How can we set up a cold storage business in India?

What Are the Rates for a Cold Storage Warehouse Rental in India?

The cold storage business is an option for by MSMEs or business owners in the food and beverage industry. It is a huge investment for a one-time. The returns in the long term are higher. There are single products and multiple products cold storage facilities. Learn how we can set up a cold storage business in India and decide on storage features.

Eligibility Criteria

  • Individuals must be 19 years minimum to apply for this business, and the maximum age limit is 65 years.
  • The applicant should have a credit score of 750 to consider.
  • The credit history should be good to establish the financial history and the repayment capability, proving the applicant’s creditworthiness.
  • No loan default records or non-payments from financial institutions.

The annual turnover of the business, the experience of the applicant, and tenure undergoes checking by the money lender. It may be a bank or any other financial entity. They will ascertain profit in the cold storage business in India before releasing the loan amount.

Cold storage is an indispensable business. Ready-to-eat meals have triggered working professionals to look for easy meals. The business of cold storage ensures the preservation of food kinds of stuff such as drinks, dairy products, vegetarian and non-vegetarian products, vegetables, and fruits.

The temperature for these products helps in extending shelf life. The cold storage business proves to be lucrative. The single product facilitating cold storage is for single products, and the multi-products facilitating cold storage is for assorted product storage. Absence of cold storage results in enormous wastage. 

Every year India produces 260 million metric tons of fruits and vegetables. It is the 2nd largest producer of fruits and vegetables, and there is wastage in large amounts. It is due to the shortage of cold storage infrastructure. A cold storage business is a profitable business, and now there is government support through subsidies favoring the growth of cold storage. Anyone interested in this business should consult NSSPL to know the process of setting up a cold storage business in India.

How can we set up a cold storage business in India?

Premises – The premises size depends on the business size you wish to set up. A small-scale business will require lesser area. However, if you want to set up a large-scale business you need one acre, at least. Ensure you have enough customers looking for your cold storage business. The appropriate site for cold storage business set up is the proximity to farms producing in large quantities. Looking for sites closer to poultry farms or transportation is beneficial for business.


Licenses– Necessary licenses are essential for anyone wishing to start a cold storage business in India. It includes local authorizations and government licenses.

Right equipment

The infrastructure of cold storage requires the right equipment. Varying temperatures necessitate equipment selection to function flawlessly. A few things worth considering are:

  • The cold storage unit size is appropriate as per the size of the premises.
  • The load of the product and storage capacity
  • Efficiency levels and the equipment age
  • Temperature settings
  • Insulation thickness and material

Before buying types of equipment for your cold storage business, consult NSSPL. Their engineers and technicians will guide you in selecting the right equipment.

This blog is also worth reading for you: – Why can meat be cut easily and uniformly after cold storage?

Proper hygiene and consistent maintenance

  • Ascertain cold storage unit interior is free from odor.
  • Regular servicing and maintenance of equipment.
  • Ensuring no spillages or leakages.
  • Cleaning of storage units within the unit, such as containers and trays.

Working capital provision to meet daily expenses

Daily expenses may include transportation, initial breakages in collecting the products, and lots more. Consider the employee’s salary, and office expenses, and set a reasonable working capital as daily expenses. Ensure to have a reasonable amount to meet daily expenses.

Marketing and promotion

Marketing and promotion of your cold storage are essential. There should be a spread of word about your business. The awareness is in creating knowledge among the traders, wholesalers, supermarkets, and retail outlets across the vicinity and neighboring areas. You can prepare a plan or develop promotional schemes to attract a target audience and assure long-term association. Assuring a steady income stream and helping in strengthening business relations.

profit in cold storage business in india
Application of loans to start a cold storage business

Banks offer loans to start a cold storage business. Startup companies or business owners wishing to expand need not worry about setting up a cold storage in India.

Banks or money lenders offer loans as per the creditworthiness of an individual. The best is to research and settle for the one that offers reasonable interest rates to obtain loans. A simple guideline is:

  • Make a note of various business loan offers from the banks and the financial lenders
  • Scrutinize various loan details and select that is feasible. It should meet your business plans and monetary needs. Making a selection requires furnishing personal and relevant details such as Smartphone number, postal address, business turnover anticipated, email id, and others.
  • The financial lenders verify the details you furnish. The process of verification is the responsibility of the financial institute representative. They will assist you with the loan application details and formalities.
  • As the finance lender finds your details convincing, you receive loan sanction information and receive the amount. The credit is in your bank, and you can proceed with your purchase.
  • Apply for subsidy. There are loans up to 80% from nationalized banks for the entire investment. You can buy land or rent premises. You can get an extension of up to 90% of the loan amount on the total costs.
Cold storage business advantages
  • Helps preserve perishable products
  • Assists in protecting the nutrient value of frozen products
  • Fish, meat, milk, and dairy-related products decay fast with extreme temperatures. In case, they are not stored at the right temperatures, they decay fast.
  • Protects fruits and vegetables offering a cool temperature and ensuring they are not frozen. The monsoons and the summers with power outages need the right equipment as a priority to sustain contingencies. Assured profit in the cold storage business in India.

In India, the cold storage business does not receive much attention. Though, the scope for this business is good as the benefits and turnover are high. The farmers get to preserve their products and reduce wastage. There is a business loan available and also subsidies of up to 80%.  


The loan is available to farmers, individuals, two or more individuals, or a group wishing to set up this business. The core is to know ‘how we can set up a cold storage business in India.’


You may contact NSSPL, the leading cold storage company. They handle various products at different temperatures. They are the one-stop shop for cold chain supply requirements. They can offer advice on cold storage products and food processing or cold storage pieces of equipment. Consult NSSPL, you will notice that under their guidance, you will not face hurdles. Take a smooth ride with NSSPL guidance. Contact them now and ensure a hurdle-free experience.

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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Have you come to my website for cold storage business information? If yes then you can watch video related to cold storage business by clicking here.

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Have you come to my website for cold storage business information? If yes then you can watch video related to cold storage business by clicking here. 

YouTube Channel Video List