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Quick answer
A bankable cold storage business plan in India is a site-specific DPR with heat-load calculations, a vendor BOQ, a subsidy structure and 7-year cash flow showing IRR, NPV and break-even. Well-run multi-commodity cold storages in north India achieve 18–26% pre-tax IRR over 10 years with 4–6 year payback post-subsidy, and banks typically fund 70–75% of project cost.
Key takeaways
- Indicative capex runs ₹17,000–22,000 per MT for a 1,000 MT general store and ₹14,000–18,000 per MT at 5,000 MT, with annual opex of 7–10% of capex.
- Electricity makes up 45–55% of opex, manpower 18–22% and AMC 8–12%.
- Most projection sheets assume 90% occupancy, but real-world occupancy for new entrants is 65–75%.
- Banks find 18–22% pre-tax IRR credible at realistic occupancy, and projections above 28% get flagged as optimistic.
- Financing routes include NABARD refinance through scheduled banks at 8.5–10.5% interest, AIF's 3% interest subvention for FPOs and aggregators, and 35–50% NHB/MIDH back-ended subsidy.
Why You Need a Real DPR, Not a Template
A bank or NHB officer will not release funds on a generic PDF. The DPR (Detailed Project Report) must show site-specific load calculations, commodity-wise turnover, realistic energy bills, and a vendor BOQ.
HyperCold prepares DPRs that have cleared SBI, Bank of Baroda, NABARD, AIF, and SIDBI committees. We do not sell off-the-shelf reports because banks reject them in pre-sanction screening. Each DPR is built around your commodity, district, electricity tariff, and labour cost. Read our cost guide for capex benchmarks before sitting with a banker.
Mandatory DPR Sections
Banks expect this exact structure:
- Promoter background and net-worth
- Site survey, soil bearing capacity, and power availability
- Commodity plan, mandi linkage, and turnover model
- Heat-load calculation and refrigeration BOQ (use our heat load calculator)
- Civil and electrical BOQ with at least three vendor quotes
- Subsidy structure — NHB, MIDH, PMKSY, or state schemes (compare via our NHB subsidy calculator)
- 7-year cash flow, IRR, NPV, and break-even
- Risk register and mitigation
- Statutory approvals roadmap — FSSAI, fire NOC, pollution NOC, factory licence (see our compliance checklist)
Realistic Capex and Opex Ranges
Capex (2026 prices, north India, 415V 3-phase, level pad):
| Project size | Capex per MT | Opex per year |
|---|---|---|
| 200 MT walk-in | ₹22,000–28,000 | 9–11% of capex |
| 1,000 MT general | ₹17,000–22,000 | 8–10% of capex |
| 5,000 MT bulk | ₹14,000–18,000 | 7–9% of capex |
| 1,000 MT CA storage | ₹32,000–48,000 | 10–12% of capex |
| 100 MT pharma | ₹65,000–1,10,000 | 11–14% of capex |
Opex breakdown: electricity 45–55%, manpower 18–22%, AMC 8–12% (read our AMC pricing guide), insurance 3–5%, consumables 5–8%.
ROI and Payback
Well-run multi-commodity cold storages in north India achieve 18–26% pre-tax IRR over 10 years. Payback typically 4–6 years post-subsidy. Mushroom and CA storage projects clock 24–35% IRR but with higher operational complexity.
Use our ROI payback calculator to model your specific scenario. The biggest variable is occupancy — most projection sheets assume 90%, real-world is 65–75% for new entrants.
Financing Routes
Common stacks for a ₹2 crore project:
- NABARD refinance via scheduled banks — 70% loan at 8.5–10.5% interest, 7-year term
- SIDBI for MSMEs — up to ₹2 crore at competitive rates
- AIF (Agri Infrastructure Fund) — 3% interest subvention for FPOs, farmer collectives, and aggregators (game-changing for the right entity)
- Mudra — up to ₹10 lakh for sub-scale walk-ins
- NHB/MIDH capital subsidy — 35–50% back-ended subsidy that reduces effective project cost (read full NHB subsidy guide)
Always stack a capital subsidy with debt — pure-equity projects underperform on tax-adjusted IRR.
Common Reasons Projects Fail
- Underestimating electricity bills (we cover this in cold storage electricity consumption)
- Picking the cheapest panel and paying double in cooling (see PUF vs PIR vs EPS)
- No AMC contract — first compressor failure shuts down the facility for weeks
- Wrong commodity assumption — mandi prices drop in glut season, occupancy collapses
- No backup power — DG sizing matters as much as the chiller
FAQ
Frequently asked questions
Can I get a 100% loan for cold storage in India?
No. Banks typically fund 70–75% of project cost. The balance is promoter contribution plus NHB/MIDH subsidy (35–50%).
Who prepares the DPR for a cold storage project?
A qualified consultant, accredited DPR firm, or vendor with in-house engineering. HyperCold offers DPR preparation bundled with our [installation service](/services/cold-room-installation).
How long does NHB subsidy take to release?
12–24 months after project completion and 100% subsidy claim with audited utilisation certificate. Plan working capital for this gap.
What IRR should I project to get bank approval?
18–22% pre-tax IRR with realistic occupancy (65–75% year one, 80% year two) is credible. Anything above 28% gets flagged as optimistic.
Written by
HyperCold Engineering Team
Cold room and cold storage engineers at HyperCold™, a Daikin equipment partner founded in 2020 and headquartered in Sirsaganj, Firozabad (UP). We design, manufacture PUF panels for, install and maintain cold rooms across India.