1000MT Cold Storage Project Report

Description

You can immediate download the 1000MT Cold Storage Construction project report format template, in MS excel or word / pdf format.

These reports will help you prepare a project report as per your objectives. This report will also be helpful in studying the project and gathering information about the project.

Cold storage is a space or cabin where you can walk in and use the freezer allocated areas for storing your food products and medicines. A cold storage unit is a setup of a refrigeration system that maintains or controls the temperature at a set level. The purpose of cold storage is to reduce microbial growth and for the storage of commodities.

The principle behind setting up a cold storage unit is of two types. It consists of Vapor Absorption System-VAS and Vapor Compression System-VCS, which help set up three types of cold storage units: Industrial Rooms, Modular Refrigerator Rooms, and Combination Refrigerator Rooms.  

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Report on a 1000 MT Cold Storage Project for Unit Construction

Cold storage units are essential for the preservation, storage, and preservation of dairy items and fresh and perishable foods.

Importance of cold storage in India

Vegetables and fruits are grown in large quantities in India. Over the years, India has progressed with great success by increasing exports in ready-to-serve beverages, fruit pulps, fruit juices, vegetable products, and other treated fruits. Even though we have made progress, due to the non-availability of proper storage facilities in India, one-third of the horticultural goods worth 500 billion annually is wasted. Improper lifting also contributes to the wastage of items.

1000 MT Cold Storage Unit Market Potential

Recently you must have noticed the sudden increase in the prices of vegetables and fruits in the market. This is due to improper storage facilities, which drive the prices to their high and unpredictable levels. Cold storages are essential to maintain proper steady growth in the market, storing vegetables and fruits without spoilage.

As a result, cold storage appears to be a viable business with significant growth potential, as the demand for perishable foods such as dairy products, vegetables, and fruits continue to climb. Instead, this segment has some problems as there is a little struggle in dealing with the infrastructure and fresh produce.

The estimated production of vegetables and fruits per year in the country is about 130 million tonnes, and it accounts for 18% of our agricultural crop. Most of the production is wasted due to a lack of proper storage facilities, and cold chain units are becoming a significant problem in tapping the vast capacity. Cold storage facilities are currently available in large proportion except for items like potatoes, apples, oranges, pomegranates, grapes, flowers, etc., which lead to poor utilization for storage.

Starting a 1000 MT Cold Storage Unit Business Plan

To create a cold storage business, you must have a cold storage business plan and alert operations. There should be a project report estimating the essential fundamentals in this business to formulate a company plan. You have to choose the unit size based on your savings.

A business plan provides you with many ideas and will not let anything slip you regarding the project and helps you in many ways from now on. It also enables you to locate finances and assurances to properly execute business measures and ease your business operations.

Guidelines for Establishing a Cold Storage Unit in India

These are the critical factors that will influence you to build a faultless cold storage unit in India. These comprise-

1. Make sure the unit’s doors are satisfactorily insulated to keep it air-tight.
2. Storage racks should be made in such a way that they never harm the workers working under them.
3. For proper distribution and circulation of air, this should include a passage between the rows of racks that should not be less than 0.76 m, while the racks should be placed 20 cm away from the floor walls in the unit.
4. In each rack, a minimum gap of 30-40 cm should be preserved between the top level and the ceiling of the topmost shelf.
5. The distance between the next shelves should be at least 7.5 cm.

To start a 1000 MT Cold Storage Unit, a Food Safety License is required.

Food safety license is mandatory for all food business operators under section 92 of the Food Safety and Standards Act, 2006 and more prominently to the Food Safety and Standards Regulation, 2010. This license satisfies the terms of cleanliness, safety, and agreement. Sanitary conditions under the Act’s rules and regulations. 

In India, legal permits are required to build a 1000 MT cold storage unit.

1. First, you have to get Form-B from the FSSAI homepage, then fill in all the information, and after filling the form correctly, you can submit it online.
2. A personal e-mail address that must be activated with a cell number is mandatory.
3. While applying the check correctly before specifying the FBO’s name may create problems and hinder while granting permission.
4. After submitting, note down the reference number carefully.
5. Submit the license to the state authority where you want to set up the cold storage or to the FSSAI regional office within 15 days of the application proposal’s submission date.
6. The documents include acknowledgment copy, fee payment, or online payment receipt in the form of demand draft, online application form, license copy, and other required documents.
7. The appropriate temperature should be preserved in the diffuser pipe. It should be +/- 1 °C, while the percentage of relative humidity at each place of cold storage can be 5%, especially where food items are kept.
8. The unit should include a reading thermometer to identify the temperature by the dry bulb or wet bulb. Thermometer count in a unit depends on the size of the unit.
9. All moving parts must include proper belt guards. Check for proper insulation in the suction pipe.
10. Alarm bells should be included in the rooms in case of emergency for security procedures.
11. Always keep a first aid box in the machine room for rescue in case of any accidental accident.
12. A pressure gauge with an appropriate range should be included in the receiver or condenser of the refrigeration structure.

Types of licenses required to open a cold storage facility, as well as their requirements

The registration or licensing category for a cold storage unit is determined by the storage capacity and turnover of the facility.

1. The business unit turnover is close to 12 lakhs per annum, you should get only an FSSAI certificate.
2. If your annual turnover is more than 12 lakhs and around 30 crores, you have to get a license from the State Licensing Authority.
3. If it is more than 30 crores per annum, you have to take a license from Central Licensing Authority.
4. Suppose you have multiple units in a different state or multiple places in the same state. In that case, you need to get a state or central license for each unit fulfilling the above classification and a primary central license to set up your head office where you want to.

Factors considered in granting permission to build a 1000 MT cold storage facility

The following aspects have to be kept in mind while granting permission to obtain a license for the establishment of the proposed cold storage:

1. Some cold storage units are operating in the area where you are arranging to start the unit.
2. Access to foodstuffs for storage in cold storage components.
3. Submission of the blueprint of cold storage units as per details given in Part C of Form B.
4. Verify the cabinet for proper functioning like refrigeration, insulation, electrical, safety measures, and proper sanitary practices as per schedule.
5. Examine the education and experience of the employees you hire for the cold storage business and maintain it.
6. The Licensing Officer asks for other documents during his visit to your unit.

In India, the license fee for a 1000 MT cold storage unit is

The license fee for a cold storage unit in India includes the following. It is mainly based on the cold storage volume of the unit. A unit with a capacity of 1,000 metric tonnes will cost approximately Rs. 1,00,000.

Economics of 1000 MT Cold Storage Unit in India/1000 MT Cold Storage Project Report

Land and Land Development: Rs. 25,00,000.

Building:

A) Civil Work – Rs. 50,00,000.

B) Steel Racking System – Rs. 25,00,000.

Plant and Machinery for 1000MT Cold Storage

Refrigeration System: Rs. 2,00,00,000

Electrical Installation

a) DG Set 450 KVA – 1 No. Rs. 25,00,000

b) Electrical Cables & Control Panel Rs. 2,00,000

The total project cost for a 1000 MT cold storage facility is Rs. 3,27,00,000.

Profit in 1000 MT Cold Storage

Storing Charges Received: Rs. 2,00,00,000.

Expenses for one year

Staff required for 1000MT Cold Storage

• Factory Manager 1 No
• Storage Executive 1 No
• Supervisors 4 Nos
• Maintenance Mechanic 1 No
• Storage Boys 30Nos.

Salary payments totaled  Rs. 75,00,000 per year.

Interest (term loan): Rs. 30,00,000

Depreciation: Rs. 45,00,000

Power & fuel: Rs. 12,00,000

Other manufacturing expenses: Rs. 5,00,000

Administrative expenses: Rs. 3,00,000

Total annual costs for a 1000MT cold storage unit are Rs. 1,70,00,000

Net Profit : Rs. 30,00,000.

Break Even Point

Total fixed cost: Rs. 1,20,00,000

Total contribution: Rs. 1,60,00,000

Break Even Point (%): 75%.

Profit in 1000 MT Cold Storage Unit

Globally, the use of fresh vegetables and fruits is widespread. Generally, countries growing food crops account for the largest share of new food waste. Cold storages are essential for increasing shelf life, duration of marketing, preventing over drying, post-harvest losses, reducing transport constraints at peak production times, and maintaining product quality.

It mainly helps in providing attractive costs to the farmers and providing agricultural products at an affordable range to the customers, which will surely be helpful for the farmers and the customers. Additionally, lifestyle changes and the demand for processed or packaged foods have led to a growing global need for cold storage alternatives.

Subsidies for a 1000 MT Cold Storage Unit are available.

The government is encouraged by providing subsidies to set up cold storage chains close to agricultural farms to preserve food products. It is regulated by the Ministry of Food Processing Industries in India (MOFPI). Depending on the geographical location in which you want to set up the unit, the government is helping around 50-75% of the expenses along with machinery installation, technical works, construction works, etc. However, the total amount to be sanctioned shall not exceed Rs. 100 million.

Key Points Cover in Sample Project Report on Cold Storage Service Unit

Table of Contents

• Table of Contents
• Project at a Glance
• Introduction
• Objective
• Promoters and Management
• Background
• Market Demand Potential
• Location of the Project
• Projected Balance Sheet
• Projected Profitability Statement
• Debt Service Coverage Ratio
• Break Even Analysis
• Depreciation Chart
• Plant & Machinery
• Term Loan Repayment Schedule
• Ratio Analysis & Assumptions
• Expenses Detail
• SWOT
• Conclusion & Recommendations

Apart from this, all the information is being provided. To help in preparing project reports.

Sample Project Report Format

In our project report format, we cover technology details, its diagrams, flow chart etc. as and when required or deemed fit to include. Also, prepare in-depth financial calculations which is necessary for the Investor/bank.

You will get the  report data 1000MT Cold Storage in PDF or MS word. Which you can use easily. You can also modify the information according to your need. You will be able to access the data easily according to the your requirement. Additionally you can easily convert the data to PDF format.

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Cold Storage 5000 MT Sample Project Report Format

For whom are these formats useful?

1. CA Chartered Accountants
2. Tax Consultants
3. Small Business Owners
4. Students
5. Engineers

In addition to those who want to prepare project reports themselves.