Ipcsl Case Study

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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
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Some of the customers (wholesalers & commission agents) are not highly appreciating the cold storage services especially during the winter season where the fruits and vegetables don’t get affected much due to the very low temperature.

In the case of conventional cold storage facility, the only way to make decent profit is by maximizing the sales volume and effectively utilizing capacity available (dynamic facility management system). This would give some cost preference over competitors allowing to capture bigger market share and make higher profit margin.

In the case of IPCSL, the GC & CA storage technology is giving them a market edge to charge a premium price. However the customers should value the added services provided over the difference in charges.

Other than the limitation in the period fruits and vegetables can be stored in the conventional cold storage facility, there are additional quantities wasted during storage & handling which will not be the case in GC or CA operated facility. This will decrease the cost per kg and increase the wholesalers / commission agent profit margin.

IPCSL didn’t focus much on marketing of their new state-of-the-art cold storage facility; instead, they focused on the value they add to the fruits and vegetables industry.

As rightly quoted by one of the company’s senior managers to Sanjay, the fruits and markets industry lack formal
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