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NSSPL > NSSPL Blog > Is the cold storage business profitable?

Would you want to start a cold storage business? Is the cold storage business profitable? There is no need to find a few details about the cold storage business plan. You get information about cost and profitability, investment. If you want to start a one-time investment business, cold storage can be perfect for you. It is a kind of business that needs more investment as compared to other businesses. However, the business provides constant returns in the long term.

Fortunately, cold storage can be a profitable business both in developed and developing countries. You will find different sorts of cold storage in the industry as per storage facilities. Moreover, the cold storage is specifically used as potato, and others are used for multipurpose. Therefore, multipurpose cold storage provides better returns as well as profitability.

Is the cold storage business profitable?

Worldwide the wastage of fresh fruits and vegetables is used in amount. Generally, food Industries help hold the maximum share to waste the food. To extend the shelf life of food, cold storages are Paramount. It is required to avoid transport charges during the production period to maintain the quality of the product. Cold storage can play an important role in the elimination of perishable commodities. Besides, it helps keep the prices maintained or make available to the consumers at affordable prices. The demand for processed or packaged food is changing the lifestyle and creating the need for cold storage solutions.

Is cold storage business profitable

Investment cost of cold storage

Is the cold storage business profitable? The initial investment is very high in the cold storage business. The investment includes obtaining the land and building construction, get permissions and licenses. Besides, you need to invest a major amount of capital in starting this cooling machinery business. Moreover, updated and modern machinery provides better performance along with long term sustainability. Apart from the capital coast, there is also needed to consider the expenses. The major considerations are utility bills payment, promotional expenses as well as staff.

Cold storage setup plan

Starting the cold storage business needs careful or strategic planning. Therefore, it’s mandatory to craft a business plan for the project report that is one of the Paramount aspects of starting the business. As per investment in capacity, there is a need to decide the size of the business. Moreover, you must choose the financial plan with a projected return on investment to go with the payback period. A business plan helps in different ways, or it can help to commence the business rightly.

Secured location

Location place one among the important role in the business. You must have secured the location that is near to home, producing the forms as well as consumer centers. Besides, you must get the approximate 1 acre of land for the multipurpose unit.

Get a license and permission.

The business needs a different kind of licenses and permissions. It is based on the location of where you start the business. Besides, you need to check the upcoming taxes as well as compliance.

Cost investment of cold storage business

Is the cold storage business profitable? Yes, it would be profitable and measured to choose the right location to deal with clients. The investment and the cost you will be varied on the scale of the cold storage unit. According to the project experts, it is estimated to be at rupees 3 to 4 crores as per Indian currency. The cost of land is additional.

Arrange money

Cold storage needs a high amount of money to invest in the business. You make sure to invest with the capacity of 3 to 4 crores to start a business. You even get loans from banks for financial help. Additionally, you can check the subsidy or government grants that are available for this business.

Invest in cold storage

Do you want to know Is cold storage business profitable or not? The next step to invest in the warehouse to install the machinery. You can consult with experienced architecture for planning and building construction. You can get quotes from reputed suppliers. It’s Paramount to choose the right company for the overall performance of the store. Moreover, you need to check the price coma warranty periods as well as customer feedback. Also, you need to figure out the machinery on-site.

Promote cold storage business

Is the cold storage business profitable? The success of the cold storage business is based on the right advertisement and promotion. You make sure to go through the best advertisement industry and social media to make precise promotions of the cold storage business. According to the product, you need to accommodate or figure out the target demographics. There is no need to target the wholesalers from a warehouse company in supermarkets or more. In this business, the customers will be producers’ retailers, distributors as well as exporters.

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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