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Netherlands Enterprise Agency | Cold Chain Logistic Sector in Gujarat State - INDIA
Colofon
This survey has been conducted by the Netherlands Business Support Office in
Ahmedabad, Gujarat, India with the support of MBA (Maritime Management) SEM II
students from B.K School of Business management, Gujarat University, Ahmedabad,
Gujarat, India.
If you have any questions regarding this business sector in Gujarat state or need any
form of business support, please contact NBSO, Ahmedabad:
For further information on the Netherlands Business Support Offices, see www.nbso.nl.
NL Enterprise Agency is a department of the Dutch ministry of Economic Affairs that implements
government policy for agricultural, sustainability, innovation, and international business and
cooperation. NL Enterprise Agency is the contact point for businesses, educational institutions and
government bodies for information and advice, financing, networking and regulatory matters.
Although a great degree of care has been taken in the preparation of this document, no rights may
be derived from this brochure, or from any of the examples contained herein, nor may NL Enterprise
Agency be held liable for the consequences arising from the use thereof. This publication may not be
reproduced, in whole, or in part, in any form, without the prior written consent of the publisher.
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Netherlands Enterprise Agency | Cold Chain Logistic Sector in Gujarat State - INDIA
Contents
Colofon 2
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Netherlands Enterprise Agency | Cold Chain Logistic Sector in Gujarat State - INDIA
Cold Chain Logistics here in this report is oriented towards Horticulture and Processed
Food sector. So here in these sector cold chain logistics stands for cold chain facilities
from farm to end user consumers. This includes Controlled Atmosphere Vehicles, Cold
Storages, Shorting and Grading facilities, Morden pack Houses and Controlled Atmosphere
Retail Stores.
Cold Chain Logistics for Horticulture and Agro Food Products has been the focus area for
India as post-harvest food loss has been the major concern. This food loss is hindering
the goal of food security and price stability.
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Netherlands Enterprise Agency | Cold Chain Logistic Sector in Gujarat State - INDIA
In order to boost development of cold chain for Horticulture and Agro food Products sector
Government of India is providing various financial and technological assistance under the
schemes of Ministry of Food Processing and Industries, Agriculture and Processed Food
Products Export Development Authority, and National Horticulture Board.
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Netherlands Enterprise Agency | Cold Chain Logistic Sector in Gujarat State - INDIA
“Majority of cold stores in India are running on slow speed compressors which are based
on the ammonia refrigeration system lacking the capacity control mechanism, due to
which, energy efficiency is considerably low for the cold stores which are utilizing them,”
the study stated.
Besides, the cold stores based on old compressor technology, the study pointed out, are
also losing their precious space as the installation of these compressors require the
installation of large sized bunker styled evaporator coils or other diffuser units.
There is also an urgent need to establish more multi-purpose cold storages across India
as about 75 per cent of the current cold storage capacity in India is suitable only for
potato storage and only 23 per cent is meant for multi-purpose, the study said.
However in value terms, potato storage, according to the study, contributes only about 20
per cent in the total revenue of cold chain storage, while over 54 per cent of cold chain
storage revenues come from multi-purpose storage only as the rent fetched for potatoes
is quite low as compared to the other food products. There is a need to look for
economically viable options like multi-purpose cold storages as they have high capacity
utilization as compared to that of conventional storages.
Growing at a compounded annual growth rate (CAGR) of about 26 per cent, the market
value of Indian temperature controlled warehouse industry is likely to cross Rupees Six
hundred thousand million mark by 2017. Besides, the total cold chain storage capacity in
India is likely to grow at over 13 per cent CAGR and may reach about 47 MT by
2017.While, growing at a CAGR of about seven per cent, the global cold chain market is
likely to cross $147 billion mark by 2017. Growth in sectors like organized retail,
pharmaceuticals, processed food, growing shift towards horticulture together with various
initiatives undertaken by the government are driving the growth of cold chain industry in
India, the study said.
Presence of a large number of small players in India's cold storage market is a significant
disadvantage as they lack monetary means to make investments in establishing large
cold storages, the study said, adding that exorbitant property prices coupled with usage
of obsolete technology has led to the lower cold storage capacity in India.
Though India accounts for about 11 per cent of global vegetable production, but the cold
chain capacity in India is available for just about 9 million tons of vegetables, the study
asserted. “This not only leads to huge wastage of fruits and vegetables worth about
Rs 35,000 crore annually but severely impacts India’s share in the global export of fruits
and vegetables, which is just about two per cent.”
Of about 85 million tons (MT) of vegetables and 45 MT of fruits being produced in India
annually, the study said, only about four million tons of fruits and vegetables are
transported in refrigerated vehicles in the country.
Apart from horticulture, India produces about 130 million tons of milk annually but the
country currently has milk storage capacity of just about 80,000 tons. Due to lack of cold
chain infrastructure, about 30 per cent of about 10 million metric tons of fish produced in
India annually gets wasted. In India, about 95 per cent cold storages are managed by
private companies while in countries like USA, China, Brazil, Germany, Japan and others,
major portion of refrigerated storage falls under public refrigerated warehouses. (Ref.
Business Standard April 3, 2015)
It is certain that India needs to adopt green cold chain concept by promoting installation
of energy efficient equipment as this would not only make a positive impact on the
environment but would also help the cold chain industry’s stakeholders to increase their
revenue in the long run.
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Netherlands Enterprise Agency | Cold Chain Logistic Sector in Gujarat State - INDIA
In Gujarat cold Chain Industry is well developed when concerned with Dairy and
Pharmaceutical products, but still there is huge capacity gap in all aspects like cold stores,
refer vehicles, integrated pack houses and CA storages etc. when talking about cold chain
in Horticulture and Processed Food Sector. Gujarat (5.2 per cent) was ranked fourth
behind Uttar Pradesh (41 per cent), West Bengal (23 per cent) and Punjab (5.5 per cent)
in total share of India's cold chain storage capacity, according to a study titled
'Opportunities in Cold Chain: Emerging Trends and Market Challenges,’ jointly conducted
by ASSOCHAM and global market research and consulting company TechSci Research.
Gujarat was followed by Bihar (4.7 per cent), Andhra Pradesh (3.7 per cent), Madhya
Pradesh (3.3 per cent), Maharashtra (2.2 per cent) and Karnataka (1.7 per cent), the
study said.
With about two million tons of cold chain storage capacity, Gujarat has the fourth highest
share of over five per cent in India’s total cold chain storage capacity of about 35 million
tons (MT) worth over Rs 10,000 crore, reveals the joint study.
(Ref. April 3, 2015 Business Standard).
Many cold chain facilities for export oriented produces and Potatoes has already been
established but potential for other commodities is still remaining untapped.
Various factor like approval of three Mega Food Parks at three strategic locations,
increasing disposable income of population, awareness for hygiene and health, developing
culture of central kitchen for restaurant chain and good connectivity with world ports
leading to prospectus for exports are being driving force for development Cold Chain in
Gujarat.
DK / CS 16% 16%
Product type stored in the cold storage
Horticulture / Agriculture 87% 65%
Pharmaceutical 1% 0%
Other products 1% 0%
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Netherlands Enterprise Agency | Cold Chain Logistic Sector in Gujarat State - INDIA
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Netherlands Enterprise Agency | Cold Chain Logistic Sector in Gujarat State - INDIA
National Centre for Cold Chain Development (NCCD), an autonomous Centre for
excellence, has been established as a registered society to work in close collaboration
with industry and other stakeholders to promote and develop integrated cold chain in
India.
Investor’s portal has been introduced by Ministry of food processing to facilitate investors
and entrepreneurs to bring private investment in development of cold chain.
122 new cold chain projects are being established with the support of MOFPI in India.
Objective:
Pattern of Assistance: Provides grant-in-aid @ 50% of the total cost of Plants &
Machinery and Technical Civil Works in general areas and 75% for NE Region and difficult
areas subject to a maximum of Rs.100 Million.
National Horticulture Board (NHB)
NHB provides capital investment subsidy for construction / expansion / modernization of
cold storages.
Pattern of Assistance: Back-ended subsidy @ 40% of the project cost @ INR 6000/-
per MT for normal cold storages, @ INR 7000 & INR 8000 per MT for specialized cold
storages and @ INR 32,000 per MT for CA storages.
Pattern of Assistance: Credit linked back ended grants-in-aid @ 50% of the cost of New
Reefer Vehicles/ Mobile pre-cooling vans up-to a maximum of INR 5 Million. The reefer
unit and refer cabinet permanently mounted on the vehicle are eligible.
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Netherlands Enterprise Agency | Cold Chain Logistic Sector in Gujarat State - INDIA
Tolsma-Grisnich is in India for last 6 years as a full-fledged office. The Company has a
specialized knowledge to build stores in any part of India as per the Indian climate. The
company has built series of stores starting from Balaji Wafers 8000mt Box Store at Valsad
Plant to the recently completed Long Term Potato Store -The Ronak Agro Foods (8000Mt)
which is a mile stone and not only unique but a kind of its own in India.
Website: http://www.tolsma.nl
Real Cold Store near Himmatnagar in Gujarat is built with Mooij Agro’s Long Term Storage
Technology for storing Processing Potatoes. Material that is harvested in March can be
processed till December with the implementation of Mooij System.
Mooij is specialized in storage of Potato, Onion, and other vegetables. This technology,
developed by Mooij in the Netherlands, allows for a more uniform convection of cold air
through the stacks of potato bags, ensuring a more even product quality as well as
increased energy efficiency.
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Netherlands Enterprise Agency | Cold Chain Logistic Sector in Gujarat State - INDIA
The Store was built by Mr. Jignesh Patel who is also a grower for McCain. The store is one
of its kind in the country and maintains best frying colour with minimum weight loss. Built
in 2013, the total capacity for the storage is 7500 MT. The store is utilized by McCain to
store French fries varieties.
Omnivent
Omnivent has provided the Indian market with solutions for storage automation and store
management for potatoes, onions and other root crops, to reduce losses and maintain
product quality during long-term storage. These objectives are met in all projects whether
it concerns a new build project or a upgrade of a traditional Indian Bag store.
Website: http://www.omnivent.nl/en-us/
Allround is a successful Dutch company into storage grading and handling of potatoes and
other vegetable products. The Company has its own manufacturing of equipment in
Mohali Punjab – India, which is a boost for its rapid growth in India. In Deesa,
Banaskantha district of Gujarat has a very successful project Sai Cold Storage which has
installed Allround machinery for the store as well as for handling, grading and for sorting
of potatoes.
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Netherlands Enterprise Agency | Cold Chain Logistic Sector in Gujarat State - INDIA
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Netherlands Enterprise Agency | Cold Chain Logistic Sector in Gujarat State - INDIA
Opportunities for Dutch Companies: Many Dutch companies are already operating in
this sector in Gujarat. There are opportunities for them to Make in India and penetrate in
Market.
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Netherlands Enterprise Agency | Cold Chain Logistic Sector in Gujarat State - INDIA
Running in its 4rd annual edition, India Cold Chain Show is a focused exhibition and
conference on Cold storage infrastructure, Temperature controlling, IT solutions for cold
storages/warehouses, Material handling solutions for cold storages, Cold chain and cold
supply chain.
Every year, technology providers gather to showcase latest solutions in front of hundreds
of decision makers visiting from all parts of the world. The event offers comprehensive
business, networking and learning opportunity.
Logistics Asia is creating benchmark for logistics exhibition in Gujarat. Organising 3 days
international exhibition and 2 days conference and networking. B2B, B2G and Exim
related enquires are handled. Logistics Asia will showcase complete range of cold chain
technologies and solutions on one platform. The exhibition, conference and award’ night
provides an opportunity for modern cold chain, logistics, retail and other related
industries to identify new trends, discuss new ideas, witness latest innovations, view a
wide range of products specific to the industry.
Date: 21st-23rd January 2016
Venue: Mahatma Mandir, Gandhinagar, Gujarat
Website: http://www.logisticsasiaexpo.com
ACREX India 2016, an international exhibition, which will be conducted at the Bombay
Convention and Exhibition Centre (BCEC), Mumbai, India. It is the largest permanent
exhibition centre, in the private sector. ACREX India is an all-encompassing event apart
from focusing on just HVAC&R, The Exhibition will feature diverse Building Engineering
Services that include Fire & Safety, Electrical & Plumbing Services Building Automation
and the ever growing Cold Chain Industry.
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Netherlands Enterprise Agency | Cold Chain Logistic Sector in Gujarat State - INDIA
National Horticulture Board (NHB) was set up by the Government of India in 1984. NHB
implements various schemes under overall supervision and guidance of the Board of
Directors of NHB as well as the Department of Agriculture & Co-operation, Ministry of
Agriculture, Govt. of India.
Website: http://www.nhb.gov.in/
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Netherlands Enterprise Agency | Cold Chain Logistic Sector in Gujarat State - INDIA
Gujarat is a state having 1600 KMs coastline located in west coast of India. The Arabian
Sea borders the state both to the west and the southwest. Gujarat is also a Gateway to
the rich land-locked Northern and Central Vicinity of the country.
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Netherlands Enterprise Agency | Cold Chain Logistic Sector in Gujarat State - INDIA
Gandhinagar, the capital city of Gujarat is located close to Ahmedabad, the commercial
capital. The state currently has 33 districts (248 talukas, 18,618 villages, 242 towns).
One of the reasons for good Infrastructure facilities in Gujarat is its flat landscape that
makes infrastructure development easy compared to other states of India.
Gujarat has population of approximately 60.3 million accounting for about 5% of the
India’s population. It accounts for 6% of land area of India and is India’s most
progressive States with a positive development quotient that has always capitalized on its
strength to leverage strategic opportunities. Its continued progress is based on business
friendly policies and proactive administration, which has led to the State being a preferred
investment destination. Gujarat is a strong Economy with the SDP rising at an average
growth rate of 10.1% since 2005 to 2013, more than the national average. Gujarat pays
a 27% tax of India. Gujarat achieved an annual growth rate of 9.51% during 2007-2012.
Gujarat is located on the western coast of India and has the longest coastline of 1,600 km
among all states in the country. The state shares its borders with Rajasthan, Madhya
Pradesh, Maharashtra and the Union Territories of Daman & Diu and Dadra & Nagar
Haveli. The Arabian Sea borders the state both to the west and the southwest.
Gujarat is one of the leading industrialized states in India. The state attracted cumulative
FDI worth US$ 11 billion from April 2000-March 2015 and is the second highest recipient
of FDI in India after Maharashtra. At current prices, Gujarat's gross state domestic
product (GSDP) was about US$ 142.38 billion over 2014-15. Average annual gross state
domestic product (GSDP) growth rate from 2004-05 to 2014-15 was about 12.11 per
cent.
Gujarat is considered the petroleum capital of India due to presence of large refining
capacity set up by private and public sector companies. The state is the world’s largest
producer of processed diamonds, accounting for 72 per cent of the world’s processed
diamond share and 80 per cent of India’s diamond exports. With a contribution of 65 to
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Netherlands Enterprise Agency | Cold Chain Logistic Sector in Gujarat State - INDIA
70 per cent to India’s denim production, Gujarat is the largest manufacturer of denim in
the country and the third largest in the world. Gujarat contributes around 19.1 per cent to
India’s total exports of goods in 2014-15.The state has excellent infrastructure as
compared to other states. There are 45 ports, 18 domestic airports and one international
airport. There are 106 product clusters and 60 notified special economic zones (SEZs).
Large-scale investment is expected in Gujarat as part of the US$ 90 billion Delhi-Mumbai
Industrial Corridor (DMIC).
Gujarat’s Industrial Policy, 2015, offers attractive incentives and concessions for
prospective investors.
Gujarat is one of India's most industrialised states in India, with an enviable track record
of attracting investments over the last decade to become the ‘most favoured investment
destination’ of Indian Republic. Gujarat has a variety of industries including engineering
and auto manufacturing, food and agri-business, textiles, gems and jewellery, mineral
and mining and ports and shipbuilding. Some of the other important industries in the
state include chemicals and petrochemicals, pharmaceuticals and tourism, with nearly 30
per cent of India’s petrochemicals business being conducted in Gujarat, while those of
chemicals and pharmaceuticals account for almost 50 per cent. Gujarat’s share in
manufacturing of soda ash, salt and caustic soda is around 90 per cent, 70 per cent and
20 per cent, respectively. Some of the Identified industrial projects in Gujarat are: Agro
Based & Food Processing Industry; Chemical & Petrochemicals; Information Technology;
Mineral-Based and Allied Industries; Plastic and Allied Industries; Port-Related Activities &
Infrastructure; Textile & Apparels Industry; Gems and Jewelry.
Indian Economy is expected to grow at the rate of 7.5% surpassing china in financial year
2015. Indian economy is being investment destination for foreign player and FDI in India
grew by 40% to reach 1760 Billion INR for the year 2014-2015.
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Netherlands Enterprise Agency | Cold Chain Logistic Sector in Gujarat State - INDIA
India’s biggest asset is huge size of its young and working population class. The
proportion of population in the working age-group 15-59 years is expected to rise from
57.7 per cent in 2001 to 64.3 per cent in 2026.
As per the report by United Nations published in November 2014 India has 356 million
people between ages of 10-24 years making it largest country in terms of young
population.
India has been ranked world’s No 1 investment destination by the World Bank, based on
baseline profitability ranking methodology.
The Netherlands Business Support Office (NBSO) in Ahmedabad supports trade and
investment of Dutch enterprises in Gujarat State in close cooperation between the
Embassy of The Netherlands in New Delhi. Gujarat and the Netherlands have a close
business relationship in Agriculture, Ports, Shipping & Logistics, Chemicals, Water & Life
Sciences & Healthcare, Minerals, etc.
Gujarat is the best Indian State to do business in, shows the World Bank’s ‘ease of doing
business’ ranking of the Country’s states. The State , which has topped the list with 71.14
per cent score.
The World Bank report, ‘Assessment of State Implementation of Business Reforms’, was
released in New Delhi on Monday 14th September, under the aegis of Confederation of
Indian Industry.
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This is a publication of:
Netherlands Enterprise Agency
Prinses Beatrixlaan 2
PO Box 93144 | 2509 AC The Hague
www.rvo.nl