How much investment is required for cold storage in India? It is a very crucial question and a must-know for every new entrepreneur considering the cold storage business. The approximate is 30-40 lakh.
Cold storage is mainly of two types, single products, and multiple products. The items that are stored include vegetables, fruits, fish, poultry, meat products, etc.
How much investment requires for cold storage in India?
Setting up a 10,000 tonnes capacity cold storage for multi-commodity requires an investment of Rs. 20 crores. It comes with a 6-7 year payback period. The cold storage forms the post-harvest vital horticultural value chain for the food processing industry.
Cold storage business preserves vegetables and fruits for a longer duration. The majority of MSMEs or business owners are connected to the food and beverage industry. How much investment is required for cold storage in India is the most required information. The investment for cold storage is definitely on the higher side as it is a one-time investment. The initial investment is high. However, the investment amount varies with the cold storage capacity and unit size. However, NSSPL MD, Yogesh Dahiya says the advantage is that the cold storage business requires a one-time investment.
Nevertheless, with this investment one-time, the returns are long-term and high.
Eligibility to start Cold Storage Business
- 18 years minimum and 65 years maximum
- 750 or above credit score
- No previous loan defaults
- Good repayment capacity and financial history
- Annual business turnover as per the experience, tenure, and profitability as per the lender’s definition
The interest charges and rates vary with each bank or lender. It depends on the profile of the applicant and the business’s financial health.
Steps to Apply for Cold Storage Business Loan
Here are the steps to apply for the cold storage business in India:
- Compare and check the business loan options that the financial institutions are offering.
- Pick the one suitable to your business and fill in the basic details. It will include your mobile number, name, loan amount, residence details, annual turnover, email address, and profit.
- On submitting details, a representative from the bank will verify the details mentioned in the document before proceeding with the formalities of the loan.
- As the bank is satisfied after verification, it will approve the cold storage business loan and disburse the amount.
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Investment Cost inclusions
How much investment is required for cold storage in India appears to be a simple question? But the answer does not end with an initial investment, it includes:
- Buying land, and cooling machinery, constructing storage facilities, acquiring licenses from respective authorities or Government, paying salaries to staff, managing utilities such as electricity, water, and other materials, working capital to meet daily expenses, and finally, marketing and promotional expenses.
Get to know more details from NSSPL MD or their staff, who are ready to acknowledge any query relating to cold storage in India.