Mr Hasmukhbhai K Nakum, a cold storage entrepreneur, was thinking about expanding his cold storage business beyond Ahmedabad. While some of the cold storages in Ahmedabad were closing down due to high running costs and poor capacity utilization, but he was contemplating on expansion. He already had four cold storages and each one of them was running profitably. With the continuous increase in agricultural production, this business had become an opportunity for Hasmukhbhai. He wanted to expand beyond Ahmedabad to other cities where the demand was high. He thought he could improve his operating margins and reduce risks by geographical diversification. He was considering one among the three cities in western India that could be attractive for cold storage business, namely Pune, Mumbai or Surat.