Top banks providing loans for cold storage businesses include SBI, HDFC Bank, Bank of India, Bank of Baroda, NABARD, Corporation Bank, and Union Bank of India.
Loans and Subsidies
To cover investment costs or manage cash flow, entrepreneurs can apply for business loans. The Ministry of Food Processing Industries finances approximately 50% of the total cost and machinery, with Northeastern states eligible for 75% grants. Eligibility criteria are set by the ministry o...Read more
Top banks providing loans for cold storage businesses include SBI, HDFC Bank, Bank of India, Bank of Baroda, NABARD, Corporation Bank, and Union Bank of India.
Loans and Subsidies
To cover investment costs or manage cash flow, entrepreneurs can apply for business loans. The Ministry of Food Processing Industries finances approximately 50% of the total cost and machinery, with Northeastern states eligible for 75% grants. Eligibility criteria are set by the ministry or the bank.
Starting a Cold Storage Business in India
To start a cold storage business, a detailed business plan is essential, covering all aspects including products, services, and employee information. Key considerations include:
Location: Ideally close to farms or consumer centers, requiring about one acre for a multi-product facility.
Equipment Selection: Choose equipment capable of handling heavy loads and power fluctuations, considering factors like age, heat production, and storage conditions.
Maintenance and Cleaning: Regular maintenance of temperature, humidity, and cleanliness of storage bins and containers is crucial.
Promotion and Target Audience: Effective marketing strategies should target traders, wholesalers, retailers, supermarkets, and other relevant segments.
Arranging Funds: Given the substantial capital required, seeking business loans is recommended over using personal savings.
Types of Cold Storages
In India, cold storage facilities include:
Combi Refrigerator Rooms
Industrial Cool Rooms
Modular Refrigerator Rooms
Investment Costs
Key investment costs involve:
Purchasing cooling machinery
Land acquisition and facility construction
Obtaining necessary licenses
Managing utilities like water and electricity
Hiring skilled staff
Covering daily operational expenses
Marketing and advertising efforts
Entrepreneurs should carefully plan and secure financing to ensure the successful establishment and operation of a cold storage business.
Key Takeaways:
Land designated for a cold storage facility must be converted from agricultural to non-agricultural status.
Permission from local authorities is required before starting the business.
The cold storage facility should operate no more than 12 hours per day.
Proper drainage, road connectivity, and site elevation are essential.
Soil testing for load-bearing capacity
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