ZERO ° COLD STORAGE

PVT.LTD

Reg. Off : 201, Nariman Chamber, Fort,

Mumbai-400101
Phone No: 0120-22787789
Website Add: www.zerodegree.com
BACKGROUND:
 India Second largest producer country of fruits and
vegetable

 Horticulture Contribute about 28% of agricultural GDP of

India

 Post harvest losses and wastage to the tune of INR 44,000

cr. Per annum

 Budget 2011-12 considered as part infrastructure-priority

sector for lending

 100% Foreign Direct Investment in Budget 2011-12

 CURRENT SCENARIO
 India contribute 1% to world market against 20% by China

 40% of annual production of fruits and vegetables gets

wasted

 Contribute 17% of global milk production, 10% gets wasted

 Less than 2% of fruits and vegetables are processed, high

growth prospectus in this sector

 Tremendous pressure on improving supply chain and

reducing wastage

 Maintaining market price equilibrium throughout the year

is need of hour
 OUR VISION & OUR MISSION:
 To achieve  To provide our
sustainable leadership customer with quality
position in cold services
storage business in
India  To ensure that quality
of stored product is
preserved and
protected

 To be prompt in our
service
OUR MOTTO:

IT'S NOT JUST COOL, IT'S SAFE COOL!!!

OUR CORE VALUES:

 Safety
 Service

 Integrity

 Team work

 Respect
ORGANIZATION STRUCTURE:

Sr. Operator Support Staff

GM-Operations
&
Administration
HR Manager
Managing
Director

GM- Marketing
Commercial Team Leaders
Manager

Finance Asst. Fin.

Manager Manager

More 100-125 more unskilled labor on daily wages for loading

and unloading.
SWOT ANALYSIS:
Strengths Opportunity

 India one of the top 5  Ready availability

producer of perishable makes expansion a
product viable option
 Govt. incentives and  It gives an edge over
subsidy other logistical
 Consumer preference operations.
 Growth in Retail  Modernization of

Sector of processed current infrastructure

goods  Relatively inelasticity
to prices
CONT………………
Challenges Threats

 Rising real estate cost  High real estate cost

 Lack of proper result in high
infrastructure transportation cost
 Rising energy cost  Large investment
required
 Uneven distribution of
capacity  Irregular Government
policies
 FDI restriction in
retail
 Lack of technology
OPERATIONAL PLAN:
 Implementation Schedule

Sr.No. Nature of Activity Time Duration

1. Registration and Other Legal 15 days
formality

2. Availability of Finance 3 Months

3. Machinery Procurement , 2 Months
erection and commissioning

4. Trial Run 1 Month

CONT……………..
 Company’s Infrastructure
Sr. No. Components Use of Components
1. Multi Chambered & Multi For commodity that
Commodity Cold Storage need to be stored in plus
temperature
2. Individual Quick Freeze For storing green peas,
mixed vegetables and
other fruits and
vegetables
3. Air cooled Hall For sorting, grading and
packing of raw material
for both
4. Refrigerated Vehicles For transporting fruits
& vegetables from farm
to hub and again to
consumers
CONT……………….

(SOURCE: MODEL PROJECT REPORT OF MFPI)

 Process of Flow of Project

Multi
chambered
cold

Consumers
storage (>
0°)
Farms

CC

IQF Line
(< 0°)
FINANCIALS ASPECTS
CURRENT INDUSTRY PEERS:

 GATI Limited

 Dev Bhoomi Cold Chain Limited

 Gubba Cold Storage Limited

 Snowman Logistics Limited

 Fresh & Healthy Enterprises Limited

 M. J. Logistics Services Limited

BUDGETED PROJECT COST:
(RS. IN LACKS)

Particulars Amt. Share (%)

Land 66.88 2.67
Land & Infrastructure 50.00 2.00
Development
Buildings 703.00 28.08
Plant & Machinery 1374.04 54.89
Utilities & other Fixed Assets 55.00 2.20
Preliminary & Pre-operative 86.53 3.46
Expenses
Contingencies 109.10 4.36
Total Project Cost 2444.55 100.00
Margin Money for Working 58.83
Capital
Total Project Cost 2503.38
SOURCES OF FINANCE

Particulars Share Amount

(Rs in Lacks)
Equity 25.00% 625.84
Grant from MoFPI 39.95% 1000.00
Debt 35.05% 877.53
Total 100.00% 2503.38
FINANCIAL ASSUMPTIONS:
Particulars
Maximum Capacity
Capacity Utilisation
Tariff
Taxes
Depreciation Rates
Interest Rates
Repayment Schedule
Assumptions
 5000MT
 1ST YEAR – 40%
 2ND YEAR – 50%
 3RD YEAR – 70%
 4TH YEAR – 90%
 Rs.700 per MT per month
 Tax Rate at the rate 30.90%
 Minimum Alternate Tax (MAT) at the rate 18.50%
 Deductions u/s 35AD of Income Tax Act,1961
 For Book Purpose – Straight Line Method
 For Tax Purpose – Written Down Value Method
 For Term Loan – 13.50% p.a.
 For Working Capital loan – 14.00% p.a.
 Repayment Period – 8.5 years including the
moratorium period of 10 quarters.
 Estimated equated quarterly installments –
Rs.48.94 lakhs for term loan of Rs.877.53 lakhs
PROJECTED FINANCIALS
YEAR 1 2 3 4

Capacity 60% 70% 90% 90%

Utilization

Revenue (%age) 17% 29% 0%

Revenue 766.50 894.25 1149.75 1149.75

Expenses (%age) 13% 24% 2%

Operating Costs 383.25 447.13 574.88 574.88

Employee Cost 26.64 26.11 25.18 20.56

Admin & Other 41.48 38.72 35.56 27.65

Overheads

Total (B) 451.37 511.95 635.61 623.09

PROJECTED FINANCIALS CONT…………….
(RS. IN MILLIONS)

YEAR 1 2 3 4
EBITDA 315.13 382.30 514.14 526.66
(A) – (B)

Interest & Financial 108.89 96.55 82.47 66.39

Charges on Long
Term Debt
Interest Working 84.00 98.00 126.00 126.00
Capital Borrowing

Depreciation 142.31 142.31 142.31 142.31

PBT (20.07) 45.44 163.36 191.96

Tax - 8.41 30.22 35.51

Net Profit (PAT) (20.07) 37.03 133.14 156.45

MARKETING ASPECT
TARGET CUSTOMER: 20%

Fish & Marine

Product
Industry

25% 30%

Milk & Milk Target Food Processing

Product
Customer Industry
Industry

25%

Farmers Co-op
Society
MARKETING STRATEGIES FOR TARGET
CUSTOMERS

 Advertising in the print media.

 Advertising in the various government published
report.
 Participating in the exhibitions of Food
Processing Industry.
 Special discount to the farmers and other related
agencies producing agricultural products.
 Companies website with online customer
grievance cell
 Applying search engine optimization techniques.
EXPANSION STRATEGY &
FUTURE OUTLOOK
DISTRIBUTION OF COLD STORAGE:
(SOURCE: STUDY BY ACC PROJECTS CONSL.)

Regional Distribution

6%

North
South
33% 47%
West
East
Central

7% 7%
FUTURE EXPANSION PLAN:

Meat &
Southern Central agricultural
Agricultural
region region produce
& fish industry

Eastern Northern
Meat and region region Mergers &
fish Aquisitions
industry
 THANK
YOU !!!!!
Group Members
 Amit Harkhani
 Hinal Shah
 Kunal Janshali
 Neha Agarwal
 Pankaj Tiwari