Cold Storage Industry, Apmc Market

Chapter 1 Introduction to industry Objective: The purpose of report is to explain the practical learning gained during the period of 8 weeks at Sarveshwari Village Industries (Nafed Cold Storage) while doing summer internship.

1.1 Introduction Introduction:: India is second largest producers of fruits and vegetables in the world but its share in the world market both in fresh and processed form is less than one percent. Moreover due to inadequacy of infrastructure and processing facilities a large  percentage of horticultural produce gets perished before it reaches the consumer. Fruits, grains vegetables and flowers being much more remunerative than the cereal crops, cro ps, have register registered ed a cons constan tantt inc increa rease se in the their ir pro produc ductio tion n in the last few decades. It is estimated that on account of inadequate post harvest infrastructure subs su bsta tant ntia iall pe perc rcen enta tage ge ge gets ts wa wast sted. ed. Sev Sever eral al in inst stit itut utio ions ns ha have ve re repor porte ted d th that at depending on various type of crops seasons of production and markets the factors likee har lik harves vestin ting g , pos postt har harves vestt han handli dling ng sto storag ragee tra transp nsport ortati ation on etc etc.. caus causee maj major  or  losses. As per general estimates the total turnover in the food market is approximately Rs. 250,000 crore of which value added food products comprises Rs. 80,000 crore. Since liberalizations in August 1991 and till December 1998 proposals for projects of over Rs. 72,000 crore have been proposed in various segments of the food and agro processing industry. According to a study by the National Council for Applied Economic Research (NCAER), the Indian food market in 1995 was Rs. 248,000 crore. According to A CII-Mc Kinsey report on processed foods industry the food market at 1995 prices is estimated at Rs. 225,000 crore. According to the study, the frozen vegetables 1

market has the potential to touch Rs. 350 crore in value terms by 2005. But this would be possible only if adequate cold storage facilities are available in different   parts of the country. Maintenance of cold chain being essential in this sector, logistics play a very important role. The total cold storage capacity is over 100 million tonnes per annum, resulting in an estimated wastage of Rs. 23,000 crore annually. The food processing industry in India is regarded as a sunrise industry. Companies,   big big and sm smal alll ar aree ge gear arin ing g up to gr grab ab a sl slic icee of th thee pr proc oces esse sed d fo food od ma mark rket et.. According Accordi ng to the Natio National nal Council for Appli Applied ed Econom Economic ic Resear Research ch (NCAE (NCAER) R) the number of households buying basic food items is likely double to 33.1 million in the next eight years compared compared to 18.1 million million on subsistence subsistence diets and 2.5 million  premium foods consumers. Creation of storage is the only remedy that could reduce perishability and hence value addition. With adequate storage and modern processing facilities India could emerge as a leading exporter of horticultural produce. The agrarian base of India offers a great potential for processing of fruits and vegetables. Several states and the Central Government have introduced incentive schemes to promote the industry as it is considered to be one that can play a major role in upgrading the standard of  life of framers.

Prospects for Cold Storage The preservation of perishable food stuffs is a matter of vital importance in this country, especially when there is a problem of food shortage and the loss of food is abnormally high due to the lack of proper storage facilities at many producing and consuming centers. It has been observed observed that certain important important nutritive foods like vegetables, fruits, eggs, etc. are available in abundance in the production season and an d th thei eirr pr pric ices es dr drop op to un unre remu mune nera rati tive ve le leve vels ls,, th thus us ca caus usin ing g a se seri riou ouss discouragement to increase production. Due to the lack of facilities for proper   preservation the commodity is scarce in the off season and the prices shoot up

2

conside cons iderab rably ly.. The pro provis vision ion of col cold d sto storag ragee fac facili ilitie tiess as has been expe experie rience nced d would 1. Prevent wast wastage age of food stuf stuffs fs 2. Ens Ensure ure remunera remunerativ tivee pri prices ces to the producer producer which would would in itself itself pro provid videe the incentive for increased production 3. Ensure steady steady suppli supplies es over a longer longer period period of time time 4. Sta Stabil bilize ize pri prices ces It is therefore, desirable to set up a chain of cold storage and frozen food storage especially in the major producing and consuming centers, if feasible. There are many kinds of vegetables and fruits and other food stuffs which can be stored in cold stores for periods ranging from two weeks to over eight months. As   per per th thee re repo port rt of NA NAFE FED D sh show owss th that at th thee to tota tall ca capa paci city ty av avai aila labl blee no now w in Maharashtra is about 200,000 M.T. which is meager, as compared to the capacities availab avai lable le in sta states tes like Utt Uttar ar Pra Prades desh, h, Bih Bihar, ar, Wes Westt Ben Bengal gal,, Punj Punjab ab etc etc.. It is, therefore clear that a good scope exists for establishing additional cold storage facilities in Maharashtra.

1.2 General Information on Storage of Various Commodities The refrigerated storage which includes the cold storage and frozen storage is one of the best known methods of preservation of food stuffs to retain the food value and flavor. Although, refrigeration is an expensive process, the cold storage unites of proper properly ly selected capacities can be economi economically cally viable. The economi economicc concep conceptt of the cold storage is that the storage cost must be less than the difference in price of the commodity stored, between flush and lean season. In cas casee of fru fruits its and veg vegeta etable bles, s, the post col cold d sto storag ragee per period iod is an imp import ortant ant consi con side dera rati tion on fo forr de deci cidi ding ng whe wheth ther er th thee co cold ld st stor orag agee cou could ld be lo loca cate ted d at th thee   producing or the consuming items like potatoes, apples, Raisins, Tamarind and some other Dry fruits and spices have a better post cold storage life and therefore, 3

stor st orag agee fo forr th thos osee co comm mmodi oditi ties es ca can n be se sett up bo both th at th thee pr prod oduc ucin ing g an and d th thee consuming centers.

Cold Storage in Navi Mumbai After the market s shifted to Navi Mumbai the need for cold storage capacity rose substantially and number of cold storage units have been established in the APM Yard as well as TTC area developed by MIDC. Somee of th Som thee ma majo jorr uni units ts in incl clude ude MA MAFC FCO, O, Hi Hima mach chal al and UP Col Cold d st stor orag age, e, PRABHU HIRA cold storage, polar cold storage which are located in the APM Yard having a capacity of more than 2001, M. T. The units located on TTC area include Savala Food and cold storage which is one of the largest multi commodity cold store in the countr country y with the capaci capacity ty of 16,000 M.T. the other major units in this area include Crescent Cold Storage, Mehta Cold Storage, Shanu Cold Storage, Mayur Cold Storage etc. It has been observed that a number of units have expanded their capacities after a few years of operation the general trend shows that the requirement of cold store capacity has steadily been going up and the need exits for  some more units. It has been observed that practically all the cold storage units have occupancy in the range of 90 to 100 % for about 8 months in the year. In the remaining period the remaining period the occupancy is in the range 50 to 70 %.

Market Yard at Turbhe The APM yard in Turbhe was developed by CIDCO with the view of shifting the wholesale food markets from Mumbai and involved development of infrastructure for handling, storage and marketing of various commodities such as fruits and vegetables, spices, Dry fruits, Cereals etc. after the markets were shifted to the APM Yard in Navi Mumbai the requirement of cold storage capacity has been going up steadily in this area. Other Possible Activities Connected With the Cold Storage 4

Usually, some other activities are also possible along with a cold storage unit. These include 1. Pr Pree cool coolin ing g 2. Proces Processing sing grading grading and storage storage of fruits, fruits, vegetables vegetables etc. etc. 3. Mil Milk k processi processing ng and storag storagee 4. Proces Processing sing and freezi freezing ng of fruits fruits and vegetabl vegetables es 5. Contro Controlled lled atmos atmosphere phere store storess etc. etc. However, these facilities need additional space, higher investments and involve day to day production like activities.

1.3 Incentives and Financial Policy Thee go Th gover vernm nmen entt of In Indi dia, a, mi mini nist stry ry of agr agric icul ultu ture re ha hass ap appr prov oved ed th thee cap capit ital al investment subsidy scheme for construction, expansion, modernizations of cold storag sto rages es and sto storag rages es of hor horti ticul cultur turee pro produce duce.. The nat nation ional al hor hortic ticult ulture ure boa board rd announces the implementation of this scheme. The feature of the scheme is as under: For wider dispersal, projects up to 6000 M. T. capacity would be preferred. The cost of 5000 M.T. capacity now cold storage and expansion of existing capacity should not exceed Rs 2.10 crore @ Rs. 4000 per tonne, for modernization @ Rs. 1000 per tonne. 25% promoter’s contribution 50% term loan by commer commercial cial Co-operative Co-operative banks at PLR-1% through NABARD refinance. 25% back ended capital investment subsidy National Horticulture Board shall be routed through NABARD/NCDC for opening Borrower rise subsidy Reserve fund

5

account by lending commercial/Co-operative banks. The subsidy is restricted up to Rs. 50 Lacs. Wherever term loan are not raised from institutional sources and the promoters fund projects entirely through internal resources resources generat generation, ion, such propos proposals als be submitted to NHB directly for availing subsidy after completion of the project. Emphasis shall be laid on the following Reducing PHM losses with multi chamber and multi product facilities Modern design/technology and energy saving equipment / devices to be adopted to avoid obsolescence of machinery, etc. Applications to be submitted to commercial /co-operative banks and NCDC (As the case may be) on their applications format and National Horticulture Board may be informed accordingly.

Eligible Organizations The sch scheme eme inc includ ludee , coo cooper perati atives ves Com Compan panies ies,, Cor Corpor porati ations ons,, Par Partne tnersh rship ip and Proprietary firms, Agriculture Product Marketing Companies, Committee, Boards, Agro industries Corporations, Grower’s Associations and NGOs.  Note: The scheme offered by NABARD is based on construction rates of Rs. 4000 per  M.T. which are valid only for large sized bulk cold stores as generally constructed in North India. In case of multipurpose, multi chamber units especially located in Mumbai region the construction costs are higher due to higher land and other  material and labour costs and better technical designs.

Cold Storage Data of Various Fruits and Vegetables

6

Product

Potato

Storage

Cold

Normal

Temperature

storage

Period

(Degree C)

Life

Storage

2- 4

(week) 32-36

March

of 

to

Octo Oc tobe berr & December  Cauliflower

Cabbage

Tomatoes

0-1.5

8- 1 0

0-1.5

10-12

7

4- 5

to January February to April

&

Aug ugus ustt

to

October  February to May

&

Aug ugus ustt

to

October  April to May

&

September  Ginger Lime

Orange Mosambi

2- 4 8

7- 8 6- 8

14

to October  February to

6

May March

to

April

&

Aug ugus ustt

to

8

September  February to

8

April April

to

July

&

 November  Apples E ggs

0- 15 1- 5

16-20

to February October to

20-24

march May, June to

7

Mango

8- 1 0

 November, 4- 6

December  May to

Annexure 1

Cold Storage Data on few products

Products

Temperature

Relative

Normal

(Degree. C)

Humidity

period

(%)

Beans (Dried)

1

85

of  storage

3 months

Peas (Dried)

2-15

-

L on g term

Pepper/Chilly

0-4.5

65- 7 5

(Dry)

6- 9 months

8

FRUITS/DRY FRUITS

Peanuts

5-9

6 6- 75

/walnuts Almonds

months 15 - 2 0

-

(Shelled) Currants

6- 9

4/6 months

1

80

2 months

Apricot

0-4.5

55- 6 5

12 months

Dates Dat es (su (sucro crose se

0

7 0- 75

or hard type) Dates soft

6 months

-2 – 0

-

6 months

Butter

-10

80

6 months

Figs

0-4.5

50 - 60

12 months

9

Ref: ASHRAE DATA Book/other literature.

Annexure 2

List of Cold Storages Navi Mumbai  

Name

Address

Capacity in Product Cu

Stored

Mtr/M.T. Pola Po larr

Cold Co ld

 Navi

1350 M.T.

Dry

Fruit,

Storag Sto ragee Pvt

Mumbai-

 pulses,

Ltd

400 703

Spices

Iglo Ig loo o

Cold Co ld

 Navi

Storag Sto ragee Pvt

Mumbai-

Ltd

400 703

Venus Cold

 Navi

Storage

Mumbai

-

Milk

 

Products Etc

-

Dry

Fruits,

Pulses, Spices

Jainex

Navi

10

Frozen foods

Foods

(P)

Ltd

Mumbai

– 

400 05

Vissha Vi hall

Ice

Factory

&

Cold

 Navi

-

Mumbai

– 

Dry

Fruits,

Pulses,

400 05

Spices

Storag Sto ragee Pvt Ltd Forstar 

Taloja, Navi

Frozen

Mumbai-

Foods

(P)

-

Frozen foods

1500 M.T.

Dry

400 208

Ltd Tedco Ted co Col Cold d

R-54,

Fruits,

Storage

MIDC

Pulses,

Rabale,

Spices

 Navi Mumbai

– 

400 701 Jay Ja y

Bhar Bh arat at

D-25/11,

Ice Co Pv Pvtt

MIDC

Ltd

 Navi

250 M.T. ,

Dry

Fruits,

Pulses, Spices

Mumbai400 705 Mehta &

Ice

D-36/4,

Cold

MIDC,

Pulses,

Turbhe,

Spices

Storage

300 M.T.

Dry

Fruits,

 Navi Mumbai400 705 CJ Food

Jain

Plot no – B7,

-

MIDC

Frozen Foods

11

Processing

Ind nd..

&

Digha, Navi

cold

Area,

Storag Sto ragee Pvt

Mumbai-

Ltd

400 708

Shriram Shrir am Ice

Plot

&

16/17,

Cold

Storage

no

– 

800 M.T.

Frozen Foods

MAFCO APM Yar Yard, d, Turbhe,  Navi Mumbai

– 

400 705 MAFCO

APM Yar Yard, d,

(P) Ltd

Turbhe,

2000 M.T.

Frozen

&

fresh Foods

 Navi Mumbai Mehul &

Ice

APM Yar Yard, d,

Cold

Vashi,, Navi Vashi

  pro produ duct ctss

Mumbai

etc

stor st orag agee

Co

350 M.T.

Milk   &

Pvt Ltd Modern

220-Atlas

Cold

Mills

storage

compound,

550 M.T.

Meat,

Fish

& Eggs

Reary Road Ro ad,, Na Navi vi Mumbai Savla Foods

MAFCO,

&

APM Yar Yard, d,

Foods

Storag Sto ragee Pvt

 Navi

  pul pulse ses, s, Dr Dry y

Ltd

Mumbai

Fruits/Fresh

Cold

1600 M.T.

12

Frozen &

fruits Bhanu &

Ice Cold

Store

APMC

3000 M.T.

Dry

Fruits,

Market,

 pulses,

Turbhe,

Spices

 Navi Mumbai400 708 Prabhu Hira

MAFCO,

2500 M.T.

Dry

Fruits,

Cold

APM Yar Yard, d,

Vegetables,

Storage

 Navi

Spices,

Mumbai

Frozen Foods

Himachal

MAFCO,

3500 M.T.

Dry

Fruits,

Cold

APM Yar Yard, d,

Apples,

Storage

 Navi

Spices

Mumbai Crescent

Mahape,

3500 M.T.

Dry

Fruits,

Cold

 Navi

Spices,

Storage

Mumbai

frozen

&

Fresh Foods U.P.

Cold

Storage

MAFCO,

3000 M.T.

Dry

Fruits,

APM Yar Yard, d,

 pulses,

 Navi

Spices

Mumbai

13

Annexure 3

List of Cold Storages Mumbai

14

Name

Address

Capacity In

Product

Cu/Mtr 

Stored

250 M.T.

Dry Fr Fruits,

Sood

Plant no- 5,

Enterprises

Chakla,

Vegetables,

Andheri

Spices

east, Mumbai Sunder 

Prem

1200 M.T.

Dry Fr F ruits,

Cold

Estate,

Vegetables,

Storage

Cross

Spices

Lane, Mazgaon, Mumbai Ideal Ice &

Plot No-D-

300 M.T.

Meat,

Cold

3,

St No

Marine

Storag Sto ragee Co

16,, 16

Maro Ma roll

 products

Ltd

Ind

Area,

MIDC Andheri, Mumb Mu mbai ai –  400 093 Mulund

Shah

I nd

800 M.T.

Pulses, dr dry

Cold

Estate,

Fruits,

Stor St orag agee &

Vera Desai

Spices

Ind Pvt Ltd

Road, Andheri west, Mumbai

Shiv Sh iv Co Cold ld

Lal

Storage

Bahadur 

2000M.T.

Meat, Fish, Vegetables

Shastri marg, Bhandup, Mumb Mu mbai ai –  400 078 Best

Zakaria

Potatoes

Bunder 

15

300 M.T.

Dry Fr Fruits, Spices

Annexure 4

Information Informatio n about existing cold stores in Mumbai, Thane and Navi Mumbai Areas

Mumbai

Thane/ Mumbai

No of Cold Storage Total

71

70

Storage

68,938

2,88,640

Esti Es tim mat ated ed

20,000

85,000

24

-

14

13

Multipurpose

23

29

Meat Products

4

6

Marine Products

6

20

Volume m3 Tottal To stor st orag agee

Capa Ca paci city ty

M.T. Appl Ap plic icati ation on

Wise Wi se

 Nos. Hotels Milk

&

Milk  

 products

16

Navi

F&V

-

2

Annexure 5

Commodities stored in Cold Stores in Mumbai Region Fruits & Vegetables

Potato,

Apples,

Mang Ma ngoe oes, s,

Export & Domestic

orang or anges es,,

Kiwi Fruits, Grapes, Pomegranates Spices Etc

Red Chilies , Chili Powde Po wder, r,

Domestic

Cori Co rian ande der  r 

(Dhan aniia),

Cumin

Seeds

(Jira),

Tamarind,Ginger, Clove etc. Dry Fruits

Dry

Dates,

Wet

Dates,

Raisins,

Acrot,

Almond,

Import & Domestic

Pista, Pis ta, Cas Cashew hew nut nuts, s, Apricot, Cherry etc. Other Items

Eggs, Jaggery, Milk  

Domestic

Products, Chemicals, Pharmaceuticals etc. Frozen Products

Butter, Ice Cream, Meat,

Poultry

Products, Produc ts, Proces Processed sed Food Foo d & Veg Vegeta etable bless Products 17

Export & Domestic

Annexure 6

Chapter – 2 Introduction to Sarveshwari Village Industries (Nafed Cold Storage) 2.1 History: Sarves Sar veshwar hwarii vil villag lagee ind indust ustry ry was est establ ablish ished ed in the yea yearr Oct Octobe ober, r, 200 2001. 1. The objec obj ecti tive ve of th thee com compa pany ny wa wass to pr prom omot otee pr produ oduct ct of vi vill llage age in indus dustr trie iess & agriculture products. The company has first set up a unit in Jaunpur, Uttar Pradesh for manufacturing manufacturing handmade paper & handmade woolen carpet carpet.. The product were export oriented therefore it has been exported to various countries like Germany & European country. The companies diversify and entered into the warehousing business. It has acquired a cold storage owned by NAFED on lease basis & managing successfully with effect from November 2004. It is a partn partnershi ership p organi organizatio zation. n. Its chief executive is Mr. Sailesh Singh, having vital experience in the field of business as per objective of the company & good command in managing cold storage business. The other    partne partnerr Mr. Jai Jaipal pal is als also o havi having ng tre tremen mendou douss expe experi rience ence in the int intern ernati ational onal  business & finance. It is one of the main players in the cold storage industry at APMC market. It is spread over the area of 3000 sq meter. The cold storage is situated in the heart of APMC market, Navi Mumbai from where fruits, vegetables, dry fruits, spices & pulses are available in sizeable quantity. Therefore, huge store of com commod modit ity y are avai availab lable le in to col cold d sto storag rage. e. The There re are exc excell ellent ent fac facili ilitie tiess available for the loading & unloading of vehicles. There is ample open space available which is an additional facility available for  clients for grading, packing of the products. Manpower and Organizational Structure The personnel requirement of the cold storage unit is as under: 18

Manager (1): The Manager is in charge of cold storage for efficient and continuous running of  the plant. He is also responsible for procurement, preservation and marketing &  booking of material for storage as well as general administration. Plant Operators (4): They are incharge & responsible for maintaining proper temperature & humidity and for carrying out the actual repair and maintenance of the equipment. Accounts Clerk (1): The role of clerk is to keep necessary accounting records, handling of cash and other matters relating to the accounts section. Others: Helpers (4), Security Guard (3), Peon (1)

2.2 Organizational Structure Chief Executive Officer 

Manager 

Plant Operator

Accounts Clerk  

Helpers

Security Guard/Peon

2.3 List of clients of Sarveshwari Village Industries Industries 19

Client Agr grii

Address Trad Tr adee

Ind ndiia

Services Pvt Ltd

Contact

A nn a

Bhavan,

Ground floor, Dana

022 02 2

3246 32 4669 699/ 9/02 022 2

3770999

Bunder, Mumbai-9 Khushbu Impex

Block no 4, Ground floor, plot no 578/A, Jam-e-Jamshed Road,

Matun ung ga

,

Mumbai- 400 019 Bombay Exports

33/35,

2nd

Matru

Vatsalya,

022 2240 22406075 6075/02 /022 2 22408642

Bhuleshwar, Mumbai- 400 002 Aarambh India Pvt

189 cent central ral fac facili ility ty

Ltd

building, No 2 ,

022 40139037

APMC, APM C, Sect Sectoror- 19, Vashi,

Navi

Mumbai Usha International

134, kana chambers, Mo di

street,

022 22690696

3rd

floor, Fort, Mumbai -1

Few Products Stored At Sarveshwari Village Industries Vegetable (Padwal)

20

Pulses

Pomegranates

21

Lemon

Red Pumpkin

22

Green Chilly

Chile Apple

23

Designs of Cold Storage Cooler without Floor 24

Cooler with Floor

Freezer with Floor

25

General Descriptions: Descriptions: Thermal Insulation and Insulation and Insulated doors: Thermal Insulation of cold storage Walls: With ND quality EPS of appropriate thickness in one/two layers finished with pre coated sheets. Ceilings: With ND quality EPS of appropriate thickness in two layers and finished with pre coated sheet Floor: With HD quality EPS of appropriate thickness in two layers and finished with tarrelt and P.C.C. 26

Insulated Doors: Insulated doors with main frame and shutter with PUF insulation and Al. Cladding complete with heavy duty latches and things with strip curtains.

2.4 Operational Requirements and utilities Cold storage plants being the plants for preservation do not require any raw material etc for operation. The refrigeration plant work on a refrigerant medium which can be Ammonia Ammonia or HFC/HCFC. HFC/HCFC. In India over 95 % of the large sized cold storag storagee plants plants are design designed ed for Ammonia Ammonia refrig refrigera erant nt due to the simpli simplicit city y of  operation maintenance and the lower cost of the refrigerant which is needed only to make make good good for for loss losses es whic which h may may occu occurs rs durin during g repa repair irss and and main mainte tena nance nce of  HFC/HCFC are generally used on smaller plants which are designed for automatic operations. Now that the CFCS and some HCFCs have been identified as the gases responsible for damaging the ozone layer surrounding the earth’s atmosphere the   production of these are being phased out gradually and as such the availability would pose a problem in the coming years. The alternative developed for these gases are still imported and are very expensive. For this reason at Sarveshwari we use the refrigeration system designed to work on Ammonia refrigerant with proper technical Specification. The main utilities for the operation are the power and water and the estimated quantities are as given below: Power: 136 KVA, 3 Phase, 50 C/s, 400/40 V A.C. Supply Water: 15,000 liters/day (for plant and other consumption). The water used has to  be reasonably potable and soft

Effluent Disposal: There is no objectionable effluent generated in a cold storage plant and hence the  problem of effluent disposal does not arise. 27

Chapter – 3 Cold Storage Industries 3.1 Need for Cold Storage 28

Cold Storage would result in less wastage of foods. It will enhance to the value and the quality of the foods. Thus it will contribute to healthy eating habits. Also it will contrib contribute ute toward towardss the employ employmen mentt generat generation ion.. Will Will over all contri contribut butee to the economy; it can prove beneficial to the farmers and will help them in getting value for money, will help in getting remunerative income for farmers.

3.2 Status of Cold Storage Industries: Size of food market in India-Rs.8,60,000 Crores. Primarily processed food market  – Rs. 2,80,000 crores. Value added processed food market – Rs. 1, 80,000 Crores. Investment during the 10th plan is estimated at Rs. 62,105 Crores. Industry growth rate rate duri during ng the the last last five five year yearss is esti estima mate ted d at 7.14% 7.14% agai agains nstt GDP GDP of 6.2% 6.2%.. Investment required during next ten years – Rs. 1, 10,000 Crores. Low level of   processing is done mainly. 2% in the case of fruits and vegetables, 14%in milk, 4% in fisheries, 1% in meat and poultry products. India’s share in world’s processed food production-1%. Value addition 20% against 45% in Philippines. India’s share in global agricultural export is 1.6% of $520 billion. Exports have stagnated during the last five years. There is unorganized unorganized marketing marketing and distribution distribution of food items. 72% of food consumption in the world is through organized set up whereas it is 1% in India. Fragmented retailing results in high cost due to inefficiency, wastage. Estimated wastage fruits & vegetables in India 35 %.

80

70

60

     e 50      g      a        t      n      e 40      c      r      e      p 30

Cold Storage of Food and Vegetables 20

10

29

0

USA

B ra razi l

Chi na na

Thai l an and

I nd ndi a

3.3 Why Increased Focus on Cold Storage The second Green Revolution will be centered on the concept of ‘farm to plate ‘.Low share of processed foods in the country will open doors to other countries to tap the emerging market for processed food triggered by a burgeoning middle class with increased purchasing power. The Horticulture Mission targets targets to increase the  production of fruits and vegetables to 260MT from the current 140 MT through several interventions. The current wastage is 35% in fruits and vegetables and in certain cases as high as 60%. Apple is the major crop grown in Himachal Pradesh, Jammu & Kashmir due to favorable climate, but there is a rare consumption. But the major consumptions of  the product is in other states before a decade there was huge production of the apples but there was not sufficient current demand. This could have been preserved if cold storage facility were available locally. But it was deteriorated n had to be thrown away due to lack of cold storage facility. Similar scenario was observed in Uttar Pradesh were there was ample production of potatoes but due to lack of cold storage storage facility facility there was a huge loss. As a result Farmers, Farmers, Traders suffered suffered huge loss. Earlier setting of cold storage unit was very costly as there was not much more subsidy or government assistance available to the industrialist. Hence there was not enough cold storage. When huge loss was suffered to farmers, there was an 30

agita agitati tion on,, prot protes estt by the the fram framer ers, s, local local lead leader erss whic which h got got the the atte attent ntio ions ns of  government. There after government has declared 50 % subsidy on set up of the cold storage unit & NCDC National Co-operative Development Corporation are  providing financial assistance on very nominal rate. This has encouraged farmers & entrepreneurs to Set up cold storage unit with modern technology facility. Now many cold storage units have come into existence.

3.4 Why Marketing is Needed in Cold Storage Apple is the major crop grown in Himachal Pradesh, Jammu & Kashmir due to favorable climate, but there is a rare consumption. But the major consumptions of  the product is in other states before a decade there was huge production of the apples but there was not sufficient current demand. This could have been preserved if cold storage facility were available locally. But it was deteriorated n had to be thrown away due to lack of cold storage facility. Similar scenario was observed in Uttar Pradesh were there was ample production of potatoes but due to lack of cold storage storage facility facility there was a huge loss. As a result Farmers, Farmers, Traders suffered suffered huge loss. Earlier setting of cold storage unit was very costly as there was not much more subsidy or government assistance available to the industrialist. Hence there was not enough cold storage. When huge loss was suffered to farmers, there was an agita agitati tion on,, prot protes estt by the the fram framer ers, s, local local lead leader erss whic which h got got the the atte attent ntio ions ns of  government. There after government has declared 50 % subsidy on set up of the cold storage unit & NCDC National Co-operative Development Corporation are  providing financial assistance on very nominal rate. This has encouraged farmers & entrepreneurs to Set up cold storage unit with modern technology facility. Now many cold storage units have come into existence. Example: During the period of Feb to May, When the Pick arrival of Mango maximum marketing should be done so that the profit can be maximized. The  product which has got place in the international market such products which are  produce  produce seasonal such product can be preserved in cold storage. storage. We can approach such traders which produce on seasonal basis but are exported throughout the year. 31

We can get business from such trader. With Such trader we can go for Service Level Agreement and can get business.

Chapter 4 Marketing in Cold Storage Industries 4.1 Introduction to Marketing

32

Marketing in a new world Marketing is the invention of the 20th century, and for last 80 years, its goal has  been to infiltrate consumers’ mind and change their thinking. Since the beginning marketing’s goal has always been to build the relationship between buyer and sell seller er.. Th This is rela relati tion onsh ship ip is more more impo import rtan antt in this this ever ever dynam dynamic ic busin busines esss environment. Today, technology is playing an important role in building a better   buyer and seller relationship. Caught Caught in the interl interlacin acing g Web of interr interrela elatio tionsh nships ips,, tradi traditio tional nal market marketing ing is evanescing for simple reason that its tasks are being automated and assumed by the mysterious and hidden power of information technology. All traditional marketing functions are replaced by the technological functions by creating an impression that marketing has turned out to be a technology. Origin

of

Marketing

Marketing as an element of business originated in early 20th century, but its roots reach back to the industrial revolution. It idealized the importance of relationship   between producer and consumer. McKenna says development of marketing has gone through three distinct ages viz., the age of reach, age of push and age of total access. Ag e

of

Reach

and

Age

of

Push

  No one kno knows ws who first coined coined the term ‘marke ‘marketin ting’. g’. In early early 20th 20th centur century, y, marketers identified the term with distribution, wholesale and retailing. Later in 1920s Procter and Gamble established ‘Brand management system’, which can be identified as a period of branding at very same time Edward Bernays was working on the concept of ‘Public Relation.’ The 1950s has established and popularized the concept of 4Ps which was followed by segmentation, mass production and mass marketing. Role

of

Technology

in

Marketing

Technology has always played an important role in the development of marketing. 33

In early 20th century, development of rail-roads and Henry Ford’s invention of  ‘model T’ has helped companies reach their customers better and faster. In 1920s, Radio emerged as the major technological breakthrough to create a perception that marketing as a function can change consumer behavior. It remained an efficient   broadcast medium for two American generations. Post World War, Television came in as a new technological development changing the marketing landscape. Post 1950s, advertisers relied more on television than radio; This new push medium has consistently influenced viewers with a repetitive, consistent and entertaining message. This helped marketers change consumer behavior from ‘I need factor’ to ‘I want factor.’ Total

Access

Just Just like like an era era of reac reach h and and push push,, new new tech techno nolo logy gy,, new new mark market etpl place ace,, new new consumer and competition are once again changing the assumptions of customers and marketers. Now customers are telling what they want companies to do instead of companies suggesting their customer what they need. Total Access is not a   broadc broadcast ast model. model. Rather Rather,, it is an enviro environme nment nt where where consum consumer er experi experienc ences es multiple and simultaneous competitive buying opportunities. Internet is seen as one of the greatest technological innovation of the last century. It has made availability of information easier and cheaper. Internet has successfully laid the seeds of Total Access which flourished with mobile technology. Mobile market has improved customer’s comfort level and once again changed the customer behavior. These two technological breakthroughs have not only changed customer behavior but also changed the way market behaves. It is evident from the changed classification in era of Total Access. In the era of Total Access, customers can be divided by four    parameters parameters—the —the informatio information n explorers, explorers, the informati information on active, active, the informati information on foll follow ower ers, s, and and the the info inform rmat atio ion n pass passiv ive. e. Tech Techno nolo logy gy has has chan change ged d at an unprecedented pace in the past few decades. It has changed business landscape many a time in last twenty-five years. It has enabled farsighted business to outpace their competitors by creating new products and services, by managing business

34

  proc proces esss and by oper operat atin ing g busi busines nesss more more effi effici cien entl tly. y. Law Law gover governi ning ng thes thesee technological innovations is also seen as the law of new marketplace.

4.2 Objective of the study Every business is wired today, marketers and academicians in this increasingly networked networked business environment environment is writing writing the new rule of marketing. marketing. These new laws laws of mark market etpl place ace are are play playin ing g on impo import rtan antt role role in devel develop opin ing g mark market etin ing g strategies. Branding

Lost

its

Meaning!

Thee mark Th market etin ing g func functi tion on disa disapp ppea ears rs into into a netw networ ork k of rela relati tion onsh ship ipss and and resp respon onsi sibi bili liti ties es betw betwee een n man man and and mach machin inee thro through ughou outt the the value value chai chain. n. For  For  market marketers ers,, the end goal changes changes from from creati creating ng brand brand awaren awareness ess to satisf satisfyin ying g custom customers ers.. In today’ today’ss networ network k econom economy, y, brand brand itsel itselff become becomess a ‘persi ‘persiste stent nt  presence’ which sustains the customer dialogue whenever the customer chooses. Branding is all about customer loyalty. It is always seen as a result of customer producer relationship. In the era of total access, this relationship is becoming more transactio transactional nal than personal. In total access environment, environment, many consumers will choose a brand for pragmatic reasons rather than emotional. The ever changing marketplace and shifting consumer loyalty is creating challenges for producers. Few of the challenges for producers are: Changing Symbol: Technology has changed the way people perceive things, which in turn, has changed business practices. Today, ATM has emerged as a symbol of  trust in consumers’ conscious mind replacing old economy bank infrastructure. Impact of Technology: Building brand in technology business is building alliances and relationship. It is seen that in technology market, developing brand is all about developing

industry

standard.

Hidden Choices: Choices: The component component of the end product is mostly mostly unknown to the end consumer. Consumers often do not know with which producer they are dealing with. Intel and Visa are the diffusion distributors of Dell, Compaq, and Bank of  35

America. The erosion of brands has evolved from technology, social and cultural influences. An easy access to information and power of choice has converted onetime “brand loyal” to “brand switcher”. Today, consumers have choice to select from from wide wide variet variety y of offeri offerings ngs;; hence hence user user prefer preferenc ences es vary vary from from situat situation ion to situation. In the last two decades, consumer preferences have changed. Few people confuse preferences with values. Preferences change with time and vary widely with the changing social and economic context of a particular market. It chan change gess with with chan changi ging ng tech techno nolo logy gy,, but but valu values es do not. not. Th Thes esee chan changi ging ng   prefe preferen rences ces give give market marketing ing a new dimens dimension ion of mass mass custom customiza izatio tion n and self  self  service. service. The business business is looking looking for lasting market presence and sustainin sustaining g brand. There are two keys to it: Point of access and marketing architecture network. Persistent

presence

Market is changing its dimension at the speed of thought. This dynamic change is changin changing g consume consumer’s r’s prefer preference encess and percep perceptio tions. ns. Today, Today, every every busine business ss has  persistent presence. In fact, in this competitive market, it is a must for the very survival of any business. Persistent presence is consumers, consistent and reliable experie experience nce with with the produc producer er or retail retailers ers.. A logist logistica icall system system that that focuse focusess on operational operational system and communicati communicational onal system of any company is the backbone of the persis persisten tentt presen presence. ce. Nature Naturess of busine business, ss, market market conditi condition, on, compan company’s y’s competitive position are few of the factors which help any company in achieving persistent •

presence.

Presence

through

It digital

is

possible network

in

e.g.,

many A T M,

ways:

e-broking

• Physical presence: Location, Access e.g., Starbucks has more than 3,000 points all over

the

•

Embedded

presence

world. e.g.,

Intel

• Presence through services e.g., E*TRADE, Yahoo!, Citibank  Company can establish persistent presence in many ways. It all depends on the nature of the business and environment the company is operating in. McKenna suggests

a

few

key

points

to 36

establish

persistent

presence:

• Mark Market et Arch Archit itec ectu ture re Appr Approa oach ch to To Tota tall Acce Access ss e.g. e.g.,, Dell Dell,, WalWal-Ma Mart rt •

Beef

up

your

custome omer’s

suppor port

infrastructure

e.g. .g.,

Cocaca-Cola

• Th Thin ink k To Tota tall Acce Access ss e.g. e.g.,, AOL AOL as a tota totall Inte Intern rnet et vent ventur uree to AOL AOL as an ente entert rtai ainm nmen entt

and and

medi mediaa

comp compan any y whic which h

prov provid ides es tota totall

acce access ss opti option on..

• Invest in Time, Money are customer Relationship e.g., CRM initiatives The

Market

Architecture

Market architecture is the functional relation of inbound and outbound functions. In transactio transactional nal working working environment environment with shortened shortened product life cycle, cycle, changing changing tech techno nolo logy gy and shif shifti ting ng chann channel els, s, and and

incr increa ease sed d

comp compet etit itio ion, n, mark market etin ing g

architecture has become dynamic. Apart from technological innovations, human interactions also play the key role in defining marketing architecture. Shared Creativity: In the B2B market place, to gain market share, companies work  closely with their customers to know their needs and demands better. Few of the innovations driven by customer needs are Apple II personal computer, Microsoft MS-DOS. Keeping Customer Trust: To build or sustain customer trust, marketing architecture must perform as per acceptation acceptation of the customer customer and respond respond consistent consistently ly to their  queries queries and proble problems. ms. Busine Business ss earnin earning g custom customer er trust trust can retain retain it either either by meeting or exceeding expectations.  Nurturing  Nurturing Change: The Organic Factor- Marketing Marketing architectu architecture re is dynamic. dynamic. The ability to respond to the new customer information and changing business and social need is yet another important aspect of marketing architecture. IT is playing an important role in the development of dynamic marketing architecture, and also in the relationship development between the producer and consumer. In a situation, when inform informati ation on relate related d servic servicee has shifte shifted d from from retail retailers ers or distri distribut butors ors to   produc producers ers enterp enterpri rise se archit architect ecture ure approa approach ch in market marketing ing become becomess import important ant.. Marketing architecture by learning how to better interact with itself in response to the environment and in connection with the customers’ needs and wants. The 37

important factors for successful marketing architecture are: Customer satisfaction, developing different channels for different needs, identifying value of connected  partners, and developing the strategic framework. Total

Global

Access

Inte Intern rnet et has has chang changed ed the the defin definit itio ion n of the the mark market et infr infras astr truct uctur ure. e. Effe Effect ctiv ivee communication and transport methods have narrowed down the gap between the supply and demand time giving giving a new dimension dimension to the global marketing. marketing. Growth in market economies, deregulation, privatization, and new global consumers has all created a new global market. The focus in this wired world is changing from ‘think globally but act locally’ to ‘act globally connect locally’. World Wide Web helps business in connecting all channels. It also connects people across border and helps them come closure to market and increase their interaction. Internet has helped developing total global access environment. With total global access, it is felt that the world has become more more cultur culturall ally y divers diverse. e. In this this changed changed busine business ss circum circumsta stance nces, s, market marketing ing execu executi tive vess need need to take take a comp compre rehen hensi sive ve world world mark market et view view to resp respon ond d to increasingly competitive environment where customers have access to all possible information and are looking for local source and solutions. This global connectivity has increased with mobile commerce giving birth to a new set of consumers, ‘mobile global consumer’. The global e-commerce is focusing more on establishing global persistent presence and developing global brands. Roles

and

Responsibilities

The rise of Internet and total access has created a self service model for marketing known as ‘production by masses’. This model works by providing customer with information database and allowing them to design their expectations consistently and reliably. The rise of Internet and total access has made marketing as everyone’s job. It is the matrix of responsibilities shared by—CEO who is seen as chief strategist, who also 38

work as a chief marketing executive of the organization. He integrates all the resources that enterprises need to invest and design to build a global infrastructure strategy. • CIO is seen as chief total access architect. He possesses required skills, to be the interface

between

t he

customers’

needs

and

company’s

respon ponse.

• Director of R&D is seen as the chief novelty officer. Customer preferences change fast in total access era and it is the duty of the Director, R&D to come up with

innovative

products.

• Vice Vice pres presid iden entt of opera operati tion onss and logi logist stic icss help helpss meet meet custo custome merr deli delive very ry expectations. • Vice president of marketing takes care of demand and supply factors and other  traditional marketing functions. Corporate

Creativity

Market Market impati impatience ence,, compet competiti itive ve intens intensit ity, y, volati volatile le market market reacti reaction on and high high expecta expectatio tions ns from from custom customers ers and invest investors ors are few of the factor factorss which which have created competitive environment. In this competitive environment, to gain edge over other players, companies have to work on corporate creativity. More creative the company is throughout its entire enterprise; the more successful the company will be in sustaining the growth.

Marketing Mix The Marketing Mix model (also known as the 4 P’s) can be used by marketers as a tool to assist in implementing the Marketing strategy. Marketing managers use this method to attempt to generate the optimal response in the target market by blending 4 (or 5, or 7) variables in an optimal way. It is important to understand that the Marketing Mix principles are controllable variables. The MM can be adjusted on a 39

frequ frequen entt basi basiss to meet meet the the chan changi ging ng needs needs of the the targ target et grou group p and the the othe other  r  dynamics of the M. environment. Historically, the thinking was: a good product will sell itself. Howe Howeve verr there here are are no bad bad   produ products cts anymor anymoree in today' today'ss highly highly compet competiti itive ve market markets. s.

Product

Plus there are many laws aws

Functionality,

giving giving custom customers ers the right right to

Quality,

return

Appearance,

products

that

he

 perceives as bad. Therefore the

Pack Packag agin ing, g,

question

Serv Serviice, ce,

on

product

has

 become: does the organization create

what

its

Bran Brand, d, Suppo upporrt,

Warranty

intended

cust custom omer erss want want?? Defi Define ne the the characteristics of your product or service that meets the needs of your customers. Price

How How much much are are the the inte intende nded d

List

customers willing to pay? Here

Discounts,

we decide on a pricing strategy

Financ Financing ing,,

- do not not let let it just just happ happen en!!

Options,

Even if you decide not to

Allowances,

char charge ge for for a serv servic icee (a loss loss leader), you must realize that this is a conscious decision and form orms

part

of

t he

pricing

strategy. strategy. Although Although competing competing on price is as old as mankind, the the cons consum umer er is ofte often n stil stilll 40

Price,

Leasin Leasing g

sensit sensitive ive for price price discoun discounts ts and specia speciall offers offers.. Price Price has also

an

irrational

side:

some someth thin ing g that that is expe expens nsiv ivee must must be good. good. Perma Permane nent ntly ly competing on price is for many companies not a very sensible approach. Available at the right place, at the the righ rightt time time,, in the the righ rightt quantities? Place

Some

of

the

revolu revolutio tions ns in busine business ss have come about by changing Place. Think of the internet and mobile telephones.

Locations, Logistics, Chan Channel nel

memb member ers, s,

Channel Motivatio Motivation, n, Mark Market et

Cove Covera rage ge,,

Service

Levels,

Internet, Mobile

(How) (How) are are the the chos chosen en targ target et groups groups inform informed ed or educate educated d about the organization and its  products? This includes all the weap weapon onss

in

the

marke arketting ing

armory armory - advert advertisi ising, ng, selli selling, ng, Promotion

sales

promoti otions ons,

Publ ublic

Relations, etc. While the other  thre threee P's P's have have lost lost much much of  their

meanin ning

markets,

in

Promotion

Advert Advertisi ising, ng,

Public Public

Relations, Relations, Message, Message, Direct Direct Sales, Sales, Sales, Sales, Media, Budget

today's has

 become the most important P to focus on. The function of the Marketing Marketing Mix model is to help develop a package (mix) that will not only satisfy the needs of the customers within the target markets, but simultaneously to maximize the performance of the organization. 41

4.3 Scope of the Study Ever Ev ery y resea esearc rch h study tudy has has some ome scop scopee whic which h can can be cons consttruct uctive and and accommodatin accommodating g for the industry and as well as for the people. So in this study the researcher has found some significance of the study. With the study researcher  gains knowledge about the various aspects of food processing industry. The various  products that are produce in the Indian agriculture market are fruits, vegetables and dry fruits. It highlights on the plight of the Indian food processing industry. It’s contribution to Indian economy. It brings out role of food processing industry in saving the food wastage. Through this report researcher has commence with the cold cold storag storagee indust industry ry in India. India. It also also highli highlight ghtss the economy economy policy policy and the requirement for cold storage industry. It points out the prospect of the cold storage indu indust stry ry.. It gives gives an idea idea about about the the number number of the the cold cold stor storage age oper operat atin ing g in Mumbai, Thane and Navi Mumbai region. The various products stored in cold storage and other details. It also highlights on the topic of marketing. The role of marketing in a business. The need of marketing in cold storage industry. Moreover this study provides informati information on and can be of a great help for an individual individual if he looking out to start start a new cold storage unit. The information about the capital needed and from which other institute the fund can be raised is mentioned in this study. Here the researcher  has made made use use of the the obse observ rvat atio ion n meth method od in deter determi mini ning ng the the fact factor or that that can contribute to the growth of the business. The need of a SLA (Service Level Agreement) with a brief overview of SLA has been discussed in the study over  here. Advertising which plays as important in a success of a business has been ment mentio ione ned d in the the stud study. y. Th Thee medi medium um for for adve advert rtis isem ement ent sele select cted ed has has been been newsp newspap aper er.. Th Thee meri merits ts and and deme demeri rits ts of adver adverti tisi sing ng in news newspa paper per have have been been discussed here. Advertisement can be effective in a business for its growth.

4.4 Research Methodology:

42

Resear Research ch can be define defined d as a scient scientifi ificc and syste systemat matic ic resear research ch for pertin pertinent ent information on a specific topic. In fact, research is an art of specific investigation. Research is an activity and as such the term be used in a technical sense. Research can be stated as the manipulation of things concepts or symbols for the purpose of  generalizing to extend, correct or verify knowledge whether that knowledge aids in const constru ruct ctio ion n of theory theory or in the the prac practi tice ce of

an art. art. Rese Resear arch ch has has its its spec specia iall

significance in solving various operational and planning problems of business and indust industry. ry. Resear Research ch method methodolo ology gy is a way to syste systemat matica ically lly solve solve the resear research ch  problem. Thus, when we talk about research methodology we not only talk of the research methods but also consider the logic behind the methods we use in the contexts of our research study and explain why we are using a particular method or  technique. The steps involve in the research methodology are 1. Defining Defining the Problem: Problem: In defining the problem, problem, the researcher researcher should should take into accou account nt the the purpo purpose se of the the study study,, the the rele releva vant nt back backgr grou ound nd info inform rmat atio ion, n, the the information needed and how it will be used in decision making. Problem definition involves involves discussion discussion with the decision decision makers, makers, interviews interviews

with the industry industry

experts, analysis of the data 2. Research Research Design: The research research design design tells about the mode mode through which which the entir entiree proj projec ectt is prepa prepare red. d. Th Thee rese resear arch ch desi design gn put put down down the the foun foundat datio ion n of  conducting the project. A good research design will ensure that the research project is conducted effectively and efficiently 3. Formative Formative the data source: source: It means from where where the researcher researcher collect collect the data. It can be primary data or the secondary data as both sources are necessary in order  to get the proper result 4. Analyzing Analyzing the data: After After the data collection collection is over the researcher researcher analyzed analyzed the data and edited them and turned them in the useful tabulations. So, it became useful in report study

43

5. Interpretat Interpretation ion of the data: With the help of analyzed analyzed data researcher researcher managed to  prepare project report. The analyzing of data will help the researcher to reach towards its objectives. The interpretation of the data is required so that for others it is easy to understand study in simple manner. 6. Report writing: The entire project should be documented in a written report.

This is the final step in preparing the project report. The objective of the report writing is to report the findings of the study to the respective authorities The purpose of research 1. Discover answers to questions through the application of scientific procedures.

2. The main aim of researc research h is to find out the the truth which which is hidden and and which has not been discovered as yet. 3. Resear Research ch helps us to gain gain famil familiar iarit ity y with with a phenom phenomenon enon or to achieve achieve new insights into it. 4. To portray accuratel accurately y the characteristi characteristics cs of a particular particular individual individual,, situation situation or a group. 5. To determin determinee the frequenc frequency y with with which which somethin something g occurs occurs or with with which which it is associated with something else. 6. To test hypothesis of a casual relationship between variables.

The research method used was 1. conclusion oriented research method where after working with the cold storage

unit it was found that how marketing can be a tool to increase the business and revenue of the firm. 2. The problem was was identified, identified, redesigns redesigns the enquiry enquiry as preceded preceded and was prepared prepared to conceptualize. 3. Qualitative Qualitative approach approach was there for the the research research purpose as during during the summer  summer  internship there was a function of intern’s insights and impressions. 4. The result that that would be generated generated will be either either in non-quantitat non-quantitative ive form or in the form which are not subject to rigorous quantitative analysis. 44

4.5 Limitation of the Study: As far as it goes to the limitation of the study, it can said that marketing is more of   practical and less of theoretical aspects. The nature of the market is very volatile. It keeps on changing and fluctuating. As a marketer what would seem right and appropriate for me may or may not fit and seem to be appropriate for few. So the conclusion and the suggestion may or may not be accepted by the end user. Apart from from this, this, the practi practice ce and policy policy of every every organi organizat zation ion is differ different ent.. So, any conclusion or suggestion may not be accepted in general for other cold storage industries. industries. The government government policy also differs differs from state to state. All this does account for the research work, the observation and other.eg: the marketing mix which is ideally 4p’s at times can be more then 4 or less than four.

Chapter 5 Facts and Finding After studying the organization function, its requirement to operate, the business natur naturee and and envir environ onme ment nt ther theree are are area areass whic which h needs needs due due consi conside dera rati tion on for  for  increasing the profitability of the cold storage. As the need of cold storage industry has been on the rise in the past few years. It can be said that with proper set up and taking care of all the aspects required for the cold storage industry the revenue of  the organization can be increased. Though the flow of the business is smooth it can  be improved more. There times when the utilization of the cold storage is not upto 100 %. Also there are slacks and lean periods where in traders don’t have stocks. 45

Hence even the cold storage industry does not get orders from the clients. Due to this the revenue also goes down for some time. In order to see that the revenue is coming regularly steps has to be taken for it. There also might be a chance where in there might be new traders but they might not be aware of the presence of the Sarveshwari Village Industries in the market. It is quite imperative to make your  existence and presence known in the market for the betterment of the organization from business point of view. In order to have an edge over the competitors the USP (Unique (Unique selling selling point) point) of the organizatio organizations ns needs to be emphasized in the market. This will ultimately help in bringing new clients also having hold over its current clients. Since cold storage is a service industry it is essential for the organization to always  provide a superior service to its clients. As the clients are their customers they have to be at the top most priority. No business can exist or perform better without serving best to its customer. As quoted by Walt Disney “Do what you do so well that they will want to see it again and bring their friends.” But the question that arises would be how it can be done? To this it can be answered by implementing new meth method odss in the the busi busine ness ss.. At Sarves Sarveshwa hwari ri all all the the mode modern rn tech technol nolog ogic ical al machinery are available. The power supply problem which is a problem can be eliminated. It will be thus beneficial for the cold storage to run its operation continuously and maintain the temperature for the fruits and vegetables. Thus constant temperature can be maintained. Apart from this the flow of revenue being constant it can be worked out by entering into SLA (Service Level Agreement) with majors clients of the organization. Under  this this there there will will be contin continuous uous service service provid provided ed to the clients. clients. This will will be in applicable even when the demand from the clients is less. As advertisement plays an impo import rtan antt role role in crea creati ting ng awar awaren enes esss amon among g peop people le.. So we can can put put up advertisement both during the pick as well as during the lean period. This might result in bringing up new clients. There can be a possibility that though there are many players in the market but a new entrant (Trader) in the market who has less

46

idea about how he can preserve his products from spoilage, the advertisement may attract him and can approach to Sarveshwari Village Industries. In the next chapter the facts and findings have been mentioned in brief. The facts and finding have been generalized and interpreted. Both Service Level Agreement and advertisement have been covered in brief.

Chapter 6 Analysis & Interpretation Interpretation After reviewing the scenario, working of cold storage industry at Sarveshwari Villag Villagee Indust Industrie riess (A Nafed Nafed Cold Cold Storag Storage), e), the follow following ing were were analyz analyzed ed and interpreted.

6.1 Service Level Agreement A Servic Servicee Level Level Agreem Agreement ent (SLA) (SLA) define definess the relati relations onship hip betwee between n servic servicee customer and/or and/or external customer. customer. An SLA clarifies clarifies provider and the business customer the responsibilities between the service provider and the customer and it provides a 47

framew framework ork and a common common underst understandi anding ng for both parties parties..

An SLA is most

effective when the service provider and the business customer collaborate on what should should be inclu included. ded. Any SLA SLA needs to to be agreed agreed upon by by both part parties ies.. This This  becomes a guideline for managing the relationship between the customer and the Service Provider. Because a SLA can be used to describe a variety of cold storage services; the  particular elements that are included in an SLA will depend on the circumstances. A good SLA addresses: What service(s) are being made available to what customers? What level of service or quality of service should shou ld the customer expect? What are the costs to provide this level of service? How will the service be delivered? How will the service provider monitor or track and a nd report on performance? When will the SLA be reviewed? This document describes what must be included in a Service Level Agreement Who prepares the SLA? The service provider develops the SLA in collaboration with the business customer  How To write a SLA? An SLA is not a technical document and should be written in business terms. Everyone needs to be able to understand it. Use clear and concise wording and avoid ambiguity. Avoid legal and technical jargon. 48

Avoid unnecessary technical terminology. Provide a glossary of terms if necessary. Have someone independent from the process review the SLA.

Service Level Agreement Contents What is included in a Service Level Agreement will change depending on the circumstances and the business. The most important thing thing to note when creating an SLA is to keep it simple, measurable and realistic. It is important to understand that SLAs cannot cover every every possible possible situation situation that may arise. Listed Listed below are key sections that should be included in any agreement. General Overview Description of Services Service Performance Level Service Provider and Customer Responsibilities Problem Management and Disaster Recovery Process Periodic Review Process Termination of Agreement Process Signatures

General Overview This is a Service Level Agreement (SLA) between Cold Storage service provider & Business Customer name. name. The purpose of this Service Level Agreement (SLA) is to identify the basic services, and any agreed upon optional services, to be provided  by Cold Storage service provider for Business Customer Name. 49

This SLA covers the period from Date to Date and will be reviewed and revised at the end of this period. Include a brief description of what the service or application does.

Description Description of Services Describe the service that the provider is promising to the customer. What systems are supported? What services are included? What services are NOT included? How will service be delivered? What are the hours of operation (regular business hours and after hours support)? When will regularly scheduled maintenance be performed?

Service Performance This section describes how the service provider will monitor or track and report on   performanc performance. e.

The service service provider provider must perform perform according according to predefined predefined and

measur measurabl ablee metrics metrics..

Choose Choose metr metrics ics that that are easil easily y collect collected. ed.

Balanc Balancee the

importance of a desired metric against its ease of collection. Avoid including an excessive number of metrics in the SLA that can’t be analyzed in a timely manner. Any metrics included in a SLA should be capable of being measured on a regular   basis and the SLA should indicate who will provide this information. information. Some of the most commonly used metrics include: SERVICE COSTS What are the costs to the business b usiness customer for the service?

50

Service Provider and Customer Responsibilities Responsibilities Both the Service Provider and the Customer have responsibilities in support of the service delivery process. It is important to to distinguish between these relationships. relationships. Describe the service provider duties and responsibilities. Examples are: Meeting response times associated with service related incidents. Generating service level reports for customer. Training required staff on appropriate service support tools.  Notifying customers about all scheduled maintenance. Developing and maintaining system related documentation (this could also be a customer responsibility). Managing user accounts. Describe the customer’s duties and responsibilities. Examples are: Adhering to any related policies, processes and procedures. Reporting problems using the problem reporting procedures described in the SLA. Scheduling in advance all service related requests and other special services with the Service Provider. Developing and maintaining system related documentation (this could also be a service provider responsibility). responsibility). Making Making custom customer er repres represent entati ative( ve(s) s) availa available ble when when resolv resolving ing a servic servicee relate related d incident or request. Communicating when system testing and/or maintenance may cause problems that could interfere with standard business functions.

Periodic Review Process When an SLA is first initiated and the service is just beginning, the SLA should be reviewed reviewed on a monthly basis. basis. These reviews reviews can then be done quarterly, quarterly, semi51

annually annually or annually annually after this initial initial startup startup period period is over. An SLA should be viewed as a dynamic document and should be periodically reviewed and changed when the following events occur: The environment has changed The client's expectations and/or needs have changed Workloads have changed Better metrics, measurement tools and processes have evolved. An SLA should should be reviewed at a minimum minimum once per fiscal fiscal year. year. List who is is the “docum “document ent owner” owner” and who will will facil facilita itate te regula regularr review reviewss of this this documen document. t. Conte Content ntss of this this docum documen entt may may be amen amende ded d as requ requir ired ed,, provi provide ded d mutu mutual al agreement is obtained and communicated to all affected parties. The “document owner” will incorporate all subsequent revisions and obtain mutual agreements / approvals as required. Document Owner: Document Owner Name Review Period: Review Period (e.g. annually or Quarterly)  Next Review Date: Next Review Date

Signatures Signatures The final SLA should contain signatures of appropriate representatives from the Service Service Provider and the Customer. Customer. The Service Service Provider representa representatives tives would typically be a CEO or the Proprietor 

6.2 Advertisements in Newspaper Paid-ci Paid-circu rculat lation ion newspa newspaper perss are a pop popula ularr adverti advertisin sing g medium medium for most most local local  businesses. They are the oldest forms of mass media, and they continue to be one of  the largest, as measured by volume of advertising dollars. Industry giants, as well as the local convenience stores, use newspapers to advertise. Every community has its own newspaper. There are over 1,600 paid-circulation daily newspapers in America and several thousand additional local weekly papers as well. 52

Every advertising medium has characteristics that give it natural advantages and limitations. As you scan your local newspaper(s), you will notice a number of   businesses that advertise on a regular basis. Observe who they are, and how they advertise their products and services. More than likely, if the advertisements are repeated, the ads are working. Consider this media if you are selling to a general market, because newspapers are generally bought by all segments of the population. Even though the newspaper no longer enjoys its former role as the almost exclusive source of news, they still remain a strong factor in their specific sphere of influence.

Advantages of Newspaper Advertising There are a number of characteristics of paid-circulation newspapers that make them especially appealing to advertisers: •

Most Most paid paid-c -cir ircu cula lati tion on paper papers, s, both both dail daily y and

weekly, reach the majority of homes in their primary city or town. •

Almost every home in the United States receives a newspaper, either at the

newsstand or by home delivery. •

  Newspapers permit an advertiser to reach a large number of people within a

specified geographical area. •

The printed advertising message has both permanence and desired obsolescence.

A reader can refer back to, or even clip and save, a particular ad, yet tomorrow’s edition is new and fresh and as eagerly sought by the same reader. •

The newspaper offers a predictable predictable frequency frequency of publication: publication: once, twice or up

to seven times a week. •

 Newspapers have immediacy. You can place an ad on Monday and be getting

results before the week is over. Short deadlines permit quick responses to changing market conditions.

53

•

People expect to find advertising in their newspapers. In fact, many people buy

newspapers just to read the ads from the restaurants, movies and discount stores. •

Reading the newspaper has become a habit for most families. It has something

for everyone. •

You can reach certain segments of your market by placing your ads in different

sections of the paper such as: a s: sports, comics, crosswords, news, classifieds, etc. •

An advertiser has flexibility in terms of ad size and placement. Production

changes can be made quickly, if necessary, a new insert can be added on short notice. •

Advertisements can be examined at leisure. Exposure is not limited, so readers

can take their time reading the messages. •

It offers a great variety of ad sizes. If you don’t have a large budget, you can still

run a series of small ads. •

Many options are available. Copy alone; copy with graphics; black and white; or 

full color. •

 Newspaper  Newspaper supplements supplements often feature certain subjects subjects that readers pull out and

save.

Disadvantages Disadvantages of Newspaper Advertising Advertising in the newspaper is not without a few inherent disadvantages, such as: •

Any given advertising message must compete for the reader’s attention. The

 paper may contain hundreds of ads, as well as dozens of articles and features for  the reader to wade through. If the total time spent scanning a newspaper is only 20 minutes, your ad may not be noticed by a significant number of people. •

You have no assurance that every person who receives the newspaper will read

your ad. They may not read the section you advertised in, or they may simply have skipped the page because be cause it contained little or nothing else of interest. •

It has a relatively short life span (newspapers are typically read once, then

discarded), thus requiring multiple insertions.

54

Just Just as with with any advert advertisi ising ng method, method, weigh weigh the advanta advantages ges and disadva disadvanta ntages ges  before deciding where to spend, and we will make the most of your advertising dollars.

Chapter 7 Conclusion & Suggestions In this last chapter the following are conclusions and suggestions.

7.1 Conclusion: Marketing aims at meetings the needs of the customers. It helps in strengthening the business. With proper marketing a business can reach at the pinnacle. Here in this summer internship project it can be concluded that marketing is more of the  practical aspects coupled with the theoretical knowledge. Cold storage industry is indeed a sunrise industry with tremendous potential. It will further contribute to the Indian economy and will play a vital role in prevention of food wastage and 55

spoilage. There are times when India needs to import food grains in spite of good  production. This can be prevented only after setting up adequate cold storage unit. Both Government and Private entrepreneurs should work towards this. The revenue of the Sarveshwari Village Industries (Nafed Cold Storage) can be increase by improving few facilities like continuous supply of electricity. Proper  care and maintenance of the machinery needs to be taken. The supervision of the temperature for the products stored is also important. Service Level Agreement can help in getting revenues from the clients. The service standard of the firm should be at its best as it is the key to success. In order to create awareness about the industry in the market advertisement can be done.

7. 2 Suggestions: Suggestions: The following points have been suggested 1. Sarveshwari Sarveshwari Village Village Industries Industries (Nafed Cold Storage) Storage) can opt for Service Service Level

Agreement (SLA) with its major clients to enable the continuous flow of revenue. It will also lead in improvising of it service standards. 2. Sarveshwari Village Industries (Nafed Cold Storage) can go for advertisements

in the newspaper during both the Pick and slack period. It can be vital in increasing the business as awareness and the presence of the unit will be made in the market. 3. For continu continuous ous power power supply supply Sarves Sarveshwar hwarii Villag Villagee Indust Industrie riess (Nafed (Nafed Cold Cold

Storage) can go for generator service.

56

Bibliography:

Books: Research Methodology Methods and techniques by C.R. Kothari Books: Indian Food Processing Industry: Some Perspectives by Bala Krishna A V, Radha Krishna G

Journals: APR Project Consultants. Pune Journals:  Newspaper: Nav Bharat Times, 24 july 2009

57

Websites http:// www.google.co.in www.google.co.in http://www.valuebasedmanagement. http://www.valu ebasedmanagement.net/methods_mark net/methods_marketing_mix.htm eting_mix.htm l  http://www.websitemarketingplan.com/ http://www.website marketingplan.com/small_business/newspap small_business/newspaper.ht  er.ht  m http://www.releasemyad.com/rates_offer.php

58

ANNEXURE

Annexure 1: Cold Storage Data of Various Fruits and Vegetables Annexure 2: Cold Storage Data on few products Annexure 3: List of Cold Storage Navi Mumbai Annexure 4: List of Cold Storage Mumbai Annexure 5: Information about Existing Cold Stores in Mumbai, Thane and Navi Mumbai areas Annexure 6: Commodities stored in Cold Stores in Mumbai Region

59