Cold Storage Business Plan: Nowadays, many such businesses have come, which you earn money by starting, and with the help of that business, you can contribute to the development of the country as well. Cold storage is one such business. Cold storage is not a small business, but it is a huge business; in it, the cost also comes not in lakhs but crores, so if you are thinking of starting this business, then keep in mind that it is a huge business.
Cold Storage Business Plan
Table of Contents
What is a Cold Storage Business?
Before starting any work, it is essential to understand what the business is and how it works. So you have read many times in the newspapers on TV, or you have seen that despite the good crop yields, there is a lot of shortage of fruits and vegetables because this production has deteriorated, including factors like weather conditions rotting of fruits and vegetables. The main reason behind the spoilage of fruits and vegetables is that we cannot keep that yield safe. In such a situation, when fruits and vegetables get spoiled, then their prices rise across the country due to their shortage. And inflation increases.
So cold storage is used to protect these fruits, vegetables and dairy products from spoilage. Cold storage is the place where these fruits, vegetables and meats etc., are kept, and the temperature at that place helps extend the life cycle of fruits and vegetables, in which fruits and vegetables are kept for a long time, and there is no let-up in their supply. Due to which the inflation in the country also remains under control. In simple words, when the production of any fruit and vegetable exceeds the demand, it is used to avoid damage due to spoilage of that material and fulfil the supply of that substance in the future. For this, they are kept in cold storage.
Cold Storage Business Scope
There is a lot of scope in this business because the demand for cold storage in India has seen a lot of growth, and the government is also supporting entrepreneurs in promoting this business; there is a lot of lack of cold storage in India and the things It can prove to be a very profitable business on its own.
There are two types of business of cold storage.
You have learned about cold storage; now you should know what type of cold storage is there:
- Cold storage for vegetables, for fruits and vegetables
- Milk product, cold storage for poultry product
How much investment and how much subsidy will be available in cold storage.
The cold storage business is one of the slightly larger business, and not everyone can start it because they have to invest a lot of it. The capacity of cold storage is about 5 thousand tons; this means that its entire investment comes to about three crore rupees. And in this, the National Horticulture Board gives a subsidy of 40 per cent, i.e. one crore of 20 lakh. There is a provision of subsidy on up to 10 crores from the government in cold storage. The government also provides subsidies of up to 50 per cent to encourage the opening of cold storage. Which makes the path of the entrepreneur a little easier.
How to choose a place to make cold storage
Cold storage is one of the biggest businesses that require enough space to do business. Your cold storage should not be in very crowded places.
- It would help if you chose a place where there should be a much wider road to go from four-wheeler to truck. In which you can easily take your vehicle.
- One thing to note and where the village resides will be perfect because the number of farmers in the village is high, so try to make your cold storage close to the farmers to increase your business with the help of farmers.
- Wherever you choose a place of cold storage, it should be pretty green.
- There should be a perfect water system at the place of cold storage. Only then can you keep the products kept in cold storage at an average temperature.
- Water, electricity and other things are also required.
Which machine is needed to start cold storage
To start a business of cold storage, you need to have several types of machines. This whole machine will be available to you from the country to abroad, we have told you earlier that a lot of money has to be spent on the business of cold storage. Therefore, due to the expensive cold storage machines, the present government has also started a good amount of subsidy scheme to start cold storage, which will help you a lot.
I will tell you the names of some machines of cold storage, which will facilitate you to take the machine.
- Single-stage
- Two-stage
- Three-stage
- Reciprocating Compressor system
- Centrifugal Compressors
- Rotary Compressor
- Condenser
- Refrigeration System
- Receiver
- Absorber
- Aqua pump
- Distillation column
- Evaporator
- Expansion valve
Is a license required for a cold storage business?
Cold storage is a business that cannot be run illegally. That is why I have said earlier that permission has to be taken. And after this government license is also required. For licensing, you must contact the Ministry of Food Processing Industries’ local office, India’s Government. Remember that all the work in this business is vital to be legal and correct to run the business of cold storage for a long time. And one thing must be kept in mind that insurance for cold storage must be done.
Infrastructure for Cold Storage Business
Cold storage is the task of keeping things like fruits and vegetables at ease, so when made, a lot of attention is also given to its infrastructure. The two most important things that you should keep in mind while making this are the cooling system and the second storage system. The cooling system consists of a refrigeration and compression system. Its job is to keep the place cool. Secondly, the storage system is made in the way that things will be stored in the cold store.
When creating cold storage, make sure that your infrastructure is excellent. The crop is transported to cold storage in many processes, such as firstly the crop is brought from the field to cold storage where the good and bad crops are separated from it, and the crops (fruits, vegetables) are good—stored in cold storage.
Costs and profits in cold storage
The cost of cold storage depends on its capacity to store, but the cost of building any average cold store can range from about 50-60 lakhs to crores. This includes the cost of all the machines, the cost of making, etc. On the other hand, if we talk about the profit of this business, then there is a lot of profit in this, besides this business is more profitable than profit. In this, you are serving the country. So this was information related to the cold storage business in Hindi. I hope you like it.
How to get a loan or loan to start a cold storage business?
There has been so much unemployment in our country that the government also wants you to do your employment and allow the workers to earn money. Therefore, the government has given recognition to take business loans from NBFCs and government and private banks, which facilitates business.
If you have money, you can quickly charge your own cost.
Those who do not have money, meet the nearest bank branch and talk about the loan.
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Which bank gives a loan and how much?
Yes, some banks will give you loans in a reasonable amount which will help your business. So know which banks are there which help in our business.
ZIPLOAN is the country’s non-banking financial company through which a business loan of up to Rs. 5 lakhs can be availed. Without any advancement. If you want to take a business loan early, then you will get the loan quickly in 3 days with some papers. ZIPLOAN is a bank from which you can take a loan for a business ranging from small to large.
There are some conditions for taking a business loan from ZipLoan.
Yes, you all know that if there is no unconditional work, then all the work has to do something or the other.
- Business should be more than two years old; only then you can get a loan.
- This is an essential thing if the annual turnover of the business is more than 1 million.
- One of the house or place of business should be in your name (it is in the name of parents, siblings, husband and wife, sons and daughters), even if your loan will be given.
Do you have to provide the necessary documents for a business loan from ZipLoan?
- Copy of Aadhar card will have to be given.
- PAN card copy will have to be given
- As a business registration proof, you have to show the bank.
- Copy of filing ITR will also be taken.
- Proof of any one of the house or place of business (i.e., it will be given loan even if it is in the name of parents, siblings, husband and wife, sons and daughters)
What are the significant benefits of taking a business loan from ZipLoan?
- A business loan will be available quickly in just three days *.
- Business loans are given in concise terms.
- The biggest thing is that you get a loan in this bank without pledging anything.
- Loans are available in this bank, at least on paper.
Should attention be given to the design and necessity of cold storage?
- The cold storage room size is 14 feet x 10 feet x 10 feet; it is essential.
- The humidity of the cold storage room should be 85-90%.
- Cold storage unit capacity: 10 MT (MT)
- To produce the temperature first: it is necessary to be 28-35 ° C.
- Insulation material of cold storage: should be 60 mm Poly Urethane Fiber (PUF).
- Its unit capacity should be 30000 BTU / hr.
- Outdoor temperature: should be around 43 ° C.
- Temperature required: (+ -) 2-4 ° C.