India’s cold chain industry to double in value by 2017

- While India is the second largest producer of fruits and vegetables in the world, the lack of cool rooms & refrigerated transport is causing more than 40% losses in annual produce
- India’s integrated cold chain industry, currently valued at INR 245 billion, is expected to reach INR 520 billion by 2017, growing at a CAGR of 20%
- With initiatives by the Indian government and a steep growth in the consumption of processed foods, cold chain logistics will witness huge growth in the coming years

While India is the second largest producer of fruits and vegetables in the world, the country’s integrated cold chain industry is nascent and is witnessing a wide demand-supply gap. Cold storages at production zones are archaic in nature. The lack of cool rooms and refrigerated transport is causing more than 40% losses in annual produce.

India’s integrated cold chain industry - a combination of surface storage and refrigerated transport - has been growing at ~18% for the last three years. The industry, currently valued at INR 245 billion (FY 2013), is expected to reach INR 520 billion by 2017, growing at a CAGR of 20%.

India has around ~5,400 cold storage units, but can only store less than 11% of the country’s total produce. While ~105mn MT of perishable produce is transported across India annually, only ~4mn MT is transported via reefers. To address the gap in demand and supply, the Indian government has introduced multiple initiatives - modernization of existing facilities, new ventures via private and government partnerships, etc.

The private sector accounts for 90% of cold storages in India. In 2017 too, private players will dominate the surface storage segment, which is estimated to reach ~95mn MT. Players such as Snowman Logistics Limited and Gubba Cold Storage have announced plans to increase their capacity.

Cold chain service providers across the globe and in India have been researching new technologies that will not only decrease their operational costs, but will also give them a competitive advantage over their peers in the industry. One of the focus areas is currently to make reefer trucks more energy efficient to withstand the variations in the ambient temperatures at drop-off points.

“Cold chain storages in India are still archaic in nature and are only suitable for single commodities like potatoes and apples in comparison to the global industry. But with new initiatives by the Indian government and a steep growth in the consumption of processed foods, cold chain logistics will witness huge growth in the coming years,” says Shilpa Eguvanti, Team Lead (Consulting) at ValueNotes.

The ValueNotes report, titled Integrated cold chain industry in India, 2013-2017, discusses the current scenario and future prospects of the integrated cold chain framework across multiple industry verticals, along with various government initiatives that are boosting the market in India.

To learn more about the report, follow this link - http://www.valuenotes.biz/knowledge-center/short-industry-reports/integrated-cold-chain-industry-india-2013-17/ - or contact media@valuenotes.co.in

About ValueNotes

ValueNotes is a leading provider of research-based business intelligence. Over the past decade, through our research products and research support services, we have helped organisations across diverse industries, markets and geographies in gaining competitive advantage. Our strong capabilities in collecting, interpreting and analysing data enable us to provide actionable intelligence to our client.
Research Services: we provide a wide range of bespoke business and financial research services about specific markets, industries, companies and competitive environments such as market segmentation/sizing, sector/industry reports, company reports/profiles, investment appraisal, due diligence, partner selection, competitive analysis, investor/user/buyer perception studies, desk research, news tracking
Information Products: we publish proprietary market intelligence on the (services) outsourcing industry – in BFSI, e-learning, engineering, healthcare, legal and publishing – with an emphasis on knowledge services or KPO.
Competitive Intelligence Consulting: with over a decade’s experience in conducting competitive intelligence (CI) and advising firms on their CI strategy, we are able to assist companies implement CI to gain a strategic advantage.
Learning & Development: a consolidation of our own experience of doing CI into a set of highly effective training programmes for corporate teams and individual practitioners.
IndiaNotes.com: India’s leading financial & equity research portal that provides an independent and unbiased aggregation of opinions, research, analysis and insights on the Indian financial markets.

For more information, visit www.valuenotes.co.in

ValueNotes Database Pvt Ltd
1 Bhuvaneshwar Society
Abhimanshree Road
Pashan, Pune 411 008
Maharashtra, India

This release was published on openPR.