What are the top challenges in starting a cold storage business in India?

What are the top challenges in starting a cold storage business in India?

A cold storage business is lucrative and assures profits. If so what are the top challenges in starting a cold storage business in India?

What is about cold storage business in India?

The cold storage business in India is crucial to ascertain the smooth operations of its related industries. The crucial requirement for proper storage for perishable goods dealing firms is the highlight. They need a proper storing place for their inventory so that, their entire product does not go waste.

The initial investment is high for a cold storage business. However, the cold storage industry anticipates a CAGR of 13 to 15 % growth by 2023. The anticipation of growth is because of the rising demand for fresh vegetables and fruits, processed food, bio-pharmaceuticals, and seafood in the export markets. The cold storage business in India assures long-term returns. 

If anyone feels uncertain about the cold storage business, it is high time to consult Yogesh Dahiya, the MD of NSSPL. He has wide knowledge and experience to show and guide you to the success path.

What are the top challenges in starting a cold storage business in India?

The necessity of cold storage in India is high as it is a fast-growing economy featuring a large agricultural base. The government of India also has initiated steps of giving subsidies and financial assistance.

Despite all these, the cold storage industry’s progress in India is skewed. The present data shows Uttar Pradesh to be leading with the maximum number of cold storage spaces. Gujarat follows UP and is at 15 percent. Yet, there are several issues relating to administrative, legal, environmental, and operational. If so know here ‘what are the top challenges in starting a cold storage business in India.’   

  • Infrastructure– The initial biggest challenge while starting a cold storage business in India is to build appropriate infrastructure. The plant should be built in a suitable location. It should not be at a faraway place and must have proper transport connection. If the chosen location is perfect, the next challenge is in finding specialized, trained workers for the construction. These workers should possess experience and knowledge in installing and fitting the freezers, condensers, and devices. It also needs financial commitment.
  • Protection for workers– Keeping the workers protected at all times is another challenge. There is a need to stay warm and the workers must have protective gear. The working condition is extreme and they deal daily with electric equipment. Keep them safe from any electrocution mistakes.
  • Product temperature maintenance– The temperature of each product is different. There is a need to keep the products consumable for a longer term. Ensure the product storage is in a warmer area. For instance, when products need palletizing and picking, the required temperatures are lost. It becomes warm. As the product is bought to the fridge back after staying out for some time, carefully place them inside. Thus, the temperature stays maintained and stays fit for consumption.
  • Maintaining different temperature zones– Maintaining cold storage plant is more difficult than it appears. It is because different areas in the warehouse are stored at different temperatures. Fresh products are at 12.778 degrees Celsius, meat is below at -2.22 degrees Celsius, dairy products at 1.11 degrees Celsius, and Ice cream at -23.33 degrees Celsius. 
  • Changing temperature zone– Various temperature zones’ sizes need scaling up or down all at once as per the products. The warehouses in the traditional style feature straightforward layout relocation. You get to stack or move material pallets as they are in the appropriate place. The temperatures in the cold storage plant are taken into consideration.

NSSPL MD, Yogesh Dahiya, agrees coordinated and continuous efforts are essential for the functioning and maintenance of a cold storage plant. Cold storage has several challenges for the owner to be ready anytime. What are the top challenges in starting a cold storage business in India,’ is understandable only when you attempt starting the business. Every step is challenging, right from acquiring land to buying machinery or seeking permissions.

Face the challenge of taking NSSPL into confidence!

This blog is also worth reading for you:- What are the problems and solutions in India’s cold storage?

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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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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