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COLD CHAIN Introduction

Cold chain is a logistic system that provides a series of facilities for maintaining ideal storage conditions for perishables from the point of origin to the point of consumption in the food supply chain. The chain needs to start at the farm level (e.g. harvest methods, Pre-cooling) and cover up to the consumer level or at least to the retail level. A well organized cold chain reduces spoilage, retains the quality of the harvested products and guarantees a cost efficient delivery to the consumer given adequate attention for customer service. The main feature of the chain is that if any of the links is missing or is weak, the whole system fails. The Cold chain logistics infrastructure generally consists of:       1.2 Pre-cooling facilities Cold Storages Refrigerated Carriers Packaging Warehousing Information Management systems (Traceability and Tracking etc.) Objective

The temperature controlled supply chains or cold chains are a significant proportion of the retail food market. The market shares of fast foods, ready meals and frozen products have increased in recent years. There are several food temperature levels to suit different types of products. Frozen, cold chilled, medium chilled, and exotic chilled are some of the frequently used nomenclatures with specified temperature ranges, depending on the products, whether it is meat or ice cream or potatoes or bananas. With the growing demands to keep and distribute temperature sensitive products in potent condition, organizations are seeking better solutions to maintain and monitor cold chain. The success of implementing cold chain management involves continual monitoring of product temperature throughout distribution and having appropriate corrective action plans in place. A streamlined, well maintained cold chain helps to:     Reduce costs Improve product integrity Increase customer satisfaction Reduce wastage and returns of expired stock
1 Global AgriSystem Pvt. Ltd. Your Partner in Agri-business

Project Profiles - MP Agros

The remaining market is segregated into: Segment Imported Fresh Fruits & Vegetables Exports By sea (Seafood. RTS. vegetables. poor transportation infrastructure. 1.MP Agros 2 Global AgriSystem Pvt. flavored milk/yoghurt) Cool Chain Transportation Value (US$ Million) 1. 21.4    Market Opportunities The total cold chain market in India is worth Rs. RTC.  Increasing Awareness: About 30% of the fruits and vegetables grown in India get wasted annually due lack of awareness about proper handling and storage requirements as well as poor infrastructure. Potato. Ltd. Poultry. accounting for over 10 per cent of the country’s GDP. which includes F & V packhouses.1.67 1.33 4.375 million. etc.33 40 It is at a threshold of exponential increase due to developments taking place in food and retail industry of India. Even for Asia Pacific region as a whole the comparative figure is about 8% based on share of refrigerated transport in the entire transport market. Meat. As a result only 2% of products that should be temperature controlled are handled this way today. Your Partner in Agri-business . The businesses started with traditional corner stores and have emerged to supermarkets and modern retail stores. meat. and 85% compliance with good cold chain practices found in Europe and North America.67 13. apple contributes Rs 16050 million (US$ 357 Million) to the cold chain market.67 46 2 2. unavailability of cold storages in close proximity to farms. (taking 1US$= Rs 45) Chiller Segment.45 1. milk. insufficient cold storage capacity.3 Raw Material Availability All the fruits.  Retail: Retail is India’s largest industry. Project Profiles . poultry and fish available in the state can be used in the unit. Fruits & Vegetables) Chocolate Industry Dairy Industry Meat & Poultry (domestic) Ice-cream Industry Processed potato Frozen F & V Emerging segments (RTE. which is equivalent to US $ 475 million.a figure that stands in stark contrast to the 15% in China.90 4.

The project is planned to pursue in three phases. The cold chain unit is very essential and important as to reduce the post harvest losses of commodities. Ltd. in which first phase is planned in Indore. Your Partner in Agri-business . After that the project will be expanded phase-wise with expansion spokes. Large variation in peak and non-peak demand.5 1.14 lakhs. Optimum utilization starts in 5th year. Being capital intensive project key indicators considered on the 15th year operation.1 Project description Target Product Mix Characteristics of Indian CCM market for important product segments are summarized in the following table. More than 60% demand met by small/ local/regional players Substantial demand throughout the year.MP Agros 3 Global AgriSystem Pvt. This is an essential unit for the growth of agriculture and horticulture produce in the state. The viability of the other projects will also get increased with this unit.6 Cost of project The project profile is planned on pan India basis. Product Potato Chocolate Poultry Fruits & Vegetables Dairy products (Butter & Cheese) Ice Cream Characteristics Accounts for almost 90% of existing cold storage capacity Highest outsourcing demand among various product segments. No dominant player yet. Major players not very active Significant share of small players Highly seasonal High demand in peak season High growth 35% demand shared by small players Based on the above. Poultry & Fish 1. No dominant player among service providers Almost 100% demand captured by Snowman and RK Foodland – both pan India players Stable and High demand throughout the year. The profile for the cold chain unit is created as per requirement of the 3rd / 4th years. it is recommended that Promoters should concentrate on the following products:  Domestic distribution on all India basis  Fruits & Vegetables (fresh and processed)  Chocolates  Ice Cream  Dairy products  Meat. The total cost of the project is 3771.1.5. Project Profiles .

82 14.8 Profitability statement Year 1 Year 3 Year 5 Year 7 4 PARTICULARS Project Profiles .186.52 Phase 2 Phase 3 - 159.771.39 285.97 0. Ltd.58 793.845.05 659.65 11.77 164.16 Year 7 591.213.39 - 67.39 882.719.39 882.94 9.MP Agros Year 8 Year 10 Year 12 Year 14 Year 15 Global AgriSystem Pvt.14 8.60 882.82 14.771.09 Year 9 564.24 Year 7 3.58 2.00 Year 5 3.59 274.Particulars LAND DEVELOPMENT COST BUILDING PLANT & MACHINERY MISC.070.14 0.58 186.52 2.96 17.14 2.10 3.25 0.09 35.76 258.00% Phase 1 580.35 274.22 476.412.91 Year 15 789.39 882.294.771.412.344.51 1.223.22 476.85 143.14 3.54 845.40 291.96 871.64 23.79 0.771.32 1.63 PARTICULARS LIABILITIES SHARE CAPITAL RESERVES & SURPLUSES CURRENT LIABILITIES TOTAL 1.76 1.174.96 PARTICULARS SOURCES OF FUNDS INCREASE IN SHARE CAPITAL NET PROFIT INCREASE IN CURRENT LIABILITIES DEPRECIATION PRELIMINARY EXP.45 3.51 76.1 Cash flow statement Year 1 46.22 - Grand Total 580.473.52 2.40 Year 9 3.52 46.59 501.85 0.00 2.14 3. FIXED ASSETS LOGISTICS TOTAL FIXED ASSETS PRE-OPERATIVE EXPENSES Total MEANS OF FINANCE EQUITY Total 100.22 424.84 31.25 Year 11 747.76 847.76 1.13 Year 5 476.771.421.22 476.19 Year 15 3.560.14 - 1.22 68.771.600.702. Your Partner in Agri-business .771.80 80.19 30.86 9.25 824.42 228.94 605.771.16 9.14 1.92 Year 3 3.81 Year 11 3.7 Projected balance sheet Year 1 2.10 Year 3 882.68 Year 13 768.363.6.408.42 6.25 7.30 2.55 8.56 35.94 9.122.80 80.38 245.84 68.86 2.876.43 32.412.86 120.21 4.983.W/O TOTAL 1.14 3.50 476.771.369.30 3.522.14 6.92 526.55 10.83 186.92 5.99 225.69 388.71 42.51 36.77 Year 13 3.412.52 204.14 5.85 37.

14 594.82 1.97 3.27 1.79 3. ENGINEER/SUPERVISOR MAINTENANCE SUPERVISOR WORKERS SKILLED WORKERS UNSKILLED WORKERS TOTAL NOs.45 186.88 392.13 173.06 228.229.57 1.157.655.282.21 2.282.25 243.425.76 410.20 3.90 785.74 789.36 2.22 1.402.76 640.29 2.58 919.655.29 2.54 285.MP Agros 5 Global AgriSystem Pvt.30 245.80 19.61 215.115.36 2.699.13 35.438.94 9.94 9.03 1.10 394.217.9 Key indicators 602.W/O PROFIT BEFORE TAX TAXES PROFIT AFTER TAX 930. Your Partner in Agri-business .29 2.180.15 1.01 607. Ltd.64 424.37 761.60 591.10 Manpower Requirement PARTICULARS ADMINSTRATIVE STAFF MANAGER-ADMN & OPRN ACCOUNTS & DESPATCH TECHNICAL MANAGER LOGISTIC DISTRIBUTOON REF.39 39.151.22 NET PROFIT AFTER TAX INTERNAL RATE OF RETURN BREAK EVEN POINT % PAY BACK PERIOD (YRS) 1.16 9.735.82 46.66 49.52 186.92 602.23 274.48 325.NET SALES REALISATION TOTAL COSTS GROSS PROFIT DEPRECIATION PRELIMINARY EXP.128.23 1.76 896.34 3.167.77 687.70 1.40 1.62 6. 1 6 2 1 1 6 6 23 Project Profiles .39 304.72 338.655.252.181.75 125.282.47 1.05 925.134.774.14 1.42 941.25 1.130.76 46.86 9.36 2.148.93 396.97 95.80 3.98 1.57 3.

500 800 2.34% 10. FIXED ASSETS DEVELOPMENT COST LOGISTICS COST MAINTENANCE REPAIR & MAINTENANCE TPA 6050 50% 70% 90% MTPA 1. Ltd.34% 7.07% 1.350 750 800 2. Project Profiles .500 HP 743 3.11 Assumption CAPACITY Capacity Per Annum CAPACITY UTILIZATION Year I Year II Year III SALES PRICE Storage-Rent Ice Cream Chocolate Dairy Products F&V-Imported F&V-Frozen Potato Horticulture Produce POWER Connected Load DEPRICIATION AS PER COMPANY’S ACT BUILDING PLANT & MACHINERY MISC.63% 16.00% The actual cost of projects may deviate on change of any of the assumptions.21% 2.1.MP Agros 6 Global AgriSystem Pvt. Your Partner in Agri-business .500 2.