Business Planning Cold Storage & Warehouse

Anand Jha

Are you aware that what percent of fruits and vegetables are wasted every year…

What if we try to store them??

For Internal Circulation OnlyTinkazzz Cold Storage Pvt. Ltd.

Tinkazzz Cold Storage Pvt. Ltd.

Tinkazzz Cold Storage Pvt. Ltd. For Internal Circulation Only

Anand Jha

Anand Jha

Contents

Introduction

Business Model

Unique Selling Point

Financial Snapshot

Ratio Analysis

Assumptions


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Scope

11% of worlds total vegetable production is accounted by India alone, but India's share in global vegetable trade is only 1.7%.

One of the key reason for high food inflation in India is the lack of efficient supply chain for food, of which Cold chains form an integral part.

Change in lifestyle and demand for processed or packaged food is creating the need for cold storage solutions across India.

Subsidy by government in this Sector.


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Disclaimer

This Business Plan is confidential and contains proprietary information and intellectual property of Tinkazzz Cold Storage Pvt. Ltd. Neither this Business Plan nor any of the information contained herein may be reproduced or disclosed under any circumstances without the express written permission of Tinkazzz Cold Storage Pvt. Ltd. This Business Plan does not constitute an offer to sell or solicitation of an offer to buy securities of Tinkazzz Cold Storage Pvt. Ltd. Any such offers and sales will be made only to “Accredited Investors,” as defined in Regulation D under the Securities Act of 1933, as amended, pursuant to separate agreements to be negotiated by the parties.

© 2014 by Tinkazzz Cold Storage Pvt. Ltd. All rights reserved.


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INTRODUCTION


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Company Description

Company Name : Tinkazzz Cold Storage Pvt. Ltd.Tag Line : Freshness lies here…Regd. Office Add. : Chitkara Incubation CenterLegal Entity : Private LimitedAuthorized Capital : 120 LacSubscribed Capital : 120 Lac


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Mission & Vision

Vision•Through a continuous focus on service, quality and efficiency, we will set the industry standard in service excellence by partnering with customers to execute an effective distribution program for their products.

Mission•Creating, developing & providing reliable, timely cold chain solution to achieve customers satisfaction and eradicate the wastage of Fruits & Vegetables.


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Objective of the Company

To improve Product Integrity.

To Reduce Cost.

To increase Customer Satisfaction.

To achieve reduction in overall wastage of Fruits &

Vegetables.


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NAME AMOUNT OF SHARE

ANAND JHA 16.66%

SHASHANK KAPOOR 16.66%

ADITI GOEL 16.66%

ARUSHI BANSAL 16.66%

SACHIN CHOPRA 16.66%

ANDREW JOHN 16.66%

Shareholding Pattern

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Partner Introduction

Anand JhaMBA, Marketing

Shashank KapoorMBA, Marketing

Aditi GoelMBA, Finance

Arushi BansalMBA, Finance

Sachin ChopraMBA, Marketing

Andrew JohnMBA, Marketing


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Project Assumption

Total Land 1 acre

Land Cost @ 40 Lac

Building & Equipment set up time 6 months

Capacity will be of 5000 MT

Latest Technology

Go green Concept


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BUSINESS PROCESSWhat business processes must we excel at?

• Warehouse on rent• Refrigerated Vans for delivery

STRATEGY

FINANCIALHow should we appear to our stakeholders?• Broaden revenue max• Improve operating efficiency• Improve enterprise financial health

CUSTOMERHow should we appear to our customers?•Service excellence•Trusted business partner

LEARNING & GROWTHHow can we sustain our ability to change and improve?• Hire Key Technical talent• Implement cross training• Align personal goals

Overall Strategy


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BUSINESS MODEL


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Business Idea

Production & Wastage in India 2009-10

Production & Wastage in India 2010-11

Source: Emerson report, 2013 on food wastage & Cold StorageTinkazzz Cold Storage Pvt. Ltd.

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Annual Wastage

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State-wise Present Capacity of Cold Storage

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Market Opportunities

63000

30.11 Million

M.T.

Opportunities

61.13 Million

M.T.

550.74 Billion

Cold Storage Facility

Installed Capacity

Estimation

Estimated Investment

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Building Relationship

Harvesting

Ripening

Packaging

Cold storage

Transport

Value Chain


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Fruits

Vegetables

Apples

Cherries

Kiwi

Potato

Tomato

Product Mix

Pears

Capsicum


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Target Customers

Farmers

Retailers

Mandis

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Current Problems

Lack of Storage Capacity for Fruits & Vegetables

Non Availability of Seasonal Fruits & Vegetables

Can’t Store for longer time in Normal Temperature


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Competitive Landscape


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Name Of Players Address Services & Capacity

Shah Cold Storage Amritsar MultipurposeCapacity : 3840 MTPrivate Ltd.

Harnam Cold Storage Bathinda MultipurposeCapacity : 8000 MTPrivate Ltd.

National Cold Store, Navashehar Firozpur PotatoCapacity : 5745 MtPrivate Ltd.

Anand Cold Store, Kartarpur Kapurthala PotatoCapacity : 4400 MtPrivate Ltd.

Punjab Cold Store Ludhiana PotatoCapacity : 11600 MtPrivate Ltd.

Leading Players

Tinkazzz Cold Storage Pvt. Ltd. For Internal Circulation Only

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Existing Scenario

For Internal Circulation OnlyBusiness Planning & Financial Modelling

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Unique Selling Point

Refrigerated Vans

Go Green Concept

Pillar less Structure

Systematic Warehousing


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Market Size

The current worth of Indian cold chain market is $3 billion. The market is emerging yet increasingly demanding and expected to grow to $12.4 billion by the end of 2015.


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Compound Annual Growth Rate (CAGR)


FINANCIAL SNAPSHOTS


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Particulars Rs.Capital Outlay 4,00,00,000

Capital Structure

Equity 30% 1,20,00,000

Debt 70% 2,80,00,000

AUTHORISED CAPITAL 1,20,00,000

ISSUED CAPITAL (1) 1,20,00,000

SUBSCRIBED CAPITAL (2) 1,20,00,000

PAID UP CAPITAL (3) 1,20,00,000

FACE VALUE OF SHARE 10

NO. OF OUTSTANDING SHARE 12,00,000

Capital Structure


Projected P&L

For Internal Circulation Only

SUMMARY STATEMENT OF PROJECTED PROFIT AND LOSS ACCOUNT FOR 5 YEARSAll Values in Rs.

Particulars 2015 2016 2017 2018 2019 Revenue Revenue from operations 2,60,76,000 4,30,25,400 4,73,27,940 5,20,60,734 5,72,66,807 Other Income - - - - - Total Revenue (A) 2,60,76,000 4,30,25,400 4,73,27,940 5,20,60,734 5,72,66,807 Expenses Operating Expenses 1,40,00,000 1,44,20,000 1,48,52,600 1,52,98,178 1,57,57,123 Purchases of Stock-in-Trade - - - - - Changes in inventories of Stock-in-Trade - - - - - Employee benefits expense - - - - - Finance costs - - - - - Depreciation 25,00,000 25,00,000 25,00,000 25,00,000 25,00,000 Loan Amortization expense 31,26,008 25,74,556 19,53,167 12,52,970 4,63,971 Other expenses - - - - - Total Expenses (B) 1,96,26,008 1,94,94,556 1,93,05,767 1,90,51,148 1,87,21,094 Profit before tax (A-B) [PBT] 64,49,992 2,35,30,844 2,80,22,173 3,30,09,586 3,85,45,713 Tax Expenses Tax (30%) 19,34,998 70,59,253 84,06,652 99,02,876 1,15,63,714 Profit after tax (A-B) [PAT] 45,14,995 1,64,71,591 1,96,15,521 2,31,06,710 2,69,81,999

Tinkazzz Cold Storage Pvt. Ltd.Anand Jha

Net Present Value


Years

Particulars 2015 2016 2017 2018 2019

Cash Inflow 26,66,868 1,40,72,012 1,65,94,554 1,93,85,546 2,24,71,836

Cash outlay 1,20,00,000

NPV Rs. 5,04,81,918


Internal Rate of Return


Years

Particulars 2015 2016 2017 2018 2019

Depreciation 25,00,000 25,00,000 25,00,000 25,00,000 25,00,000

Profit after tax (A-B) [PAT] 45,14,995 1,64,71,591 1,96,15,521 2,31,06,710 2,69,81,999

Loan Repayment 43,48,127 48,99,578 55,20,967 62,21,164 70,10,163

Cash Inflow -1,20,00,000 26,66,868 1,40,72,012 1,65,94,554 1,93,85,546 2,24,71,836

IRR 78%


Payback Period


Years

Particulars 2015 2016 2017 2018 2019

Cash Inflow 26,66,868

1,40,72,012

1,65,94,554

1,93,85,546

2,24,71,836

Cash outlay 1,20,00,000

NPV Rs. 5,04,81,918 Profitability Index 4

PI >1 Accept the project



ASSUMPTIONS


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Revenue Assumptions


Capacity Utilization Calculations

Years

2015 2016 2017 2018 2019

Months

1 10% 90% 90% 90% 90%

2 20% 90% 90% 90% 90%

3 30% 90% 90% 90% 90%

4 40% 90% 90% 90% 90%

5 50% 90% 90% 90% 90%

6 60% 90% 90% 90% 90%

7 70% 90% 90% 90% 90%

8 80% 90% 90% 90% 90%

9 90% 90% 90% 90% 90%

10 90% 90% 90% 90% 90%

11 90% 90% 90% 90% 90%

12 90% 90% 90% 90% 90%

60% 90% 90% 90% 90%

Average Utilisation/Year


Product Category

Products

Product Mix

Capacity Utlisation MT

Value Mutliple

Total Capacity MT

Renting Daily 20% 1000 365 3,65,000

Weekly 30% 1500 52 78,000

Monthly 50% 2500 12 30,000

Total Capacity MT 5000

YearPricing 2015 2016 2017 2018 2019

Rate/MT Growth Rate 10% 10% 10% 10%

Daily 100 100 110 121 133 146

Weekly 70 70 77 85 93 102

Monthly 50 50 55 61 67 73

YearPricing 2015 2016 2017 2018 2019

Daily 2,19,00,000 3,61,35,000 3,97,48,500 4,37,23,350 4,80,95,685

Weekly 32,76,000 54,05,400 59,45,940 65,40,534 71,94,587

Monthly 9,00,000 14,85,000 16,33,500 17,96,850 19,76,535 Total 2,60,76,000 4,30,25,400 4,73,27,940 5,20,60,734 5,72,66,807 Anand Jha

Expenses Assumption


Years

2015 2016 2017 2018 2019

Growth Rate 3% 3% 3% 3%

Salaries 25,00,000 25,75,000 26,52,250 27,31,818 28,13,772

Electricity 40,00,000 41,20,000 42,43,600 43,70,908 45,02,035

Fuel 30,00,000 30,90,000 31,82,700 32,78,181 33,76,526

Water 25,00,000 25,75,000 26,52,250 27,31,818 28,13,772

Miscellaneous 20,00,000 20,60,000 21,21,800 21,85,454 22,51,018

Total 1,40,00,000 1,44,20,000 1,48,52,600 1,52,98,178 1,57,57,123


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Depreciation


TINKAZZ COLD STORAGE PRIVATE CO.

VALUE OF ASSETS AFTER DEPRECIATION

SR NO PARTICULARS 2015 2016 2017 2018 2019

1 Plant & Machinery to be financed 2,00,00,000

DEPRECIATION @ 10% 20,00,000 20,00,000 20,00,000 20,00,000 20,00,000

2 Furniture & Fixtures to be financed 10,00,000

DEPRECIATION @ 10% 1,00,000 1,00,000 1,00,000 1,00,000 1,00,000

3 Land 40,00,000

DEPRECIATION @ 10% 4,00,000 4,00,000 4,00,000 4,00,000 4,00,000

TOTAL DEPRECIATION 25,00,000.00 25,00,000.00 25,00,000.00 25,00,000.00 25,00,000.00


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Loan Repayment Schedule


DEBT 28000000

TERM 5

INTEREST 12%

PMT 622845

YEAR INTEREST PRINCIPAL

2015 3,126,008 4,348,127

2016 2,574,556 4,899,578

2017 1,953,167 5,520,967

2018 1,252,970 6,221,164

2019 463,971 7,010,163


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The road ahead

“Nothing ever becomes real till it is

experienced”


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Date post:	14-Jun-2015
Category:	Marketing
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