How To Begin Cold Storage Business In India – Full Guide

In today’s time, no matter what the weather is, we get every product to eat. Do you know why? Because in today’s date our technology has become very advanced. Due to advanced technology, we can create different types of cold storage. And any product can be kept edible for a long time by keeping it in cold storage.

By the way, if seen, the need for cold storage helps increase the life cycle of every such item, which is prone to spoiling quickly. Talking about India, India ranks first in the production of fruits in the whole world, whereas in the production of greens and vegetables, India ranks second in the world.

Despite this, the per capita availability of fruits and vegetables in India is very low, that is because despite the excellent yield, due to the lack of cold storage, we are not able to preserve this yield, due to which a large part of the yield, about 25-30% gets spoiled. Apart from this, it also happens that in transporting fruits and vegetables to the end consumer, their quality also decreases.

What Is Cold Storage Business

Although a Cold Storage System is required for all those products which are perishable and which need to be stored at a particular temperature. Cold storage is used mainly by meat industries to hold their goods safe for a long time. When the production of fruits, vegetables, dairy products, meat, fish etc., is more than the demand. Then the remaining product needs to be stored keeping in view the future demand, and they are stored in cold storage so that these products are not spoiled. 

By cold storage, we mean a place where perishable products and items requiring a specific temperature are kept for preservation so that those goods do not spoil quickly and a balance between demand and supply can be made. If the production of a product is more than the demand, then it becomes difficult to sell that product because due to limited demand and high yield, customers cannot get that product. Falls.

Why Are Cold Storage Businesses Required?

Around the globe, the wastage of vegetables and fresh fruits is relatively high. Generally, countries that have higher production of food crops are the ones that hold the maximum share in wastage of food. Hence, in these countries, cold storage is reasonably necessary to extend the marketing period, shelf life, post-harvesting, avoid gluten, and reduce transporting bottlenecks during the higher production of food items and maintain the outcome quality. Apart from this, cold storages are also essential in reducing perishable products wastage. Moreover, it offers remunerative costs to farmers and makes farm products readily available to consumers in fresh conditions at competitive and affordable prices. Demand for packaged and processed foods and improving lifestyle habits also create the need for cold storage business globally.

Advantages of Cold Storage

  • Off-season farm products are available at affordable prices.
  • It decreases the wastage of fruits and vegetables.
  • It helps in providing remunerative prices to farmers.
  • It can be used to put medicines or vaccines.
  • Packaged or processed food are available to consumers.

Investment Cost Of Cold Storage

The first cost of investment is very high compared to other small businesses. Investment is needed in the following areas like the acquisition of land, construction of cold storage buildings, licensing, obtaining permission, provision of essential utilities like electricity, water etc.

Also, you need to invest huge capital in buying cooling machinery. There is a need to purchase different types of trucks to move the goods from one place to another. If you follow our advice, then Tata Truck has the best payload capacity, and this truck can easily carry a heavy load from one place to another place so that you will not face any problem working with this truck. There are various updated machinery that ensures long term stability and better performance. In addition to the fixed costs mentioned above, there are some fixed costs that you may need to consider, such as working capital expenses. Other monthly prices include employee salaries, utility bill payments and other promotional expenses.

Investment Cost includes (summary)

  • buying cooling machinery
  • Monthly charges for facilities like water, electricity and other related materials
  • Obtaining a government license or from the local authority concerned
  • Buying renting land and construction of the cold storage facility
  • purchasing different types of vehicles
  • Hiring and Paying Skilled, Experienced Professional Employees
  • Daily Expenses and Capital
  • Promotional, advertising and marketing expenses

How To Start a Cold Storage Business?

The business of cold storage is considered a great business in today’s date. However, according to the analysis executed by the Food Corporation of India, about 67 million tonnes of food products get spoiled every year due to a lack of cold storage. Therefore, there is a need for more than 4000 small and big cold storage facilities in the country to store these products.

This is an opportunity to open a business or expand the business. Those who are still thinking of beginning a business or are already running their own business should take advantage of this opportunity.

A business loan is very easily made available by almost all public-private banks and non-banking financial companies (NBFCs) to open cold storage and expand the existing cold storage. Let us now understand what the essential things to open cold storage are.

Machinery And Equipment Required For Cold Storage

Although the machinery or refrigerator systems used in the cold storage business are available with complete equipment in the domestic and foreign market, as it requires substantial investment to start this business, the present government has also introduced a subsidy scheme to encourage cold storage. In which a provision of subsidy up to a maximum of 10 crores has been made on the completed project report. To start this business following tools are required, which are

Different types of compression systems like single-stage, two-stage, three-stage etc. Apart from this, reciprocating compressors, centrifugal compressors, rotary compressors, condensers etc., are also used in refrigeration systems.

Apart from this, you have to purchase trucks to move your cold storage belongings from one place to another. The Mahindra Truck is best for the cold storage business because this truck delivers great mileage with low fuel consumption in multiple operations. 

Types Of Cold Storage Business

As mentioned above, all things like fruits, vegetables, meat and milk etc., are kept in cold storage. That is why cold storage has also been divided into 2 types. Cold storage for vegetables and fruits.Cold storage for milk products, poultry products.

So whenever you think of starting cold storage, it is necessary to consider and decide what type of cold storage will be. Meaning the one who will open a cold store will keep fruits and vegetables or the product of milk and poultry etc. The determination will further depend on how big the cold storage will be and how much it will cost.

Choosing The Right Location For A Cold Store

For information, let us tell you that there is a difference between cold and general stores. So there is a difference between the two places as well. The location of the cold store should be something like this:

  • There should not be a very crowded area.
  • Should not be too far out of reach of farmers.
  • There should be enough road for movement from a four-wheeled vehicle to a truck.
  • There should be a precise arrangement of water at the place of cold storage.
  • There should be enough greenery in the area where the cold store is to be established.

Process to Store

Since this Cold Storage business is such a business, the entrepreneur has to prepare such an infrastructure keeping in mind the Refrigeration System, Compressing System, Storing System, etc. He can easily keep the perishable goods and easily control the temperature of that entire place so that the items saved in cold storage do not get spoiled for an extended period.

The object to be noted here is a Cold Store built to protect the products produced from horticulture like fruits, flowers, greens, vegetables etc. But, from the point of the infrastructure design, other Cold Stores like dairy products and meat, fish, etc. It will be different. Therefore, if we talk about the storage process of products produced from horticulture, we will find that first, the crop is harvested from the field and transported towards cold storage.

After that, they are precooled by placing them in the precooler. Immediately after that, the bad crop is separated, and the good crop is packed in bags or trays according to 50, 100 kg capacity. In the end, stickers etc., are put in the racks installed in cold storage. After that, the Cold Storage business entrepreneur has to check the temperature from time to time, and if there is any problem, it has to be solved immediately.

We hope the above relevant information about the cold storage business is beneficial for you. However, if you want to require more information about truck applications and trucks related business, stay connected with us and wait for our next blog.

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