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Would a cold storage business be profitable in North India?

Would a cold storage business be profitable in North India

Starting a business in North India is a good decision. However, would a cold storage business be profitable in North India? Knowing the fact and starting a business is helpful. Fortunately, the cold storage business is in overall demand, and there is assurance of profitability in North India and anywhere else. 

What is a cold storage business?

A cold storage business is a crucial part of a supply chain. It ascertains the products are at a cool temperature, enabling them to stay preserved and fresh. The products are in cold storage means they are not so cold to ruin and freeze products. 

Cold storage is a requirement of the majority supply chain, and there is an increase in the demand for this business. Apart from cold storage facilities, the number of refrigerated containers and trucks is also increasing. There is demand everywhere, and knowing ‘how do I open a cold storage warehouse in India’ is crucial. 

The world is fast changing, and the demand for cold storage is high. Locally sourced products and food increase the attention of consumers. They prefer buying products grown and packaged in a sustainable and environmentally-friendly manner. The desire is to purchase from the nearest proximity of local businesses. It has led to an increase in the businesses of product and food opening in the cold storage industry. 

To know more about the cold storage business, contact NSSPL. They will help you position and promote the business effectively.

Why is there a steady demand for the cold storage business?

The steady demand for the cold storage business is due to the increase in demand for fresh products. Considering the demand, the cold storage businesses cater commercial food storage to 80% in India, in around 15000 units. There is a lack of cold storage that the products become wastage.

The steady cold storage business demand is for reasons such as:

  • Technology advancement- The cold storage business demand is on the rise due to the popularity growth of modern transportation refrigerated systems. It is not difficult now to store low-cost high-quality food for a short time. All the credit is to the cold chain technology.
  • Packaged food demand- The demand for fresh food is apparent. There is a visible shift from packaged food to urbanization and home-delivered foods. Cities such as Mumbai, New Delhi, and Bangalore are witnessing an increase in food trucks and crowding the new food truck streets.
  • Perishable food market- The cold storage demand is high with the rise in the perishables food market. The demand is high to scale up in the retailing sector to promote growth prospects.

Would a cold storage business be profitable in North India?

Cold storage business, small or big, is profitable in North India. It is because this business earns profit from selling products from the facility of cold storage. It means it is the earning from the products that are in cold storage.

Cold storage business generates a great income source for business owners as they always have products ready. It serves the end customers at any moment. Besides, offers an advantage to small business owners as it offers potentially high returns with minimal investment. 

The profits of the cold storage business are associated with efficiencies and deliveries. It assures with little effort, a return on investment.

  • The sector of cold storage in India grew at around 16% CAGR between 2016 and 2018.
  • The sector of cold storage anticipates high growth in the coming years.
  • The cold storage services expect to reach more than USD687 by 2023, giving 35% CAGR in the coming five years. 

Plan of Action of the Government

The government supports the cold chain scheme and is working towards value addition. The food processing industries ministry assists the cold chain infrastructure development and includes cold storage facilities.

The food processing expansion and creation support the preservation capacities scheme. It increases the value addition and processing levels. As a part of the cold storage development action, the government aims to modernize the existing units under food processing.

The processing activities units follow post-harvest processes in a wide range. They add to the product value and enhance product shelf life using specialized facilities. It helps with perishable product preservation.

The NRI, Indian, and overseas clients appreciate the expertise and excellence of providing cold storage facilities to customer satisfaction. 

Contacting NSSPL will give you more information about this profitable project. Cold storage is a business worth investing in. NSSPL will highlight critical areas, the size of the business, the market potential, and the motivation behind the product investment.

How do I open a cold storage warehouse in India
Is there profit after paying taxes in the cold storage business?

The cold storage business is profitable, regardless of whether you own a cold storage unit or are on rent. The profit is on the capacity of cold storage and the items you store in it. A 2000 mt cold storage unit, storing any product earns to its fullest. However, you must consider the per month relative expenses such as the electricity charges, employee’s salary, and maintenance. 

Deducting the relative expenses from the full earning gives you a sizable amount of profit. Of course, the cold storage management should be perfect. It means the co2 and temperature control should be as per requirement. Proper temperature control is essential, and never should it experience much temperature variation.

Wrapping Up

A cold storage business that is profitable is an open secret. Yet, new start-ups and investors have the query, ‘Would a cold storage business be profitable in North India?’ 

The recommendation is to consult NSSPL, the professionals in cold supply chain coordination. No matter, whether you need value-added services or temperature-controlled warehouses. NSSPL is a trusted partner to ask for assistance with any information relating to cold storage.

NSSPL is the name for mutual commitment, and they foster long-lasting relationships. Contact NSSPL and assure your profitable business in North India.

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Mr. Yogesh Dahiya

Mr. Yogesh Dahiya

The Managing Director of Natural Storage Solutions Pvt Ltd is known for his expertise in setting up cold storage, chilling plants and food processing units.

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