Profit in cold storage business in India

cold storage subsidy 2021

Faced with an increasingly discerning international market, a local market that is struggling to find its way in terms of profit in cold storage business in India. Despite the efforts made, the lack of equipment is impacting the emergence of the sector. The obstacles relating to the organizational aspect drive the point home.

profit in cold storage business in india

The importance of cold chain:

There are considerable losses of foodstuffs that occur every year on a global scale due to the lack of a cold chain. And it is the international institutions that agree that food wastage is skyrocketing. The Food and Agriculture Organization of the United Nations estimates annual losses at one-third globally. In this guide, we will also check what is the profit in cold storage business in India?

The estimate of the cold storage business India capacity necessary to regulate the consumption and marketing of the current production of perishable products is estimated at 9.4 million tonnes. And for good reason, the infrastructure dedicated to the cold chain represents a real challenge.

Currently, the overall cold storage business India storage volume is estimated at nearly 1.7 million m3 of cold rooms corresponding to 370,000 tonnes distributed among 495 units, for all industrial and commercial links.

The average capacity of a refrigeration unit at the national level is around 750 tons or even a storage volume slightly less than 3,500 m3, the total of cold rooms is 1,980 with a unit capacity of 189 tons, while the volume useful average per room is 850 m3.

On the other hand, the situation is quite different in the local market. The control of products intended for consumption is singled out. Indeed, logistics experts unanimously question the lack of follow-up on the part of the authorities concerned, especially downstream.

To date, there is no way to allow the traceability of food in points of sale, if it has been transported and stored in accordance with standards. They also evoke the lack of coordination between the various stakeholders in the cold chains.

Dedicated equipment is no exception to the rule either. There are no standards that govern storage. Today, large-scale distribution is the driving force behind the process of modernizing the food sector in India.

This process, which has started, will have profound repercussions on all the actors involved in the production and distribution chain. On the public sector side, efforts have also been made at the port level with the aim of structuring coastal and artisanal fishing.

Equipment, not enough:

The cold chain makes it possible to adapt supply to demand. In other words, adapt the quantities to be marketed in relation to the harvest periods. However, a publication specializing in logistics, cold logistics around the Mediterranean suffers from a lack of equipment from the farm, for rapid storage from the harvest of products, to the consumer, through temperature-controlled storage, refrigerated transport, distribution, and food factories.

This blog is also worth reading for you :- COLD STORAGE BUSINESS SUBSIDY

In this sense, it has realized the importance of this component and has launched a major project in this area. It is a question of netting the territory in logistics platforms including warehouses under controlled temperature in the positive cold as in negative cold, which must allow the supply of the whole territory and constitute an essential infrastructure on which operators can rely.

The free zone has spaces dedicated to export, such as temperature-controlled physical visit zones, unloading stores, or even control booths. It also provides a large capacity refrigeration unit. In addition, the platform places the dematerialization of administrative procedures at the center of its concerns. But, despite the progress, industry professionals deplore the lack of a logistics area. Check below what is the profit in cold storage business in India?

Cold storage or refrigerators?

If you only store a small volume of products, then a refrigerator may be the best option for your business. However, these cold storage solutions have very limited space and at higher volumes or levels of demand, your cold storage business model will need to upgrade, be it to a bank of refrigerators or acquire a cold storage. While it may seem like a great investment, cold storage has many advantages over a group of refrigerators.

The performances of cold storage business India alone do not guarantee a quality cold chain. The equipment requires maintenance and good upkeep and therefore monitoring by competent and sensitized personnel. Indeed, the best solutions and the best equipment, even perfectly maintained, are not enough to guarantee a quality cold chain if they are not used wisely.

Their implementation requires training and awareness of personnel throughout the cold storage business model. Experts say that there are many bad habits, such as incorrect loading of products, problems with adjusting temperature set points, overloading installations, closing faulty doors, obstructing blowing or returning air devices. Non-shutdown of a refrigeration unit during deliveries to avoid icing… and many others.

It is these bad practices that constitute the main causes of rupture of the cold chain, in particular at interfaces during loading, unloading, deliveries, and shelving. Ultimately, the consumer remains the weak link in the entire chain.

This blog is also worth reading for you :- COLD STORAGE BUSINESS COST IN INDIA

Install a storage system to better organize a warehouse:

Do you want to install and want to know about profit in cold storage business in India? Do visit our site and get in touch with any of our representatives. Contact an industrial or commercial shelving and storage systems distribution company. For example, you can request the services of cold storage. This helps you efficiently manage your business inventory, material resources, and equipment by installing a compliant shelving system or shelving in your warehouse. You are guaranteed a quality intervention.

There is a lot of progress, of course, but compared to the volume of difficulties encountered, they remain insignificant. Moreover, despite some hiccups raised by carriers, such as the cost of transport and transit time, the international logistics circuit is relatively organized.

From this perspective, the private sector does not skimp on the means to improve the service. Hence the interest of certain foreign specialists who have been able to unearth the potential of the Indian market. Now, let’s find out what is the profit in cold storage business in India?

What is the profit in cold storage business in India?

The revenue generates from cold storage business model is completely depends on the product stored in the storage and also it depends on the cost of storing the item per day.

Cold Chain
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.

Read More

Leave a Comment

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 🙏

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