How to Start Warehouse Business in India

start warehouse business

This article about how to start warehouse business in India. Now in India, many Agricultural and Manufacturing product outcomes double year by year. To store these product outcomes, the warehouse percent is below 20% in India. To boost this Indian Government with help of NABARD offers huge subsidy and Loans for entrepreneurs who are aspiring to start warehouse business in India. This all reasons seeks special interest to think about this business.

Warehouses are characterized into two types. They are Cold storage warehouse which is used to store milk, fish, fruits & vegetables in a controlled atmosphere. Typical warehouse called Godowns which is used to store the commodities and manufactured goods.

Different Functional types of warehouses
  1. Private Warehouses– warehouses are owned and managed by the manufacturers or traders to store their own stock.
  2.  Public Warehouses- An individual, a partnership firm or a company may own this and gives access to public on a rental basis.
  3. Government Warehouses– warehouses are managed by central or state or local government bodies.
  4. Bonded Warehouses– warehouses are owned, managed and controlled by the government and private agencies.
  5. Co-operative Warehouses – This warehouses are owned, managed and controlled by co-operative societies.
Investment & Requirements to Start Warehouse

Construction of own warehouse requires heavy capital investment, which small businessmen cannot afford. On Average 25 Lakhs is the minimum budget for constructing a warehouse.

  • Here, Almost 50% subsidy on warehouse from NABARD and very low-interest loan schemes from bank accounts may come handy.
  • The cost for constructing a warehouse based on built-up area ranges from Rs 500-1,600 per sq ft for reinforced cement concrete (RCC).
  • Construction Cost can be reduced by framed RCC structure or semi RCC sheet roofing structure and in rural areas price may be very economical.

How to Apply for Micro Small and Medium Enterprises Loans in Online?

  • Controlled Cooling System Required for the cold storage.
  • Permissions and Registrations from Business Authorities and Fire Departments.
  • Insurance for the warehouse and its contents is Must.
  • Install fire-fighting equipment to avoid fire.
  • The warehouses can economically employ security staff and use insecticides for preservation
  •  Convenient location reduces the cost of transportation.
Marketing of Warehouse

The Demand for warehouses in India is growing year by year. Start warehouse business at a convenient place. Offer good rate plan for farmers and small-scale manufacturing units may give good returns in long run. Collaborate with local societies and local governor bodies by offering discounted rates for them. Make special quotes for Pharmaceuticals, food corporations and E-commerce clients.

Consider this all points before going to start warehouse business in India.

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3 Comments on “How to Start Warehouse Business in India”

  1. I want to know where to find the requirements to open a Government Warehouse in my area. I am adding my email. Please direct me to where I can find these requirements to build a warehouse to rent out to Government for food storage. Hope to hear soon from you.

    Prithish Soni

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