§1What this business is
Two insulated chambers of 10 tonnes each (15 × 10 × 8 ft, 60 mm PUF panels, a 3 HP hermetic compressor each) keep fruit, vegetables and flowers fresh for days or weeks. Farmers and traders pay rent per kg per day, so they can avoid distress sales and sell later. The report places it in a vegetable mandi or a growing area.
Capacity: 2 chambers × 10 tonnes; 300 operating days; rent ₹0.50 per kg per day; 50% use in year 1 rising to 90% in year 5.
§2Is it right for you?
Who it is for
A farmer, FPO or trader near a vegetable mandi or growing cluster.
Who it is not for
Someone far from produce markets — empty rooms still cost power and loan instalments.
Advantages
- Cuts post-harvest loss and distress sales
- Small enough for a farmer or trader to own
- Rental income with a small staff of 4
- Fits farm-infrastructure finance schemes
Drawbacks
- Income depends on how full the rooms are
- Power cuts can spoil stored produce, so a DG set is needed
- The R-22 gas named in the design is being phased out — ask for a current refrigerant
Skills you need
- Temperature and humidity control for each crop
- Booking and billing customers
- Maintenance of refrigeration units
Why difficulty 2/5: Simple to run; success depends on keeping the rooms full.
§3Market
Who buys
- Vegetable and fruit farmers
- Mandi traders and commission agents
- Flower growers
How it sells
- Walk-in storage at the mandi
- Seasonal contracts with traders and FPOs
Good to know
- The report says post-harvest losses of fruit and vegetables are about 25–30% of production in India.
- Storage life examples in the report: grapes up to 8 weeks at 0 °C, bananas up to 3 weeks at 13–16 °C, broccoli and cauliflower up to 4 weeks at 0 °C.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Cold room PUF panels, door, compressor, condensing unit, ceiling cooler and control panel (2 chambers) | 1 lot | ₹11.50 lakh |
| Plastic crates and racks | 1 lot | ₹4.00 lakh |
| DG set and electricals | 1 lot | ₹3.50 lakh |
From: PMEGP sample project report — Cold Room Project (prepared by Udyami/Samadhan)
- Electricity and dieselpower and fuel ₹3.00 L in year 1; the main running cost
- Consumables and spares₹0.75 L in year 1
From: PMEGP sample project report — Cold Room Project (prepared by Udyami/Samadhan)
§5Licences & registration
- Udyam
- GST (on storage rent, if applicable)
- Electricity connection of the right load
- Trade licence from the local body
- FSSAI registration if you also trade or store food on your own account
§6Schemes & subsidies
- AIFCentralUnclear3% interest subvention, up to ₹2 crore
- PMEGPCentralActive15–35% subsidy
- CGTMSECentralActiveNo collateral, up to ₹10 crore
AIF (3% interest subvention on post-harvest infrastructure) fits well. PMEGP caps service projects at ₹20 L, so this ₹21.40 L plan needs trimming to fit. CGTMSE covers the guarantee.
§7Money
How the investment is worked out: Civil work (400 sq ft at ₹600) ₹2.40 L + cold room machines and equipment ₹11.50 L + plastic crates and racks ₹4.00 L + DG set and electricals ₹3.50 L = ₹21.40 L. Land leased. Finance: bank term loan ₹15.00 L, own ₹6.40 L; the report also books a capital subsidy of ₹5.40 L.
Working capital: No separate working capital in the cost; running costs (power, salaries, repairs) come from rental income.
Year not printed on the report — check current machinery prices.
§8Export potential
Export council / board: Not applicable — a local storage service
- Storage services have no HS code; the stored produce is exported by its owners.
§9Risks — where people fail
- Low occupancy
- Compressor failure or long power cuts
- Rising electricity tariffs
§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 cold room (2 × 10 mt) for fruit and vegetables unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
- Days 31–60: Udyam and the licences you need (Udyam, GST (on storage rent, if applicable)), 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 Cold Room (2 × 10 MT) for Fruit and Vegetables?
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.
