Ipcsl Case Study
INDRAPRASTHA ICE & COLD STORAGE LIMITED
CASE STUDY AND ANALYSIS
Overview
History
In 1944, Debi Prasad Aggarawal had realized the need for a cold storage facility. Consequently he established a facility with the latest cold storage equipments from the UK which was mainly utilized by the potatoes harvest.
Debi’s son, Jadish, succeeded him as Managing director in early 1960. Jagdish had successfully opened new markets and brought new clients when he started promoting the facility to fruits producers.
In 1977, Sanjay Aggarawal, Debi’s grandson, joined the company with the task of supervising and the construction of the new 2500 MT facility in Azadpur.
Fruits & Vegetables market
The growers of fruits and vegetables in India mostly harvest their produce manually, transporting to orchards for grading & packing. Afterwards, the fruits and vegetable are shipped to wholesale markets by road.
India being world’s second largest fruits producer with total of 44 mn MT (approx 10% of world’s production) and one of the largest vegetable producers in the world with around 86 mn MT, the new Sabji Mandi at Azadpur is Asia’s and one of the world’s biggest fruits and vegetable market in volume of produce handled contributed to the huge demand for cold storage facilities.
Commission agents
At the arrival of fruits at Azadpur, the commission agents take charge of the produce by offloading, storage and sale at a rate of 6% of the sale amount. During this process all the expenses involved are borne by the growers.
As a way to get business, some of the commission agents offer growers advance loans at the commencement of the fruits season and deduct the same amount when the produce is sold in the market.
As the fruits reach the market, some will be sold on the same day while roughly 45% – 60% need cold storage facility to be sold at a later date or at the off-season.
Wholesalers
Wholesalers buy the produce from commission agents which in turn they sell to sub-wholesalers.
CASE STUDY AND ANALYSIS
Overview
History
In 1944, Debi Prasad Aggarawal had realized the need for a cold storage facility. Consequently he established a facility with the latest cold storage equipments from the UK which was mainly utilized by the potatoes harvest.
Debi’s son, Jadish, succeeded him as Managing director in early 1960. Jagdish had successfully opened new markets and brought new clients when he started promoting the facility to fruits producers.
In 1977, Sanjay Aggarawal, Debi’s grandson, joined the company with the task of supervising and the construction of the new 2500 MT facility in Azadpur.
Fruits & Vegetables market
The growers of fruits and vegetables in India mostly harvest their produce manually, transporting to orchards for grading & packing. Afterwards, the fruits and vegetable are shipped to wholesale markets by road.
India being world’s second largest fruits producer with total of 44 mn MT (approx 10% of world’s production) and one of the largest vegetable producers in the world with around 86 mn MT, the new Sabji Mandi at Azadpur is Asia’s and one of the world’s biggest fruits and vegetable market in volume of produce handled contributed to the huge demand for cold storage facilities.
Commission agents
At the arrival of fruits at Azadpur, the commission agents take charge of the produce by offloading, storage and sale at a rate of 6% of the sale amount. During this process all the expenses involved are borne by the growers.
As a way to get business, some of the commission agents offer growers advance loans at the commencement of the fruits season and deduct the same amount when the produce is sold in the market.
As the fruits reach the market, some will be sold on the same day while roughly 45% – 60% need cold storage facility to be sold at a later date or at the off-season.
Wholesalers
Wholesalers buy the produce from commission agents which in turn they sell to sub-wholesalers.