Indian Cold Chain Logistics Market – Progress report till 2019-2021

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The Logistics Headlines, New Delhi, 21st Feb 2017: The Cold Chain Logistics market in India is estimated to grow at CAGR of 27% and expand at CAGR of 23.88% in value terms to 2019, as per a report published the last year. Given automation and improved mechanization in transportation and storing of products, the commodities can last longer under controlled temperature, reducing costs to refrigerate and distribute the products. PE Investment in Cold Chain Industry is one of the market trends.
What are the Market Drivers?
The Indian Cold Chain Industry which was stood at USD 4.7 Billion industry in 2013 is supposed to reach a market size of USD 13 Billion by 2017.
• The market drivers have been the entry of foreign insulation equipment manufacturers & refrigeration, private investments, and need of greater cold storage facilities and logistics, especially from the pharmaceutical industry.
• Allowance of 100% FDI has been enabled for the cold chain market in India along with several relaxations and financial incentives.
• There are highest number of cold storage facilities in Northern India because of a high yield of food crops in places like Haryana, Uttar Pradesh, Punjab, and Jammu & Kashmir (for fruits), Uttarakhand and Himachal.
What are the Market Challenges?
Presently, more than 3,500 companies operating are unorganized and fragmented in nature. But, organized players contribute 8%-10% to the cold chain supply base.
• High operation costs, lack of small size reefer vehicles for shipment from distributor to retailer, high ambient temperature.
• 5,381 cold chain storages in India contribute 95% of total storage capacity under private players.
• 36% of above mentioned cold storages in India have capacity below 1,000 MT.
• Unawareness on the significance of maintaining Cold chain services, poor road condition and high number of toll nakas.
Ways to develop end-to-end Chain Solutions for Application across Industries
• Standards & Protocols: The substantial improvement in cool chain supply management comes from introduction of processes for safety, handling, designing, operations for finishing of products and raw produce.
• Mobile Infrastructure: It includes pre-market and post-production stages, which are designed to meet the logistical load factors, as cold chain also extends to retail or point of sale for merchandise infrastructure. Static infrastructure on the other hand deals with storage and cross doc distribution hubs.
• Skilled Resources: There are efforts to skilled human resources for implementing the above-mentioned aspects in a cold chain and make use of advanced technology to ease the logistical business and supply chain management.
Scenario of Supply Chain Analytics Market in India
The Supply chain analytics market may emerge victorious from $2.5 billion in 2014 to $4.8 billion by 2019, at CAGR of 14.6% during the forecast period, in India. Globally, the supply chain analytics growth rate is fastest in the APAC, LA and MEA region because of the increasing awareness for benefits in supply chain analytics amidst the business organizations running in numerous verticals.
Faring of Global Cloud Supply Chain Management
The cloud supply chain management market size is expected to grow from USD 3.26 Billion in 2016 to USD 8.07 Billion by 2021, at a CAGR of 19.8%. The market drivers are: reduced operational costs, increased awareness on cloud- based SCM benefits for enterprises, better operational visibility for cloud SCM market, globally.
The APAC region is in the initial growth phase, but it is also the fastest-growing region in the global cloud SCM market. Because of greater spending on IT infrastructure, demand for automation processes, and rising cloud-based applications, in India- the nation is set to leverage its contribution in the cloud supply chain management market.
How to Recuperate Indian Cold Chain Supply Market?
The Government has already issues subsidy schemes and grants for cold chain development and infrastructure for transport and logistics sector. However, attempts have to be driven to allow multimodal chain links via highways and railways to fast track green corridors for perishables.
There must be a greater number of cold chain activities involving knowledge dissemination, exemptions from taxes on the sector if any, and bettering packaging, commodity handling, pre-cooling, transportation besides others.
Some of the Key Vendors apart from CONCOR subsiduary Fresh & Healthy are:
• Brahmanand Himghar
• Dev Bhumi Cold Chain
• Fresh and Healthy Enterprises
• Gati
• Snowman Logistics
• Amar Cold Storage
• ColdEx
• Coldstar Logistics
• Future Supply Chain Solutions
• Gubba Cold Storage
• MJ Logistic Services
• OOCL Logistics
• Radhakrishna Foodland Private
• XPS Cold Chain

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