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Cold Chain industry in India

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Indian 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 Bn in 2017 and is largely unorganised in nature. Thereby, presenting a great opportunity for foreign companies

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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  India’s cold chain industry is still evolving, not welll organized and operating below capacity  The Indian cold chain market is highly fragmented withl more than 3,500 companies in the whole value system  Organized players contribute only ~8%–10% of the coldl chain industry market  Most equipment in use is outdated and single commodityl based  Need for cold chain –l ‒ 11% of world’s total vegetables production is accounted by India alone but India’s share in global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 for 70,000-80,000 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

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 multi purpose cold storages is rising

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There are ~5,381 number of total cold chain storages in India with 95% of total storage capacity under private players  ~36% these cold storages in India have capacity belowl 1,000 MT  65% of India’s cold chain storage capacity is contributedl by the states of Uttar Pradesh and West Bengal  With the current capacity only less than 11% of what isl produced can be stored  Cold storage capacity is expected to grow at ~13% perl 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 retaill and food service industry, government’s initiatives, rising export demand for processed and frozen food

Huge variation in the share of potatoes storage capacity and revenue generation  Share of multi purpose cold storages is low in storagel capacity but high in revenue generation  There is growing focus towards multi-purpose coldl storages

India offers great market potential for cold chain logistic solution providers, including refrigerated transport

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According to industry estimates, approximately 104 million metric tons of perishable produce is transported between cities each year  Of this figure, about 100 million metric tons moves vial non–reefer mode and only four million metric tons is transported by reefer  Even though, India has about 250 reefer transportl 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 utilizedl for milk and milk products transportation  The high cost of transportation is a major challenge forl refrigerated vehicles market  Key growth drivers include meat products export , risingl demand for confectionary, frozen food etc.

 

Source: <a href="http://indiacoldchainshow.com/cold-chain-industry-in-india-a-report-2/" target="_blank">www.IndiaColdChainShow.com</a>


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