Would a cold storage business be profitable in North India? A business is to expect profits, and the cold storage business is sure to be a highly profitable business in North India.
How profitable is a cold storage business?
A cold storage business requires a one-time investment, affirms Yogesh Dahiya, NSSPL MD. In this business, there is a high initial investment required in comparison to all other businesses. However, by investing once, you can enjoy the merits in the long term. It is a highly profitable cold storage revenue model appropriate for developing and developed countries.
Would a cold storage business be profitable in North India?
The need for cold storage is all over India, and the demand is more in North India. Even the hilly areas need cold storage to supply vegetables and fruits throughout the year. The improper and inadequate cold storage facilities result in the wastage of fruits and vegetables.
The cold storage business in North India is lucrative. It is good to draft an economic budget before considering the cold storage business investment. Gathering all essential information about the cold storage business helps in taking further steps.
Yogesh Dahiya says your budget should be more realistic to earn appropriate profits. A business strategy is good, and you get financial analysis for the cold storage sector helping in growth. To create in North India a vegetable cold storage, understand essential aspects. Start by making a proper plan, ensuring the budget, and moving ahead. You must research and study the market before investing the right amount in the cold storage business.
The government of India aids the cold storage infrastructure idea and also eases the load by offering subsidies. Analyzing the cost as per the cold storage capacity required keeps you safe. Electricity and manpower are other costs adding to the investment maintenance for cold storage.
This blog is also worth reading for you:- How sustainable is the cold storage business?
Loans and subsidiaries
The cold storage business’s huge initial investment instills fear in beginners. Their question is ‘would a cold storage business be profitable in North India?’
Fortunately, the Natural Storage Solutions Pvt.Ltd. MD reveals the government gives aid of the total budget, including the construction, machinery installation, firefighting equipment, weighing machines, etc. It is huge support from the government of India, assuring success in starting a cold storage business.
Cold storage businesses get 80% of loans from banks. Besides, if the land is on rent, the loan is up to 90% of the total rent and the cost. The government is giving this assistance to the cold storage business as per norms and is paying around 35 to 50%.