How to start cold storage business in India?

Start cold storage business in India– You should be proud to live in such a wonderful country which is the largest cultivator of fruits and vegetables. India is the number one exporter and importer of fruits and vegetables in the world. Due to various reasons like climatic change, bad weather and insects, all the high quality fruits and vegetable gets rotten. The main reason for so much waste is due to improper storage facilities in India. For proper storing, you need cold storage and CA chambers. As the demand of the cold storage is increasing, so in this article we will discuss how to start cold storage business in India?

Cold storage business in India

To setup your own cold storage business in India, you must know all the factors like Raw materials, Machinery, Man power, Electric consumption, Profit margin and Investment.

Raw materials

To start a Cold Atmosphere cold storage or CA cold storage, raw materials can be any fruit or vegetable which you need to preserve for two to three months. You can store fruits and vegetables after knowing the chemical composition, as some cold storage as specially designed to store a specific kind of fruit or vegetables.


First, you can take the raw materials from your local market or the supplier. When the freshly harvested raw materials comes in your plant and first process is the dumping in the water tank. The water in the tank should be free of dirt and germs. For best results, you can use the RO water and treat the water for other use.

In the water tank, you can wash upto 300 to 350 Kg of materials. As you are dealing with the food items, so you have to give special attention to safety and security so you have to use pure and fresh water. When the food item is completely clean then it will pass to other chamber using the flow of water.

With the help of dosing rollers, the fresh and clean items are then transferred to simulator which then further goes to the camera section using the rolling actions so as to detect all the unwanted things like metal particles and other small items which should not be present with the food items.

In the camera section, two camera works for the dimension and grading. Then the final step is to take the fruits and vegetables to the storage room.

Machinery and Equipment

As a cold storage business in India is a big plant, so you require a large number of machineries to install it. Some of the main equipment which are used to start cold storage business in India are:

  • Automatic Washing Unit
  • Dewatering Machines
  • Grading and Sorting Machines
  • Air compressor
  • N2 Scrubber and O2 Srubber
  • Condenser
  • Scrubber System
  • Electrostatic Precipitators
  • Accumulators
  • Receiver Tanks
  • AC Van for transportation
  • Fork Lifter
  • Bins (Wooden)
  • Flow control valves
  • Pressure relief valve
  • Storage Tanks

Area requirement to start cold storage business in India.

To start your own cold storage business project, you require a large amount of area. If you want to start the business using ten CA cambers (Controlled atmosphere cambers), then you may require 25,000 to 30,000 Sq. ft of land. The area can increase or decrease according to your plant size.

Normally, you can store any fruits or vegetables upto two to three months using the cold storage. If you want to increase the duration then you have to analysis the chemical composition of the fruit which you want to store and then construct the cold storage plant accordingly.

Profit in cold storage business in India

When we want to start any business then the first pint which we want to know is the investment cost to start the business and what is the profit margin we can earn from the business?

If you want to start a one thousand capacity of cold storage business plant then the cost of the machineries and equipment are approx 12 crore rupees. This cost may vary according to the number of chambers and storage capacity.

Is cold storage a profitable business in India?

In the cold storage business, you can earn revenue using two methods. The first one is to buy the fruits and vegetables directly from the farmers or the local markets then storing them into your cold storage and sell them when the price of the fruits or vegetables increases in the market.

Second method is to rent the space in the cold storage. If you are storing 1000 tons of apple in your plant and charging one rupees per month for the storing cost, then you can earn 10 lakhs. You can have the profit of 4 to 5 lakhs rupees per month easily after removing all the expenses and salaries of the staff.

Power Requirement

Power consumption act as the main role in running the cold storage business plant in India. If we talk about the fully automated plant ,then you required approx. 190 to 200 kW of power load.

Man power

You need at least 20 to 25 staff to work on your plant. Some of the position are manager, sales manager, skilled workers and unskilled workers.

License Requirement

Using the below license, you can easily start cold storage business in India and earn high profits from it.

  • GST
  • NOC from Fire Safety and Pollution Control Board
  • Certificate from MOFPI


Some of the some schemes which you can apply which will help you to start the plant easily. The scheme also depends on the investment and capital required.

  • National Horticulture Board of capital, subsidises and investment schemes
  • MOFPI scheme

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