Large, refrigerated warehouses known as cold storage are frequently used to store medications, frozen meals, processed meat, fruits, and vegetables. A crucial link between agricultural goods and the final customer is provided by cold storage facilities. Due to the expansion of the food and allied industries, there has been an increase in the need for cold storage services. So, which tier 2/tier 3 cities in Maharashtra have good demand to start a cold storage? In this article, we are going to look at the increase in demand to start cold storage units in Maharashtra.
Keep reading to learn more about it.
How many cold storages are there in Maharashtra?
There is a huge opportunity to set up shop & profit in the cold storage industry. The majority of the 8,500 or so cold storages in India, which is an approximate total based on a number of sources, are solely equipped to store potatoes. A capacity of under 1000 MT is found in nearly 35% of cold storage facilities.
How many types of cold storage are there?
There are commonly two business models for cold storage.
- Storage of food and agricultural products: Cold storage houses year-round necessities like fruits, dairy, meat, and other commodities. The cold storage must be situated close to the final consumers and, ideally, should have its own system supplied.
- Storage of off-season goods: Cold storage houses goods including seeds, potatoes, and chilies to meet these requirements. The cold storage facility must be situated near to the product’s origin or source. This is the case with the vast majority of cold storage facilities in India.
Before beginning cold storage, detailed research of the market, major clients, and company model is important.
The demand for both types of cold storage units is always high due to the shortage of cold storage units. The demand is always said to be ten times higher. So, it increases the price of cold storage always.
Maharashtra and the Demand for the Cold Storage Units
Maharashtra is an important city in Gujarat India in terms of agriculture and economic value. The approximate cost to open the cold storage in Maharashtra also depends on the demand for cold storage units. There are not many cold storage units available in India. So, the demand is always high. This is why the demand for cold storage units is higher in Maharashtra also.
Factors Causing Rise in the Demand of the Cold Storage Units in Maharashtra
Following are some of the top causes of the cold storage units in Maharashtra:
- The number of cold storage facilities in India is not known with certainty. It is estimated to be close to 8000.
- Demand for cold storage facilities could be ten to fifteen times higher.
- Fruits, vegetables, meat products, and fish catches must all be kept in cold storage facilities.
- India borders three oceans, and the fish caught is huge.
- Due to a shortage of cold storage facilities, 20% of fish catches are lost.
- Only 20% of tomatoes are used up.
- The situation with apples and oranges is similar.
- There is a severe lack of transport trucks and freezer vans.
- These amenities are necessary to close by in Himalayan communities and slopes.
- A bottleneck is the inadequate 24-hour power supply.
- Infrastructure for roads and transportation is another obstruction.
This is why the cost of the cold storage units in Maharashtra would also be higher. It is so because when the demand rises, the price rises.
This blog is also worth reading for you:– What is the approximate cost to open a cold storage in Ahmedabad?
Maharashtra's Top Tier 3 and Tier 2 Cities
So which tier 2/tier 3 cities in Maharashtra have good demand to start a cold storage? Tier 2 and tier 3 cities in Maharashtra have proven to be more profitable investment possibilities while tier 1 cities like Mumbai and Pune are also too pricey for real estate and other businesses. While Nagpur, Kolhapur, Navi Mumbai, and Nashik are well-known tier 2 cities, Pimpri-Chinchwad, Vasai-Virar, Ulhasnagar, Nanded Waghala, and other top tiers 3 cities in Maharashtra are also quite famous. The urban cities, all of them, require cold storage units. We have explained them hereunder:
Top Tier 3 Cities.
The major tier 3 cities in Maharashtra, which require cold storage units, are Pimpri-Chinchwad, Ulhasnagar, Nanded Waghala, and more, whereas Nagpur, Kolhapur, Navi Mumbai, and Nashik are well-known tier 2 cities.
Top Tier 2 Cities.
Following are the major top-tier cities of Maharashtra that have greater demand for cold storage units:
- Despite being a tier 2 city, Nagpur, also known as the “Orange City,” is the third-largest town in Maharashtra. The city serves as a significant hub for commerce, politics, and the exchange of agricultural goods like oranges. So, Nagpur requires cold storage units, and demand increases steadily in the city for cold storage units.
- Kolhapur: This city has a long and illustrious spiritual past and is widely renowned for both its handmade goods and the Marathi film industry. This tier 2 city is primed for investments in real estate and rapid urbanization with a competent municipality structure in place. So, cold storge units demand grows greatly.
- One of the biggest cities in Maharashtra is Nashik, which is situated on the banks of something like the Godavari river. Nashik, renowned as the “wine capital of India” and the well-liked location of the yearly Kumbh Mela, has witnessed a rise in real estate investment recently. The business florists too. So, it has a good demand of cold storage units.
So which tier 2/tier 3 cities in Maharashtra have good demand to start a cold storage? A 25 million tonne imbalance between supply and demand results from the fact that just 2% of output in India is stored or transported in cold storage facilities, contrasted to 85% in the US.
A conventional multi-tier walk-in cold storage with a 6,000-ton capability is estimated to cost $5 crore, minus the price of the land. Usually, at minimum, an acre of dry land would be needed for a cold storage facility with a storage capacity of 5000 MT. The cost of the project as a whole is thought to be 10% to 12% comprised of the cost of the land alone. All in all, the cost is worth the investment due to the higher return on the investment as the demand for cold storage units in India will increase greatly in the coming future too.