Natural Storage Solutions Pvt.Ltd. > NSSPL Blog > How to Start Cold Storage Business?

If you don’t know how to start cold storage business in India, then this article is just for you. Proper analysis and financial research help to find out how to start cold storage business in India. The cold storage business is very essential and it plays an important role as well. In India, the demand for a cold storage room is increasing day by day. Cold storage is the best for vegetables and fruits. In India, approx. 260 million metric tonne fruits and vegetable production did every year. But due to insufficient cold storage, we just unable to stop the wastage of fruits and vegetables. So in India, we need more and more cold storage to reduce the wastage of fruits and vegetables always.

If you don’t know how to start cold storage business, then grab all the information right now! Cold storage requires a one-time investment and it requires a huge investment as well. But the return from cold storage is always high and it’s long term. If you compared it with small businesses, cold storage business profit is always high. Cold storage business minimum investment requires 30-40 lakh. Based on your budget, you may choose any type of cold storage room. Cold storage facility includes two types, multiple products, and single products. Items that need to store in cold storage are fruits, vegetables, meat products, poultry, and fish, etc.


how to start cold storage business

What are the benefits of cold storage?

if you build cold storage for business, you will get many benefits. First, it helps to reduce the wastage of fruits and vegetables. Cold storage helps to improve the economic condition of the country and maintain growth. You can get off-season commodities at reasonable prices. Business owners can import and export more goods and create more business opportunities very easily. Customers will be able to get seasonal products throughout the year. It’s very essential to know how to start cold storage business within India, so that you can build any type of cold storage room here. 

How to calculate investment costs for cold storage?

If you want to invest in cold storage, then initially you have to invest a huge amount for this purpose. Now, before investment in cold storage, there are several factors you have to analyze, research, and then take expert advice to make the final decision. Starting a cold storage business not a simple task, lots of research and analysis needed for that! If your budget is very low for cold storage and wants to know the Cold storage business minimum investment then consult with an experienced consultant. 

Following are the important points that you have to consider while identifying how to start cold storage business and calculating the cost for investment in cold storage rooms…

  • First, you need to buy a cooling machine
  • You have to acquire land and construct the storage facility. 
  • You have to obtain licenses from the respective or government authority.
  • You also need to manage electricity, water, and other related material
  • You have to provide salaries to your staff, need to maintain daily expenditure
  • You have to promote and advertise products and services online. Know Small cold storage business cost as per your need. 


Details of loan and government subsidy

In India, the government introduces already several subsidy plans for new business owners or manufacture and agencies who want to invest in cold storage. Indian government always wants to build more and more cold storage to reduce the wastage of fruits and vegetables. Presently, there are different types of advanced technology available in the market for cold storage which helps to keep fruits and vegetables fresh all the time. To manage cash flow, companies can apply for business loans for working capital to meet the working capital requirement for their business. If you want to know the Cold storage business minimum investment then the expert guide will be the best solution. 

Ministry of food processing industry, approx. 50% of the total cost and machinery can be financed as per the Indian government subsidy. You have to be eligible to get the loan. Small cold storage business cost is also needed to know before invest in the cold storage business. if you want to start cold storage business in India, then the following criteria must be needed.

  • your age should be a minimum18 of years and a maximum of 65 years
  • Your CIBIL score must be 700 or above
  • You have to be strong financial capability, like repayment capability. 
  • You have to be an Indian citizen and must not have any criminal record. 
  • People who have default loan details, can’t apply with it.

How to apply loan for cold storage?

Starting a cold storage business in India needs proper guide and advice but before that, you have to make a proper plan. In India, if you want to build cold storage, then before build it, you have to make a business plan properly. Now, once your business plan is done, then make a financial statement and calculate approx. budget. Based on that budget you need to analyze your cash flow and loan amount. Calculate large, medium, and Small cold storage business costs and then proceed further. It’s always better to hire an expert company or consultant for this purpose. They can calculate successfully as per their experienced, skill, and labor. 

If you want to apply for cold storage loan then your bank must be nationalized bank and you have to compare different nationalized bank and their loan interest and terms and conditions. Once you receive all the quotes from the bank you have to analyze and then need to choose the best details always. Know details like how to start cold storage business and use it. You have to pick the details which suit your business needs and budget as well. You can apply for the loan online as well.

You need to fill up an online form with details like name, phone number, email id, etc, and need to submit. Once submitted, the bank executive will call or you can visit their office directly. Starting a cold storage business always needs expert advice and guide. 

Mr.Yogesh Dahiya
About the author

Mr. Yogesh Dahiya (Managing director) aged 49 years, having a Diploma in Fabrication Technology, has 25 years of experience in setting up cold storage and chilling plants. After completion of Diploma in Fabrication technology, he worked with indo-Techno Frigo Ltd. As Manager (fabrication) and Purchase Executive for a period of 5 years. He then joined L&T as General Manager (Projects). In 1997 he started his own company. Mr.Yogesh Dahiya is the key person of NSSPL (group company) and his job includes holding meeting with clients, understanding their requirements, selection of sites, suggestion of right technology, preparation of engineering design, civil works etc and then finally fabrication, installation and commissioning of the entire plants. Till now he had set up 160 cold storage and chilling plants of various capacities. In this project he takes care of all the technical aspects of the company.

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