1000 MT Cold Storage Project Report, Construction

Introduction to 1000 MT Cold Storage Project Report for Construction: Cold storage is the location or cabin where you can walk in and use the freezer allocated areas for storing your food products and medicines. A cold storage unit is a setup of a refrigeration system sustaining or regulating temperatures at the prescribed level. The purpose of cold storage is to decrease the level of microbial growth and for storing items.

The principle behind establishing a cold storage unit is of two kinds. This comprises the Vapour Absorption System-VAS and the Vapour Compression System –VCS that helps to set the three types of cold storage units like industrial rooms, modular refrigerator rooms, and combination refrigerator rooms. This information may also be useful to prepare a 500 MT Cold Storage Project Report or 2000 MT Cold Storage Project Report or 100 MT Cold Storage Project Report.

1000 MT Cold Storage Project Report for Unit Construction

Cold Storage
Cold Storage Unit (Image source: pixabay)

Cold storage units are vital for protecting, storing, and preserving fresh and perishable food goods along with dairy items.

Importance of cold storage in India

There are huge varieties of vegetables and fruits grown in India. Over the years, India progressed with great success by growing the number of exports in ready-to-serve beverages, fruit pulps, fruits juices, vegetable products, and other treated fruits. Even though we have advanced enormously but one-third of the horticultural goods which make up to 500 billion annually are getting wasted because of the unavailability of proper storage amenities in India. Improper picking also contributes to the wastage of the items.

Market potential of 1000 MT Cold Storage Unit

Recently you might have detected the sudden growth of the vegetables and fruits costs in the market. This is because of improper storage facilities which makes the price increase to its higher and unpredicted levels. To maintain a proper steady rise in the market cold storage are essential which can store the vegetables and fruits without getting spoiled.

Hence, in this point of view, cold storage proves as a proper venture with bright growth scope as the demand for perishable food products like fruits, vegetables, dairy products are growing day by day. Rather there are few problems in this segment as there is a little struggle in infrastructure as well as in dealing the fresh produce.

The projected production is around 130 million tonnes for vegetables and fruits per year in the country and this goes up to 18% of our agricultural harvest. Most of the production is being wasted due to lack of proper storage amenities, and cold chain units it is becoming a major problem in tapping the massive potential. The cold storage facilities are obtainable currently, at a larger proportion, except for items like potato, apple, orange, pomegranates, grapes, flowers, etc. which leads to poor capacity usage post storage.

Business plan for starting 1000 MT Cold storage Unit

To begin a cold storage business, you must have cold storage business plan and alert operations. For designing a company plan one must have a project report speculating highly significant basics in this business. Based on your savings, you have to choose the unit size.

A business plan provides you many ideas and will not let you slip anything concerning the project and henceforth assists you in many ways. It also aids you in the execution of business measures correctly and figuring the finances and assurances to ease your business operations.

Guidelines to setup the Cold Storage Unit in India

These are the significant points that will control you to make a faultless cold storage unit in India. These comprise-

  1. Ensure the doors of the unit are insulated in a satisfactory manner to keep it air-tight.
  2. Storage racks should be made in such a way that they should never damage the workers working below them.
  3. For the proper air distribution and circulation of air, it should include passage between the rows of the racks that must not be less than 0.76 meters whereas the racks much be kept 20 cm away from the walls of the floor in the unit.
  4. A minimum gap of 30-40 cm should be preserved between the top level and the ceiling of the topmost shelf in every rack.
  5. The distance between the succeeding shelves must be a minimum of 7.5 cm.

Food Safety License required to start 1000 MT Cold storage Unit

Food safety license is obligatory for all the food business operators under section 92 associated with the Food Safety and Standards Act, 2006 and more prominently for Food Safety and Standard Regulation, 2010. This license meets the terms in the agreement to hygiene, safety, and sanitary conditions as per the rules and regulations of the Act.

  1. First of all, you have to get the Form-B from the FSSAI homepage, then fill in all the information and you can submit it online after completely filling the form properly.
  2. A personal E-mail address that should be active along with the cell number is mandatory.
  3. While applying check properly before specifying the name of the FBO’s as it may create few issues and may cause hindrance while permitting.
  4. After submission notes the reference number carefully.
  5. Submit the license to the State Authority where you have planned to establish the cold storage or to the regional office of FSSAI, which has to be submitted within 15 days from the date of the application proposal.
  6. Documents comprise acknowledgment copy, fees payment in the form of Demand Draft or the online payment receipt, online application form, license copy, and other relevant documents that are required.  
  7. The appropriate temperature has to be preserved in the diffuser pipes. It should be +/-1°C, whereas the percentage of relative humidity can be 5% in every place of the cold storage exclusively where the foodstuffs are kept.
  8. The unit should include reading thermometers to identify the temperature by the dry bulb or the wet bulb. The count of thermometers in a unit relies on the size of the unit.
  9. All the moving parts should include proper belt guards. Examine the proper insulation in the suction pipe.
  10. An alarm bell should be included in rooms in case of emergencies for safety procedures.
  11. Always keep a first aid box in the machine room to rescue under any sudden accident scenarios.
  12. The pressure gauge with the appropriate range has to be included in the receiver or the condenser of the refrigeration structure.

Types of Licenses required to establish a cold storage unit and their criteria

The category for registration or to acquire the licensing for a cold storage unit depends on the storage capacity and the turnover of the unit.

  1. If the turnover of the unit is near 12 Lakhs per annum, then you should get only the FSSAI certificate.
  2. If your annual turnover is greater than 12 lakhs and around 30 crores then you have to get a license from State Licensing Authority.
  3. If it is more than 30 crores per annum then you must avail license from the Central licensing authority.
  4. If you have multiple units in the diverse state or the same state at several places then you need to get the license from the State or Central license for every unit meeting the above classification and the main central license for your head office establishment where you are desiring for.

Factors considered for granting permission for constructing 1000 MT Cold Storage

For providing the permission to obtain a license for establishing the proposed cold storage, the following aspects have to be kept in mind-

  1. The number of cold storage units functioning in the area where you are arranging to start the unit. 
  2. The accessibility of foodstuffs for storage in cold storage components.
  3. Submission of the blueprint of the cold storage units according to the particulars laid in Part C of Form B.
  4. Verifying the cabinets for proper functioning like such as refrigeration, insulation, electrical, safety measures, and proper sanitary practices as per the Schedule.
  5. Check with the education and the experience of the employees that you have appointed for the cold storage business and for maintaining it.
  6. Other documents are asked by the Licensing officer during the visit to your unit.

License Fee for 1000 MT Cold Storage Unit in India

The licensing fee for the cold storage unit in India comprises the following. It is majorly based on the cold storage volumes of the unit. A unit with a capacity of 1,000 MT will be around Rs. 1,00,000

1000 MT Cold Storage Project Report/ Economics of 1000 MT Cold Storage Unit in India

In case if you miss this: Onion Oil Project Report.

Economics of 1000 MT Cold Storage
Economics Cold Storage (pic credit: pixabay)

Land and Land Development: Rs. 5,00,000.


(a) Civil Work – Rs. 35,25,000

(b) Steel Racking System – Rs. 24,00,000

Plant and Machinery for 1000MT Cold Storage

Refrigeration System: Rs. 1,82,26,000

Electrical Installation

(a) DG Set 450 KVA – 1 No. Rs. 27,00,000

(b) Electrical Cables & Control Panel Rs. 1,49,000

Total Project Cost for 1000 MT Cold Storage: Rs. 2,75,00,000.

Profit in 1000 MT Cold Storage

Storing Charges Received: Rs. 1,77,94,000.

Expenses for one year

Staff required for 1000MT Cold Storage

  • Factory Manager 1 No.
  • Storage Executive 1 No.
  • Supervisors 4 Nos.
  • Maintenance Mechanic 1 No.
  • Storage Boys 30Nos.

Total amount paid for salaries per year: Rs. 71,62,000

Interest (term loan): Rs. 26,25,000

Depreciation: Rs. 22,84,000

Power & fuel: Rs. 12,00,000

Other manufacturing expenses: Rs. 3,60,000

Administrative expenses: Rs. 1,20,000

Total expenses per year for 1000MT Cold Storage Unit: Rs. 1,37,51,000.

Tax: Rs. 13,34,000

Net profit after tax: Rs. 27,09,000.

Break Even Point

Total fixed cost: Rs. 1,20,71,000

Total contribution: Rs. 1,61,14,000

Break Even Point (%): 74.91%.

Profit in 1000 MT Cold Storage Unit

Globally, the usage of fresh vegetables and fruits is vast. Generally, food crop growing countries hold the maximum share in the wastage for new foods. Cold Storages are important for prolonging the shelf life, duration of marketing, preventing overabundance, post-harvest losses decreasing transport bottlenecks in the peak time of generation, and maintenance of the product quality.

It majorly aids in providing lucrative costs to the farmers and to make available farm products to the customers at affordable ranges, which will be assuredly helpful for farmers and to customers. Additionally, altering lifestyles and the demand for processed or packaged foods has led to the growing need for cold storage options globally.

Subsidies available for 1000 MT Cold Storage Unit

The government is encouraged by providing subsidies to establish the cold storage chains close to the agricultural farm to preserve food products. This is regulated by the MOFPI-Ministry of Food Processing Industries in India. The government is helping about 50-75% of expenses along with machinery installation, technical tasks, construction works, etc. depending on the geographical location where you desire to establish the unit. However, the total amount to be sanctioned will not be more than Rs. 10 crores.



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