The cold storage unit is a highly regulated compartment in which the regulators maintain a certain temperature for the storage of the goods. The good variety and nature can differ in their structural composition, and how they react to the temperature. Presently, we can store agricultural products, chemical products, beauty products, candles, brittle productions, and more. There are so many varieties of products to store that the demand for cold storage products has increased to a greater extent. Keep reading to learn abut the cold storage, and What is the approximate cost to open a cold storage in Ahmedabad?
Beginning a Cold Storage Business
Breweries were the sole industry using cold storage during a certain time period, and they mostly relied on the unhygienic process of ice harvesting. Cold storage has existed since the 1800s. The concept of cold storage began to permeate the meat packing industry by the 1900s, and by the middle of the 20th century, vehicles equipped with refrigeration were being utilized to deliver perishable items over great distances.
A Perfect Lucrative Idea for Entrepreneurs - How can I apply for cold storage in India?
Entrepreneurs always find a profitable idea to capitalize on, and the best idea is the cold storage units. The establishment of cold storage units often costs a lot but the returns on the investment are always high. Cold storage units have only become the most lucrative idea. But as said earlier, do you have enough budget or funds to establish the cold storage units?
In this article, we are going to see the cost determinants and calculate the approximate cost for the establishment of cold storage units. Every new entrepreneur thinking about starting a cold storage firm has to know the answer to this extremely important issue.
The Cold Storage Unit Cost Calculations
So, What is the approximate cost to open a cold storage in Ahmedabad? There should be a total cost of the cold storage units. The fixed cost would only determine the operational cost which would keep the firm going on. But the variable cost would fluctuate as per the business activities, and other requirements. So, the cold storage unit owners should decide both the variable costs and the fixed cost. Let us discuss both points hereunder:
1. The Fixed Cost for the Cold Storage Unit: it is the fixed cost that we are considering here mainly. We are only calculating the costs that would only be sufficient for establishing the cold storage units. The fixed cost for the cold storage unit would be calculated for the purchase or rent of the building, cold storage equipment, staff payments, and other fixed costs for maintenance.
The fixed cost of the cold storage unit would be 50 lakhs to 2.5 crores for the small cold storage units. For the medium cold storage units, the price would be 2 crores to 5 crores. The large cold storage unit cost always increases as per its size.
An investment of Rs. 20 crores is needed to set up a cold storage facility with a 10,000 tonnes capacity for many commodities. A payback time of 6-7 years is included. The food manufacturing industry’s essential post-harvest horticulture value chain is formed by cold storage.
2. The variable cost. As discussed earlier, the variable cost fluctuates as per the new material required for the cold storage units. The variable cost always increases the total cost. It does not affect the starting cost. So, the fixed cost is what you need to have for starting cold storage units in India.
This blog is also worth reading for you:– How sustainable is the cold storage business?
How Do I Claim A Subsidy For Cold Storage?
To save themselves the burden of having to build and manage their own cold storage solutions, the majority of businesses today prefer to obtain subsidies Independent proprietors of refrigerated warehouses can help in this situation. However, the cost calculations and other decision-making also affect the subsidy claims. You will be able to get the subsidy that has been announced for your business niche market for cold storage units.
It is highly profitable to claim a subsidy, and you can do so in other cities as well such as Surat, Rajkot, and Jamnagar.
Concluding, we answer the question What is the approximate cost to open a cold storage in Ahmedabad? You are aware that India has a significant production of fruits and vegetables. Most often, inadequate post-harvest management results in damaged fruits and vegetables. According to the summary, it has been demonstrated that the cold storage industry in India is lucrative. The cost of the compact cold storage plan is approximately INR 50,000.00 for uses ranging from 50MT to 100MT.
Depending on storage capabilities, the cost of a cold storage project varies. Cost estimates for 500 MT of special-purpose cold storage range from INR 2.00 Cr to 5.00 Cr. Additionally, it depends on the method you decide to invest in. Despite the Cold Storage Capacity Design Cost of the specific capacity being a little expensive, it’s crucial to design the cold storage facility appropriately when beginning a firm. You should choose skilled experts. If you have created your cold storage with the appropriate technical equipment, you could save up to lakhs every year.