Cold Chains Market India September 2009

Executive Summary
Total market for cold chains in India is valued at INR XX bn in 20--; Estimated to reach INR YY bn in 20-Market comprises of two segments - surface storage and refrigerated transport Majority of cold storages are located in the states of State 1, State 2, State 3 and State 4 Majority of existing cold storages cater to potato storage

Market

Drivers:

Drivers & Challenges

Growth in Organized Retail Shift Towards Horticultural Crops Growth in Processed Food Sector Government Initiatives Demand from Pharmaceutical sector

E L P M A S

Challenges:
Lack of Logistical Support Uneven Distribution of Cold chains Cost Structure Power Supply

Trends

Cold Chains based on Public Private Partnership (PPP) model Rail Based Reefers Cold Chain Facilities at Airports Backward Integration Private players dominate the market though state owned players are also present Surface Storage comprises of players like company 1, company 2 and company 3 Refrigerated transport comprises of players like company 4, company 5 and company 6 At least Z companies are offering refrigerated transport services in India
COLD CHAINS MARKET INDIA.PPT

Competition

Introduction Market Overview Drivers & Challenges Trends Competition Key Developments

COLD CHAINS MARKET INDIA.PPT

Favorable government policies and rise in organized retailing has lead to a growing market
Market Overview
Cold chains market in India is at a nascent stage
Cold storage facilities in India is available for only b% of agricultural - produce

Market Size and Growth

INR bn
400 300 200 100 0

Y a%

Private players dominate the market though state owned players are also present Current state of cold chains market is dismal:
Fragmented and unorganized Inefficient capacity utilization Lack of logistical support High operating and capital costs Surface Storage :
It consists of refrigerated warehouses for storage

E L P M A S

2008

2015

Segment Wise Break-Up

Segment 1 c%

Market can be divided into two segments:

Refrigerated Transport :
Involves usage of refrigerated transport vehicles for transportation d% Segment 2
Source: COLD CHAINS MARKET INDIA.PPT

Drivers & Challenges

Challenges Drivers
Growth in Organized Retail Shift towards horticultural crops Growth in Processed Food Sector Government Initiatives Demand from Pharmaceutical sector Lack of Logistical Support Uneven Distribution of Cold chains Cost Structure Power Supply

COLD CHAINS MARKET INDIA.PPT

Backward Integration

Cold Chain based on Public Private Partnership (PPP) Model

Trends

Cold Chains Facilities at Airport

Rail based Reefers

COLD CHAINS MARKET INDIA.PPT

The market is dominated by the private sector companies

Overview
Current cold chain capacity in the organized sector is around X tonnes and is estimated to reach y% by 20- It is a highly capital-intensive industry
A large-size cold chain has a payback period of ~ Z years

Sector Wise Split Surface Storage

Sector 2 Sector 3 b% c%

Traditional networks of traders in fruits and vegetables are strong

Hence players are currently focusing on piecemeal operations rather than creating a complete chain right from farm to retail

Distribution offers the largest margins in cold chain logistics

At least U companies are offering refrigerated transport services in India

E L P M A S

a% Sector 1

Perishable Cargo transport India

Type 2 e%

Cold chain industry is likely to witness capacity addition & investments in next V years
Existing players that are expanding capacities & new players are planning to enter the market d% Type 1

COLD CHAINS MARKET INDIA.PPT