FEASIBILITY REPORT BASED ON THE DESIGN OF COLD STORAGE FOR BANANA HARISH.docx

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FEASIBILITY REPORT BASED ON THE

DESIGN OF COLD STORAGE FOR BANANA

ABSTRACTThis document discusses about the feasibility based on the design of ripening chamber of 2000

tonnes of banana.

INTRODUCTIONThe 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 immatureinflorescence 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 3 – 20 tiers, or commercially as a "banana stem", and can weigh from 30 – 50

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 roundavailability, 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.)

Production

(‘000 MT)

Productivity

(MT/Ha.)

Maharashtra 59.7 3924.1 65.7

Tamil Nadu 84.6 3543.8 41.9

Karnataka 53.8 1277.6 23.8

Gujarat 33.1 1154.3 34.8

Andhra Pradesh 50.5 1111.2 22.0

Madhya Pradesh 18.2 736.5 40.5

Assam 43.6 605.9 13.9

Bihar 27.2 544.9 20.0

Kerala 28.1 395.4 14.1

Others 67.2 916.2 -

TOTAL 466.2 14209.9 30.5

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 Coimbatore, Erode, Thoothukudi, Tirunelveli, Trichy, Vellore,

Kanyakumari and Karur districts

Major Markets in Tamil Nadu Trichy, Coimbatore, Theni



Banana varietiesCommercially, 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 Varieties grown

Andhra Pradesh - Dwarf Cavendish, Robusta, Rasthali, Amritpant, Thellachakrakeli,

Karpoora Poovan, Chakrakeli, Monthan and Yenagu Bontha

Assam - Jahaji (Dwarf Cavendish), Chini Champa, Malbhog, Borjahaji

(Robusta), Honda, Manjahaji, Chinia (Manohar), Kanchkol, Bhimkol,

Jatikol, Digjowa, Kulpait, Bharat Moni

Bihar - Dwarf Cavendish, Alpon, Chinia , Chini Champa, Malbhig, Muthia,

Kothia , Gauria

Gujarat - Dwarf Cavendish, Lacatan, Harichal (Lokhandi), Gandevi Selection,

Basrai, Robusta, G-9, Harichal, Shrimati

Jharkhand - Basrai, Singapuri

Karnataka - Dwarf Cavendish, Robusta, Rasthali, Poovan, Monthan, Elakkibale

Kerala - Nendran (Plantain), Palayankodan (Poovan), Rasthali, Monthan, Red

Banana, Robusta

Madhya Pradesh - Basrai

Maharashtra - Dwarf Cavendish, Basrai, Robusta, Lal Velchi, Safed Velchi, Rajeli

Nendran, Grand Naine, Shreemanti, Red Banana

Orissa - Dwarf Cavendish, Robusta, Champa, Patkapura (Rasthali)

Tamil Nadu - Virupakshi, Robusta, Rad Banana, Poovan, Rasthali, Nendran,

Monthan, Karpuravalli, Sakkai, Peyan, Matti

West Bengal - Champa, Mortman , Dwarf Cavendish, Giant Governor, Kanthali,

Singapuri



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 non-

ideal 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 storageWith 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 storedin 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 product’s 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 don’t 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 IndiaThe 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 storeonly 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 Units Capacity (lakh tons)

Potato 2,012 92.82

Multipurpose 447 7.63

Fruits & Vegetables 198 1.07

Meat 23 0.09

Fish 360 0.73

Meat & Fish 30 0.15

Milk & Dairy Products 272 0.68

Others 101 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 obtainmaximum 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 3 – 4 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 LocationFor 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 StatusIt 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 BENEFITUnder 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 isavailable for setting up of cold storages. National Horticulture Board (NHB) provides capital investmentsubsidy @ 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 coldchain @ 50% of cost of plant, machinery and technical civil works in general areas and 75% for NorthEastern 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 and25% of eligible cost for setting up of common infrastructure facilities, including cold storage. Theestablishment of cold storages is a project based activity and projects are sanctioned by variousDepartments 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 originatefrom 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 andtraders.

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 andinternational 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 otherwisemay 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 assuringavailability 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 ANALYSISIndia 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 India’s bananas wereUAE, Saudi Arabia, Iran, Kuwait and Bahrain respectively. These countries have imported more than 50 per cent of India’s bananas during the period.

TechnologyA 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 totake 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. Wall, floor and ceiling heat gains due to conduction

2. Wall and ceiling heat gains from solar radiation

3. Load due to ingression of air by frequent door openings and during fresh air charge.

4. Product load from incoming goods

5. Heat of respiration from stored product

6. Heat from workers working in the room

7. Cooler fan load

8. Light load

9. Aging of equipment

10. 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 36.8*15.4*3.4 m

Outside surface area 600 sq. m

Insulation 7.6 cm of polyurethane with a conductivity value

(k) =

1.3 kJ per m2

per cm thickness per ºC

Coefficient of transmission (U) = 1.1 kJ per h per

m2

per ºC

Ambient conditions at harvest 30°c and 50% RH

Fruit temperature At harvest 28°C ;at ripening 17°C; at storage

13°C

Storage capacity(1 chamber) 169 cartons each of 118kg of fruit

carton weight 9 kg total weight of cartons = 1521kg

Loading weight and time 169 cartons ( 20000 kg per day ) 1 day to fill

Cooling rate 1

st

day 28°C to 17°C

Air changes from door openings during cooling Six per day (assumption)

Air changes from door openings during storage 1.8 per day (assumption)

Specific heat Banana= 1.67KJ/kg°C



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 ºC (50% RH) 74.5 kJ per m3

Load during cooling and filling cold storage:

Temperature difference (TD) = 28°C - 17°C = 11°C

Assuming 11°C TD on all surfaces

KJ per 24 hours

Building-transmission load:

Area *U*TD*h = 200 m2 * 1.1KJ *11°C*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 ºC) * 4.186 =20000 * 1.67* 11*4.186

= 1537936.4KJ

Carton weight * specific heat * TD (28 to 17 ºC) *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 58080

2. Air change 83649.792

3. Product cooling 1572954.383

4. Miscellaneous 85120

Subtotal 1799804.175

Add 10% to be cautious 179980.4175

Total required refrigeration 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 No s Monthly salary Total monthly salary

Technicians 2 7000 14,000

Godown Keepers 12 5000 60,000

Helpers 2 2000 4,000

Security Guards 2 1500 3,000

Total 81,000



Tentative implementation schedule

Activity Period ( in months)

Application and sanction of loan 3

Site selection and commencement of civilwork 1

Completion of civil work and placement of

orders for machinery

4

Erection, installation and trial runs 1

Total 9

Land and building

Particulars Area sq mts Cost in lakhs

Land 800 9.56

Building 600 21

Machinery and equipment required

Particulars Suppliers

Machinery (Ammonia

Refrigeration System)

Sundersingh and Sons, 1/6, Roop Nagar, NewDelhi- 110006

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



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 Amount in lakhs

Land and Building 30.56

Machinery and equipments 60

Miscellaneous Assets 0.25

P&P Expenses 0.75

Contingencies @ 10% on Land and

Building & Plant & Machinery

9.10

Working Capital Margin 2

Total 102.66



Means of Finance

Promoters' Contribution 31.8

Term Loan from Bank/FI 70.86

Total 102.66

Debt Equity Ratio 1.9 : 1

Promoters' Contribution 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, andthird 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 1st Year 2nd Year 3rd Year

Installed Capacity 2000 tonnes 2000 tonnes 2000 tonnes

Capacity Utilisation 60% 75% 80%

Sales Realisation 12.60 15.75 16.80

Cost of Production

Utilities 3.60 4.50 4.80

Salaries 3.72 4.68 4.77

Stores and Spares 0.30 0.45 0.54

Repairs &

Maintenance

0.24 0.36 0.42



Selling &

Administrative

Expenses

0.48 0.66 0.80

Total 8.34 10.65 11.33

Profit before Interest &

Depreciation

4.26 5.1 5.47

Interest on Term Loan 0.51 0.612 0.65

Depreciation 2.95 0.40 0.057

Profit before Tax 0.8 4.08 4.76

Income-tax @ 20% 0.16 0.816 0.952

Profit after Tax 0.64 3.264 3.808

BREAK-EVEN ANALYSIS

No Particulars Amount in lakhs

[A] Sales 15.75

[B] Variable Costs

Utilities (85%) = 3.82

Salaries (65%) = 3.0

Stores & Spares = 0.45

Selling Expenses (50%) = 0.33 7.6

[C] Contribution [A] - [B] 8.15

[D] Fixed Cost 4.71

[E] Break-Even Point [D] ÷ [C] 57.7 %

Machinery and equipment required

Particulars Suppliers

Machinery (Ammonia

Refrigeration System)

Sundersingh and Sons, 1/6, Roop Nagar, New

Delhi- 110006

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

Insulation ( polyurethane) Jonson tapes limited

No. 225, Vardhman Fortune Mall, G. T. KarnalRoad, 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

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FEASIBILITY REPORT BASED ON THE DESIGN OF COLD STORAGE FOR BANANA HARISH.docx

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