How To Start Cold Storage Business In India| SkillsAndTech

How To Start Cold Storage Business In India| SkillsAndTech

Many of those who do not know about cold storage business in India, In the distribution chain, produce hauls at distinct stages before it finally reaches the hand of end user.i.e. form mill to retailers and retailer to end-user.

At this procedure for the distribution chain, it needs to be originated in order to preserve its freshness and extend its life. This breath of freshness and life is provided by cold storage. Produce, seafood, meat, pharmaceuticals, and biomedical products, etc., are some things that require cold storage.

The estimated yearly production of fruits and vegetables in the nation is about 130 million tonnes bookkeeping to 18% of our agricultural output. In addition, the absence of cold storage and cold chain centres are becoming major bottlenecks in tapping the vast potential.

The cold storage facilities now available are largely to get one commodity such as potato, orange, apple, grapes, pomegranates, flowers, etc. which leads to poor capacity usage.

What Is Cold Storage Business Plans

For starting a cold storage business, you needed a cold storage business plan and incredibly attentive implementations.

For crafting a company plan or project report is a highly important element of beginning this business. As per your investment capacity, you will have to decide the company size.

First, you should do the financial planning with a projected ROI and payback period.

A business plan guides in lots of ways. It helps in executing business measures properly, and in getting financing and guarantees smooth business operations.

Is Cold Storage Business Profitable

Globally, the utilization of fresh vegetables and fruits is enormous. Generally, food crop growing nations hold the maximum share in the wastage for new foods.

Cold Storages are essential for prolonging the shelf life, period of marketing, preventing glut, post-harvest losses reducing transport bottlenecks during the peak period of generation and maintenance of the quality of the product.

Additionally, it helps in providing remunerative prices to the farmers and to make available farm products to the customers at competitive and affordable rates.

Additionally, changing lifestyles and the need for processed or packaged food are producing the need for cold storage solutions internationally.

What Is Cold Storage Investment Cost

Cold storage investment cost: The project cost for setup of 5000 MT Cold Storage may be in the Assortment of Rs. 3.5 crore – Rs. 4 crores, such as the price of this land. Estimated Capital Outlay ( lakh)

  • Property and land development – 50 lakh
  • Construction and civil works – 85 lakh
  • Plant & machinery – 1.4 Cr.
  • Utilities – 23 lakh
  • Technical – 2 lakh

How to Apply Loans for Cold Storage Business in India?

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Follow the below steps to apply loan to start your own cold storage business in India:

Step 1:

Check and compare from all the business loan options offered by leading financial institutions.

Step 2:

Pick the deal that suits your business requirements by just filling the basic details like your name, mobile number, residence, loan amount, email address, annual turnover & profit, etc.

Step 3:

After submitting the details, bank’s representative will contact you to verify the documents to proceed with loan formalities.

Step 4:

After verification, if bank is satisfied shall approve the loan. After loan approval the bank shall disburse the loan amount to your mentioned bank account.

How To Build Cold Storage

Are you looking for how to build cold storage? Here is a step-by-step process that you can follow to start your own cold storage business:


Determine which business or businesses in your area demand cold storage and just how much of these needs have already been supplied.

If you realize that there is still a need that has not yet been supplied, then fill that void.


Create a careful study about the best way to do your plans and implement them. You are able to seek out advice from other people who are in the same company and get good thoughts.

Once you determine you can make it, you are able to test run by starting small.


For example, you can purchase a freezer van to be utilized as lure storage and cater to commercial fishermen and other small-scale companies. This test does not involve a very high financial threat. But take into account a slightly higher initial functional cost. This may be expected for all start-up companies because the operations are not that effective yet.


Your test run must give you an idea if you want to go on a full scale not using the cold storage business.

Should you choose to continue, you can now try to procure a way to fund or finance your enterprise. You can choose to stick to your initial market foundation or expand to pay more.

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An essential area of the company is advertising. You have to recognize your foundation market as well as your opponents. So who’s the market? The first might be the fishermen who were your only marketplace during your testing period.


You can expand your market by selling what your customers are selling. You can’t only store merchandise but also pack them and then sell them based on what the demand is. This way, not all your eggs are saved in 1 basket and you stay in a competitive advantage.

Licenses Required For Cold Storage Business

To begin this cold storage business in India, you need to Obtain The Permissions & Licenses.

These permissions and permits required to depend on the locations where you are starting the business enterprise. And check with the approaching compliances and tax liabilities too.

Registration of Firm:

You may start the small to medium business either a Proprietorship or Partnership Firm.

If you are starting this business as One Person Company, then you have to register your firm as a proprietorship.

For Partnership operation, you have to register as a limited liability partnership (LLP) or Pvt. Ltd. company with Registrar of Companies (ROC)

GST Registration:

Get GST number (compulsory for all business after GST rule), tax identification number and insurance certificate

Trade License:

obtain the Trade License from local authorities.

MSME/SSI Registration:

MSME/SSI Registration will make you eligible for government schemes and facilities, so if you are wishing to get the government subsidies or schemes regarding your business then you must have to apply for MSME/SSI Registration

EPF Registration:

Employees state insurance which is an insurance scheme for workers.

ESI Registrations:

Employees provident fund is compulsory for the business where more than 20 employees are working.

Trade Mark:

Register your brand name with a trademark which will protect your brand.

Food Safety and Standard Authority of India (FSSAI):

categorise under Food Industry.

Cold Storage Business Location

You should opt for an appropriate location for the cold storage business, place plays are a key role. Opt for a secured place that is either close to the consumer’s centre so it is possible to accommodate the regional producers for your warehouses.

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The property should be capable to maintain a substantial five to 10 storied building. 0.5 Acre property that Is Sufficient to build an efficient for cold storage

Promote Your Cold Storage Business

There are many teams of digital marketing which do analysis your cold storage business and they make online marketing and advertising approaches to Promote Cold Storage Business, They also do 360 degrees of digital marketing service for cold storage such as SEO, PPC ads, ORM & Facebook marketing, etc.

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