability is considerably reduced and the shelf life is increased and thus the importance of cold storage or refrigeration. The first cold store in India was reported to have been established in Calcutta in 1892. However significant progress in the expansion of the cold storage industry in the country has been made only after independence. With a view to ensuring the observance of proper conditions in the cold stores and to providing for development of the industry in a scientific manner, the Govt. of India and the ministry of agriculture promulgated an order known as "Cold Storage Order, 1964" under Section 3 of the Essential Commodities Act,1955. The Agricultural Marketing Advisor to the Govt of India is the Licensing Officer. A cold storage facility accessible to them will go a long way in removing the risk of distress sale to ensure better returns.

Cold Storage Potential in India

The estimated annual production of fruits and vegetables in the country is about 130 million tonnes. This accounts for 18% of our agricultural output. Due to diverse agro climatic conditions and better availability of package of practices, the production is gradually rising. Although, there is a vast scope for increasing the production, the lack of cold storage and cold chain facilities are becoming major bottlenecks in tapping the potential. The cold storage facilities now available are mostly for a single commodity like potato, orange, apple, grapes, pomegranates, flowers, etc. which results in poor capacity utilization. Present availability of cold storage capacity is only 103.5 lakh tonnes, out of which units having about 8 lakh tonnes capacity are non-functional. Although 90% of these units are made to store only potato even then it does not meet the requirement of the single crop, the production of which is about 300 lakh tonnes. Out of 3443 cold storage units setup till 1988, 2012 units were for potato, 447 units were for multipurpose use, 198 units were for fruits and vegetables and the remaining were for products like meat, fish, milk, etc. The details of the commodity wise distribution of cold storage capacity are given in Table 4.

Table 4: Commodity wise distribution of Cold Storage capacity Commodity Potato Multipurpose Fruits & Vegetables Meat Fish Meat & Fish Milk & Dairy Products Others Units 2,012 447 198 23 360 30 272 101 Capacity (lakh tons) 92.82 7.63 1.07 0.09 0.73 0.15 0.68 0.36

Of the above 3443 cold storage units, 2975 are in private sector, 303 are in cooperative sector and the rest are in public sector. The cold storages for banana are less in India. Banana is available in India round the year. However, arrivals of banana start increasing from April and arrivals are at peak during August to October period. Even though the production is year around, bananas are stored in cold storage for later use in processing and also to store the excess produce during glut season.

Optimum Storage of Bananas

Bananas must be transported over long distances from the tropics to world markets. To obtain maximum shelf life, harvest comes before the fruit is mature. The fruit requires careful handling, rapid transport to markets, cooling. The goal is to prevent the bananas from producing their natural ripening agent, ethylene. This technology allows storage and transport for 34 weeks at 13 C (55 F). On arrival, bananas are stored in cold storage held at 14 C. During lean season or for processing, it is distributed.

Proposed Location
For retail sales, location of the cold storage must be near a major road, and the area must have adequate parking space. The place should have good air flow for proper ventilation and for removal of heat from the refrigerant. Some of the factors for the consideration of the location for cold storage are: Availability of water Availability of produce (raw materials) Availability of Electricity Three phase of electricity is necessary when more than 10 tons of refrigeration is needed. Wastewater disposal facility Appropriate sewage collection and disposal system must be considered.

A cold storage facility must be in a well-drained area. It requires drains to remove water from condensation, and cleaning and sanitation operations.

Proposed Business Legal Status

It is recommended that this project should be started as sole proprietorship or partnership. Moreover, less complications and costs are involved informing, administering and running the sole proprietorship or partnership business. The tax rate applicable for sole proprietorship is lower than private or public limited. Most of the cold storages in the country are operating as sole proprietorship or partnership basis.

LEGAL BENEFIT
Under National Horticulture Mission (NHM), Credit linked back ended subsidy @ 40% of the project cost in general areas and 55% in case of hilly and schedule areas for individual entrepreneurs is available for setting up of cold storages. National Horticulture Board (NHB) provides capital investment subsidy @ 40% for Construction/ Expansion/Modernization of cold storages, CA storages, MA storages and pre-cooling units. Under Horticulture Mission for North East and Himalayan States (HMNEH) scheme credit linked back-ended subsidy @ 55% of capital cost is available. Besides, assistance is also available under Ministry of Food Processing Industries scheme of cold chain @ 50% of cost of plant, machinery and technical civil works in general areas and 75% for North Eastern and difficult areas subject to maximum limit of ` 10.00 crore. Under APEDA scheme infrastructure development assistance is provided to the tune of 100% of eligible cost to public sector and 25% of eligible cost for setting up of common infrastructure facilities, including cold storage. The establishment of cold storages is a project based activity and projects are sanctioned by various Departments as per operational guidelines based on applications received from individual entrepreneurs, cooperatives, associations and public sector.

CRUCIAL FACTORS & STEPS IN DECISION MAKING FOR INVESTMENT

SWOT Analysis
A SWOT Analysis is a strategic planning tool used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or business venture. Strengths and weaknesses are internal to the company whereas the opportunities and threats originate from the external environment. A SWOT analysis is usually performed early in the project development process, and helps organizations evaluate the environmental factors and internal situation facing a project.

STRENGTHS AND OPPORTUNITIES

Fairly good price. Use of machinery that is durable and feasible. Low operational cost because of energy efficient construction. Extend product range. By using effective marketing strategies cold storage business can attract more growers and traders. The establishment of wholesale market and cold storage facilities would enhance the pace and volumes of business by providing market place for commercial transactions for the domestic and international trade.

Sufficient quality control and reduction of waste will directly enhance availability of the produce. Further, the cold storage facilities would result in supplies during off-season which otherwise may not be possible. Timely placement of products in the cold storage will help preserve their quality and improve shelf life. It will also avoid food contamination caused by microbial activity thus assuring availability of quality food products.

WEAKNESS AND THREATS

Irregular government policies e.g., abnormal tax increase. Fluctuation or unexpected increase in electricity tariff. Failure of lemon crops due to natural calamity. Ruthless competition by other business adversaries.

SECTOR & INDUSTRIAL ANALYSIS

India is the major exporter of Banana in the world; the country has exported 45,573.24 MT of Banana worth Rs. 9,154.22 Lacs during the year 2011-12. The major destinations of Indias bananas were UAE, Saudi Arabia, Iran, Kuwait and Bahrain respectively. These countries have imported more than 50 per cent of Indias bananas during the period.

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
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. However, it has its own limitations when temperature requirement is below 100C and many of the fruits and vegetables except seeds, mango, etc. require lower than 100C for long storage.

VCS
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. In a refrigeration system, refrigerants are used to pick up heat by evaporation at a lower temperature and pressure from the storage space and give up the heat by condensation at a higher temperature and pressure

in a condenser. Freon used to be a common refrigerant but as it causes environmental degradation; its use is going to be banned by the year 2008. Therefore, Ammonia is being increasingly used and preferred for horticultural and plantation produce in cold storage units. Although several types of compressors and condensers are available, medium speed reciprocating compressors and atmospheric condensers are preferred because of the relatively lower cost, energy efficiency and ease in maintenance. While selecting size of the equipment, care should be taken to assess all loads and proper provision should be made to take care of the peak demand during summer loading and aging of the equipment.

Heat load factors normally considered in a cold storage design are: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Wall, floor and ceiling heat gains due to conduction Wall and ceiling heat gains from solar radiation Load due to ingression of air by frequent door openings and during fresh air charge. Product load from incoming goods Heat of respiration from stored product Heat from workers working in the room Cooler fan load Light load Aging of equipment Miscellaneous loads, if any.

Cold Storage Infrastructure

Land and Building
For storage capacity of 2000 tonnes, the size of the cold storage has to be around 600 sq.m. Whereas non-storage area of 100 sq.m for office, utility room and guard room is sufficient. Hence, a plot of land of around 800 sq.m shall be required which would cost around Rs.9.56 lakhs. Construction cost of cold storage is taken at Rs.3, 000/- per sq.m. due to special insulation and coating and other needs whereas that of office, guard room and utility room, it is considered to be Rs.2, 500/- per sq.m. Thus, the total cost of construction works out to Rs.21 lakhs.

Plant and Machinery

There are turnkey suppliers of cold storage plants or it may be built to order where exact specifications are given. The former undertake supply, erection as well as complete electrification of the plant. The main requirements are reciprocating compressors Suitable for ammonia, induction motor, blowers, overhead perforated water pipes with tanks, Electric pump, piping, ducting and insulation and standby generator etc. Total cost of 400 Tonnes capacity would be around Rs.60.00 lakhs including erection and commissioning charges.

Miscellaneous Assets
A provision of Rs.25, 000/- would take care of other assets like furniture and fixtures.

Preliminary & Pre-operative Expenses

There will be many pre-production expenses like registration, establishment, travelling, administrative, market survey, and interest during implementation period, trial run expenses, etc. They are assumed to be Rs.75, 000/-.

Working Capital Requirements

Banks would not finance pre-sales facilities as there is no production. Post-sales facilities are possible if there is a long-term firm contract with some reputed company or government agency. But there will be certain recurring expenses for which margin amount of Rs. 50,000/- is considered.

Utilities
Power requirement shall be 60 HP whereas water requirement shall be 700-750 litres per day. Ammonia gas cylinders shall also be required. Diesel for generator set shall also be required.

Heat Load Calculation for Cold Storage Chamber

Storage size Outside surface area Insulation 36.8*15.4*3.4 m 600 sq. m 7.6 cm of polyurethane with a conductivity value (k) =
2

1.3 kJ per m per cm thickness per C Coefficient of transmission (U) = 1.1 kJ per h per
2

m per C Ambient conditions at harvest Fruit temperature 30c and 50% RH At harvest 28C ;at ripening 17C; at storage 13C 169 cartons each of 118kg of fruit 9 kg total weight of cartons = 1521kg 169 cartons ( 20000 kg per day ) 1 day to fill 1st day 28C to 17C Six per day (assumption) 1.8 per day (assumption) Banana= 1.67KJ/kgC

Storage capacity(1 chamber) carton weight Loading weight and time Cooling rate Air changes from door openings during cooling Air changes from door openings during storage Specific heat

Miscellaneous heat loads

Lights, 2,400 W per h (3.6 kJ per W) Workers (2), 1,000 kJ per h for each person

Heat load to lower air from 28 to 17 C (50% RH)

74.5 kJ per m3

Load during cooling and filling cold storage: Temperature difference (TD) = 28C - 17C = 11C Assuming 11C TD on all surfaces

KJ per 24 hours

Building-transmission load: Area *U*TD*h = 200 m2 * 1.1KJ *11C*24 . = 58080 KJ

Air-change load from door openings: Volume* heat load * air changes = 187.136*74.5*6 =83649.792KJ

Product cooling: Fruit weight * specific heat * TD (28 to 17 C) * 4.186 =20000 * 1.67* 11*4.186 = 1537936.4KJ

Carton weight * specific heat * TD (28 to 17 C) *4.186=1521*0.5*11*4.186 = 35017.983KJ

Miscellaneous heat loads: Lights - W (2,400) x kJ per W (3.6) x h (8) =69120KJ Labour - workers (2) x kJ per h (1,000) x h (8) = 16000KJ

Total heat load during cooling: 1. Building transmission 2. Air change 3. Product cooling 4. Miscellaneous Subtotal Add 10% to be cautious Total required refrigeration 58080 83649.792 1572954.383 85120 1799804.175 179980.4175 1979784.593

Assuming that refrigeration equipment operates 18 h per day = 1979784.593 / 18 = 109988.0329KJ/h. Since a tonne of refrigeration absorbs 12660 kJ per 24 h: =109988.0329 /12660 = 8.6 tons of peak refrigeration is required for 1 chamber.

Cost Economics
Man power requirements
Particulars Technicians Godown Keepers Helpers Security Guards No s 2 12 2 2 Monthly salary 7000 5000 2000 1500 Total Total monthly salary 14,000 60,000 4,000 3,000 81,000

Tentative implementation schedule

Activity Application and sanction of loan Period ( in months) 3

Site selection and commencement of civil 1 work Completion of civil work and placement of 4 orders for machinery Erection, installation and trial runs Total 1 9

Land and building

Particulars Land Building Area sq mts 800 600 Cost in lakhs 9.56 21

Machinery and equipment required

Particulars Machinery (Ammonia Refrigeration System) 2. Punjab Engg. Works, 32, Ramakrishna Samadhi Road, Kolkata- 700054 3. Freezking Industries Pvt. Ltd. 7/17, Kirti Nagar Industrial Area, New Delhi-110015. Tel No. 25930681/85 4. Frick India Ltd. 809, Surya Kiran, 19, KG Marg, New Delhi-110001. Tel No. 23322381/384/391 Grading and sorting equipments Global Agri-tech Engineers, Vadodara Suppliers Sundersingh and Sons, 1/6, Roop Nagar, New Delhi- 110006

Insulation ( polyurethane)

Jonson tapes limited No. 225, Vardhman Fortune Mall, G. T. Karnal Road, Industrial Area, Delhi -110 033, Delhi India Phone: +(91)-(11)-27110929

Generator

Ganpati Electricals (P) Ltd, New Delhi U- 110, 1st Floor, Surya Arcade, Main Vikas Marg, Shakarpur, New Delhi - 110092, Delhi, India Phone: +(91)-(11)-22466869

induction motor 30 HP

Frick India Limited, New Delhi. - Or Super freeze Ammonia compressor- Sheetal Refrigeration Co, Rajkot. - DCE Refrigeration Pvt. Ltd, Pune.

Water pipe lines and fittings Valves and fittings for the condensers and receivers

Rahul Agro Systems Pvt. Ltd., Nasik

Cost of the Project & Means of Financing

Item Land and Building Machinery and equipments Miscellaneous Assets P&P Expenses Contingencies @ 10% on Land and Building & Plant & Machinery Working Capital Margin Total Amount in lakhs 30.56 60 0.25 0.75 9.10

2 102.66

Means of Finance Promoters' Contribution Term Loan from Bank/FI Total Debt Equity Ratio Promoters' Contribution 31.8 70.86 102.66 1.9 : 1 31%

PROFITABILITY CALCULATIONS
Production Capacity & Build-up Cold storage would work for all the year and hence its capacity would be to store 2000 tonnes during the year. Actual utilisation is expected to be 60% and 75% during first 2 years respectively, and third year onwards it is restricted to 80% (assumption). Utilities The annual cost at 100% utilisation will be Rs. 12,00,000/-.(assumption)

Interest
Interest on term loan of Rs. 70.86 lakhs is calculated @ 12% per annum assuming repayment in 5 years including a moratorium period of 1 year.

Depreciation
It is calculated on WDV basis @ 10% on building and 15% on machinery.

PROJECTED PROFITABILITY (in lakhs)

Particulars Installed Capacity Capacity Utilisation Sales Realisation Cost of Production Utilities Salaries Stores and Spares Repairs Maintenance 3.60 3.72 0.30 & 0.24 4.50 4.68 0.45 0.36 4.80 4.77 0.54 0.42 1st Year 2000 tonnes 60% 12.60 2nd Year 2000 tonnes 75% 15.75 3rd Year 2000 tonnes 80% 16.80

Selling Administrative Expenses Total

& 0.48

0.66

0.80

8.34

10.65 5.1

11.33 5.47

Profit before Interest & 4.26 Depreciation Interest on Term Loan Depreciation Profit before Tax Income-tax @ 20% Profit after Tax 0.51 2.95 0.8 0.16 0.64

0.612 0.40 4.08 0.816 3.264

0.65 0.057 4.76 0.952 3.808

BREAK-EVEN ANALYSIS
No [A] [B] Particulars Sales Variable Costs Utilities (85%) = 3.82 Salaries (65%) = 3.0 Stores & Spares = 0.45 Selling Expenses (50%) = 0.33 [C] [D] [E] Contribution [A] - [B] Fixed Cost Break-Even Point [D] [C] 7.6 8.15 4.71 57.7 % Amount in lakhs 15.75

Machinery and equipment required

Particulars Machinery (Ammonia Refrigeration System) 2. Punjab Engg. Works, 32, Ramakrishna Suppliers Sundersingh and Sons, 1/6, Roop Nagar, New Delhi- 110006

Samadhi Road, Kolkata- 700054 3. Freezking Industries Pvt. Ltd. 7/17, Kirti Nagar Industrial Area, New Delhi-110015. Tel No. 25930681/85 4. Frick India Ltd. 809, Surya Kiran, 19, KG Marg, New Delhi-110001. Tel No. 23322381/384/391 Grading and sorting equipments Global Agri-tech Engineers, Vadodara Insulation ( polyurethane) Jonson tapes limited No. 225, Vardhman Fortune Mall, G. T. Karnal Road, Industrial Area, Delhi -110 033, Delhi India Phone: +(91)-(11)-27110929 Generator Ganpati Electricals (P) Ltd, New Delhi

U- 110, 1st Floor, Surya Arcade, Main Vikas Marg, Shakarpur, New Delhi 110092, Delhi, India Phone: +(91)-(11)22466869
induction motor 30 HP Frick India Limited, New Delhi. - Or Super freeze Ammonia compressor- Sheetal Refrigeration Co, Rajkot. - DCE Refrigeration Pvt. Ltd, Pune. Water pipe lines and fittings Valves and fittings for the condensers and receivers Rahul Agro Systems Pvt. Ltd., Nasik