Making a project report for cold storage is not easy because this business is quite different from other normal businesses. A different strategy is also needed to run this business. Therefore, the cold storage business project demands a very well thought out and well thought out strategy. This project report has to be made after doing a thorough study on every point. It is a big business with a large capital, the project report prepared for it has to be implemented very carefully.
If seen, making a cold storage project report is actually a great art because the operation of this business is completely based on the project report. Even a mistake in the business plan can ruin the plan of cold storage. Since this business is so big that if there is any kind of setback in starting it, it will not be tolerated and it can also have an adverse effect on the business.
This business completely depends on the financial capacity of the businessman. According to that, the size of the cold storage business is decided. Many businesses are here, choose the best business ideas and get machine manufacturing companies in India. And get inspire. First of all, capital planning has to be done for this business. If you have the entire capital then it is okay but if you do not have sufficient capital then you will take help from the bank or you will want to establish your business by taking advantage of the subsidy available in government schemes. For this, you should mention in detail in the project report. What things do you need, how will you make arrangements to fulfill them. These should be mentioned in the project report.
For a cold storage with a capacity of 5000 tonnes, one to one and a half acres of land on the roadside, the cost of building a building on it, electricity, water expenses, diesel generator set, a large number of laborers, means of transportation, the cost of purchasing these vehicles and fuel expenses like diesel every month, marketing expenses, are the main parts of the project report. Apart from this, the planning of the strategy to be made for running the cold storage should also be in the project report.
Location plays a very important role
Location plays the most important role in the cold storage business. While choosing land for cold storage, many needs of this business have to be kept in mind. This place should be such that the production area of the goods to be kept in cold storage is nearby or the market for the products needed by the consumers is nearby. Apart from this, there should be more facilities of water and electricity in that area.
Also, any kind of vehicle should be able to easily reach the premises of the cold storage. Also, the vegetable and fruit market and other main markets should not be too far away. Similar locations are required in urban areas and in rural areas where local crops are kept in cold storage, a place near the road with electricity and water facilities can also prove to be beneficial.
Which licenses are required
Several licenses and government permissions are also required for cold storage business.
- Permission for cold storage business has to be obtained from the Central Government’s Industry Department
- Factory license is required
- Licence for cold storage has to be obtained from the Central Government’s Food Processing Unit
- No objection certificate is also required from the State Government’s Industry Department
- Clearance is also required from the Food Chemical Department
- GST number is also required
- No objection certificate is required from the Fire and Environment Department
- Registration has to be done in the Labour Department
- Registration has to be done in EPF and ESI as well
Apart from this, permission has to be obtained by fulfilling all the conditions of the Central Government’s cold storage
Proof of finance related documents is required from the CA
The cold storage should be recommended after inspection by the Central Government’s Food Department and Environment Department
Licence should also be obtained from the Food Safety and Standards Authority of India (FSSAI).
The cost in the cold storage business depends on the capacity of the businessman and his planning. In this business, a cold storage with a capacity of at least 5000 metric tonnes is built. One to one and a half acres of land is required for this type of cold storage. Apart from this, if all other expenses including machines, electricity, diesel generator set are included, then the cost comes to about ten crores. To promote the cold storage business, the Government of India gives a subsidy of 50 to 75 percent. Banks can also give loans up to 80 percent of the cost at a cheap interest rate for cold storage.
Now if a businessman plans to set up a cold storage with a capacity of 10,000 metric tons. For that, at least 20-25 crore rupees will have to be invested. Along with this, efforts will have to be made to run the business continuously for four years. Only after that there are chances of getting profit.
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Arrangement of capital should be made
Cold storage business requires a large amount of money. For this, the businessman should make arrangements so that this business continues to run well once it starts.
1. If the arrangement of capital is on the businessman himself, then planning should be made to raise and invest it.
2. If you want to do cold storage business with the help of a bank, then you should collect the necessary documents for it and contact the officials of the concerned branch of the bank to arrange for a business loan.
3. If you want to arrange for raising capital through government schemes and assistance, then all the formalities should be completed for it. All the necessary documents have to be collected and sent to the concerned departments. From where some teams will come to inspect the site of your cold storage. Only after that you will be able to get the conditional benefit of the scheme.
Start construction of cold storage
Start the construction work of the cold storage building. Before this construction, get its map made from an expert architect of cold storage. In that map, the guidelines issued by the Food Processing Unit of the Government of India must be followed.
Make arrangements for machines and equipment
Along with the construction of the cold storage building, make arrangements for machines and equipment. There will be some machines for which special rooms or halls will have to be built. Special types of foundations or platforms etc. have to be built to install them. Along with this, arrange for diesel generators, electric transformers etc.
After the construction of the cold storage building and the arrangement of machines is complete, the government team inspects the cold storage. In the inspection, everything is found to be correct as per the government conditions, only then the government gives the clearance certificate to the businessman.
Remove the deficiencies by testing the machines
When the construction of the cold storage building is completed and the machines are also fully installed, then testing of the machines should be started. If there is any kind of technical or operational deficiency in them, then it should be removed.
Start recruitment of skilled and unskilled workers
Recruitment of skilled and unskilled workers used in the operation of cold storage will start. This type of recruitment takes a lot of time and skilled workers are recruited with great difficulty. Because the skilled workers required for this business are very rare. For this, experienced workers working in most cold storages have to be searched.
Peppers Vegetables in Boxes in refrigerator Warehouse
Market the cold storage
When the trial run of your cold storage is done and everything is fine. It seems that everything is fine. The building is also ready. The machines are also ready. The employees are also ready, then you should prepare to start your business. For this, you have to start marketing your business. For marketing, the team leader should have very good skills and if his assistants are local people, then it will benefit more because locally people are familiar with each other and also trust each other. If a local person recommends someone from his acquaintance, then he accepts his words.
To take advantage of this, you should also appoint commission agents at the local level so that they can find and bring customers for you. Apart from this, target local customers from time to time and make plans to organize seminars, workshops, conferences etc. and invite well-known customers of that area who keep their goods in cold storage. Apart from this, get hoardings installed in your business area highlighting the features of your cold storage, publish advertisements in local newspapers and TV channels. By doing publicity work in this way, make people of the entire area familiar with your cold storage. So that people contact your marketing team and inquire about business.