How do I start a cold store business?

How do I start a cold store business?

The Indian farmer’s major problems are how do I start a cold storage business? It is required in selling their produce and in dispatching it at the appropriate time. Food processors or farmers experience difficulty without cold storage facilities near their farms. They are not able to get their products to the cold supply chain in proper conditions within a time frame.

What is the necessity of cold storage?

With production in excess, there is a glut in the market that one has to consider ‘how do I start a cold storage business.’ The prices come down to low levels. However, to earn better prices the farmers need to move to large consuming areas of their produce. Major areas of consumption are food processing industries and big cities that are miles away. Moving agricultural produces or exporting is not simple. The raw products are perishable and need preserving to fetch better prices. The lifestyle is changing, creating demand for packaged or processed foods, and stirring global demand for cold storage solutions.

How do I start a cold store business?

Considering starting a cold store business involves:

Investment Cost

The investment is high initially in the business. The investment is inclusive of acquiring land, obtaining licensing and permissions, building construction, and arranging utilities such as electricity, water, etc. You may invest startup capital to buy the cooling machinery. Normally, the updated and modern machinery ensures long-term sustainability and better performance.

Design a Business Plan

A cold storage business demands careful implementations and strategic planning. Therefore, crafting a project report or a business plan is a crucial aspect to start a business. As per the capacity of your investment, you may decide the size of the business. Having financial planning with a payback period and projected ROI helps in planning ‘how do I start a cold storage business.’ A business plan helps to commence the business, get finance, and ascertains smooth operations.


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Ideal Location

The question of how do I start a cold store business begins when you have an ideal location in mind. You can consider the number of units to have and the cooling system to use. However, if you do not have any idea about the location, make it a priority to contact NSSPL.


Location is crucial in the cold storage business. Targeting your cold chain facility in a specific industry is a great start. It also helps in determining an ideal location. Secure a nearby location near the consumer centers or producing farms. You can also get one acre of land featuring 5000 MT capacity for multi-commodity storage. 

how do I start a cold storage business


It is a must to know ‘how do I start a cold storage business.’ This business attracts different permissions and licenses. It relies on the location you initiate the cold chain business. You may also check the tax liabilities and upcoming compliances. 

Required Investment

The investment and cost largely depend on the cold storage scale unit. Setting up cold storage of 5000MT may cost around Rs 3 to 4 cores in India. The land cost is an additional investment to make.

Bank loans

A capital-intensive business is a cold storage. Setting up the business requires banks financial help. Check for Govt. grants or subsidies available in the state/District for this business. Set up 10,000 tones capacity for multi-commodity cold storage featuring 6-7 years payback and Rs 20 crore investments.

The cold storage success is through advertising and promotion. You may seek the help of NSSPL to target segments and promote your business. Learn from NSSPL ‘how do I start a cold storage business.’ Their guideline will serve the purpose.

What’s keeping you on hold, contact NSSPL now!

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