Vol 3 Cold Storages and Controlled

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PAKISTAN HORTICULTURE

DEVELOPMENT & EXPORT BOARD

PRE-FEASIBILITY STUDY

ESTABLISHMENT OF COLD CHAIN SYSTEM

UNDER

NATIONAL TRADE CORRIDOR IMPROVEMENT PROJECT

VOLUME-III COLD STORAGES AND CONTROLLED ATMOSPHERE

STORAGES



Cold Chain Project

Final Report, Volume-III Cold Storages Arch Vision

ESTABLISHMENT OF COLD CHAIN SYSTEM UNDER NATIONAL TRADE

CORRIDOR IMPROVEMENT PROJECT

PREFEASIBI LI TY REPORT

VOLUME-III COLD STORAGE AND CONTROLLED ATMOSPHERE

STORAGE

Table of Content

1- CURRENT STATUS & FUTURE NEEDS 6

1.1 Cold storage (Production Area and Markets) 7

1.2 Cold storage (Airports/Sea ports) 8

2- TYPES OF COLD STORAGE 12

2.1 MEDIUM TEMPERATURE COLD STORES

12

2.2 FROZEN FOOD STORES

12

2.3 CONSTRUCTION PRACTICES

12



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4.1 Factors to be Considered for Site Selection 15

4.2 Size Determination 15

4.3 MECHANICAL OPERATIONS 16

4.4 STRUCTURE AND THERMAL INSULATION 16

4.5 REFRIGERATION LOAD 19

4.6 EFFECT OF HARVEST TEMPERATURE ON

REFRIGERATED STORAGE

21

4.7 Regulations 21

4.8 Civil Work Planning & Design 21

5- ENGINEERING DESIGN 23

5.1 Size and Layout Options 23

5.2 PRODUCE FLOW PATTERNS

24



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6.3 Temperature Control 30

6.4 Sanitation 30

6.5 Maintenance 31

6.6 Storage Facility Loading 31

6.7 Packing Container Design and Positioning 32

6.8 Storage Compatibility 33

7- TYPICAL LAYOUT OF VARIOUS CAPACITIES COLD

STORAGES

34

8- PROPOSED MANAGEMENT STRUCTURE 39

9- COSTING OF PROJECT 40



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13- RECOMMENDATIONS 64

12- IMPLEMENTATION PLAN72





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The country needs to increase and maintain its cold storage capacity from current 6.37%

to around 15% of production, with most of the new storage facilities to be established

close to the production area (nearest market centers) if it is to meet the cold chain needsand to substantially reduce the post-harvest losses.

According to PHDEB sources, Government has approved following new collection

points cum cold storage facilities at Haripur and Butkhela 1200 tons each in NWFP, and

Loralai & Khuzdar 1000 tons each in Balochistan.

1.1 Cold Storage (Production Area and Markets)

Several kinds of fruits and vegetables are cultivated seasonally depending upon locationof land and other climatic conditions. These have to be preserved both at producing

centres as well as consuming centres, and by employing correct storage practices it is

possible to store them for extended period.

In order to assess the immediate needs of fruits and vegetables storage, a comprehensive

survey was done in major markets and production areas, and following cold storages have been proposed (Table III-2) at different locations to meet the requirement. The proposed

cold storages are listed in Table III-2 and illustrated in Fig III-1 These cold stores are inaddition to existing cold store facilities with the pack houses to store the fruits.

Table III-2: Proposed Cold Stores*

Province City/Area Requirement Capacity (Tons) Commodity*

Punjab

Sargodha

(Production Area) 1 CS 3000 (6 X 500) Kinnow

Sargodha (F&V MKT) 1 CS 1500 (3 X 500) Fruits and vegetables

Kot Momin 1 CS 5000 (10 X 500) Kinnow



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1.2 Cold Storage (Airports/Seaports)

Currently, there is no cold storage facility at any of the port. In order to maintain the coldchain, cold storage facilities are required at all international airports and seaports. The

cold storage requirement at various airports and seaports were assessed and finalized in

consultation with the industry. The proposed cold storages are listed in Table III-3 and

illustrated in Fig III-2

Table III-3-- Proposed Cold Stores Requirement at Airports and Seaports

AirPorts/Sea

Ports

Capacity ColdStore + Freezer

Unit (Tons)

Products Remarks

Karachi 500 (5 x 100) Fruits and vegetables,meat, frozen food &

pharma products. ----

Lahore 300 (3 x 100) Extendable to 500Faisalabad 200 (2 x 100) Extendable to 300

Multan 200 (2 x 100) Extendable to 300

Quetta 200 (2 x 100) Extendable to 300

Peshawar 200 (2 x 100) Extendable to 300

Islamabad 200 (2 x 100) Extendable to 300

Sea Ports

PortQasim,Karachi

5000 (10 x 500)----

Karachi 5000 (10 x 500)



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Kinnow, Apple, Potato

CAS (1)

Apple, Peach, Potato

CAS (1)

F & V

CS (2)

F & V

CS (1)

Apple, F & V

CAS (1) Kinnow, F & V

CS (2)

Kinnow

CS (1)

Apple, Peach

CAS (1) `

Apple

CAS (1)

Kot Momin

Muzaffargar

RY. Khan

Chitral

Wana

Zhob

KilaSaifullah

Lora Lai

Chaman

Sargodha

Waziristan



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EH + CS (Airport)

CS (Airport)

CS (Airport)

CS (Airport)

CS (Airport)

CS (Airport)



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Table III-4: Recommendations of CA or MA Conditions During Storage and/or

Transport of Selected Fruits and Vegetables

Commodity

Temperature

Range* (°C) CA †

%O2 %CO2

Fruits

Apple 0-5 1-2 0-3

Apricot 0-5 2-3 2-3

Grapes 0-5 2-5 1-3Grapefruit 10-15 3-10 5-10

Lemon 10-15 5-10 0-10

Lime 10-15 5-10 0-10

Mango 10-15 3-7 5-8

Orange 5-10 5-10 0-5

Peach 0-5 1-2 3-5

Pear, Asian 0-5 2-4 0-3

Pear, European 0-5 1-3 0-3Plum 0-5 1-2 0-5

Vegetables

Onion Mature Bulb (Dry) 0-5 1-2 0-10

Tomatoes (Green) 12-20 3-5 2-3

Tomatoes (Ripe) 10-15 3-5 3-5

Potato 7 - -

Mandarin/Tangerine 4-7 - -

Notes:

* Usual or recommended range; a relative humidity of 90-95% is recommended.



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Kader, A. 2002. Postharvest Technology of Horticultural Crops (3

rd

edition). Univ. of California2- TYPES OF COLD STORAGE

Temperature-wise there are two types of cold stores used for different applications:

2.1 Medium Temperature Cold Stores

These are generally designed for storing a variety of products at 0 to 8 deg C.

Commodities include various types of fresh fruits and vegetables, dry fruits, spices, pulses, milk products etc. Most cold stores in Punjab, Sindh & NWFP are designed for

single commodity storage such as potatoes. Units in Punjab and parts of Sindh are of

multipurpose type designed for storage of various commodities. The occupancy levels in

the multi commodity stores are much better than those used for single commoditystorage. However, the chambers in multi commodity stores have to be designed for

maintaining different temperatures and sometimes relative humidities to suit different

products.

Construction practices vary largely, in different parts of the country depending on the

type of usage. The bulk commodity stores have chambers of large sizes whereas the

multi-purpose units have many chambers of smaller sizes to suit the customer needs.These medium temperature cold stores are generally constructed with 2 to 6 levels. The

capacity range is from 500 M.T. to 10,000 M.T. or more. However, in case of cold stores

with pre-cooling facility the capacities are much smaller and the units are designed withsingle floor construction.

2.2 Frozen Food Stores

Frozen food stores are, normally, a part of a food processing and freezing complex.



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2.4 Thermal Insulation

In some old units cheaper material like rice husk was used as the thermal insulation.

Although the insulation itself is very cheap it necessitated very large wall thicknesses and

also caused many maintenance problems.

For over three decades now the better designed cold stores have been insulated withmaterials like Expanded Polystyrene, Fiberglass or Polyurethane. Whereas the insulation

on walls and ceilings is finished with cement sand plaster in conventional cold stores, the

latest trend is to use sheet metal cladding. The cladding materials are aluminium sheet or pre-coated galvanized steel sheet.

A vapour barrier is provided in all cases to arrest moisture migration to the cold store.

Barrier material (such as steel, aluminum, reinforced plastic sheets, metal foils, mastic

type hot or cold application paints) is provided on the warmer side of the insulation.

2.5 Prefab insulated panel structure

The development of pre-insulated panels has brought in a revolution in cold storage

construction the world over. These panels have been in use for cold storage constructionfor over two decades in the developed countries. Modern prefab panels have been

introduced around 10 years back. Prefab panels, also called sandwich panels, are mainly

available in two types:

EPS panels with expanded polystyrene insulation bonded to sheet metal skins by

using a special adhesive.

PUF panels using polyurethane as insulation material foamed between two metalki Th l t t ll t d h b tt i l ti l



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3- SITE SELECTION

The type of cold storage depends on the desired function. The primary function of the

facility determines the location.

For example, for retail sales, location of the cold storage must be near a major road, and

the area must have adequate parking space.

If the facility is mainly to store produce prior to shipping, it should be close to the

grading and packing room with convenient access to fields or orchards. Also, there must

be space available for movement and storage of empty containers, equipment, andsupplies.



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4- DESIGN BASIS & TECHNICAL SPECIFICATIONS

4.1 FACTORS TO BE CONSIDERED FOR SITE SELECTION

The following factors are required to be considered for selecting an appropriate site for

cold store.

A cold storage facility must be in a well-drained area. It requires drains to remove

water from condensation, and cleaning and sanitation operations. Providing good

drainage is essential.

Availability of water 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.

If any of above facility is not available the arrangement for the same must be done prior

to construction of cold store.

4.2 SIZE DETERMINATION

To define the size of the refrigerated storage, the following factors are required to be

evaluated.

Volume of product to store.

Produce containers (pallet bins, boxes, bulk).

Volume required per container (ft3/container).

Aisle space needed (mechanical or manual operation).



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S = the maximum number of containers to be stored at one time.

The volume (V) obtained from the above formula does not include space for air

circulation, aisles and walkways. An additional 40 percent of the volume is used instacking, spacing, and air circulation. As a rule of thumb, 25 percent of the floor area is

devoted to aisles and walkways.

4.3 Mechanical Operation

The aisles should be at least 1½ times the width of the forklift. For air circulation, allow

6 – 8 inches of space between containers and walls, at least 18 inches between containers

and the ceiling. Also, allow enough space to spread the produce for rapid cooling.

The space available at the site for cold storage might be the major constraint in

determining its size. In this case, special attention should be paid to operating needs of

the facility during peak storage demand.

The number of doors in a cold storage room should be minimal, without compromising

the operations. Every time a door is opened, cold air leaves the storage and warm aircomes in. The doors should provide a good seal and must have the same insulation aswalls. They should be weather-stripped to reduce warm air infiltration, have adequate

gaskets to provide a good seal, have good quality hinges and latches, and should open

from both inside and outside. In medium and large sized facilities, plastic strip curtainsare recommended to prevent heat gain during loading and unloading operations.

The size of the doors corresponds to the type of operations mechanized or manual. If a

forklift is used, the door width must be at least 1½ times the forklift width.

4.4 Structure and Thermal Insulation



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Nonetheless, sprayed-on and foam-in-place materials provide good seals and reduce labor

and material costs because they are relatively easy to apply, do not require interior panel,

and reduce the wall or ceiling thickness. Insulation is good as long as it is dry. To preventcondensation, install a vapor barrier on the “warm side” of insulation in the walls, ceiling

and floor.

A storage facility must have the means to circulate air above the unit. This will preventhot air in the summer from overloading refrigeration equipment. If the cold storage

facility is under the same roof as the packing area, the packing area does not need as

much insulation. The minimum insulation requirements for a small cold storage room for

fruits and vegetables, located in a warehouse or sheltered area are R-10 for the floor, R-20 for walls and R-30 for the ceiling. The larger the R-value the lesser the heat absorbed

and lower the refrigeration requirements. Insulation values for selected building materials

is given in Table III-5.



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Table III-5: Insulation values for selected building materials R-value

Material

R-value

Per-inch (Approximate) For thickness listed

Batt and Blanket insulationGlass or mineral wool, fiberglass

3.00 – 3.80*

Fill-type insulationCelluloseGlass or mineral wool

VermiculiteShavings or sawdustHay or straw, 20"

3.13 – 3.702.50 – 3.00

2.202.22

30+

Rigid insulation

Exp. polystyrene,Extruded, plain

Molded Beads

Expanded rubber

5.00

5.00

4.55

Expanded polyurethane, aged

Glass fiber

Wood or cane fiberboardPolyisocyanurate

6.25

4.00

2.507.04

Foam-in-place insulationPolyurethane 6.00

Building materials



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4.5 Refrigeration Load

The most common unit used to quantify refrigeration load is the refrigeration ton. Oneton of refrigeration is defined as the energy removed from one ton (2,000 pounds) of

water so it freezes in 24 hours. It is equivalent to 288,000 Btu in one day or 12,000 Btu per hour.

To maintain the optimum temperature inside a cold storage facility, the system must have

a properly designed refrigeration load. Determining the refrigeration load requiresquantifying field heat and heat of respiration of the produce, conductive heat gain,

convective heat gain, equipment load, and service and defrosts factors of the facility.

Field Heat. Field heat is the amount of cooling necessary to reduce the produce from

harvest temperature to the safe storage temperature within a given time period; the hotter

the produce coming into the cold storage facility, the more energy needed to reduce the

temperature, and the more time required to operate the equipment.

Heat of Respiration.The heat of respiration is the energy released by the produce as it

respires during storage. The warmer the produce, the more heat of respiration generated.

Conductive Heat Gain. The conductive heat gain is heat gained by conduction through

the building floor, walls, and ceiling. It is directly related to the insulation installed in the

facility. The better insulated the cold storage facility, the less conductive heat gain.

Convective Heat Gain. The convective heat gain is heat that enters the facility during

the mixing of outside air with the cool inside environment. This load is directly related tothe number of doors in the facility. The more doors in the facility, the higher the

possibility of air currents. The amount of heat gained increases with the amount of times

and periods that doors are open.



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The position of the evaporator coil fans should provide air flow to the end of the longest

side of the facility. If using additional fans to pre-cool produce, they should be properly

located, and the refrigeration equipment should accommodate that purpose. When forcedair is used to pre-cool produce, the cooling time could be reduced by 80 percent.

The most common refrigeration systems for cold storage facilities are the direct

expansion system and the flooded system. Most small storage units work with the directexpansion system; the flooded system is used only in large facilities.

FIGURES III-5 AND III-6 SHOW SCHEMATIC DIAGRAMS OF

THE DIRECT EXPANSION AND THE FLOODED SYSTEMRESPECTIVELY.

Ph

Condenser

Heat Output

Liquid

receiver

Expansion

valve

Evaporator

Heatinput

Compressor

Energy

V

VV

L

V = vapourL = liquidPh = high pressure

Pl = low pressure

Pl



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4.6 Effect of Harvest Temperature on Refrigerated Storage

A SAMPLE REFRIGERATION LOAD CALCULATION FOR TWODIFFERENT PRODUCE (300 TONS OF TOMATOES AND 380 TONS

OF GRAPES) ARE REPRODUCED HEREUNDER IN TABLE III-6.

The tomatoes are stored at 13 °C and the grapes are stored at 0 °C. A 13 °C difference in

the harvest temperature of the tomatoes indicates an extra load requirement of 3.0 tons of

refrigeration for those harvested at 270C. A 12 °C difference in the harvest temperature

for the grapes demands 6.5 more tons of refrigeration to cool down and maintain the

grapes.

Therefore, it is recommended to harvest the produce in morning hours while the

temperature is lower.4.7 REGULATIONS

The cold store designer must be acquainted with the applicable laws regulations

Tomatoes Grapes

Harvest Temperature (°C) 27 21 26 14

Storage Temperature (°C) 13 13 0 0

Storage Capacity (ton) 300 300 380 380

Harvest Rate Per Day (ton) 30 30 38 38

Refrigeration Load (ton) 16.5 13.5 18.0 11.5

Table III-6: Cooling Load for Alternative Harvesting Temperatures



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The next element is the height of cold store floor from ground level. This must always be

carefully evaluated so that the height is enough to properly dock reefer trucks as well as

the distribution vans. The minimum height of the cold store floor from natural groundlevel (N.G.L) should at least be equal to the height of the refrigerated container floor of

primary distribution truck from N.G.L plus six inches.

The level of ramps in front of the loading/unloading doors should be carefully worked outaccording to the vehicles that are planned to be used.

Above a certain width of cold store in panel construction, its roof panels need to be

supported either from below (pillars) or from top (hung by tie rods from the shed trusses).Generally, it is undesirable to have pillars inside the cold store. The roof panels are

therefore normally hung from the shed trusses slab. The shed on top of the cold store is

therefore designed with a view to have enough strength to take the load of roof panels.Secondly, in most cases, the evaporators are also hung from the shed trusses. Hence,

provision for their load should also be kept in the design. The weight of roof panels and

the evaporators can always be acquired from the supplier for onward communication tothe shed designer. In view of this it is recommended to have the shed design sent to the

cold store supplier for comments with regard to provisions required for roof panels andevaporators.

Another point to keep in mind is, that in case of panel joints on the cold store roofwater will always seep through if allowed to stand on the roof. This is extremely

undesirable and may even damage the panels in some cases. This normally

happens in rainy seasons. To avoid this, it is possible to attach vertical sheetaround the periphery of the shed hanging down enough so as to ensure that the

rainwater does not reach on top of the roof keeping in mind the wind factor.

Electrical distribution boards and plugging points for the refrigerated vehicle

charging area will also be designed



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5- ENGINEERING DESIGN

5.1 SIZE AND LAYOUT OPTIONS

Cooling of produce can be accomplished in three-ways as shown in Fig III-7.

Option 1: Provide two storages; one for forced-air cooling hot produce, with the otherstorage to hold cold produce after cooling;

Option 2: Provide one storage where hot produce is forced-air cooled in one area, whilecold produce is held in another area of the same storage;

Option 3: Provide one storage where hot produce is room cooled in one area, while cold

produce is held in another area of the same storage.

Fig III-7 Plan view of three storage layout options

Option 2

Option 1

Option 3Forced Air Cooling

Storage Air Holding

Storage

Forced – Air Cooling Area

Holding Area

Room Cooling AreaHolding Storage Area



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Option 3 is least preferred, but is also the least expensive one to build since it has the

least floor area. Because no forced-air cooling is used, produce containers must be ventedvery well, and high airflows are needed from the evaporator fans. Unfortunately, cooling

rates may be unacceptably slow using this method.

5.2 Produce Flow Patterns

The flow of produce into and out of a refrigerated storage and related areas should bekept in one direction if possible. Produce should be arranged to allow a first-in, first-out

policy. To acquire optimum cooling typical plan view of produce flow pattern is given in

Fig III-8.

Fig III-8. Plan view of produce flow pattern

Exterior hinged or sliding doors are expensive, but two or more may be necessary on

walls parallel to the room airflow direction. They should line up with aisles inside the

Evaporator Coils & Air Flow

Direction0.2m (8”) Minimum Space on Walls Parallel to

Airflow

0.3m (12”) Minimum Space on Wall

Perpendicular to Airflow

0.1m (4”) Minimum Space between Pallets or Rocks



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5.3 Airflow Patterns

Good airflow in storage is almost as important as having enough refrigeration capacity. Across sectional view of a storage facility showing airflow pattern is given III-9.

Ceiling-mounted evaporator coils with high-capacity fans will direct cold air across theceiling a distance of at least 15 m (50 ft), providing there are no obstructions. Leave at

least 0.5 m (1.5 ft) of space between the top of the pallets or racks of produce and the

ceiling to allow unrestricted air passage to the back of the room. In storages kept at or

near 0°C, the air coming off the evaporator coils will likely be below 0°C. The spaceabove the produce helps temper this air, and prevent produce from freezing.

Produce should be spaced at least 0.3 m (12") from walls downstream and upstream of

the evaporator coils. This layout will allow the cooled air from the evaporators to passdown the wall, around the produce, and finally back to the coils. Leave at least a 0.2 m

(8") air-gap on walls parallel to the room airflow. Air along the walls is often warmer,and the walls may need protection from forklift abuse.

Fig III-9. Cross-sectional view of a storage showing airflow patterns

In rooms where both hot and cold produce are stored together, the hot produce should be

placed under the evaporator coils with cold produce placed near the downstream part of

Warmed Air

WALL0.3m (12”) Minimum

Ceiling

Cold Air

0.5m (18”) Minimum Evaporator Coils

Pallet or

Rack

Floor

0.1m (4”) Minimu

m S ace



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forced-air rapid cooling of freshly picked hot product, and the other used for cold packed

product.

Most storages have walls between 2.4 m to 4.8 m (8' to 16') high. Low walls under 2.4 m

(8') restrict airflow, future changes in stacking arrangements, and other uses during the

off-season, and should not be used. In general, making the walls a little higher doesn't

cost that much more, and it barely affects the refrigeration needs from the standpoint ofmore heat gain due to more wall surface area. For instance, increasing the wall height

from 2.4 m to 3.6 m (8' to 12') in storage with a floor area of 90 m2 (1000 ft

2) represents a

50% increase in wall height. However, the increased construction and refrigeration costs

would likely rise only about 15%.

For similar volumes of produce stored, it is usually less expensive to stack produce

higher than to spread it out on the floor. That is, for containers that allow stacking oneach other, the floor area and construction costs are reduced. Stacking higher is not

always possible for some containers, and forklift capital and operating costs increase with

lifting height requirements. In some cases, steel shelving racks can be installed toaccommodate pallets that will not stack. Figure III-10 shows three holding storage sizes

that will each accommodate 192 bulk bins, 1.2 m x 1.0 m x 0.6 m (48" x 40" x 24"), for produce such as Orange & Mango.

A= 32’ x 40’ x 10’ height

Floor Area of 1280 ft2

48 Bins / Layers x 4=192 Bins

B= 32’ x 32’ x 13’ height

Floor Area of 1024 ft2

31 Bins / Layers x 6=192 Bins



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5.4 Refrigeration System

The refrigeration system in a cold storage is usually a vapor compression systemcomprising the compressor, condenser, receiver, air-cooling units and associate pipingand controls.

In smaller cold rooms and walk-ins the practice is to use air-cooled condensing units withseal, semi-sealed or open type compressors. In the light of the CFC phase out the trend

now is to use HCFC-22, HFC-134a or other substitute refrigerants.

In the medium and large sized units say 500 M.T and larger capacities, the practice is touse a central plant with ammonia as the refrigerant. It is estimated that almost 95% of the

large cold store units in Pakistan have ammonia refrigeration systems. Needless to say,

that ammonia has proved itself as an economical and reliable refrigerant, especially, inthe industrial refrigeration field including cold stores.

Modular HCFC-22/HFC units, which are compact, light weight and easy to maintain are

being used in medium and large sized units with pre-fab insulated panels. However, theselection of the system and the refrigerant is a matter of designer's choice for a particular

application.

Reciprocating compressors of slow speed type have been used on a large number of cold

store units in the past. The medium speed reciprocating compressors with speeds ranging

from 750 to 1450RPM, with a better energy efficiency and built-in capacity control have been installed in most of the recent units.

For very large cold stores and frozen food stores, screw compressors are being preferred.

Screw compressors have very few moving parts and offer advantage of steeples capacitycontrol in the range of 10 to 100%.



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the top floor with conventional ceiling fans used for air circulation over the coils. These

units occupy large volumes in the cold store, carry large quantities of ammonia and have

a very inefficient cooling performance. In cold stores constructed later, floor mounted air-cooling units with prime surface coils and sheet metal air distribution ducting have been

used (Refer Fig.III-11). Finned coils have also been used in these units in some cases.

However, the recent trend is to use ceiling mounted units with finned coils and axial flow

Fig III-11. Section through a typical multi floor bulk cold store

with floor mounted A.C unit with ducting



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6- COLD STORE OPERATION

Any fruit and vegetable storage facility must operate reliably. Equipment maintenance,monitoring and management are integral parts of all the activities. More specifically, the

aspects that need special attention when managing a cold storage system are:

Condensation and humidity control

Temperature control

Sanitation

Maintenance

Container design and positioning

Storage compatibility of commodities

6.1 Condensation And Humidity Control

The relative humidity in refrigerated storage must be within the optimum range for the

commodity. For most fruits and vegetables, the optimum relative humidity is 90 – 95 percent. When relative humidity inside the refrigerated storage is less than 90 percent, the

facility should use a humidifier. The relative humidity of the storage can be monitored

with a recording hygrometer or at intervals with a sling psychrometer.

6.2 TEMPERATURE



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time to maintain the temperature in the refrigerated storage, consuming more electricity

and reducing the lifetime of the refrigeration unit. Some of the ways to eliminate ice

accumulations on the coils are electrical defrost, warm water sprays, reverse refrigerantflow, and equipment shutdown for 6 – 8 hours. The selection of one of these depends on

the equipment and facility size.

6.3 TEMPERATURE CONTROL

A thermostat is important in the refrigerated facility. The thermostat controls the

operation of the refrigeration unit so a desired temperature can be maintained in the

storage. The thermostat’s thermometer should not be used to monitor the storagetemperature. A separate recording thermometer should be installed for this purpose. This

type thermometer will be helpful in determining whether storage facilities are

maintaining ideal conditions.

A thermometer that fixes the maximum and minimum is necessary to check the pulp

temperature of the produce. A comparison of the produce pulp temperature, the amountof time the produce has been in storage, and the thermostat setting can indicate to the

operator if the thermostat needs resetting or the equipment needs adjusting. Therefrigerated facility should be equipped with more than one thermometer so they can be

compared and recalibrated if necessary. To prevent under cooling or chill injury to the produce, and the resulting economic losses, readings of a sling psychrometer and settings

of the thermostat and humidistat must be compared. These thermometers, however,

indicate the air temperature in the facility and not the produce temperature. The mostimportant temperature to control is the produce temperature. For this reason, it is

necessary to check the pulp temperature of the produce. A comparison of the produce

pulp temperature, the amount of time the produce has been in storage, and the thermostatsetting can indicate to the operator if the thermostat needs resetting or the equipmentneeds adjusting. The refrigerated facility should be equipped with more than one



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cleaning should be done more often, and handling practices should be changed to ensure

a cleaner workplace.

6.5 MAINTENANCE

Refrigerated storage for produce calls for regular inspection of refrigeration coils, fans,

motors, compressor, ducts, doors, locks and hinges, lights, and any other equipment.When inspecting the refrigeration coils, all dust and dirt must be removed. Adjustments

should be made so there are no parts touching the fans or other moving elements. Belts

should have protective covers at all times; if a cover is not good, it must be fixed, but not

removed. Any unusual noise must be inspected and repaired. The oil level in thecompressor must be checked, changed, and maintained. Doors’ or seals must be checked

to prevent air infiltration if any.

6.6 STORAGE FACILITY LOADING

Following factors determine how produce should be loaded into storage:

Period of storage

Maturity of ripeness at harvest

Packing type

Produced are pre-cooled or not

The size and shape of the storage facility

Mechanical or manual loading



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6.7 PACKING CONTAINER DESIGN AND POSITIONING

The packing container design and its positioning in the refrigerated storage facilities must

allow for air circulation within containers and around produce. Containers should not

obstruct air circulation. There should be 6 – 8 inches space between the containers and the

walls, and at least 18 inches between containers and the ceiling. Guidelines painted on thefloor and walls are helpful in getting containers and pallets spaced correctly.

The cold air must move freely not only around the containers but also around the

produce. For that reason, produce containers should have from 5 – 8 percent of the lateralarea open (perforated), and 3 – 5 percent of the bottom area open. A properly designed

container should be structurally sound and allow air circulation for the produce within the

containers. General stacking pattern for produce is shown in Figure III-12.



Cold Chain Project


6.8 STORAGE COMPATIBILITY

Precaution is necessary when storing different types of produce together. Warm-season produce needs temperatures of 7°C – 13°C and will suffer chilling injury if stored at

temperatures best for cool season produce (0°C – 2.5°C). If cool-season produce is stored

at higher temperatures, its storage life are shortened Commodities that are ethylene

sensitive should not be mixed with ethylene producing ones.

Good management of storage facility operations is important to make it efficient and

profitable. It is good to keep in mind that produce quality cannot be improved; it can only

be maintained.



Cold Chain Project


7- TYPICAL LAYOUT OF VARIOUS CAPACITIES COLD STORAGES

Typical layout plans for 1000 ton and 500 ton storages are developed for providing guideline for area calculation and space utilization for pallets and are enclosed as Figure III-13

& III-14. However the dimension of cold storages can only be designed on the basis of

available land.

Based on the cold storages requirement at airports (Refer Table # III-2) the typical layout

plans are prepared. Fig # III-15 indicates the layout for Karachi & Lahore Airport

facilities and Figure # III-16 indicates the layout for other airports. Enough land for

container movement is included for costing of land required for airports’ facilities.

Since the seaports need 5000 ton cold storage which will be multiple of 500 ton capacity

and allied facilities.



Cold Chain Project




Cold Chain Project






Cold Chain Project


3 M

5 M

12 M

10.2 M

Processing Hall



Cold Chain Project


8- PROPOSED MANAGEMENT STRUCTURE

Fig # III-17. Management Structure

General Manager

(Cold Storage)

Quality Control

Officer Manager Finance &

Manager

Operation &

Maintenance Engineer

Technicians

Labours

Office Staff



Cold Chain Project


9- COSTING OF PROJECT

A detailed area calculation for both covered and external areas are prepared along with

the land requirement for various capacities cold storages are prepared and enclosed as

Table III-7.

Table III-7: Area Calculation for Cold Store Facilities

Sr # Description

5000 T 3,000 T 2,000 T 1,500 T 1,000 T 500 T 250 T

CS CS CS CS CS CS CS

I. R.C.C Structure Covered Area (Sq.M)

Cold Storage5475 x

(5x1095)

3285

(3x1095)

2190

(2x1095)

1869

(2x623)

1620

(4x405)603 405

Plant Room 150 150 93 93 93 93 93

Plant Room Office 30 30 30 30 30 30 30

Laboratory 16 16 16 16 16 16 16

Worker Sitting Room 60 60 42 42 42 42 42

Wash Rooms 60 60 42 42 42 42 42

Cold Storage Office 150 150 150 150 150 150 150







Cold Chain Project


TABLE III-9: 1 CS (1,500 TONS) AT SARGODHA F & V MARKET FOR FRUITS & VEGETABLES

Sr.#

Description Unit Unit Price Amount Total AmountPak Rs. Pak Rs. Pak Rs.

1Cost of Land @ 1,000,000 per acre at an

Average2,000,000

2 Building

Cost of RCC Structure @ Rs. 10,800 / SqM 35,791,200

Cost of Boundary Wall @ Rs. 5900 / M 2,124,000 37,915,200

3 Plant & Machinery

Cost of Refrigeration Equipment, 4,000,000

Racking System 4 High 1,800,000

Handling Equipment including Double ReachForklift, Hand Pallets & Safety Equipment 4,000,000

Standby Generator 2,000,000 11,800,000



Cold Chain Project


TABLE III-10: 1 CS (5,000 TONS) AT KOT MOMIN FOR KINNOW

Sr.

#Description

Unit Unit Price Amount Total Amount

Pak Rs. Pak Rs. Pak Rs.


Average3,000,000

2 Building



3 Plant & Machinery



Handling Equipment including Double Reach

Forklift, Hand Pallets & Safety Equipment4,000,000


4Import Expenses including Clearing Charges

& Duties (15%)3,300,000

5 Erection / Instalation (8%) 1,760,000

6 Utilities Connections 3,000,000



Cold Chain Project


TABLE III-11: 1 CAS (5,000 TONS) AT ISLAMABAD (SECTOR I-9) FOR KINNOW, APPLE, POTATO

Sr.

#Description




Average3,000,000

2 Building



3 Plant & Machinery





Ethyelyne Scrubber/Humidity 150,000



& Duties (15%)3,322,500




Cold Chain Project


TABLE III-12: 1 CAS (5,000 TONS) AT PESHAWAR FOR PEACH, APPLE, POTATO

Sr.#

Description Unit Unit Price Amount Total AmountPak Rs. Pak Rs. Pak Rs.


Average3,000,000

2 Building



3 Plant & Machinery



Handling Equipment including Double ReachForklift, Hand Pallets & Safety Equipment 4,000,000




Cold Chain Project


TABLE III-13: 1 CAS (2,000 TONS) AT MARDAN FOR PEACH AND APPLE

Sr.

#Description



1 Cost of Land @ 1,000,000 per acre at anAverage

2,000,000

2 Building



3 Plant & Machinery









Cold Chain Project


TABLE III-14: 1 CAS (2,000 TONS) AT WAZIRISTAN FOR APPLE

Sr.

#Description




Average2,000,000

2 Building



3 Plant & Machinery








& Duties (15%)2,257,500


6 Utilities Connections 3 000 000



Cold Chain Project


TABLE III-15: 1 CS (1,000 TONS) AT CHITRAL FOR FRUITS & VEGETABLES

Sr.

# Description




Average1,750,000

2 Building



3 Plant & Machinery




Forklift, Hand Pallets & Safety Equipment

4,000,000



& Duties (15%)1,605,000

5 Erection / Instalation (8%) 856,000


7 Pre-operating Expenses (5%) 2,586,315

9 C lti Ch (7%) 3 801 884



Cold Chain Project


TABLE III-16: 1 CS (1,000 TONS) AT CHAMAN FOR FRUITS & VEGETABLES

Sr.

#

DescriptionUnit Unit Price Amount Total Amount



Average1,750,000

2 Building



3 Plant & Machinery







1 605 000



Cold Chain Project


TABLE III-24: TOTAL PROJECT COST

Sr.

#Description



1Total Cost of Land @ 1,000,000 per acre at anAverage\ 46,000,000

2 Total Building1,013,128,636

3 Total Plant & Machinery338,994,000

4Total Import Expenses including Clearing

Charges & Duties (15%) 50,849,100

5 Total Erection / Instalation (8%)27,119,520

6 Total Utilities Connections54,850,000

7 Total Pre-operating Expenses (5%)76,547,061

8 Furniture/Fixture6,900,000

9 Vehicles



Cold Chain Project


TABLE III-17: 1 CAS (5,000 TONS) AT QUETTA FOR APPLE

Sr.

# Description



1 Cost of Land @ 3,000,000 per acre 3,000,000

2 Building



3 Plant & Machinery



Handling Equipment including double reach

fork lift, hand pallets and safety equipments

4,000,000

Ethelyne Scrabber / Humidity Controller 150,000



& Duties (15%)3,322,500



7 P ti E (5%) 5 596 865



Cold Chain Project


TABLE III-18: 1 CS (5,000 TONS) AT TURBAT FOR DATES & OTHER FRUITS

Sr.

#




Average3,000,000

2 Building



3 Plant & Machinery







3 300 000



Cold Chain Project


TABLE III-19: 1 CS (5,000 TONS) AT KHAIRPUR FOR DATES

Sr.

#Description




Average3,000,000

2 Building



3 Plant & Machinery







& Duties (15%) 3,300,000




Cold Chain Project


TABLE III-20: 1 CS (3000 TONS) AT SUKKUR FOR DATES & OTHER FRUITS

Sr.

#Description




Average2,000,000

2 Building



3 Plant & Machinery







& Duties (15%)2,490,000


6 Utilities Connections 2 600 000



Cold Chain Project


TABLE III-21: 2CS (500 TONS) AT KARACHI & LAHORE AIRPORTS FOR FRUITS & VEGETABLES

Sr.

#Description



1Cost of Land @ 3,000,000 per acre for Air

Port & See Ports on an average *2 1,500,000 3,000,000 3,000,000

2 Building

Cost of RCC Structure @ Rs. 10,800 / SqM

(See Refer III-15)2 3,456,000 6,912,000

Cost of Boundary Wall @ Rs. 5900 / M 2 1,062,000 2,124,000 9,036,000

3 Plant & Machinery

Cost of Refrigeration Equipment, 2 4,667,000 9,334,000

Handling Equipment 2 125,000 250,000

Standby Generator 2 1,500,000 3,000,000 12,584,000


& Duties (15%)1,887,600


6 Utilities Connections 2 1,600,000 3,200,000 3,200,000

7 Pre operating Expenses (5%) 1 535 716





Cold Chain Project


TABLE III-23: 3CS (5000 TONS) AT PORT QASIM, KPT & GWADAR PORT FOR FRUITS & VEGETABLES

Sr.

#



1Cost of Land @ 3,000,000 per acre for airports

& seaports on an average *3 3,000,000 9,000,000 9,000,000

2 Building

Cost of RCC Structure @ Rs. 10,800 / SqM 3 76,096,800 228,290,400

Cost of Boundary Wall @ Rs. 5900 / M 3 2,596,000 7,788,000 236,078,400

3 Plant & Machinery

Cost of Refrigeration Equipment, 3 8,000,000 24,000,000

Racking System 4 High 3 6,000,000 18,000,000

Handling Equipment 3 4,000,000 12,000,000

Standby Generator 3 4,000,000 12,000,000 66,000,000


9 900 000



Cold Chain Project


10- PROPOSED MEANS OF FINANCING

LOAN

Long Term Loan 70% 1,287,724,042

Total Loan 1,287,724,042

EQUITY

Sponsors Equity

Government Equity 15% 275,940,866

Private Sponsors Equity 15% 275,940,866

Total Sponsor Equity 551,881,732

TOTAL FINANCING 100% 1,839,605,774

Debt equity ratio is taken as 70:30 and 70% of total project cost will be borrowed from bank

as long term loan on 12% per annum interest rate. But as per government's policy for codl

chain 6% mark up will be paid by government of Pakistan and the investor / sponsor has to

pay only 6% on loan amount.

Equal public private partnership is proposed and as per this arrangement government equity

will be 15% and private sponsor’s equity will be 15%.



Cold Chain Project


11- FINANCIAL ANALYSIS

A detailed financial analysis is carried out and enclosed in this section.

Projected Income Statement is prepared and enclosed as Table III-25. The key

assumptions as detailed in Section 11.1 is made basis for calculating total sale.

Projected Profitability Statement, inclusive of total sales, gross profit, operating expenses,

operating profit and non operating profit is developed making basis of key assumptions

given in section 11.1 and enclosed in section 11.2. The projected profitability statement

clearly indicates that the project can be successfully operated from very first year.

In continuation of above Project Cash Flow Statement is prepared and enclosed in

Section 11.3. According to the projected cash flow Internal Rate of Return (IRR) is 30.81and Net Present value (NPV) is Rs. 3.09 billion.

Projected Balance Sheet is also prepared and enclosed in section 11.4. Return on equity iscalculated and found quite reasonably increasing with the passage of time.

Break Even Analysis shows that breakeven point for first year is 82.53% which is a little

bit risky but the break even points for second and third year decreases gradually (ReferSection 11.5), and from fourth year the project can be successfully operated at less then

half of design capacity (i.e. 47.5%).

Benefit Cost Ratio of the project is 1.76 and is given in Section 11.6.

In the light of above discussion it is concluded that the project is financially viable,highly profitable and of very low risk.



Cold Chain Project


TABLE III-25: PROJECTED INCOME STATEMENT (CS)

(RS. IN MI LLI ON)

Assumption

Cold Storage

Income

Design

Capacity

100 %

Year 1

60%

Year 2

70%

Year 3

80%

Year 4

90%

Year 5

90%

Year 6

90%

Year 7

90%

Year 8

90%

Year 9

90%

Year

10

90%

723 433.8 506.1 578.4 650.7 650.7 650.7 650.7 650.7 650.7 650.7



3. Electricity Charges

Electricity cost per month for 1000 ton

Cold Storage = Rs. 124,200

Unit consumes by 1000 ton cold storage = 28.75 Kw/Hr

Average Unit Cost = Rs. 6/-

Total Storage Capacity = 60,300 Ton

Total Electricity Charges/ Year = 89.87 Million

4. Diesel Expense = Rs. 3% Electricity Charges

5. Salaries

6. Amortization of Pre-operating ExpensesRecovery Period = 5 Years

S. No. Description

No. of

Persons

per Month

Salary Per

MonthTotal Salary

1 General Manager 23 30,000 690,000

2 Quality Control Officer 23 15,000 345,000

3 Manager Finance 23 25,000 575,000

4 Operating & Maintenance Engineer 23 20,000 460,000

5 Office Staff 46 8,000 36,800

6 Technicians 46 10,000 460,000

7 Labour 460 6,000 2,760,000

Total Monthly Salaries 5,326,800

Total Yearly Salaries 63,921,600



Cold Chain Project


11.2 Financial Results

The projected profitability statement, projected cash flow, balance sheet and otherfinancial indicators are given on page numbers 67-71



Cold Chain Project


13- RECOMMENDATIONS

This prefeasibility study is conducted to establish a complete cold chain system under

National Trade Corridor Improvement Project and divided in to three interconnected

links including export pack houses, cold storages and refrigerated containers. In this

volume, recommendations for cold storages will mainly be discussed.

Since the horticultural crops (fruits and vegetables) are highly perishable in nature and

quality of produce deteriorate in very short period. To overcome the avoidable post

harvest losses and to provide the local and international consumers with quality produce it becomes inevitable to establish an effective nation wide cold chain system.

This will not only improve the fresh produce quality and reduce post harvest losses

but also enhance the international trade opportunity.

To develop a comprehensive national cold chain system, 13 cold storages at

production and market areas and 10 facilities at airports and seaports (Table III-2 &

III-3) are recommended in all four provinces of Pakistan. These facilities are mainly

for Kinnow, Mango, Peach, Apple, Apricot, Potato, Onion, Grapes and Dates but can

also be utilized for other fruits and vegetables.

PROJECT COST

For calculation of project cost land value is taken on an average, which may increase

or decrease depending upon the selected sites. Total project cost inclusive of

infrastructure, machinery and plants and initial expenses comes out to be 1.84 billion(refer Table III-24)



Cold Chain Project


The potential investors for participation in private sector equity are possible to be

from exporters, big farmers, entrepreneurs, industrialist with experience in related

fields’ industrial projects, Pakistanis living abroad, multinationals etc. It is also possible that a consortium of private investors who are willing to invest for these

facilities may be formed comprises of various identified stakeholders as above.

Risk analysis

Although the Break Even Point of first year is on higher side but it comes down with

the passage of year. From fourth year the project can be successfully operated on less

than half of full design capacity (i.e. 47.5%) and it reduces the risk to quite an extent.

Government must make sure that the high-tech plants and machinery must be used for

the project to provide competitive edge over existing traditional cold stores.

Once the cold storages are constructed in production areas growers will be benefited

by getting higher prices of fruits and vegetables as well as timely direct payment from

exporters. Apart from above export will be increased and export prices gaps can be

significantly reduced.

Technical assistance

It must make compulsory that plants and machinery suppliers will provide technical

know how to operate and maintain the project. Training programs for sponsors and

investors shall be organized for technical and administrative staff including visit to

foreign countries and attending local workshops. This will help in learning the

functioning of state of the art facilities and proper implementation of the project.

ROLE OF STAKEHOLDERS



Cold Chain Project


Constant Research and Development in horticulture sector especially cold

chain.

Future expansion and acquiring updated equipment and technologies.Constant follow up to explore and capture new export markets.

Making mandatory to use cold chain facilities for export of fruits &

vegetables.



Description Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

Sales 433.800 506.100 578.400 650.700 650.700 650.700 650.700 650.700 650.700 650.700

Cost of Goods Sold

Machine Maintenance 4.169 4.169 4.169 4.169 4.169 4.169 4.169 4.169 4.169 4.169

Direct Electircity 89.870 94.364 99.082 104.036 109.238 114.699 120.434 126.456 132.779 139.418

Diesel Expense 2.696 2.831 2.972 3.121 3.277 3.441 3.613 3.794 3.983 4.183

Total 96.735 101.363 106.223 111.326 116.684 122.309 128.216 134.419 140.931 147.769

Gross Profit 337.065 404.737 472.177 539.374 534.016 528.391 522.484 516.281 509.769 502.931

Operating Expenses

Salaries & Remuneration 63.921 67.117 70.473 73.997 77.696 81.581 85.660 89.943 94.440 99.162

Amortization of Pre-Operating Expenses 15.310 15.310 15.310 15.310 15.310 0.000 0.000 0.000 0.000 0.000

Promotional Expenses 4.338 5.061 5.784 6.507 6.507 6.507 6.507 6.507 6.507 6.507

Depreciation 123.694 123.694 123.694 123.694 123.694 123.694 123.694 123.694 123.694 123.694

Total 207.263 211.182 215.261 219.508 223.207 211.782 215.861 220.144 224.641 229.363

Operating Profit 129.802 193.555 256.916 319.867 310.809 316.608 306.622 296.137 285.127 273.567

Non Operating Expenses

Financial Charges on Long Term Loan 77.263 69.537 61.810 54.080 46.358 38.632 30.910 23.179 15.453 7.720Profit Before Tax 52.539 124.018 195.106 265.787 264.451 277.976 275.712 272.958 269.674 265.847

Tax

Profit After Tax 52.539 124.018 195.106 265.787 264.451 277.976 275.712 272.958 269.674 265.847

Accumulated Profit 52.539 176.556 371.662 637.449 901.900 1179.876 1455.589 1728.547 1998.221 2264.068

11.2 PROJECTED PROFITABILITY STATEMENT

Exempted for 10 Years

(RS. IN MI LL ION)




Sources

Profit After Taxation 52.539 124.018 195.106 265.787 264.451 277.976 275.712 272.958 269.674 265.847

Add Depreciation 123.694 123.694 123.694 123.694 123.694 123.694 123.694 123.694 123.694 123.694

Add Ammortization 15.310 15.310 15.310 15.310 15.310 0.000 0.000 0.000 0.000 0.000

Total Sources 191.543 263.022 334.110 404.791 403.455 401.670 399.406 396.652 393.368 389.541

Utilization

Repayment of Loan 128.770 128.770 128.770 128.770 128.770 128.770 128.770 128.770 128.770 128.770

Total Utilization 128.770 128.770 128.770 128.770 128.770 128.770 128.770 128.770 128.770 128.770

Surplus Funds 62.773 134.252 205.340 276.021 274.685 272.900 270.636 267.882 264.598 260.771

Balance B/F 0.000 62.773 197.024 402.364 678.385 953.070 1225.970 1496.607 1764.489 2029.087

Balance C/F 62.773 197.024 402.364 678.385 953.070 1225.970 1496.607 1764.489 2029.087 2289.858

Net Present Value of Cash Outflow = NPV = Rs 3.086 billion, Assume Discount Rate = 11%

Internal Rate of Return = IRR = 30.81%

(RS. IN MI LLI ON)

11.3 PROJECTED CASH FLOW STATEMENT



11.4 PROJECTED BALANCE SHEET

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

Cash 0.000 62.773 197.025 401.592 675.368 945.718 1211.628 1472.113 1726.220 1973.012 2211.569

Land 46.000 46.000 46.000 46.000 46.000 46.000 46.000 46.000 46.000 46.000 46.000

Fixed Assets 1717.058 1717.058 1717.058 1717.058 1717.058 1717.058 1717.058 1717.058 1717.058 1717.058 1717.058

Depreciation 123.694 247.388 371.082 494.776 618.470 742.164 865.858 989.552 1113.246 1236.940

Net Fixed Assets 1763.058 1639.364 1515.670 1391.976 1268.282 1144.588 1020.894 897.200 773.506 649.812 526.118

Intangible Assets

Preoperating Expenses 76.547 76.547 61.237 45.927 30.617 15.307 0.000 0.000 0.000 0.000 0.000

Amortization 15.310 15.310 15.310 15.310 15.310 0.000 0.000 0.000 0.000 0.000

76.547 61.237 45.927 30.617 15.307 -0.003 0.000 0.000 0.000 0.000 0.000

Total Assets 1839.605 1763.374 1758.622 1824.185 1958.957 2090.303 2232.522 2369.313 2499.726 2622.824 2737.687

Long Term Loans 1287.724 1287.724 1158.952 1030.180 901.408 772.636 643.864 515.092 386.320 257.548 128.776

Less: Repayment 128.772 128.772 128.772 128.772 128.772 128.772 128.772 128.772 128.772 128.772

Total Liabilities 1287.724 1158.952 1030.180 901.408 772.636 643.864 515.092 386.320 257.548 128.776 0.004

Owners Equity 551.882 551.882 551.882 551.882 551.882 551.882 551.882 551.882 551.882 551.882 551.882

Unappropriated Profit 52.539 176.556 371.662 637.449 901.900 1179.876 1455.589 1728.547 1998.221 2264.068

Total Equity 551.882 604.421 728.438 923.544 1189.331 1453.782 1731.758 2007.471 2280.429 2550.103 2815.950

Total L iabilities & Equity 1839.606 1763.373 1758.618 1824.952 1961.967 2097.646 2246.850 2393.791 2537.977 2678.879 2815.954

Sales 433.800 506.100 578.400 650.700 650.700 650.700 650.700 650.700 650.700 650.700

Net Income 52.539 124.018 195.106 265.787 264.451 277.976 275.712 272.958 269.674 265.847

ROE (%) 8.692 18.349 26.119 32.505 32.395 33.497 33.315 33.092 32.825 32.510

(RS. IN M ILL ION)



YEAR I YEAR 2 YEAR 3

Sales 433.800 506.100 578.400

Sno. Description

Total

Operating

Cost

Variable

Operating

Cost

Fixed

Operating

Cost

Total

Operating

Cost

Variable

Operating

Cost

Fixed

Operating

Cost

Total

Operating

Cost

Variable

Operating

Cost

Fixed

Operating

Cost1 Machine Maintenance 4.169 2.918 1.251 4.169 2.918 1.251 4.169 18.340 7.859

2 Direct Electricity 89.870 71.896 17.974 89.870 71.896 17.974 89.870 71.896 17.974

3 Diesel Expense 2.696 2.696 ---- 2.696 2.696 ---- 2.696 2.696 ----

4 Salaries & Remuniration 63.921 51.137 12.784 67.117 53.694 13.423 70.473 56.378 14.095

5 Promotional Expenses 4.338 4.338 ---- 5.061 5.061 ---- 5.784 5.784 ----

6 Financial Charges on Lo 77.263 ---- 77.263 69.537 ---- 69.537 61.810 ---- 61.810

7 Amortization 15.310 ---- 15.310 15.310 ---- 15.310 15.310 ---- 15.310

8 Depreciation 123.694 ---- 123.694 123.694 ---- 123.694 123.694 ---- 123.694

Total 381.261 132.985 248.276 377.454 136.265 241.189 373.806 155.094 240.742

Sales-V .cost 300.815 369.835 423.306

Breakeven - % 82.534 65.215 56.872

YEAR 4 YEAR 5

Sales 650.700 650.700

Sno. Description

Total

Operating

Cost

Variable

Operating

Cost

Fixed

Operating

Cost

Total

Operating

Cost

Variable

Operating

Cost

Fixed

Operating

Cost

1 Machine Maintenance 4.169 18.340 7.859 4.169 18.340 7.859

2 Direct Electricity 89.870 71.896 17.974 89.870 71.896 17.974

3 Diesel Expense 2.696 2.696 ---- 2.696 2.696 ----

4 Salaries & Remuniration 73.997 59.197 14.799 77.696 62.157 15.539

5 Promotional Expenses 6.507 6.507 ---- 6.507 6.507 ----

6 Financial Charges on Lo 54.080 ---- 54.080 46.358 ---- 46.358

7 Amortization 15.310 ---- 15.310 15.310 ---- 15.310

8 Depreciation 123.694 ---- 123.694 123.694 ---- 123.694

Total 370.323 158.636 233.716 366.300 161.596 226.734

Sales-V .cost 492.064 489.104

Breakeven - % 47.497 46.357

11.5 BREAK EVEN ANAYLSIS

Break Even Point (Q) = FC x 100

Sale - VC

Break Even Point for year 1 = 82.53%



Break Even Point for year 4 = 47.50%Break Even Point for year 5 = 46.36%



11.6 BENEFIT COST RATIO


Factor based on 0.870 0.756 0.658 0.572 0.497 0.432 0.376 0.327 0.284 0.247

15% discount

Sales 433.800 506.100 578.400 650.700 650.700 650.700 650.700 650.700 650.700 650.700

377.406 382.612 380.587 372.200 323.398 281.102 244.663 212.779 184.799 160.723

2920.269

Cost of Goods Sold 96.735 101.363 106.223 111.326 116.684 122.309 128.216 134.419 140.931 147.769

Operating Expenses 207.263 211.182 215.261 219.508 223.207 211.782 215.861 220.144 224.641 229.363

Total Cost 303.998 312.545 321.484 330.833 339.891 334.092 344.078 354.563 365.573 377.133

264.478 236.284 211.536 189.237 168.926 144.328 129.373 115.942 103.823 93.152

1657.079

Benefit Cost Ratio = 1.762

(RS. IN M ILL ION)



SL Month Month Month Month Month Month Month Month Month Month Month Month Month Month Month Month

# 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

1 Pre-feasibility Report

2 PC - 1

3 Government Approval

4 Public / Private J.V.

5 Procurement of Land

6 Civil Works

7Opening L.C. / Machinery

Procurement

8 Arrival of Machinery

9 Erection and Installation

10 Commissioning

Fig III-18: Implementation Plan

12- IMPLEMENTATION PLAN

Months

Description

A tentative implementation plan is prepared and given in Figure III-18

Documents

Vol 3 Cold Storages and Controlled