Make Money from Cold Storage Business, Cost to Start

Introduction to make money from cold storage business

Cold-storage is the place where you can use the freezer space for storing your food products along with the pharmaceuticals. It is a setup of refrigeration system, with regulating temperatures at controlled level. The main purpose of the cold storage is to control or retard the level of microbial growth to maintain storage commodities.

Before going into the business, actually you need to know the details about the agricultural production, its fresh produce, its storage, and its export, amount of the agricultural products getting rotten, etc. Ever since did you think of the sudden raises in the prices of vegetables and the greenery, etc. Due to the lack of proper storage of the agricultural production, they are getting damaged or rotten, especially in India. Now, let’s get into the details of starting a cold storage business in India to make good money.

A guide to make money from cold storage business in India

At the point of distribution chain, the agricultural products have to retain its originality in order to preserve its freshness and extend its life. This breath of freshness and life is retained if they are stored in the cold storage. Products such as sea foods, meat, pharmaceuticals, and biomedical products, etc., are some of the things which specifically require cold storage.

The estimated production is about 130 million tonnes for fruits and vegetables per year in the nation and which goes up to 18% of our agricultural output. Most of the production is getting damaged due to lack of proper storage facilities, and cold chain centres it is becoming major bottlenecks in tapping the vast potential. The cold storage facilities are available now-a-days, at a larger proportion, except  one commodity such as potato, orange, apple, grapes, pomegranates, flowers, etc. which leads to poor capacity usage after storage.

Cold storage business plan

To start a cold storage business, you need a cold storage business plan and with attentive implementations. For designing a company plan you need to write a project report specifying highly important elements in this business. Based on your investment, you have to decide the unit size.

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Cold Storage Business Plan.
Cold Storage Business Plan.

A business plan gives you many ideas and will not allow you to miss anything regarding the project and hence guides you in lots of ways. It also helps you in executing business measures properly, and analysing the finances and guarantees to smoothen your business operations.

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.

It majorly helps in providing remunerative prices to the farmers and to make available farm products to the customers at competitive and affordable prices, which will be surely helpful for farmers as well as the customers. Additionally, changing lifestyles and the need for processed or packaged food are producing the need for cold storage solutions internationally.

Cold storage investment cost

The cold storage investment cost includes the following- The project cost for the setup cold storage of 5000 MT capacity in the assortment of Rs. 3.5 crores – Rs. 4 crores, this mainly depends on the cost of the land. Estimated Capital Outlay (Rs. in lakh)

Costs involved in property and land development – Rs. 50 lakh

Costs involved in construction and civil works – Rs. 85 lakh

Costs involved in plant and machinery – Rs. 1.4 Cr.

Costs for utilities – Rs. 23 lakh

Costs for technical works – Rs. 2 lakh.

How to build a cold storage business to make money

Are you looking for the plan to build the cold storage unit? Here you can look over below for the step-by-step process that you can follow to start your own cold storage business unit-

Step 1: A keen study that determines the business or businesses surrounding your area that demand cold storage and just how much of these needs have already been supplied. If you realize that there is a huge demand that not yet been supplied, then it would be better to plan in that area in order to fill that void.

Step 2:Prepare a careful study about the best method to implement your plans and perform them. You can even seek out advice from other people who are already into this business or in the same company to get the good thoughts. If you have a strong determination, then you can make it be able to do the test run by starting a smaller unit.

Step 3: For example, you can purchase a small freezer van to be utilized as a storage device and cater to commercial fishermen and other small-scale companies. This test does not involve any financial threat, but it takes this into account as it is slightly higher than the initial functional cost. This might be expected for all start-up companies because the operations are not that effective yet.

Step 4: Your test run might give you an idea whether you can proceed for a full scale business or not using the cold storage business in your surrounding area. This will help you to choose the right way to continue, that you can now try to procure the way ether to fund or finance your enterprise. You can then make a decision whether to choose to stick for your initial market foundation or to expand to pay more.

Step 5:This is an essential step to setup the company and advertising about it. You have to recognize your foundation market and plan more than your opponents as well. So who are the market and your target to increase your business? The first target for you can be the fishermen who are near to your marketplace during your testing period.

Step 6: You can expand your market by selling what your customers are selling. You can’t only store the merchandise products but you can also pack them and then sell them based on the demand of it. In this way, you will not only store the product but also get you the stay in a competitive advantage.

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Licenses required for cold storage business in India

To begin with this cold storage business in India, you have to obtain the following permissions and licenses to setup the business. These permissions and permits mainly depend upon the required to depend upon the locations where you are starting the business enterprise which you are going to setup and it is better to check with the desired compliances and tax liabilities even.

Registration of the firm: You can start with the small to medium business either as a proprietorship or partnership firm. If you are planning to start this business as single person then the company, which you have to register it as your firm along with the proprietorship firm. For partnership firm, you need to register as a limited liability partnership (LLP) or as a Pvt. Ltd. company with Registrar of Companies (ROC).

GST registration: You have to get GST registration and the number allotted as it is compulsory for all businesses after GST rule by the central government, tax identification number and insurance certificate.

Trade license: You need to obtain a trade license from local authorities based on their rules.

MSME/SSI registration: MSME/SSI registration will make you eligible and avail for the government schemes and facilities available, so if you are willing to get these government subsidies or schemes regarding your business then you must compulsorily need to apply for MSME/SSI registration to avail the facility.

EPF registration: Employees have the state of insurance which will be an insurance scheme for the workers and others related to your company.

ESI registrations: Employees provident fund is compulsory required for the businesses where if you are maintaining more than 20 employees in your company who are working.

Trade mark: Make a registration for your brand name and develop a trademark which will protect your branding necessary.

FSSAI – Food Safety and Standard Authority of India: This has to be done as it is related to the food industry categorization. This is compulsory and has to be done, which can be renewed yearly.

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Cold storage business location

You can easily opt for an appropriate location for the cold storage business by just preparing a study plan near your area, and remember that the place plays are a key role in this business. Make a note to opt for a secured place which should be either very close to the consumer’s centre so that it will possible for you to accommodate the regional producers for your warehouses.

The property selected should have the capability to maintain a substantial number of five to 10 storage units, so at least a 0.5 acre property will be sufficient to build an efficient form of cold storage unit.

Methods to promote your cold storage business

There are many teams for digital marketing, who will analyse your cold storage business in the surrounding areas of your business setup, and they make online marketing about your unit by different advertising approaches to promote your cold storage business. By using modern technology they will also do the digital marketing service which does not involve any physical work, for cold storage units that includes SEO, PPC ads, ORM and Facebook, Twitter marketing, etc. to market about your business.

Conclusion of starting a cold storage business to make money

Cold storage business is very profitable business in India, many states in India are offering loans and subsidies for starting a cold storage units. You may also like the Cold Pressed Oil Project Report, Subsidy, Loans, Cost.


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