Cold Storage Business in India

Cold storage business plan PDF

Did you know, there is a huge profit in cold storage business in India. Also, it is one of the most essential ways to increase the shelf life of any product. The products whose shelf life needs to be increased are kept in a cold storage container or cellar under some specific temperature.

This method is highly adapted by restaurants, retailers, enterprises, hospital facilities, florists, and others to increase the shelf life of the product and to keep them safe and ready to use.

The cold storage business in India is gaining traction as difficulties have been encountered post-harvesting period for fruits and vegetables. Certain items that need to be transported from one geographical location to another take time to reach the destination and hence might not be available for usage. In such cases, cold storage plays an important role to increase the shelf life of a product.

Types of Cold Storage Business:

There are two categories in cold storage companies in India which the cold storage business can be classified. This classification is based upon the type of product that is used to store:

– Food and Agriculture products cold storage: Products like fruits, vegetables, meat, dairy products, and others that have high demand around the year are stored in such cold storage. This type of cold storage business is highly uplifting and if stationed near the local market it would boom easily. The architectural structure must so compliant with the delivery process too.

– Off-season products cold storage: Products that are available only in particular seasons such as chilies, potatoes, fruits like mango, and some other products are stored in this type of cold storage so that the offseason demands can be catered.

cold storage companies in india

How does the Cold storage business work?

The dairy products are stored at a temperature as low as zero degrees Celcius to fourteen degrees Celcius.

Types of refrigerators used:

  1. conventional refrigerator: Here the temperature is between 4 to 8 degrees Celcius.
  2. Multipurpose refrigerator: Here the temperature is kept at almost 0 degrees Celcius.

At times certain food needs temperature which is below 0 degrees Celcius too. For instance, meat and fish are stored at a temperature of -2 degrees Celcius to store longer. This type of area is known as the “Super chilling area”

Cold Storage Business in India:

There is a huge profit in cold storage business in India.India is a South Asian country with huge diversity. The diversity is not just observed in culture but also food and habitation in the terrains.

Tea, coffee, and rice cultivation are prominent in Eastern ghats whereas Southern India is famous for the cultivation of tea, coffee, rubber, and certain spices. The temperature of the northern Himalayas is low mostly whereas that of western parts is high. This variation in cultivation, temperature, and diversity brings the urge of a cold storage business in India.

profit in cold storage business in india

Why cold storage business in India?

India’s economy is highly dependent on agricultural products but not to forget that due to the white revolution it has solid grounds for milk production and selling.

Also, there is a quite stable industry for marine food and meat. As the place and state change, the business scopes in the country change but all these businesses require the proper storage of the food products. This is why the cold storage business in India comes into the frame.

Cold storage companies in India expand from dairy products, vegetation, fruits, meat storage, seasonal food items to certain medicine and vaccine storage.

As the production and cultivation of certain products take place in one part of the country but they are needed to be transported to far off land. This requires a proper storage system for the products to increase the shelf life of the product. Thus there would be a boom seen in the cold storage business in India if implemented correctly and with the usage of the right resources at the right place.

Cold storage business in India for dairy products would focus to cater to the issues and need of sustaining the dairy products, fruits, vegetables, marine food, and certain other goods for a longer period than their perishing time. It would require the perishable products to be stored at a temperature between zero to fourteen degrees Celcius.

Cold storage companies in India business for vegetation and meat would help in reducing the loss that occurs due to post-harvest or post-process due to lack of storage facilities.

The cold storage business in India requires one-time investment and gives promising long-term returns. As the economy of the country is dependent on vegetation and cattle husbandry the cold storage business is quite promising and would expect a boom if set properly near the local market and is easily available.

Apart from this, rapid changes in the lifestyle of people across the globe and with rapid changes in food habits, traction is observed in the cold storage business around the world.

To set the cold storage business in India certain points need to be considered for investments. The investments would include land investment, building construction, permission and licensing, arranging the basic utilities such as water, lights, packing materials, storage equipment.

The major investment would be used up in the heart of the cold storage system the cooling machinery. These costs are the fixed costs some other variable costs need to be incurred during the initial phase. As demanding as it sounds in terms of money in the initial phase the cold storage business is as promising over time.

list of cold storage companies in india

Cold Storage Business in India:

The farmers are unaided in terms of storage and processing of the food products. The dealy in processing and transport would ultimately cause the spoilage of the food products. Also with limited resources, it becomes difficult to transport the products to the far-off cities and lands of the country.

There is a great profit in cold storage business in India.India is a developing country and the population moving towards the cities. The major consuming areas are big cities and food processing industries that are usually thousands of miles apart. However, moving agricultural produces across the length and breadth of the country or exporting with limited Cold Chain Logistics is not a simple job.

Raw produces are usually perishables and must be preserved until it is a time ripe for realizing better prices or moving it over long distances. Additionally, changing lifestyle and demand for processed or packaged food is creating the need for cold storage solutions globally.

How does the Cold storage business in India help?

The deep freezing helps to store the food for a longer duration than its expected time. For meat and fish, the shelf life may vary from three to twelve months. In cold storage companies in India,vegetables can have a shelf life from six to twelve months, fruits can have eight to twelve months and ready-made food can have a shelf life of three months.

It not just depends on the temperature at which it is maintained in the cold storage room or container but also depends on the initial packing of the product, how fresh was the product placed in cold storage, hygiene maintained.

The delicate products like meat and fish to be preserved for a long time needs that the cold chain is maintained. Hence there must not be more temperature differences and these must be placed immediately in the refrigerator near the evaporator to have the coldest environment. They are usually placed above the vegetables and fruits.

Care should be taken for the contact between the products stored in the refrigerator. The products once removed packaging must be disposed of immediately and not reused or brought in contact with other foodstuff or material.

Cold storage companies in India are most efficient as due to low temperature the cell metabolism of food slows down, which slows the enzyme reactions, slows the growth of micro-organisms, and delays the food spoilage.

top 10 cold storage companies in india

List of cold storage companies in India:

Following are some of the leading cold storage logistics companies in India.

  1. Aegis Logistics
  2. RitcoLogistics
  3. Chartered Logis
  4. Balurghat Tech
  5. Sanco Trans
  6. Kesar Terminals
  7. Inter State Oil
  8. JITF Infralogis
  9. MFL India
  10. Coldman Logistics Pvt. Ltd.

As you have read about these top 10 cold storage companies in India. Your company can also be in the above list. Get in touch with us for more info.

How to start cold storage business in India?

As said cold storage business is a capital-intensive business. To implement the cold storage business in India one needs a minimum investment capacity of 3 to 4 crores. But it provides a good profit in cold storage business in India.

The process would include completing the paperwork related to business registration or land registration. The entrepreneurs can avail the subsidies that are provided by the government or the bank loans. There is Nabard cold storage subsidy by MIDH or the cold storage subsidy 2021 that could be availed by the business enthusiast.

Though the availability of the subsidy would be subject to fulfillment of the necessary conditions.

The required capacity for cold storage in India is an estimated 350 lakh tonnes(lt) with current cold storage capacity standing at 226.7 Lt and a capacity of 53.55 Lt was created under different schemes in the last 5 years according to official sources.

Also, the current cold storage business in India is focused on the storage of potatoes but now the trends strongly emphasize on development of a multi-product cold storage system.

Since, there is a good profit in cold storage business in India, as said India’s economy depending upon the cattle husbandry and vegetation cold storage business in India is quite promising. Though it needs more investments in the initial phase it has promising prospects to yield better results once set properly and not to forget there are various subsidies and bank loans that one can avail to successfully set the cold storage business in India.

cold storage logistics companies in india

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Yogesh Dahiya

Yogesh Dahiya

The Managing Director of Natural Storage Solutions Pvt Ltd is known for his expertise in setting up cold storage, chilling plants and food processing units.

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