Cold Storage (15MT Capacity)

Financial Analysis
Option-1
If the onions are stored on rented basis, the rent charge
Collected revenue
Option-2
A- If the products stored on rented basis as well as by own trading
Products stored on rented basis
Revenue collected
B- Products will be stored by own trading
Average profit of onions
Profit for 4 MT vegetable
Total profit will be A +B

Analysis Of Cost of Cold Storage Facility

S. No Description
1 Chamber Size
2 Dimension
3 Cost of machinery
4 Civil cost 192sqft @600/sqft
5 Insurance
6 Solar Power Setup Cost
7 Cost of Generator, Accessories, Plastic crates
8 Misc.
9 Tax, Installation etc
10 Total Employe Cost
11 Vehicle Cost
Total

Break Even ( in years)

Daily Charge

Yearly Charge
0.3
1350000

90

11000
990000
4000
5 Number of Rotations
160000
1150000

Employee
Specifications
Facility Manager
15 MT
Helper
25 x 10 x 10
Driver
465000
115200
10,000
400000
390000
3,550
116250
276000
600000 Cost of TATA SFC 407 EX PICK UP
2376000
Option 1

Option 2
1.1314285714

0.5476190476

(Assuming 300 Working days)

Number
1
1
1

Cost Per Employee

Total Cost
15000
180000
3000
36000
5000
60000
276000

3. BASIS AND PREASSUMPTIONS.

Assumptions for working out economics of a 5000 MT capacity potato cold storage
1. 70% of the capacity is rented out and rest 30% capacity is used to store potato
owned by the promoter(s).
2. Rental charges per season per MT of potato are Rs. 1800/-.
3. Marketing margin on own potato considered at Rs. 6500/- per MT.
4. Electricity and other utilities expenses at Rs. 410.4/- per MT per annum.
5. Insurance charges for the potato considered as Rs. 40/- per MT per season.
6. Margin money considered at 25% of the financial outlay.
7. Interest on term loan considered at 15% per annum.
3
8. Even though the life of the cold storage will be much more, the life has been
considered as 15 years for working out internal rate of return.
9. Depreciation rate of 5% and 9% has been considered for civil structures and plant
& respectively.
4. IMPLEMENTATION SCHEDULE.
1. Provisional registration with the Director of industries (DIC) one week.
2. Site selection, Land development, Power connection, Water Connection &
Construction of Building 12 months.
3. Purchasing machinery, equipments and employing personnel 02 month.
4. Installation of machinery 02 months
5. Testing installed machinery & Marketing 01 month.
The proposed unit can be set up in 18 Months.
5. TECHNICAL ASPECTS.
5.1 Process of Service / Manufacturing.
After harvesting potato transport it to cold storage premises then pre cool it in precooler
remove damaged potatoes then pack in certain quantity like 50Kg, 100 Kg bags, number
bags and store in cold storage racks. Maintain constant cooling whenever potato /
products are in storage, frequent inspection of stored product is required. Transport to
wholesale market whenever required.
5.2 Quality Specifications.
Constant continuous cooling, security of product, perfect service is essential.
5.3 Service Capacity per Season /Annum.
Quantity: 5000 MT of Potatoes
Value : 1,60,50,000 Rs
5.4 Motive Power. Three phase, 75 HP (For Vapor Compression Refrigeration System)
6. TOTAL CAPITAL INVESTMENT.
Sr.
No.
Description Value Rs.
1. Fixed Capital 29000000.00
2. Working Capital (3 times of WC/ Month) 752856.00
Total Cost 2,97,52,856.00
Say
3,00,00,000

7. MEANS OF FINANCE. Rs.

1. Promoters Contribution (25 % of Total Cost) 75.00,000.00
2. Bank Loan (Total Cost - Promoters Contribution ) 2,25,00,000.00
8. FINANCIAL ASPECTS.
8.1 FIXED CAPITAL.
Sr.
No.
Description Cost / MT
(Rs)
Value
(Rs)
1. Civil cost 3200.00 16000000.00
2. Insulation cost 900.00 4500000.00
3. Machinery & Equipment cost 1500.00 75,00,000.00
4. Miscellaneous cost 200.00 10,00,000.00
Total Fixed Cost 2,90,00,000.00
4
8.2 WORKING CAPITAL.
8.2.1 Establishment Expenses per Month & Year.
Sr.
No.
Designation Persons Salary
(Rs / Month)
Value
(Rs/Year)
1. Manager 1 15000.00 180,000.00
2. Supervisor 1 10000.00 120,000.00
3. Skilled worker 2 6000.00 144,000.00
4. Labors/ helpers for loading, unloading
product & other related work
5 3500.00 210,000.00
Total Cost for Staff & Labor 34500.00 6,54,000.00
8.2.2 Maintenance & Repair Expenses per Month & Year.
Sr.
No.
Description Quantity
Per Month
M&R Expenses
(Rs/Month)
Value
(Rs/Year)
1. Refrigerant (NH3 ) 30 Kg 7084.00 85000.00
2. Lubricants 10 Lit. 2000.00 24000.00
3. Fuel 06 Lit. 500.00 6000.00
4. Preventive maintenance cost 6250.00 75000.00

5. Parts to Replace 6250.00 75000.00

6. Repairing expenses 4167.00 50000.00
Total M & R Expenses 26251.00 3,15,000.00
8.2.3 Utilities per Month & Year.
Sr.
No.
Description Units Bill
(Rs / Month)
Value
(Rs/Year)
1. Power (125 KW @ 5 ) 34000 170000.00 2040000.00
2. Water 1000.00 12000.00
Total Utilities 171,000.00 20,52,000.00
8.2.4 Other Expenses per Month & Year.
Sr.
No.
Description Expenses
(Rs / Month)
Value
(Rs/Year)
1. Insurance charges of stored product / potato 16667.00 200000.00
2. Postage & Stationary 500.00 6000.00
3. Conveyance and Transport 1000.00 12000.00
4. Advertisement & Publicity
(Stickers , pamphlets & Cards )
834.00 10000.00
5. Other Unforeseen Expenses 200.00 2400.00
Total other Expenses 19201.00 230400.00
8.2.5 Total Working Capital Per Month.
Sr.
No.
Description Value Rs
1. Total Establishment Expenses per Month 34500.00
2. Total Maintenance & Repair Expenses per Month 26251.00
3. Total Utility (Power & Water Expenses) per Month 171000.00
4. Total Other (Insurance, Marketing etc)Expenses Per Month 19201.00
Total Working Capital Per Month 2,50,952.00
5
9. COST OF PRODUCTION / SERVICE PER ANNUM.
Sr.
No.
Description Value Rs
1. Total Working Capital Per Annum 30,11,424.00
2. Depreciation on Machinery & Equipment 6,75,000.00
3. Interest on total capital investment (FC+WC) 44,62,928.00

Total Cost of Servicing Per Annum 81,49,352.00

10. TURNOVER PER YEAR.
Sr.
No.
Description Quantity
(MT)
Rate
(Rs /MT)
Value
(Rs)
1. 70 % capacity of cold storage is rented 3500 1800.00 63,00,000.00
2. 30% capacity of cold storage is used to
store potato owned by promoter(s)
1500 6500.00 9750000.00
Total revenue per year 1,60,50,000.00
11. FIXED COST PER YEAR.
Sr.
No
Description Value Rs
1. Depreciation of Machinery, equipment & Insulation
(At the rate 9% / Year in average)
10,80,000.00
2. Depreciation of civil structure (At the rate 5% / Year ) 8,00,000.00
3. Interest 44,62,928.00
4. 40 % of Salaries & Wages 2,61,6000.00
5. 40 % of Other Expenses (Utilities + OE) 9,12,960.00
Total Fixed Cost per
year
75,17,488.00
12. PROFIT ANALYSIS.
Profit : Revenue per year-Total Cost of Servicing Per Annum : 79,00,648.00 Rs
Income Tax on Profit @ 30% : 23,70,194.00 Rs
Net Profit (PAT) : 55,30,453.00 Rs
% of Profit on Sale : Net Profit / Sale 100 : 34.46 %
% of Return on Investment : Net Profit / (FC + WC) 100 : 17.28 %

PROFIT ANALYSIS
COOL CHAMBER (10MT CAPACITY)
Products storage Capacity =100 Qtls
Option-1
If the product stored on rented basis, the rent charge is Rs.0.30 kg /
Collected revenue will be = Rs.10000 x 0.30 x 300 = Rs.9,00,000 pe
Option-2
A- If the products stored on rented basis as well as by own trading.
Products stored on rented basis = 7 MT
Revenue will be collected Rs. 0.30 / kg / day = Rs.7000 x 0.30 x 300
B- Products will be stored by own trading = 3 MT (8 rotation in a yea
Average profit of mixed vegetables = Rs.5 / kg
Profit for 3 MT vegetable = 3000 x 5 x 8 = Rs.1,20,000/Total profit will be A +B = Rs.6,30,000/- + Rs.1,20,000/= Rs.7,50,00

ANALYSIS OF COST OF 10MT COOLCHAMBER

Sl.
No.
Description
Specifications
1
Chamber size
10MT
2
Dimension
14 x 10 x 10
3
Cost of machinery
Rs.4,65,000/4
Civil cost192sqft @600/sqft
Rs.1,15,200/5
Electrification, Stabiliser
Rs.70,000/6
Insurance
Rs.10,000/7
Cost of Generator, Accessories, Plastic crates
Rs.3,90,000/-

8
Misc.
Rs.3,550/9
Tax, Installation etc
Rs.1,16,250/Total
Rs.11.70 lakh

harge is Rs.0.30 kg / day (maximum 300 days storage in a year)

300 = Rs.9,00,000 per year
as by own trading.

Rs.7000 x 0.30 x 300 = Rs.6,30,000/T (8 rotation in a year)

20,000/= Rs.7,50,000/-