ColdChainMarket India

June2011
2 COLDCHAINSMARKETININDIA2011.PPT
ExecutiveSummary
Market
Drivers&
Challenges
Trends
Competition
ColdchainareimportantforagriculturalproductivityinIndia
ThemarketisexpectedtogrowtoINR157bnby2015ataCAGRof11%
Itisgoingtowitnessstronggrowthincapacitycreationbacked bygovernmentpolicies
Drivers:
Growthinorganizedretail
Shifttowardshorticulturalcrops
Growthinprocessedfoodsector
Demandfrompharmaceuticalsector
Changingconsumptionpattern
Challenges:
Lackoflogisticalsupport
Unevendistributionofcoldchains
Coststructure
Powersupply
Entryofforeignplayers
Railbasedreefers
Coldchainsfacilitiesatairports
Backwardintegration
Development
Scenario
Hugeamountsoffoodgrain,fruitsandvegetablesgetwastedmainlyduetopoorstorage
infrastructure,creatinghugescopeforthedevelopmentofcoldchaininIndia
Privateparticipationisexpectedtobringinefficiencywhichisrequiredfortheagriculturalsector
Governmenthasclassifiedcoldchainasinfrastructure asannouncedinthe201112budget
MajorPlayers
BrahmanandHimghar Gati FutureSupplyChainSolutions
FreshandHealthyEnterprise DevBhumiColdChain RadhaKrishnaFoodland
3 COLDCHAINSMARKETININDIA2011.PPT
Introduction
MarketOverview
DevelopmentScenario
Drivers&Challenges
Trends
Competition
4 COLDCHAINSMARKETININDIA2011.PPT
Coldchainshelptopreserveproductsbymaintainingthe
surroundingtemperature
ColdChain
Acoldchainisatemperaturecontrolledsupplychain,itconsistsofstorageanddistribution
activitieswhichmaintainsaproductatagiventemperaturerange
Segments
RefrigeratedTransport SurfaceStorage
Itusesrefrigeratortrucks,cars,van,rail,
containersandshipsfortransporting
perishableproducts
Itconsistsofrefrigeratedwarehousesfor
storageofessentialproducts
Manufacturers/
Farms
ColdStorage
Refrigerated
Transport
Refrigerated
Transport
Retail/
Terminal/
Markets/
Factory/
Port/
Airport
Supply/Procurement Storage Transport Endcustomer Transport
Key
Activities
Transportation Procurement
Itincludesallactivitiesrelatedto
transportationofproducetothemarket
fromfarmsormanufacturinglocation
Involvesactivitiessuchasaggregation,
grading,sorting,precooling,packaging
fromfarmsormanufacturers
Source:PressArticles
5 COLDCHAINSMARKETININDIA2011.PPT
Introduction
MarketOverview
DevelopmentScenario
Drivers&Challenges
Trends
Competition
6 COLDCHAINSMARKETININDIA2011.PPT
ColdchainmarketinIndiaisgoingtowitnessstronggrowth
incapacitycreationbackedbygovernmentpolicies
Cold chain is an important infrastructure for
agriculturalproductivityinIndia
Marketwillgetaboostincapacitycreationfromthe
lasttwobudgetsannouncedbythegovernment
Multinational corporations and PE firms have also started
investingincoldchainservices
In 2010, with a capacity of 23.6 mt in 5,386 cold
storage,Indiahadtostoreaproduction180mt
Around30%offruitsandvegetablesand5% offoodgrain
getwastedinIndia
Indiahashugeopportunityforcoldstoragefacility
Only2% offruits and vegetables in India get processed as
comparedto65%inUSAand70%inBrazil
While 80% of fruit and vegetable production in USA go
throughcoldstorage,only0.2%ofitgoesthroughinIndia
Wastageoffruitsandvegetablesduetolack ofcoldchain
facilitieshavebeenestimatedatINR500bnannually
Cold chain will get a boost from the reduction of duty on
airconditionersandstorageequipmentfrom7.5%to2.5%
With integrated cold chain and supply management,
IndiaisexpectedtosaveINR800bnannually
ColdChainMarket Overview MarketSizeandGrowth
Source:ConstructionUpdateColdstorage:thechaingetshotter,Apr2011;RetailFranchiseIndiaColdStorageStory,Sep2010;FNBnewsMakecoldstorageprivate
playersfriendly,Sep2010;KPMGKBuzzSectorInsights,Feb2011
24 21
0
50
100
150
200
127
18
109
2012e
113
15
98
2011e
101
12
89
2010
89
9
80
2009
84
9
75
INRbn
+11%
2015e
157
133
2014e
141
120
2013e
Transportation Storage
MarketSegmentation
10%
90%
15%
85%
2010 2015e
Transportation Storage
7 COLDCHAINSMARKETININDIA2011.PPT
Governmentbackingtoboostthecapacitycreationforcold
storagesinIndia
Surface storage accounts for majority of the cold
chainservicesinIndia
India has 5,386 cold storages with a capacity of 23.7
mnmetrictonnes
Majorityofthecoldstoragefacilitiesareutilizedfor
potato storage and are located in states of UP,
Uttaranchal,Maharashtra&WestBengal
Cold storage infrastructure is set to undergo major
revampwithgovernmentbacking
SurfaceStorageMarket Overview ColdStoragesDistribution(2009)
Source:DirectorateofMarketingandInspectionColdStorage;FNBnewsMakecoldstorageprivateplayersfriendly,Sep2010
SurfaceStorage
8%
30%
2%
7% 5%
9%
5%
3%
5%
2%
3%
3%
6%
10%
Comprise2%oftotal
coldstorages
CommodityWiseDistribution(2009)
9%
Meat and Fish
4%
Milk and Milk Products
3%
Fruits and Vegetables
2%
Others
56%
Potatoes
27%
Multipurpose
8 COLDCHAINSMARKETININDIA2011.PPT
Newplayersarenowventuringintothemoreprofitable
refrigeratedtransportservices
Refrigeratedtransportinvolvesusageofrefrigerated
vehiclesfortransportationofgoods
Keyproductsthatmovethroughreefersinclude
Icecreamanddairyproducts
Processedmeat&poultry
Marineproducts
Preventivemedicine(mainlyvaccines)
Chemicals
Smallquantitiesoffreshfruitsandvegetables
In terms of volume, current reefer transportation
businessisabout4mnmetrictonnesandisexpected
toreach14mnmetrictonneswithin5years
Refrigerated transport offers the largest margins in
coldchainlogistics
At least 50 companies are offering refrigerated transport
servicesinIndia
Keyplayersinthissegmentinclude
GatewayDistriparks
Gati Kausar
DevBhumiColdChain
RefrigeratedTransportMarket Overview
Source:TransportReporterColdChaingettinghot ;U.S.Trade&DevelopmentAgencyBuildingCapacityinIndia'sColdChainInfrastructure 2008;SupplyChainsFood
chainstobenefitfromincentivesforcoldstorageinIndia;PressArticles
Refrigerated
Transport
RefrigeratedTransportProcess
Grading/
Sorting/
Precooling/
Packing
DomesticSupply Exports
Procurement
RefrigeratedTransport
ColdStorages
9 COLDCHAINSMARKETININDIA2011.PPT
Introduction
MarketOverview
DevelopmentScenario
Drivers&Challenges
Trends
Competition
10 COLDCHAINSMARKETININDIA2011.PPT
Current
Scenario
Hugeamountoffoodgrainandfruitsandvegetablesgetwastedmainlyduetopoor
storageinfrastructurecreatinghugescopeforthedevelopmentofcoldchaininIndia
Beingthesecondlargestproduceroffruitsandvegetablesglobally,Indianmarketis
highlyattractiveforinvestmentsincoldstoragesolutions
FutureOutlook
Infrastructurestatusalongwith100%FDIallowanceisexpectedtoboostthe
probabilityofinvestmentbyprivateplayersinthecoldchainsector
Thiswillhelpininvestmentascoldchainisahighlycapitalandtechnologyintensive
industrywithalargesizecoldchainhavingapaybackperiodof aroundfiveyears
GlobalanddomesticplayershavestartedbuildingcoldchainsolutionsacrossIndiaand
havealreadyinvestedaroundINR54.2bntill2010
Policy
100%FDIallowanceforthesettingupofprocessingplantswillattracthugeinvestments
fromtheprivateplayersinthecoldchainsector
Concessionsimposedonimportdutyandexemptionofservicetaxesforinstallationand
commissioningequipmentwoulddriveextensiveforeigninvestment
Demandforcoldchainandfavourablepolicycreatinghuge
investmentopportunityIndianandglobalplayers
InvestmentOpportunities
Source:TransReporterColdChaingettinghot,Mar2010
Withrisingdemand,100%FDIallowanceandtheinfrastructurestatusconferreduponit,thecoldchain
marketexpectstoseeahugecapacityadditionwithinvestmentexpectedtoincreasebymanymanifolds
11 COLDCHAINSMARKETININDIA2011.PPT
Publicprivatepartnershipisexpectedtohelpinthe
developmentofcoldchaininabigway
Source:ConstructionUpdateColdstorage:thechaingetshotter,Apr2011
Properwarehousinginfrastructurewillhelpfarmerstoavailfacilitiestohold,meettheliquidityandrestore
distresssale
ExpectedtogivehugescopetoPPPincoldchain,whichmainlyaddressescashcrops,horticulturalandfloriculturalcrops
Inordertoaddresswastageanddeficitinstoragecapacity,FoodCorporationofIndia(FCI)ishiringgodowns
fromprivatepartiesforaguaranteedperiodofsevenyears
Privateplayerscanincreasetheirstoragecapacitysothatwheneverstorageisrequired,thecapacitycanbehiredbyFCIs
IndianRailwaysisplanningtosetupcoldchainandwarehousing facilitiesinPPPmodelacrossalmost7,000
railwaystationsandisalsoplanningtointroducespecialtrainsforcarryingagriculturalproducts
Willhelpincreaseprivateparticipationinagreatextent
Willalsohelptoreducethelossesofagriculturalproductscausedduetolackofstoragefacilities
StatewiseinitiativesarebeingtakenfordevelopmentofcoldchainsunderPPPmodel
KarnatakahasalreadysetupacoldchainthroughpartneringofKAPPECandKenAgritech
MaharashtraandTamilNaduarealsoplanningfordevelopingcold storagefacilitiesthroughprivateparticipation
Privateparticipationincoldchainisthusexpectedtobringsustainableefficiencytotheagriculturalsector
PublicPrivatePartnership(PPP)modelisbeingconsideredasan efficientwaytodevelopcoldchaininIndia
Althoughreturnsincoldstorageisexpectedtobeless,thescopeforexpansionishugeasbothMinistryof
AgricultureandMinistryofFinanceareinvolvedinensuringthattheprofitmotiveofprivateplayersisinsured
Althoughreturnsincoldstorageisexpectedtobeless,thescopeforexpansionishugeasbothMinistryof
AgricultureandMinistryofFinanceareinvolvedinensuringthattheprofitmotiveofprivateplayersisinsured
PrivateParticipation
12 COLDCHAINSMARKETININDIA2011.PPT
Coldchainsectorisexpectedtoreceivemajorimpetusfrom
thegovernment
GovernmentofIndiahasclassifiedcoldchainasinfrastructureinits201112budget
Itwillprovideprojectimportstatusforcoldstorage,warehouseandmandis
Italsoprovidesprojecteligibilityforraisingfundsthroughexternalcommercialborrowingandviabilitygapfunding
Hasreducedcustomdutyto2.5%oncoldstorageequipmentwhileexcisedutyhasbeenexemptedforcoldstorageconveyerbeltsand
refrigerationpanels
ItalsoemphasizesonhiringprivatewarehousesbystaterunfoodCorpto7yearsfrom5yearstomeetthestoragedeficit
GovernmentInitiatives
Source:TheHinduColdstorageunitinVizagnearingcompletion,Apr2011;FreshPlazaFirmscansetupcoldstoragecentresnearrailwaystations,Sep2010
DuringFY2011,24coldstorageprojectswithacapacityof0.14 mthavebeenapprovedunderNationalHorticultureMissionwhile
107coldstorageprojectswithacapacityofover0.5mthavebeenapprovedbytheNationalHorticultureBoard
DuringFY2011,24coldstorageprojectswithacapacityof0.14 mthavebeenapprovedunderNationalHorticultureMissionwhile
107coldstorageprojectswithacapacityofover0.5mthavebeenapprovedbytheNationalHorticultureBoard
Terminal
Market
Railways
Portand
shipping
Governmentisworkingonrevampingmandis(terminalmarket)soastoreducepostharvestlosses,
linkthefarmerdirectlytothemarketandprovidemorealternativetoselltheirproduce
Halfoftheprojectcostisexpectedtobefundedbythegovernment
Atpresentthereareabout20terminalmarketsacrossMaharashtra,TamilNadu,Bihar,andOrissaand75more
terminalmarketswithsophisticatedstoringandcoolingtechnologyarestillrequired
Railwaysministryisalsoworkingonproposalstoallowcorporateentitiestosetupcoldstorage
centresalongsiderailwaysstations
Prospectiveoperatorswouldfacilitatecoldchainsupplyofperishablecargoandtheagreementwillbevalidfora
periodof3years
Shippingandportindustryisalsolookingtointroducecoldstoragefacilitiesattheport
Ithasbeenestimatedthatcoldstorageunitswith20,000tonnecapacitybeingsetupinVishakhapatnamwithINR
75mnandwillbecompletedinnexttwomonths
13 COLDCHAINSMARKETININDIA2011.PPT
Introduction
MarketOverview
DevelopmentScenario
Drivers&Challenges
Trends
Competition
14 COLDCHAINSMARKETININDIA2011.PPT
Drivers&Challenges Summary
DemandfromPharmaceuticalsector
GrowthinProcessedFoodSector
Changingconsumptionpattern
Drivers
GrowthinOrganizedRetail
Shifttowardshorticulturalcrops
CostStructure
LackofLogisticalSupport
Challenges
UnevenDistributionofColdchains
PowerSupply
15 COLDCHAINSMARKETININDIA2011.PPT
Growthinorganizedretailandshifttowardshorticultural
cropshascreatedademandforcoldchainsinIndia
Modernretailsectornecessitatesefficientsupplybetweensourceandtheendconsumer
Accordingtoestimates,nearly40%offruitsandvegetablesarespoiledduringtransportation
Anumberofplayersarethusinvestinginsupplychains,includingawarehouseandacoldchain
networktoensurethepreservationoftheproduce
GrowthinOrganizedRetail
Duetoincreasingrisksandinvestmentsingraincropsfarmersarecultivatinghorticulturalcrops
Horticulturalcropsneedrefrigeratedstorage,hencedemandforcoldchainsislikelytoincrease
ShiftTowardsHorticultural Crops
Impact
Source:CRISILnews OrganisedretailinIndiatotripleby2010 Dec2005;DirectorateofEconomicandStatisticsAreaandProductionofHorticultureCrops
GrowthinOrganizedRetail
1,090
350
0
1,000
2,000
INR bn
+26%
2010 2005
Production (Thousand Tonnes)
Area (Thousand Hectares)
202,678
192,210
182,817
0
50,000
100,000
150,000
200,000
250,000
0
10,000
20,000
30,000

2008 2007 2006

ShiftTowardsHorticulturalCrops
Impact
16 COLDCHAINSMARKETININDIA2011.PPT
Foodprocessingsectoristhekeytargetsegmentforthis
industry
Changingconsumertrendtowardsconvenienceandprocessedfoodsindicateafuturefor
greaterstoragecapacities
GovernmentofIndiasplansonsettingup30megafood
Thisislikelytopropeldemandforcoldstoragefacilities
GrowthinProcessedFoodSector Impact
Source:RabobankRoleofLogisticsinFoodBusiness Aug2006
Fruit&Vegetables
585.6
307.2
52.8
0
200
400
600
INR bn
+27%
2014e 2010 2004
Dairy
4,694.4
2,716.8
1,238.4
0
2,000
4,000
6,000
+14%
2014e 2010 2004
INR bn
Snack&readytoeatfoods
518.4
158.4
28.8
0
200
400
600
INR bn
+34%
2014e 2010 2004
MarineProducts
403.2
182.4
76.8
0
200
400
600
+18%
2014e 2010 2004
INR bn
17 COLDCHAINSMARKETININDIA2011.PPT
Demandfrompharmaceuticalsectorisdrivinggrowthin
thissector
Pharmaceuticalsectordependsoncoldchainnetworksforstorage ofbiotechdrugs&vaccinesas
lifesavingdrugsandproductsincludingvaccinesaretemperaturesensitive
Indianpharmaceuticalcompaniesareincreasinglyseekingopportunitiestosupplydrugstothe
worldmarket,thuscoldchainmanagementpracticeswillberequiredtoachievethisgoal
AtpresentcoldstoragecapacityinIndiaininadequatewithapositiveoutlookforthepharma
industryleadingtoanurgentneedtodevelopintegratedcoldchainfacilities
MumbaiInternationalAirporthasalreadyinstalledfournewcold roomsforpharmaceuticalsalongwith
trainedstafftohandleit
OrganizationofPharmaceuticalProducersofIndiahastiedupwithDelhiInternationalAirportLtd.tooverhaul
andaddtotheexistingcoldchainfacilityinDelhi
Demandfrompharmaceuticalsector Impact
Source:EconomicTimesIndiakeymarketforvaccinemakers PharmaceuticalsHealthcare;McKinseyIndianPharma2015
45
31
0
20
40
60
INR bn
+20%
2010 2008
GrowthinVaccineMarket GrowthofPharmaIndustry
960
302
0
500
1,000
2015e 2008
INR bn
+18%
18 COLDCHAINSMARKETININDIA2011.PPT
Changingconsumptionpatternisexpectedtocreatehuge
demandforcoldstorageinIndia
Changingconsumptionpatternofconsumersisexpectedtocreatehugedemandforcoldstorage
Changinglifestyleshasledtoconsumersspendingminimaltimeoncookingwhichhasledtoan
inclinationtowardspackagedfoodamongtheworkingpopulation
Consumeracrossthecountry,whichincludesmetros,tierIIandtierIIIcities,areaccessingfrozen
foodandfreshvegetable
Transportationofpackagedfoodrequiresplayerstodevelopacoldchainsoastodeliverthembeforethey
perish
Thisshiftofconsumptionpatterswillleadtothedevelopmentofthecoldchainsolutionsmarket
inIndia
Changingconsumptionpattern Impact
Source:TransREporterColdChaingettinghot,Mar2010
19 COLDCHAINSMARKETININDIA2011.PPT
Lackoflogisticalsupportandunevendistributionofcold
chainsimpedeindustrygrowth
Fragmentedcoldchainindustryhasnotencouragedthegrowthofcoldlogisticsfor
perishablehorticultureproduce
Collectionoffreshproduceinsmallquantitiesfromremoteandscatteredsmallfarms
locatedatfarofflocationsremainsalogisticalchallenge
Freshproduceareleftontheroadorfieldstillsufficientquantityisaccumulatedtomakea
truckloadfortransportationtothelocalmarkets
Transportationoffreshharvestedproduceisgenerallyinopenbodytrucks
Standardcoldstoresandrefrigeratedtransportsystemsneitherhavetherefrigeration
capacitynortheaircirculationneededforprecoolingfreshhorticultureproduceatthe
farmlevelorattheexistingcollectioncenters
LackofLogisticalSupport Impact
Source:BusinessStandardSopsforcoldchainsinsufficient Jul2008;DirectorateofMarketingandInspection ColdStorage;WalcoEngineering MobileForcedAir
CoolingSystems;ColdChainSummit2007
MajorityofthecoldstoragesarelocatedinthestatesofUttar Pradesh,Uttaranchal,
Maharashtra,WestBengal,PunjabandGujarat
Coldstoragefacilitiesnowavailablearemostlyforsinglecommoditiessuchaspotato,orange,
apple,grapes,pomegranateandflowers,whichresultinpoorcapacityutilization
Thisaffectsfinancialviabilityduetoseasonalnatureofsuchcommodities
Theunderutilizedcapacities,especiallyinthemetroshasdepressedthepricingpower
UnevenDistributionofColdchains/Capacitydistribution Impact
20 COLDCHAINSMARKETININDIA2011.PPT
Higheroperatingcostsmakesettingupcoldstorages
difficultandunviable
OperatingcostsforIndiancoldstorageunitsarehigherascomparedtounitsintheUS
Energyexpensesmakeupabout28%ofthetotalexpensesforIndiancoldstoragescomparedto
10%intheWest
Thesefactorsmakesettingupcoldstoragesdifficult,unviableanduneconomical
About3035%ofthelossescanbereducedbytransportingthefreshlyharvestedfruitsand
vegetablesinrefrigeratedcontainersthusclosingthisgapinthecoldchain
CostStructure Impact
Source:PostharvestlossesduetogapsincoldchaininIndiaAsolution
1,440
2,880
0
1,000
2,000
3,000
India US
INR
OperatingCostperCubicmeterperyear
21 COLDCHAINSMARKETININDIA2011.PPT
Powershortageisexpectedtocreatechallengesforthe
developmentofcoldchain
Indiaspowerdeficitisabout10%,withapeakdeficitof17%leading tochronicpowershortage
Thepowershortageinthecountrycouldleadtosignificantimpactsoncoldchainsectorwhichis
dependantonelectricityforrefrigeration
Thepurposeofsettingupcoldchainswillbedefeatedifthepowersupplyiserratic
Thiswouldrequireinvestmentinbackupsystems,whichaddstothecapitalinvestmentcosts
PowerSupply Impact
Source:IFCTataUltraMega ;MinistryofNewandRenewableEnergy(MNRE),Centralelectricity Authority;BirlaPowerSolutionsLtd.Prospectus"Mar2006;Live
Mint.comTaxincentivetoattractfundsforwarehouses,coldstorages Jul2009
FutureDemandSupplyScenario
2007 2012 2017
Supply
255
77%
23%
Demand
315
55%
45%
Supply
147
76%
24%
Demand
197
54%
Supply
101
74%
Demand
120
59%
46%
26%
41%
Base
Peak
DemandSupplyGap~17%
Generation
Average Energy Demand
0
200
400
600
800
Energy (BU)
X IX VIII VII VI
22 COLDCHAINSMARKETININDIA2011.PPT
Introduction
MarketOverview
DevelopmentScenario
Drivers&Challenges
Trends
Competition
23 COLDCHAINSMARKETININDIA2011.PPT
RailbasedReefers ColdChainsFacilitiesatAirport
Entryofforeignplayers BackwardIntegration
Key
Trends
Trends Summary
24 COLDCHAINSMARKETININDIA2011.PPT
ForeignplayershavebecomeinterestedintheIndian
marketduetoinitiativestakenbygovernment
Source:TransREporterColdChaingettinghot,Mar2010;TheHinduSingaporecompanieskeenoncoldchainlogisticsinIndianFPI,May2010
Entryofforeignplayers
Coldstoragepolicyinitiativetakenbythegovernmenthasbeckonedcoldchainmajorstosetup
theirownbackendlogisticsinIndia
Coldstoragepolicyinitiativetakenbythegovernmenthasbeckonedcoldchainmajorstosetup
theirownbackendlogisticsinIndia
FoodtechHollandhasrecentlybeenlaunchedinIndiabytheMinistryOfFoodProcessingIndustries
ConsortiumofhighlyinnovativeDutchfoodcompanies,providinghitechsolutionalongthesupplychain
ClusterisalsoexpectedtoworkwithIndia'sNationalColdChaincenterofexcellencetodevelopcoldchaincapability
SpireGroupLtd,aTorontobasedcompany,hasrecentlyjoinedhandswiththetyremajorApollotostart
ApolloLogisolution,acoldchainlogisticsventureinIndia
ExpectedtoinvestINR11.5bninthedevelopmentofcoldchaininIndia
GEEquipmentServicesislookingatenteringIndiascoldchainlogisticsmarket,especiallycoldstorage
andtransportationequipment
MalaysiasHaisenhassignedanagreementwiththeBetaEmpireGroupandPaceCFSforapossiblejoint
venturetoestablishcoldchainlogisticsinIndia
Singaporebasedcompanieshavealsoexpressedtheirinterestinsettingup coldchainlogisticsin
businessparksbeingsetupforfoodprocessingindustriesinIndia
Recently,someofthemajorforeignplayershavestartedshowing interestindevelopingcoldchaininIndia
mainlyduetoinitiativestakenbythegovernment
25 COLDCHAINSMARKETININDIA2011.PPT
Railwaysarenowprovidingcoldchainsolutionsthroughits
railbasedreefers
CONCORhasreeferservicesavailableatICDDadriandICDKanpur terminalsand
isalsomovingthemtothedomesticterminalatTurbhe
Planstooffertheseservicesfromotherterminalsaswellsubjectto
materializationofadequatetrafficlevels
CONCOR
Source:ContainerCorporationofIndiaColdChain/Reefers;DNAGatewaytomovereefersonrail,Jan2008;BusinessLineAPLIndiaLinxplansreefercargoservice,
Jul2007
Railwaysisplanningtoencouragecreationoffacilitiesofsettingupcoldstorageandtemperature
controlledperishablecargocentersanditstransportationthroughrailbasedreefers
Hasintegrateditsserviceswiththerailwaycontainerservicetotransport
refrigeratedcontainers
Operatesexportboundrefrigeratedcontainersthroughcontainerrakesonthe
DelhiMumbairoute
Gateway
Distriparks
ContainertransportationarmofSingaporebasedNeptuneOrientLines,also
offerssuchservices
OperatesreefercontainersbetweenitsterminalatLoni(nearDelhi)and
JawaharlalNehruport
APLIndiaLinx
RailBasedReefers
26 COLDCHAINSMARKETININDIA2011.PPT
Coldchainsarenowbeingsetupatairportstofacilitate
internationaltrade
Source:IndiaAviationColdchainmanagementatMumbaiAirportandNewDelhiAirportto improve,Jan2009;FiercePharmaManufacturingHyderabadAirportjoins
coldchainage,Dec2010;FreshProduceIndiaIndiatodevelopcoldchainfacilities,Jan2011
AirportsacrossvariouscitiesinIndiaarealsosettingupcold chainfacilitiesforhandlingperishablecargoes
andfacilitatinginternationaltrade
ColdChainFacilitiesatAirports
OrganizationofPharmaceuticalProducersofIndia(OPPI)hastiedupwithDelhiInternational
AirportLimited(DIAL)andMumbaiInternationalAirportPvt.Ltd.(MIAL),where8090%of
theexportandimporttradeofpharmaceuticalstakeplace
DIALisplanningtoconstruct4,000squaremetresofadditionalcoldroomcapacity
comparedwiththepresentcoldroomcapacityof400squaremeters
MIALhasalreadyinstalled4newcoldroomsforpharmaceuticalsandhastrainedhandling
stafftoensureadherencetostandardoperatingprocedures
Delhiand
Mumbai
HyderabadInternationalAirporthasinstalledaPharmaZoneatitscargoterminal,whichisa
temperaturecontrolledfacilitythatincludesadedicatedareafor28degreeCelsiusstorage
Amritsar
Punjabgovernmentisplanningtobuildaperishablecargocentre witha30,000tonnes
storagecapacityatAmritsarInternationalAirporttoaidtheexportoffreshproduce
Ithasalsoplannedtoconstructaroundadozenintegratedpackhousestomaintainacoldchainfor
producedestinedfortheairport
Hyderabad
27 COLDCHAINSMARKETININDIA2011.PPT
Largeretailfirmsareintegratingbackwardsinorderto
explorestrongopportunitiesinthecoldchainsector
Source:BusinessStandardSopsforcoldchainsinsufficient August2009;InternationalFoodDrinksandHospitalityExhibitionOutofcoldstorage May2008
BackwardIntegration
FutureGrouphasintegratedbackwardfromfoodretailingtostorageandtransportationwiththe
launchofFutureLogistics
FutureLogisticsfocusesonverticalsincludingcourierservice, roadtransportation,freightforwarding,coldchain
infrastructure
RelianceRetailhasalsostartedcreatingcoldchainsfortheirbusinessesinIndia
RelianceRetailLimited(RRL)isinvestingINR250bnforitsfarmtofork strategy
ItssupplychainwouldcompriseoftradeintheopenmarketaswellasservingtheRelianceFreshoutlets
ColdchainsolutionsisalsoapartofMcDonalds supplychaininIndia
Retailersarenowintegratingbackwardsanddevelopingcoldchainsolutionstobenefitfromthehighly
promisingcoldchainsector
28 COLDCHAINSMARKETININDIA2011.PPT
Introduction
MarketOverview
DevelopmentScenario
Drivers&Challenges
Trends
Competition
29 COLDCHAINSMARKETININDIA2011.PPT
7%
2%
91%
Themarketisdominatedbytheprivatesectorwithminimal
presenceofthepublicsector
Investmentandgrowthopportunityforcoldchainis
hugeasitisstillnotyetdevelopedinIndia
InvestmentshavebeenannouncedbyReliance,Bharti,ITC,
Godrej,Tata,AdityaBirlaGroupandFutureGrouptooffera
readymarketforthirdpartycoldchainlogisticsplayers
Coldchaincapacityintheorganizedsectorwas
around60,000tonnesin2009
Capacityadditions&investmentsinnext3yearswith
existingplayersexpandingcapacitiesaswellasnewplayers
Highlycapitalintensiveindustrywithanaveragepayback
periodofaround5years
Distributionoffersthelargestmarginsincoldchain
logistics
Atleast50companiesareofferingrefrigeratedtransport
servicesinIndia
Majorcompanieshaveshowninterestincoldchain
marketinIndia,includingSnowmanFrozenFoods,
FreshandHealthyEnterprisesandApolloEverest
CoolSolutions
Competition Overview SectorWiseSplit SurfaceStorage(2009)
Source:DirectorateofMarketingandInspection ColdStorage;RabobankRoleofLogisticsinFoodBusiness August2006;U.S.Trade&DevelopmentAgencyBuilding
CapacityinIndia'sColdChainInfrastructure 2008;InternationalFoodDrinksandHospitalityExhibitionOutofcoldstorage,May2008
Public Sector
Co-operative Sector
Private Sector
Morethan90%ofthecoldstoragecapacityinIndiais
ownedandmaintainedbytheprivatesector
GovernmentofIndiaencouragesandsupportsthe
participationofprivateplayerstodevelopthehighlycapital
intensivecoldchainsector
Publicsectorisalsogearingupandactivelyparticipatingin
thedevelopmentofcoldchainsolutions
30 COLDCHAINSMARKETININDIA2011.PPT
MajorPlayersintheMarket(1/8)
CorporateInformation FinancialPerformance
Headquarters Kolkata,WestBengal
Founded 1990
Services Coldstoragefacilities
KeyPeople RajendraKumarAgarwal MD
CompanySnapshot:BrahmanandHimgharLtd.
BusinessHighlights
BrahmanandHimgharLtd.engagesintheoperationofcoldstoragesinIndia.
Itoperatesa14,000metrictoncoldstorageforthepreservationofpotatoesinMidnapore district, West Bengal and a 4,100 metric
toncoldstorageinSeraikelaKharsawandistrict,Jharkhand
FormerlyknownasBrahmanandDevelopmentPvtLtd.,itsubsequentlybecameapubliccompanyunderthenameof
BrahmanandDevelopmentsLtdwitheffectfromJune16,1994
66.5
71.0
34.4
48.9
0
20
40
60
80
0
5
10
15
20
25
2007
INRmn INRmn
2010 2009 2008
NetProfit
TotalRevenue
Source:CompanyWebsites;CapitalIQ;Factiva
31 COLDCHAINSMARKETININDIA2011.PPT
MajorPlayersintheMarket(2/8)
CorporateInformation FinancialPerformance
Headquarters NaviMumbai,Maharashtra
Founded 1998
Services
Coldstorage,refrigeratedtransport
andlogisticsolutions
KeyPeople PremKishanGupta MD
CompanySnapshot:GatewayDistriparksLtd.
BusinessHighlights
Gateway Distriparks Ltd. acquired 50.1% stake in Snowman Frozen Foods in 2007 and carries out its cold chain
operationsthroughit
SnowmanFrozenFoodsboastsof18ISO22000certifiedwarehouses andover100transportvehicles
ItisIndiasfirstcoldsupplychaincompanywithanationwidepresenceconnectingmorethan100citiesanddistributingtomorethan
4,400outlets
ItalsoprovideslogisticssolutionsfortheinternationaltradingcommunityandtheshippingindustryinIndia
Is planning a fourfold capacity increase in the cold chain segment to take advantage of the government's stimulus
measurestoimprovethefooddistributionsysteminIndia
5.2
4.5
2.7
1.6
0
2
4
6
0.0
0.2
0.4
0.6
0.8
INRbn INRbn
2010 2009 2008 2007
TotalRevenue
NetProfit
Source:CompanyWebsites;CapitalIQ;Factiva
32 COLDCHAINSMARKETININDIA2011.PPT
MajorPlayersintheMarket(3/8)
CorporateInformation FinancialPerformance
Headquarters Secunderabad,AndhraPradesh
Founded 1989
Services
Coldchainlogisticssolutions,
refrigeratedtransport
KeyPeople MahendraKumarAgarwal CEO
CompanySnapshot:GatiLtd.
BusinessHighlights
GatiLtd.operatesitscoldchainlogisticssolutionsthroughGati Kausar
KausarIndia,whichspecializesinrefrigeratedtransportation, wasacquiredbyGatiLtd.in2007forINR143mn
ItisthelargestISO9001:2008certifiedrefrigeratedtransportcompanyinIndiawithafleetcapacityoftransporting
100,000tonsannually
Provides refrigerated transportation of temperaturesensitive products such as meat, dairy products and
pharmaceuticalsandalsoofferscustomizedsolutionsfortemperaturesensitiveshipments
Competencieslieintheirwidereach,cuttingedgetechnologyandavastfleetofrefrigeratedvehiclesequippedwith
advancedclimatecontrolsystems
HasbeenawardedtheConsumerSuperBrandstatusinthelogisticscategoryin200607and200910
9261.1
7904.1 7168.4
5679.7
0
2000
4000
6000
8000
10000
200
100
0
100
200
300
2009 2008
INRmn INRmn
2010 2007
TotalRevenue
NetProfit
Source:CompanyWebsites;CapitalIQ;Factiva;VCCircle.comGatiAcquires53%InDelhi'sSpecialisedLogisticsFirmKausar Aug2007
33 COLDCHAINSMARKETININDIA2011.PPT
MajorPlayersintheMarket(4/8)
CorporateInformation BusinessHighlights
Headquarters Porbandar,Gujrat
Founded 1981
Services
Coldstorageplant,industrial
refrigeration,coldstoresand
freezers
KeyPeople SurendraPatel Head
CompanySnapshot:AmarColdStorage
Amar Cold Storage is ISO 9001:2000 certified and
providescoldstoragefacilities
It also rents out its cold storage plants to other
companies
Maintains highest international requirements in the
areas of quality, hygiene, environmental protection,
and safety and are completely ISO and HACCP
certified
Source:CompanyWebsites;CapitalIQ;Factiva
CorporateInformation BusinessHighlights
Headquarters NaviMumbai,India
Founded NA
Services
Controlledwarehousesandlogistics
solutions
KeyPeople NA
CompanySnapshot:ApolloLogisolutionLtd.
It has executed a joint venture with Canadabased
Spire Group Ltd. for INR 10.225 bn to construct and
operate temperaturecontrolled warehouses in
India
Apollo Logisolutions plans to invest INR 13 bn by
2015
34 COLDCHAINSMARKETININDIA2011.PPT
MajorPlayersintheMarket(5/8)
CorporateInformation BusinessHighlights
Headquarters NewDelhi,India
Founded 2003
Services
Controlledatmospherestorage,
logisticsandalliedservices
KeyPeople SanjayAggarwal Chairman
CompanySnapshot:DevBhumiColdChain
Has various kinds of specialized storages including
deep freeze, chill store, controlled atmosphere
storage,modifiedatmospherestorage
Iscommissioningitsownpowerfulmobileprecooler
unitsmountedon20trucks
Has stateoftheart cold storage chambers with
capacitytostore3,000mt
Source:CompanyWebsites;CapitalIQ;Factiva;FnBnewsDevBhumioffersadvancedcoldchainfacility
CorporateInformation BusinessHighlights
Headquarters Sonipath,Haryana
Founded 2006
Services Coldchainlogistics
KeyPeople N.KJawa CEO
CompanySnapshot:FreshandHealthyEnterpriseLtd.
Was incorporated with INR 350 mn and is a fully
owned subsidiary of Container Corporation of India
(CONCOR)
It has been set up to create world class cold chain
infrastructure in the country and to provide
completecoldchainlogisticssolutions
CONCOR will be investing around INR 1015 bn for
expansionofitscoldchainlogisticsinfrastructure
35 COLDCHAINSMARKETININDIA2011.PPT
MajorPlayersintheMarket(6/8)
CorporateInformation BusinessHighlights
Headquarters Mumbai,Maharashtra
Founded 2007
Services
Coldchainlogisticsandstorage,
supplychainmanagementand
distribution
KeyPeople RakeshBiyani Director
CompanySnapshot:FutureSupplyChainSolutionsLtd.
FutureSupplyChainSolutionsisplanningtoraiseINR
10 bn by selling stake either through an IPO or
privateequityplacementsbyendof2012
Had received INR 500 mn of a INR 1.5 bn funding in
2009
Source:CompanyWebsites;CapitalIQ;Factiva;IndiaPEFutureGroup'slogisticsarmplanstoraiseRs1,000crore,Jun2011
CorporateInformation BusinessHighlights
Headquarters Hyderabad,AndhraPradesh
Founded NA
Services Coldstoragefacilities
KeyPeople GubbaNagenderRao Promoter
CompanySnapshot:GubbaColdStorageLtd.
ItofferscoldstorageserviceoutofHyderabad,AP
Its service includes Commercial Seed and Parent
Seed cold storage, PreCooling of fresh produce and
CustomColdRoomsforPharma&FoodProducts
36 COLDCHAINSMARKETININDIA2011.PPT
MajorPlayersintheMarket(7/8)
CorporateInformation BusinessHighlights
Headquarters NewDelhi,India
Founded 1993
Services
Storage,transportation,distribution,
andcoldchainsolutions
KeyPeople SarvjitSingh President
CompanySnapshot:M.J.LogisticServicesLtd.
It provides storage, transportation, distribution, and
cold chain solutions to FMCG, auto components,
retail,paints,andfoodbusinessesinIndia
Hasstrongpresence in Delhi NCR, and operations in
Haryana, Punjab, Himachal Pradesh, and
Uttarakhand
Provides endtoend handling and shipping of
temperaturesensitiveproducts(25Cto+15C)
Source:CapitalIQ;Factiva
CorporateInformation BusinessHighlights
Headquarters Mumbai,Maharashtra
Founded 2003
Services
Innovativelogisticsandsupplychain
services
KeyPeople NA
CompanySnapshot:OOCLLogisticsIndiaPvt.Ltd.
Company operates technologically advanced reefer
containers to ensure that cargo is shipped under
strictcontrolledtemperature
It has some unique technologies such as Advanced
Fresh Air Management Plus (AFAM+) system and
ultracool Magnum reefer containers which will
preserve even the most delicate cargo in all
conditions
37 COLDCHAINSMARKETININDIA2011.PPT
MajorPlayersintheMarket(8/8)
Source:CapitalIQ;Factiva
CorporateInformation BusinessHighlights
Headquarters Gurgaon,Haryana
Founded NA
Services Integratedlogisticssolutions
KeyPeople GopinathPillai Chairman
CompanySnapshot:XPSColdChain
A subsidiary of Transport Corporation of India (TCI
Group)
Services include providing vehicles on trip and
dedicated basis and also provide a detailed log of
temperaturevariationduringtransportation
Itsvehiclefleetconsistofcontainersof1024feetwith
a payload of 1.57 mt with highly sophisticated reefer
units
CorporateInformation BusinessHighlights
Headquarters Mumbai,Maharashtra
Founded 1987
Services
Warehouseandtransportation
management Temperature
Controlled
KeyPeople RajuShete Chairman
CompanySnapshot:RadhaKrishnaFoodland
RK Foodland provides supply chain solutions to agri,
retail, QSR, food service and pharma industry and has
establisheditsfootprintpanIndia
Maintains a zerotolerance approach to quality,
health,hygiene,safety,environment,maintenanceand
compliance
Proposes to foray into private labels segment and has
partnershipwithBhartiWalmartandMcDonalds
38 COLDCHAINSMARKETININDIA2011.PPT
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