Cold Chain Infrastructure & Financing
13 December, 2014, ASSOCHAM , Hyderabad
Opportunity
Dairy
($25 billion)
Agriculture
($12 billion)
Meat
($10 billion)
Healthcare
($6 billion)
Fruit pulp &
concentrates
($1 billion)
Bakery &
processed
food
($1 billion)
Chocolate &
ice cream
($ 1 billion)
Expected: FY 14 - 15
1. YoY expected growth till 2020: 12%
2. High wastage and tightening of regulations: Farm level wastage in agri. Regulations for
meat, diary and healthcare getting tighter not only in US & EU but also in Middle East & N
America.
3. Growth beyond metros – quality of lifestyle and higher growth in tier 2, 3 & 4 cities
(Emerging cities) apart from the high single digit growth in metros.
4. Government policies and overall support mechanism – subsidies, tax holidays and
NCCD.
Trend
(Challenges & opportunities)
1. Limited or non existence of integrated credible service
providers. 1 player offering warehousing, transportation (FTL & LTL),
within city distribution, portable cold storage, air freight, etc.
2. Capacity and capability in emerging cities and towns.
3. High cost: Most operate on cost + model, no reverse engineering.
4. Environment: No carbon emission understanding or reduction
programmes.
5. Information flow: Lack of real time visibility.
1. Consolidation and expansion: Consolidated between
organized and unorganized. Not competing instead complementing
each other.
2. Innovation and infra development. LTL, dedicated milk runs,
world class warehouses, etc
3. Increased competition. Forcing service providers to work on
cost reduction and ancillary revenue.
4. Go green initiatives: Going paperless, newer trucks that emit
less, solar energy for warehouses, etc.
5. Technology: Tech start ups specifically focused on logistics &
SCM.
Innovations
(Portable cold storage – Arctic Store)
1. Available in 10',
20' and 40' lengths
Perfect for short,
medium & long
term storage use.
Actual images of Arctic Store.
2. From -40oC to +
60oC.
3. Modern, power
efficient & highly
effective
machinery
with
reduced
DB
emissions & low
power
consumption.
4. Delivered with in
built data logger &
power
lead.
Features of portable cold storage
One hand easy to
operate doors
Sliding air curtains
Internal lighting
Flat floor with ramp
secured for
transport
Internal door release
Innovations
(Portable cold storage – Arctic SuperStore)
1. Can be set up in 1/3rd time required
for a brick and mortar cold storage
warehouse.
2. No regulatory hurdles.
3. No CAPEX involved, good for
short, medium and long term.
4. Can be dismantled easily after
application is over.
5. Can be fruitful for tier 2 & 3 cities
apart from villages.
6. Easy & reliable to set up.
Innovations
(Reefer container generator set, known as CLIP ON GEN SETS )
1. Gen sets are
to be attached
to containers
when
electrical
points are not
available
–
good for rail
application in
India.
2. From +25 to 25 C degrees.
3. Can provide
temp
regulation up
to 9 days.
4. Reliable, easy
to use and
effective.
Evolution
(Cold Chain Warehousing )
Actual images of Crystal warehouse in Kolkata.
Steps in
the right
direction
GDP & TAPA
(Transportation
Asset Protection
Association)
certified
facilities
Subsidies and
tax exemptions
or holidays on
cold storages
Entry of global
players though
focused on
niche segment
for now
Interest taken
by global
retailers and fast
food giants at a
farm level
STATE OF ART, AUTOMATED, STRATEGICALLY LOCATED COLD CHAIN
warehouses cropping across the country not only for the niche healthcare segment but also for agri and
related sectors with a lot of knowledge transfer from the world over.
Finance for Infrastructure
• A Large market for food and pharma the 2 basic need of humans.
• Only 11% is Stored of what is produced.
• Transportation is 88% and Cold Storage forms 12% of the Total.
• Required huge Capex as Infrastructure projects with long term
gestation with relaxation on Collateral.
• High borrowing cost.
THANK YOU