AC and Refrigerator Repair Business
एसी और फ्रिज रिपेयर व्यवसाय · एसी आणि फ्रिज रिपेअर व्यवसाय
Install, service and repair air conditioners and refrigerators at customers' homes and shops with a small team and a set of tools.
Investment
₹1.9 lakh
Profit (year 2)
₹15,000/month
Space
100 sq ft
Staff
2 + you
An AC and refrigerator repair business installs new air conditioners, does seasonal servicing and jet cleaning, refills gas after fixing leaks, and repairs fridges, deep freezers and water coolers. The work is done at the customer's place, so a shop is optional: a phone number, tools, a two-wheeler and a trained technician are enough to begin. It suits a refrigeration and air-conditioning mechanic. Tools cost little and each visit pays well, but the work is very seasonal: summer is frantic and winter is slow. The profit shown assumes the owner is a working technician. The hard parts are the winter lull, working at height on outdoor units, handling refrigerant gas safely, and competition from app-based service companies.
Skills needed: ITI in refrigeration and air conditioning or equivalent experience. Inverter AC diagnosis and newer refrigerants need continued learning.
Profit calculator
Change the numbers to match your town3 job/day: Service visit (average of servicing, installation, gas refill and repair)
Total investment
₹1.86 lakh
Your own money
₹18,558
Subsidy
—
Bank loan
₹1.67 lakh
Mudra Kishore
A typical month in year 2
| Sales | ₹71,500 |
| Raw material & packing | −₹19,500 |
| Electricity | −₹520 |
| Salaries | −₹26,250 |
| Rent | −₹3,150 |
| Other running costs | −₹7,350 |
| Operating profit | ₹14,730 |
| Loan instalment (EMI) | −₹3,894 |
| You keep each month | ₹10,836 |
After the loan is repaid, the EMI becomes your income too. Your own salary is not counted as a cost: the profit is your income.
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Turn these numbers into a full project report: cost of project, means of finance, 5-year profit and loss, balance sheet, repayment schedule, DSCR and break-even.
Make my project reportInvestment breakdown
| Machinery & equipment | Price |
|---|---|
| Vacuum pump and manifold gauge set | ₹16,000 |
| Gas cylinders and charging hoses | ₹15,000 |
| Brazing torch kit, flaring and tube tools | ₹10,000 |
| Jet pump (pressure washer) for cleaning | ₹8,000 |
| Hammer drill, hand tools, clamp meter and ladder | ₹25,000 |
| Safety belt, gloves and goggles | ₹5,000 |
| Used two-wheeler | ₹45,000 |
| Small shop counter and spare-parts rackadd-on | ₹25,000 |
| Machinery & equipment (without add-ons) | ₹1,24,000 |
| Registrations | ₹2,000 |
| Visiting cards, stickers and local advertising | ₹8,000 |
| Working capital 20 days of raw material, 3 days of credit to buyers, 1 month of expenses | ₹51,584 |
| Total project cost | ₹1,85,584 |
Typical market prices as of October 2026, from supplier listings. Prices vary by brand, capacity and city; always get 2–3 quotes.
Cost and margin per unit
| Service visit (average of servicing, installation, gas refill and repair) (per job) | ₹ |
|---|---|
| Refrigerant gas, copper pipe, capacitors, cleaning chemicals and other parts, averaged per job | 300.00 |
| Material cost | 300.00 |
| Selling price | 1100.00 |
| Margin before running costs | 800.00 (73%) |
Average bill. Published guides give ₹400–800 for basic service, ₹800–1,500 for jet cleaning, ₹2,000–4,500 for gas refill and ₹1,500–3,500 for split AC installation. Capacity assumes the owner and one technician.
Space, power and staff
100 sq ft
At home · rent ≈ ₹3,000/month
A room at home or a small rented store for tools and gas cylinders. A roadside shop is optional and costs more.
1 kW, single-phase
Bill ≈ ₹800/month at full capacity
2 staff + you
- 1 × Technician: ₹15,000
- 1 × Helper: ₹10,000
Licences and registrations
Shop and Establishment registration
if applicableWhen: When you open a shop or hire staff · Cost: Small fee; varies by state
GST registration
if applicableWhen: When turnover crosses the registration limit, or for corporate AMC customers · Cost: Free
Confirm with a CA.
Udyam registration
recommendedWhen: Before applying for a loan · Cost: Free
Apply only on udyamregistration.gov.in.
Safe handling of refrigerant cylinders
mandatoryWhen: Always · Cost: None
Store cylinders upright, away from heat, and do not vent gas deliberately. Ask your gas supplier about rules for transport and storage quantities.
How it works
- Take the call, note the complaint and give a time slot.
- Inspect at site and quote before starting.
- Service, repair or install; for gas work, find and fix the leak, vacuum, then charge by weight.
- Test cooling and current; show the customer.
- Bill, give a service warranty and note the next service date.
Loan route
Mudra loan (Kishore)
Own money ₹18,558 · Loan ₹1.67 lakh · EMI ≈ ₹3,894
No collateral, no subsidy.
How Mudra worksPMEGP (new units)
Subsidy ₹27,838 (general, urban) to ₹64,954 (special category, rural). EMI ≈ ₹3,245–₹2,596.
Own money 5–10%. Subsidy is held as a 3-year deposit, then adjusted against the loan.
How PMEGP worksAssumes 10.5% interest, 5 years including a 6-month moratorium. PMEGP was approved up to FY 2025-26. Check on the KVIC PMEGP portal that applications are open before you plan around the subsidy.
No collateral and no third-party guarantee (covered by the Credit Guarantee Fund for Micro Units).
Who buys and how to sell
Buyers
- Households
- Shops, clinics, offices and restaurants
- Hotels, hostels and banks (AMC)
- Appliance dealers needing installation teams
Ways to sell
- Word of mouth and stickers on serviced machines
- Google Business listing
- Installation tie-ups with appliance shops
- Annual maintenance contracts
- Listing as a partner on service apps
Season: Very seasonal. March to June is peak for AC work; the monsoon and winter are slow, with refrigerator and commercial cooling work continuing.
Competition: Local mechanics, brand service centres and app-based companies with published rates. Punctuality and honest diagnosis bring repeat calls.
Risks and how to handle them
Little work for half the year
Sign AMCs with shops and offices, and take refrigerator, cooler, washing machine or geyser work in the off-season.
Falls and electric shock during outdoor-unit work
Use a safety belt and proper ladder, switch off power and never work alone at height.
Repeat complaints after gas refilling
Always find and repair the leak and vacuum the system before charging.
Technicians leave with your customers
Keep the customer list and billing with you and pay a fair share per job.
Tips from the trade
- A tie-up with one appliance dealer for installations gives steady summer work.
- Stickers with your number on every serviced unit bring next year's call.
- Customers increasingly know that annual gas top-up is not normal; explaining leaks honestly earns trust.
Questions people ask
Do I need a shop?
No. Most work is at the customer's site. Many technicians start from home with a phone number and online listing, and take a shop later for visibility and spare-parts sales.
Is there enough work in winter?
AC work drops sharply. Technicians who do well through the year also handle refrigerators, commercial freezers, water coolers and maintenance contracts.
How much investment is needed to start a ac and refrigerator repair business?
About ₹1.86 lakh for a small unit: ₹1.24 lakh for machinery and equipment, ₹10,000 for set-up costs and ₹51,584 as working capital (stock, credit to buyers and one month of expenses). Prices as of October 2026.
How much profit can a ac and refrigerator repair business make per month?
At 50% of capacity, sales are about ₹71,500 a month and operating profit about ₹14,730 before the loan instalment. After an EMI of about ₹3,894, the owner keeps about ₹10,836 a month until the loan is repaid. These are estimates; your prices, rent and sales decide the real figure.
Can I get a Mudra loan or PMEGP subsidy for ac and refrigerator repair?
With a project cost of about ₹1.86 lakh, the bank loan of about ₹1.67 lakh falls under Mudra Kishore. Mudra has no subsidy. As a new unit you may instead apply under PMEGP, where the subsidy is 15–35% of the project cost (up to about ₹64,954 here for a special-category applicant in a rural area). PMEGP was approved up to FY 2025-26. Check on the KVIC PMEGP portal that applications are open before you plan around the subsidy.
What licences are required for ac and refrigerator repair?
Mandatory: Safe handling of refrigerant cylinders. Depending on your set-up you may also need: Shop and Establishment registration, GST registration, Udyam registration.
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Prices as of October 2026. Prices here come from online listings and published guides and have not yet been confirmed with local suppliers. Profit figures are estimates from the assumptions above, not a promise of income.
Sources: NoBroker: AC service cost guide (service, installation, gas refill) · Urban Company: understanding AC service charges in India · Urban Company: understanding AC gas filling price · Udyam Registration
Spotted an outdated price? Tell us. Data for this page: HowIndiaEarns.