Market size expected to touch US$ 13 billion

Cold Storage AvailabilityIndian Cold Chain industry is expected to grow at a CAGR of 28% over the next 4 years and reach a market size of USD 13 billion in 2017 and is largely unorganised in nature.

Growing annually at 28% the total value of cold chain industry in India is expected to reach USD 13 billion by 2017 through increased investments, modernization of existing facilities, and establishment of new ventures via private and government partnerships.
Cold stores are the major revenue contributors of the Indian Cold Chain industry and are majorly used for storing potatoes. However, the market is gradually getting organised and focus towards multipurpose cold storages is rising Temperature Controlled Warehouse Market in India.
India has 6,488 cold storage with a cumulative installed capacity of approximately30 million Metric Tons with 95% of total storage capacity under private players.
More than 30% of the cold storage units (10 mill tons) have been built in the previous10 years and reports states another 30+ million tons capacity is to be built
Need for cold chain
–‒ 11% of world’s total vegetables production is accounted by India alone but India’s share in global vegetable trade is only 1.7%.
‒ 127 Million Tonnes of milk was produced in 2011-12, but cold storage capacity is only available for70,000-80,000 Tonnes of milk.
‒ 20%-30% of fish production is annually wasted in India.
‒ 25,000 unregistered slaughter houses are present in India, which generally lack chilling facilities.
• India’s cold chain industry is still evolving, not well organized and operating below capacity
• The Indian cold chain market is highly fragmented with more than 3,500 companies in the whole value system
• Organized players contribute only ~8%–10% of the cold chain industry market
• Most equipment in use is out dated and single commodity based
• 12th Five year plan target 40 lakh MT for cold chain infrastructure & reefer transport
• 36% these cold storages in India have capacity below 1,000 MT
• 65% of India’s cold chain storage capacity is contributed by the states of Uttar Pradesh and West Bengal
• With the current capacity only less than 11% of what is produced can be stored.
• Cold storage capacity is expected to grow at 13% per annum on a sustained basis over the next 4 years, with the organized market growing at a faster pace of 20%.
• Key growth drivers include growth in organized retail and food service industry, government’s initiatives, rising export demand for processed and frozen food.
• No Clear cut policy on cold chain development, presently
• Need for Adoption of modern Technology in Warehousing Business Model of Cold Chain Infrastructure
• Enforcement of Technical Standards for Specialized / Reefer Transport System as regulatory tools for claiming subsidies
• Generating minimum critical mass of Skilled Man-Power
• Creating synergy for Indian produce and institutions
• Specialized Purpose Vehicle (SPV) for Cold Chain Logistics Initiative
• National Centre for Cold Chain Development (NCCD) activation
Source: Assocham, E&Y, Reed Analysis

India offers great market potential for cold chain logistic solution providers, including refrigerated transport Temperature Controlled Vehicles Market in India

 According to industry estimates, approximately 104million metric tons of perishable produce is transported between cities each year.
 Of this figure, about 100 million metric tonnes moves via non–reefer mode and only four million metric tons is transported by reefer.
 Even though, India has about 250 reefer transport operators (mostly small & non-integrated firms) that transport perishable products and 30,000 refrigerated vehicles currently ply in India
 Majority of the refrigerated vehicles (80%) are utilized for milk and milk products transportation.
 The high cost of transportation is a major challenge for refrigerated vehicles market
 Key growth drivers include meat products export, rising demand for confectionary, frozen food etc.
The Government of India recognizes that development of cold chain is an essential next step in upgrading India’s food processing industry and therefore offers many incentives for promoting growth.

Production VS Cold Chain Nee

Production Graph

Study conducted for the International Congress Save Food at Inter park 2011 Dusseldorf, Germany, Swedish Institute for Food and Biotechnology (SIK) Gothenburg. Sweden for food and agriculture organization of the united nations





PHM-Cold Store Integration
(Value Chain)

Pie ChartMost of the cold stores are stand-alone units (84%), only 16% being part of a network (value chain). Transport services were not provided by 80% of the cold storage units. Of the 20% that provided transportation, 52% had an outsourced asset base.



SPV-The Proposed Network

East Kolkata Multi Modal Transit Hub
Jalpaigudi Hub
Guwahati Hub
Patna Aggregation Centre
Ranchi Aggregation Centre
Bhubhneshwar Aggregation Centre
West Mumbai Multi Modal Transit Hub
Ahmedabad Hub
Nasik Aggregation Centre
North Delhi Multi Modal Transit Hub
Jammu Hub
Kalka Hub
Ludhiana Hub
Kanpur Aggregation Centre
Kathgodam Aggregation Centre
South Chennai Multi Modal Transit Hub
Hyderabad Hub
Bangalore Hub
Belgaum Aggregation Centre
Cochin Aggregation Centre

Policy Advocacies
Need for a comprehensive policy to make interventions; administrative, technical and financial which would take care of overall development of this sector
Need for Adoption of modern Technology in Warehousing Business Model of Cold Chain Infrastructure
Enforcement of Technical Standards for Specialized / Reefer Transport System as regulatory tools for claiming subsidies
Develop protocols and storage conditions for tropical produce
Generating minimum critical mass of Skilled Man-Power and enhanced awareness/sensitization
Address the problems of erratic power situation, through other non-conventional energy sources like solar & wind energy.
Current Scenario
100% FDI: • FDI allowed through automatic route
Infrastructure Status: • Since 2011-12, cold chain has been given the infrastructure status. Viability Gap Funding: • Up to 40% of the cost
Monetary & Tax Benefits: • 5% concession on import duty, service tax exemption, and excise duty exemption on several items. Subsidy of over 25% to 33.3% on the cold storage project cost.
Establishment of National Centre for Cold Chain Development: • Established in 2011, to look into matters related to cold chain infrastructure.

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