How To Start Cold Storage Business: Plan, Loans & Government Schemes

The New Wave of Indian Entrepreneurs

Have you know the cold storage business are most demanding for food & pharma business across India, many entrepreneurs are looking to start profitable ventures and one of the fastest-growing opportunities is the cold storage business. With the agriculture, dairy, and pharma sectors booming, the demand for preservation facilities is higher than ever. Entrepreneurs are realizing that cold storage units offer stable income, long-term growth, and government support through subsidies and loans.

Overall Statistics of Cold Storage Business

• Cold Storages: 8,653 units (as of February 2024)
• Total Capacity: 394.17 lakh metric tons (39.417 million metric tons) (as of February 2024)
• Annual Growth: The cold chain sector expanded by 13–15% in 2022, achieving a market size of approximately $6.65 billion.

How Cold Storage Business Works

A cold storage is a temperature-controlled warehouse used to store perishable goods like fruits, vegetables, dairy, meat, and medicines. It operates using advanced refrigeration systems and insulation, which keep products fresh and safe from spoilage.
Owners earn revenue by leasing storage space to farmers, wholesalers, or pharmaceutical companies.

Why Cold Storages Are Opening So Fast

The rise of cold storages in India is due to:

• Increasing agriculture production and exports
• Government subsidies under schemes like PMEGP and NABARD
• Expanding e-commerce and food delivery(zomato/blinkit/zepto) industry
• Growing urban food demand and supply chain modernization
• Reduction in food wastage through better storage

Cold storage units are opening rapidly even in small towns, helping farmers reduce losses and sell their products across the year.

Uses of Cold Storage

1. Food & Agriculture: Preserve fruits, vegetables, grains, and frozen items to maintain freshness.
2. Dairy Business & Bakery Business: Store milk, butter, cheese, and baked products safely.
3. Pharmaceuticals: Essential for medicines, vaccines, and biological products.
4. Other Industries: Useful for cosmetics, chemicals, and temperature-sensitive materials.
5. Supply Chain Management: Ensures smooth delivery with less spoilage.
6. Waste Reduction: Reduces losses by slowing down natural decay processes.

Cold Storage Business Plan in India

Total Budget: ₹50 lakh to ₹5 crore, depending on land, location, and scale.
Main Costs Include:

• Land & Building Construction
• Refrigeration Systems
• Power Backup & Equipment
• Licensing & Compliance

Profit Margin:
On average, cold storage businesses in India earn 15%–25% ROI annually, depending on capacity and product type.

Cold Storage Business Loans & Government Schemes

You can get support under several government programs and banks such as:

• PM MUDRA Yojana: Collateral-free loans up to ₹10 lakh.
• PMEGP: Subsidy up to 35% for rural and semi-urban cold storages.
• NABARD Scheme: Funding for agriculture-based storage infrastructure.
• Commercial Banks (SBI, HDFC, Canara Bank): Offer flexible cold storage project loans.

These schemes make it easier for MSMEs and startups to establish cold chain infrastructure.

How StartupFlora Guides You

At StartupFlora, we help you launch and grow your cold storage business step-by-step:
✅ Drafting a custom business plan
✅ Applying for government schemes and loans
✅ Handling licenses, company registration, and MSME certification
✅ Providing digital marketing and growth consulting

From planning to funding — StartupFlora helps you turn your cold storage business dream into reality.

Conclusion

The cold storage business is one of India’s most promising ventures for the next decade. With growing demand from agriculture, dairy, and pharma sectors, and strong government support, it offers both profit and sustainability.
If you’re ready to enter this profitable industry, StartupFlora can guide you through the planning, funding, and setup process with complete end-to-end support.

FAQs

Q1. How much does it cost to start a cold storage business in India?
The cost ranges from ₹50 lakh to ₹5 crore, depending on capacity, land, and technology used.

Q2. What are the main uses of cold storage?
Cold storage preserves perishable goods like fruits, vegetables, dairy, meat, and medicines under controlled temperatures.

Q3. How can I get a loan for a cold storage business?
You can apply under PM MUDRA Yojana, PMEGP, NABARD, or get loans from commercial banks like SBI and HDFC.

Q4. Is cold storage business profitable in India?
Yes. Entrepreneurs earn 15–25% annual profit, especially when serving agriculture and pharma industries.

Q5. How can StartupFlora help in starting a cold storage business?
StartupFlora assists with business planning, loan application, license registration, and marketing to launch your business successfully.