Our company was incorporated as “AAKARSHIIT ICE AND COLD STORAGE PRIVATE LIMITED” on January 03, 1997 under the Companies Act, 1956 vide Certificate of Incorporation issued by the Registrar of Companies,Gwalior.
We are engaged in the business of cold storage and trading of agricultural commodities such as potatoes, carrot,Mahua, jiggery, etc. We had set up and made operational our first cold storage unit on Indore Pithampur Bypass in Village – Sonway, Tehsil – Mhow, District Indore, Madhya Pradesh in the year [1996-1997].
The local farmer or trader of agriculture produce hire our services to store their produce prior to sale. The capacity earmarked for different produce and requisite temperature as well as relative humidity is shown below:
|Sr.No.||Product||Capacity (MTs)||Temp Zone ( 0 C)||Relative Humidity(%)|
|1.||Table and Seed Potato||7000||33 to 35 FH||60 to 65%|
|2.||Carrot||4000||33 to 35 FH||50%|
|3.||Mahua||5000||42 to 45 FH||50%|
|4.||Jaggery||3500||42 to 45 FH||50%|
|5.||Others||2600||42 to 45 FH||50%|
However, the estimated capacity is interchangeable among potato, Carrot and among Mahua, jaggery and others.
We believe that the need for setting up and construction of cold storage facilities is highly required for the preservation of agro commodities and the same shall be equally beneficial to both producers and consumers and shall there by strengthen the rural economy of perishable commodities. Our project envisages perfect backward and forward linkage of marketing activities as an essential pre-condition. Further, it has become a practice to provide
necessary finance to hirers of the cold storage against their stocks stored in the cold storage in order to keep the price steady and allow the support price to the farmers. Providing this seasonal finance is an important factor in the growth of our business.
We believe that following are our competitive strengths:
Highly experienced Promoter backed by professional management team Our Promoter – Mr. Mangal Sain Madaan has been engaged in the business of Cold Storage for around 20 years and has gathered immense knowledge of the working of this niche sector. Mr. Aakarshit Madaan who represents the young face of our company, represents a good combination of experienced and young promoter in the company. For further details regarding the experience of our Promoter please refer to “Our Management” and “Our Promoters,Promoter’s Group and Group Companies” beginning on page and of this Draft Prospectus respectively.
Further, our Promoters are backed by a Management team comprising of qualified and professional team having due knowledge of their respective roles in the company. We believe that our promoter and management team is capable of understanding of the industry better than new entrants and will enable us to continue to take advantage of both current and future market opportunities. It is also expected to help us in addressing and mitigating various risks
inherent in our business, including significant competition, reliance on independent contractors, dealing with unorganized farming sector, the global economic crisis and fluctuations in agricultural product prices.
Our unit is based on a strategic ideal location on Indore Pithampur Bypass leads to Pithampur Industrial area which is largest Industrial Area in the State of Madhya Pradesh. As a result of green revolution, the State has witnessed considerable growth in agriculture sector comprising of high yielding varieties of crops, seeds, chemical fertilizers,plant protection measures, irrigation, etc. Agro products, being a perishable commodities, it becomes very important
to collect the produce from farmers immediately and keep it in Cold Storage. Also with the increasing infrastructure and transportation in the area, supplying the stored agro commodities to wholesalers has become quick and convenient. We believe that there is no other cold storage facility of our size and capabilities within a radius of approximately 10 kms from our site and thus it provides us with a significant competitive edge
Favourable Government Policies for our sector:-
The Government of India through the Ministry of Food Processing Industries has formulated a number of policies for extending assistance in the form of grant, subsidy and soft loan to agro food processing industries. In order to give impetus to promotion of all Agro Food Processing Industries several incentives and concessions have been granted. The government has actively supported cold chain, pre and post harvest network area near the production sites. Public-Private Partnership has been encouraged to establish cold chain, pre and post harvestnet work
infrastructures by the Madhya Pradesh Government. We believe that since our core business adds tremendous value to the supply chain of agro produce and empowers farmers/traders to be able to get good prices for their produce,this sector shall continue to get support and encouragement from the government going forward.
Relations with our Bankers and strong financial management:-
Finance provided by banks and other financial management remains an important source of funding. We maintain good relations with our lenders. This enable us to leverage our strategies through firm financial management. For further details regarding our current indebtedness please refer to “Financial Indebtedness” beginning on page of this Draft Prospectus.
Leverage our financial management in line with trends in Cold Storage Industry:
It has become a practice to provide necessary finance to hirers of the cold storage against their stocks stored in the cold storage in order to keep the price of agro products steady and allow the support price to the farmers. Providing this seasonal finance is an important factor in the growth of our business. By listing our shares and improving our governance systems we intend to prove our worthiness in equity and debt markets alike and hence be able to access
large pool of funds. This would put us in a situation of advantage w.r.t our funding abilities, hence having a direct impact on competitive position for making our Storage facility the first choice for the local market constituents.
Advantages of our experience and technology:-
We operate in a strategic location between Indore and Pithampur. Our promoter – Mr. M.S. Madaan was able to identify this region looking to huge demand for cold storage facility. Further, having first mover advantage locally is a prime factor in our continuous business possibilities. Moreover, we have variety of chambers of different size to address customer requirement. It helps us establish local networks as well as create goodwill. It is our long term
strategy to continue to identify such locations where there is a demand supply mismatch and leverage our existing technological as well as financial capabilities for generating future growth. Our facilities are constructed looking into the need of social aspect for the purpose of development rural-economy in perishable commodity sector generate self-employment as well as minimize post-harvest loss of agro produces.
Explore other avenues of revenue generation giving synergies with the existing business plan
In addition to revenue earned from rental income of storage facility, we also use part of storage capacity for our own agriculture produce. We do purchase seasonal produce from Mandi, store it and sale it when the rate improves in off-season. We further intend to utilize our domain knowledge on agricultural commodities and our existing
relations with marketing networks to place strategic trades on the potato markets in our area. We believe that trading would help us improve our financial results as well as provide an added revenue stream to our business. Further, in the future the management may consider setting up additional processing facilities for its agro commodities being stored in form of forward integration.
Regular Expansion of capacities to meet growing demand:-
Our Cold Storage facility is in the proximity of the diversified crop production areas. It becomes very important to collect the produce from the farmers immediately and keep it in Cold Storage. Madhya Pradesh is the second largest State in India which has an agrarian economy. As a result of green revolution, the State has witnessed considerable growth in agriculture sector comprising of high yielding varieties of crops, seeds, chemical fertilizers, plant
protection measures, irrigation, etc. We wish to capitalize on this opportunity by increasing our storage capacity in regular intervals, such that the increased capacity is operational before each harvesting season. Accordingly, we increase capacity of our chambers to 22,100 MTs.
The selection of machinery is based on the requirement of maximum cooling load in terms of tones of refrigeration.
The components of the cooling load for the refrigerated space may be classified according to the following items:
1) Heat transmission through the structure
2) Infiltration of air leakage into the space
3) Heat emission from occupants
4) Heat from fan, motor, electric, light, etc.
5) Product load i.e. heat, to the extracted from produces
For the cold storage maximum cooling load requirements is calculated to be around 512 TR. at peak season.
Selection of pump is based on the maximum water requirement for condenser unit, which is of water cooled atmospheric type, maximum water requirement has been found to be around 3000 opm. at a total head of 35ft.
We believe that our plant structure and machineries are suitable for such type of project and the same have been extensively used throughout the country for last 3 decade.
List of Our Majour Plant & Machineries given hereunder;
|1.||Ammonia Compressor Kirloskar KC-4|
|2.||Ammonia Compressor Kirloskar KC-4|
|3.||Ammonia Compressor Kirloskar KC-3|
|4.||Ammonia Compressor Kirloskar|
|5.||D.G. Set Kirloskar|
|6.||Transformer 500 KVA|
The Company has so far not entered into any technical or financial collaboration agreement because they have requisite knowledge and good amount of experience in the field.
Raw Materials Since there is no manufacturing or processing activity carried out, there is no specific raw material required for company’s operations. The only material requirements are the various agricultural commodities which are being stored as well as traded by the company. No scarcity of agricultural commodities is anticipated due to high yielding varieties of crops, vegetables production in our district, State as well as Country.
Power: Power is the main resource for our operations. We have obtained electrical power to the extent of 200 KVA from Madhya Pradesh PaschimKshetraVidyutVitaran Company Ltd. This is sufficient for the cold storage activity being carried out by the Company. However, the company has made standby arrangement by installing 1 D.G. set of 160 KVA and another of 125 KVA to counter power cut / power failure or similar kind of eventuality.
Water: The company has water tubewell within its premises to meet water requirement for operation as well as drinking purpose.
Access to Road: Our site has direct access to four lane Indore-Pithampur Bypass.
Marketing Setup, Installed Capacity and Capacity Utilization;-
The growth of diversified crops, vegetables, and spices are abundant in the locality where our cold storage facility is set up. There is no specific requirement of a marketing set up. However, our Managing Director – Mr. MS Madaan has extensive experience as a trader, cold storage facility provider and agriculturist in this region and business is,and will continue to be generated through this existing network.
We do not require significant manpower on our payroll. The daily requirement of unskilled manpower for the loading & unloading is carried out by the manpower of the farmers/traders. Such manpower is easily available in the proximity of the cold storage. Our manpower requirements are limited to supervisory and administration activities.
Following is the number of employees on our company’s payroll as on March 31, 2018:
Export and Export Obligations
Our Company doesn’t have any export obligation as of now as we are neither importing nor exporting any commodity.