What is the Scope of a Cold Storage Business in India?

Blue ice India is a leading cold storage manufacturer and supplier in Ahmedabad, Gujarat.

If you have been following the business related to fresh products like vegetables and fruits, pharmaceuticals, and frozen food – you would know the importance of increasing their shelf life by keeping them fresh for a longer time.

And as there's more and more production of fruits and vegetables and pharmaceutical products, the demand for cold storage warehouses is also increasing. With this increasing demand for cold storage solutions it's a good idea to solve the real pain points of manufacturers by starting your own cold storage business.

But what does it take to onboard more cold storage projects?

What are all the factors you need to keep in mind to succeed in the cold storage business? How much investment do you need to have to have a cold storage warehouse and business?

The questions are many, and we are here to answer them all!

In this blog, we will explore the scope and potential of the cold storage business in India, how you can make it profitable, and the challenges of cold storage projects.

So, let's get started without any further delay!

First, let's understand what cold storage is and how exactly it works.

What Is Cold Storage and How Does It Work?

As the name suggests, cold storage is a facility that businesses use to store perishable goods at controlled temperatures.

Think of businesses who are dealing in food processing, dairy products, agriculture, pharmaceuticals, and logistics. All of these businesses need cold storage to keep their products fresh for longer periods of time.

As cold storages use the latest technologies to maintain the right temperature and humidity levels, your cold storage warehouse can cater to multiple cold storage projects that may need various temperature ranges.

For example, having refrigerated storage (2-8°C) for perishable food and frozen storage (-18°C or lower) for frozen foods and pharmaceuticals.

By providing cold storage facilities you can help businesses extend the shelf life of goods and reduce wastage - helping them save a lot of money!

Now, you might be wondering, is there even a good market for cold storage businesses in India? Do businesses really look for cold storage warehouses?

Let's find out how the cold storage business growing in India in the next paragraph.

How is the Cold Storage Business Growing in India?

As there is the rapid growth of on-demand products regardless of their seasons (think of scenarios like strawberries being available in India all year around), so is the demand for cold storage business.

Not only the food sector but pharmaceutical companies also need to preserve and reserve the chemical formulation of their products at certain temperatures to maintain their characteristics - requiring cold storage warehouses.

Moreover, as more and more people opt for online grocery shopping and supermarkets, the role of cold storage industry plays an important role in keeping these products fresh for longer periods of time.

Other than all of these factors, India's agriculture sector also continues to thrive with government initiatives like Pradhan Mantri Kisan Sampada Yojana. And when agriculture production is high, farmers require cold chain infrastructure to prevent their production from being wasted.

Lastly, modern trade logistics is structured in a way where it cannot operate without cold storage warehouses to provide seamless and undisturbed distribution of goods.

Keeping all of these factors in mind, there's no doubt that the scope of cold storage in India is exponential.

And this growth comes with a lot of advantages for you and your clients. Wondering what the benefits of having cold storage projects are? Let's expand more on that matter in the next section.

What Are the Key Benefits of Starting a Cold Storage Business in India?

As soon as you enter the cold storage business industry, you will find yourself amazed by all the amazing advantages cold storage warehouses have to offer.

Here we have listed some of the most important and prominent benefits of operating a cold storage business for your reference -

• High Market Demand:

  One of the biggest benefits (and the one that will earn you more profits) of the cold storage business is that it's in high demand.

  Cold storage warehouses help so many sectors preserve their products while reducing wastage.

• Supply Chain Efficiency:

  Another benefit that you can offer to your clients by having a cold storage warehouse is the timely distribution of the products while minimizing the risk of contamination.

  In other words, your cold storage projects can directly impact the business's supply chain efficiency.

• Increased Profit Potential:

  The cold storage business is not limited to only storage but has great potential for cold chain logistics too. As the demand for fresh food and maintaining the shelf life of products increases, so will it for the profits.

  You can explore multiple aspects and verticals in which you can help businesses in multiple ways with cold storage – increasing your profit margins.

• Support from the Government:

  Last but not least, The Indian government is taking a lot of initiative to promote cold storage businesses. Think of benefits like financial incentives, tax breaks, and funding support so that you can take your business to the next level!

  What's the cherry on the cake? You can get even more benefits if you are focusing on agriculture and food processing cold storage projects.

  There's no doubt that the cold storage business in India has multiple benefits to offer but at the same time, you need to keep in mind the key factors that affect the cold storage projects to excel in your business.

  So what are these factors? Let's have a look at them in the below section.

What Are the Key Factors Affecting the Cold Storage Project?

For you to make sure that your cold storage business is a success, you need to consider a few aspects that highly influence this business.

Take a look at the points below to get a better understanding.

• Location:

  You need to choose the right location to run your cold storage business smoothly. Think of areas that are close to agricultural hubs, ports, and transportation networks. These locations will allow you to have easy access to raw materials and distribution channels.

• Infrastructure and Technology:

  Cold storage facilities are not only about space but also about technology. You will need to have a strong technical infrastructure to maintain the desired temperature and humidity levels for longer periods of time.

  When you invest in energy-efficient systems and modern refrigeration technology, it will help you save a lot of costs on operational expenses.

• Climate and Energy Efficiency:

  Moving next, India's diverse climate conditions also highly impact cold storage operations. If you have your cold storage warehouse in hot and humid regions, you will need to have additional cooling mechanisms to maintain energy efficiency.

• Legal and Regulatory Considerations:

  Lastly, you will need to comply with lots of regulations while setting up a cold storage project. This compliance includes aspects like safety standards and environmental norms.

  You need to make sure that you are in terms of these compliances to avoid legal complications in future.

  Other than these factors, there's one more thing that really matters - cold storage price. But we've got you covered there too!

How Does Cold Storage Price Affect Business Viability?

It goes without saying that the price of cold storage plays a crucial role in determining the business's viability.

Additionally, you will need significant initial investment in infrastructure, refrigeration technology, and energy-efficient systems. On top of that, you also need to consider operational costs like energy consumption, maintenance, and logistics while planning to set up the cold storage business.

You can contact us with our team to get a clear idea of how much investment is needed to start a cold storage business in India.

Blue Ice India - A Leading Cold Storage Manufacturer in India

After learning about the cold storage business and its potential all these while, if you have made up your mind to start your own venture; it's the right time to get in touch with a cold storage manufacturer who can help you get started with your requirements.

We have helped many entrepreneurs set up their cold storage and we would love to help you do the same.

Get in touch with our team by filling in the Contact Us form and one of our team members will get in touch with you soon.