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How to Start a Cold Storage Business

How to Start a Cold Storage Business

The cold storage business is a place where store of vegetables, meat, fruits and milk products keep them safe. in which you need to invest a lot in the beginning. However, on a longer-term basis, the profits are higher as compared to other small business. India is the second-largest producer of fruits and vegetables in the world. India produces about 260 million metric tons annually.

India is the world’s largest producer of milk and fruits, including mangoes, papayas, guavas, and bananas, as well as substantial production of meat and poultry products. Still, about 4.6% to15.9% wastage is seen in fruits and vegetables annually in the country.

This waste can be avoided by using cold storage infrastructure, so it becomes a great opportunity for an entrepreneur to start a cold storage business and reduce wastage by earning high profits.

Here In this Article, you will get complete information about Cold Storage Business.

How to Start a Cold Storage Business in India

Cold Storage Business Market Demand

The cold storage business is keep the fruits, vegetables, and dairy products safe for long days. And protect the products from getting spoiled.  The equipment maintains the temperature and precision so that the product kept inside does not deteriorate for many months, due to which the supply of food items in the market keeps running smoothly and inflation in the country also remains under control.

This is such a fast-growing business, whose demand remains in almost every area. Nowadays the number of cold storage is very less and in such a situation the government is also providing help to the people to open cold storage. So from this point of view, it is right to do business of cold storage and its demand will always remain there.

Investment for Cold Storage Business

The money needed to start this business depends On the business size and location. If you want to start this business on a large scale, then for this you will have to invest at least 50 lakh rupees to one crore rupees.  If you start it from a small scale, then you will have to invest at least between Rs 10 lakhs to 30 lakhs. T

o start the business of cold storage, the Government of India will provide loans to businessmen at the rate of 50% subsidy of about 10 lakh to 10 crore rupees.  With this great help, any person can start his own cold storage business.

Cold Storage Business Registration

If you start this business from a small scale, then you do not need any kind of license or registration for this.  If there you want to start this business on a large scale, then for this you will have to contact your nearest small scale industry department. 

You will have to get the necessary license like Fire & Pollution NOC, Horticulture Board Storage License, GST Number and  Udyog Aadhar Registration or other registration-related information from there and complete the related works.

Location selection for Cold Storage Business

Location plays an important role in any business.  For cold storage businesses, it should be placed as close to productive farms or consumer centres as possible. if you want to start in a multi-storage or large scale business you need 20 thousand to 50 thousand square feet area. Or Starting in Small scale cold storage business 1000 Square feet to 5000 square feet area is required.

\The area will depend on the amount of product that a business owner wants to keep and protect.  Also, you have to keep in mind that the place where you are going to install the cold storage key should have good roads and a water and electricity system.

Machines and Equipment for the Cold storage business

In cold storage, you will have to install many types of machines, which can keep fruits and vegetables cool while storing, for this different types of compression systems. Apart from this, Reciprocating compressors, Centrifugal Compressor, Rotary Compressor, Condenser are also used in Refrigeration systems.

Apart from this, some other tools are as follows- Aqua Pump, Generator, Evaporator,  Receiver, Absorber, Distillation Column, Expansion Valve Reflex meter and condenser.

Ammonia gas is used in large quantities in the refrigeration system, so starting the cold storage business as a raw material will require ammonia gas. Also, You will find all types of machinery related to this business on the official website of

The Other Requirement for the Cold Storage Business

For example, with The storage capacity of 5000 Metric Ton, you have 250 to 300 kW of power is required. And To start this project, you will need 10 to 12 people, out of which 4 to 5 skilled workers, 2 to 3 unskilled workers, 1 supervisor, 1 accountant and 1or 2 helpers will be required.

Promote Your Cold Storage Business

first of all, you will have to target your audience and this will be possible only when you take the help of promotion as well as adopt some marketing strategies.  You can advertise your cold storage in the paper.  Can promote on all social media like youtube, Instagram, and Facebook.

An entrepreneur should be exposed to various aspects of the market like traders, wholesalers, marketers, promoters, retail markets, and more.  If you start the business of cold storage then you should meet the farmers so that they can come to know about it and keep your produce safe.

Business Profit

By starting the small scale business of cold storage, you can easily earn at least 40 to 70 thousand rupees every month.  When your business starts catching growth slowly, then you will start getting more income from your business than before.

Final thoughts of the business

Maintenance and cleaning of the cold storage

To keep the products safe, it is very important to maintain the cold storage plant, it should be regularly checked like temperature, humidity level and preserved produce.  Regular servicing and cleaning of containers, trays and storage bins is essential.

How to Start a Cold Storage Business

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