§1What this business is
You service, refill gas in and repair ACs, fridges and water coolers for homes and shops; installation and AMC too. Customers are homes, shops, offices and hotels. Whoever is cheaper and arrives faster than the company service centre wins.
§2Is it right for you?
Who it is for
An ITI/diploma refrigeration technician who can build a team.
Who it is not for
Someone who does not know the technical work and runs it only through staff.
Advantages
- Low capital, skill-driven work
- Lots of work in summer, year-round income from AMCs
- The number of ACs grows every year
- Tie-ups with dealers for installation
Drawbacks
- Depends on the season — little work in winter
- Technicians do not stay
- You have to win customers' trust
- Gas/compressor risk
Skills you need
- Refrigeration & AC repair
- Customer service
- Spare parts sourcing
- AMC selling
Why difficulty 1/5: Low capital; an easy start if you have the skill.
§3Market
Who buys
- Households
- Shops, offices, hospitals and laboratories
- Hotels, food processing units and cold storages
How it sells
- Customers bringing appliances to the workshop
- Visits to the customer's site
- Annual maintenance contracts (AMC) with big organisations
- Sale of spare parts and accessories
- Flyers, online listing and referrals from local businesses
Good to know
- Demand peaks in summer; regular maintenance needs give steady income.
- The owner must have the technical skill or employ a trained technician.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Multimeters | 2 | ₹0.30 lakh (₹0.15 lakh each) |
| Refrigerant leak detectors | 2 | ₹0.16 lakh (₹0.08 lakh each) |
| Pressure gauge sets | 2 | ₹0.36 lakh (₹0.18 lakh each) |
| Thermometer | 1 | ₹0.12 lakh |
| Tool kit (screwdrivers, pliers etc.) | 1 set | ₹0.25 lakh |
| Refrigerant recovery machine | 1 | ₹0.28 lakh |
| AC vacuum pump | 1 | ₹0.22 lakh |
| Welding machine | 1 | ₹0.18 lakh |
| Compressor test rig | 1 | ₹0.25 lakh |
| Tool chest | 1 | ₹0.10 lakh |
| Laptop / desktop | 1 | ₹0.50 lakh |
- Spare parts: capacitors, compressors, condenser and evaporator coils, fans, motors
- Refrigerant gasfor refills during servicing
- Cleaning agents and brushesfor coils and filters
- Safety gear: gloves, safety glasses, masks
§5Licences & registration
- Shop & Establishment
- Udyam
- GST (above the limit)
- Refrigerant handling training (Ozone Cell/skill certification) — recommended
§6Schemes & subsidies
- CM YUVAUPActiveUp to ₹5 lakh, interest-free
- MudraCentralActiveLoan up to ₹20 lakh, no collateral
- PMEGPCentralActive15–35% subsidy
- CGTMSECentralActiveNo collateral, up to ₹10 crore
₹4.5 L service unit: CM-YUVA (UP, interest-free up to ₹5 L) and MUDRA Kishore are best; PMEGP service; CGTMSE.
§7Money
How the investment is worked out: Report total project cost ₹4,52,825 (term loan ₹3.17 L; gross block ₹2.35 L; working capital ₹2.18 L — figures in ₹000 in report).
Working capital: Stock of spare parts and gas cylinders.
Report 2024.
§8Export potential
A local service business; it has no goods to export.
§9Risks — where people fail
- Seasonality
- Technician attrition
- Warranty/rework
- Safety (electric, gas)
§1030 / 60 / 90-day plan
A general plan that applies to any business. A plan for this business will be added after research.
- Days 1–30: Visit a working ac & refrigerator repair centre unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
- Days 31–60: Udyam and the licences you need (Shop & Establishment, Udyam), a project report (DPR), and the scheme or loan file.
- Days 61–90: Space and machines, trial production, and first deliveries to 10 customers.
§11Who to connect with
Associations, clusters and training institutes — the directory is being built. Connect
§12Watch
There is no episode on this business yet. Shows are coming soon on the Podcast page.
Want to start AC & Refrigerator Repair Centre?
DPR, loan file or registration — ask us on WhatsApp.
¶Sources
Data review: 6 October 2026. Spotted a mistake? Report it. For information only — not legal or financial advice.