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Global Cold Chain Logistics Market

By Value
In USD Billion
[CAGR 5.6%] [CAGR 7.9%] 109 118 127 137

Growth Drivers:148

Increasing globalization of food industry

101 86 90 94

Global efforts towards sustainable growth

Increasing economies contribution of emerging

2009

2010

2011

2012E

2013F

2014F

2015F

2016F

2017F

Changing consumer taste and preferences.

Top Five Nations on The Basis of Cold Storage Space Growth During 1998-2010
11 10 9 CAGR% 8 7 6 5 4 3 0 1 2 Rank 3 4 5
Source: IARW

India

Ireland

Major International Players

Germany Costa Rica

Americold, Swire Cold, Preferred Freezer Services, Nichirei Logistics Group, Partner
Brazil

Logistics etc.

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India Cold Chain Market Scenario

Projected Growth of India Cold Chain Market In INR Billion
640

NRHMs 11% allocation of worlds total vegetables has been proposed to be

increased to USD 3.7 Billion in from production is accounted by2012-13 India alone USD 3.23 Billion in 2011-12 but Indias share in global vegetable

[CAGR 21.1%] [CAGR 28.3%]

100 per cent FDI is permitted for health and medical services under the automatic route.

trade is only 1.7%.

127 Million Tonnes

of milk was produced

400

in 2011-12, but cold storage capacity is only available for 70,000-80,000 Tonnes of milk.

236

20%-30% of fish production

annually wasted in India.

is

139
119 102

~25,000
houses are

unregistered present in

slaughter which

India,

generally lacks chilling facilities.

2009 2010 2011 2013F 2015F 2017F

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Temperature Controlled Vehicles Market

By Value
INR Billion
[CAGR 16.3%] [CAGR 20.1%] 9.1 4.6 5.3 6.3 7.6 13.2 11.0 15.8

Mostly operated by small & non integrated firms.

30,000+ refrigerated vehicles are

plying in India.

4.0

2009 2010 2011 2012E

2013F

2014F

2015F

2016F

2017F

25,000 of refrigerated vehicles are

utilized for milk and milk products transportation.

By Volume
In Thousand Units
47.3 39.4 27.4 43.2 36.0 51.8

The high cost of transportation is a major challenge for refrigerated vehicles market.

30.0

32.9

Growth Drivers: Meat products

export , Rising demand of confectionary, Frozen food etc.
TechSci Research 4

2010

2011

2012E

2013F

2014F

2015F

2016F

2017F

Refrigerated Vehicles Demand By Verticals

By Sector, By Volume 2011 1% 4% 4% 80% 2017(Estimated)

Milk & Products Meat

72% 13% 6% 5%

Pharma
11%

Confectionary Others

4%

Increasing demand for milk and milk products from every corner of the country

High meat export demand from Middle Eastern countries

Increasing focus on supply chain in Pharmaceutical sector

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India Temperature Controlled Warehouse Market

Projected Growth of India Cold Chain Market
[CAGR 26%]
700

[CAGR 13.4%] 47
624 50

95% of total storage capacity is under

private players.

600

42 37

45

36%+ of the total cold storages in India

have capacity below 1000 MT.

40 497 35

500

33 29

5381+ number of total cold chain

storages in India. Major contributor in the revenues of cold chain industry of India.

400

26 23

389

30

25 298 20 228 175 15

300

20 17

200 115 134

10 5

Growth Driver: Growth in Organized

Retail & Food Service Industry, Governments initiatives, Rising export demand for processed & frozen food.

100

98

0 2009 2010 2011 2012E 2013F 2014F 2015F 2016F 2017F

INR Billion

Million Tonnes

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Regional Distribution of Cold Storage

share

of

Indias

cold &

chain West

65%

storage capacity is contributed by Uttar Pradesh

Uttar Pradesh(41.4%) Punjab (5.5%)

Bihar(4.7%)

Bengal.

2nd

AP In Fish Production with 13.5 LT

Madhya Pradesh(3.3%)

-ASSOCHAM

Gujarat(5.2%)

1st
1st 2nd

AP In Tomato Production with 5.9 LT -NHB AP In Papaya Production with 1.1 LT

Maharashtra (2.2%)

West Bengal (23.2%) Andhra Pradesh(3.7%)

Karnataka(1.7%)

~10 Lakh Tonnes

AP In Mango Production with 3.3 LT -NHB

Source: Directorate of Marketing & Inspection

LT Lakh tonnes
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Cold Storage Price-Volume Analysis

By Volume By Value 20.00% 54.00% Multi Purpose 75.40% 23.10% Fruits & Vegetables Meat and Fish 0.30%, 0.40% 0.80%, 6.00% Milk and products 12.00% 8.00%

Potatoes

Huge Variation in the share of potatoes storage capacity and revenues generation.

Share of multi purpose cold storages is low in storage capacity but high in revenues
generation. Growing focus towards the multi-purpose cold storages.
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Government Initiatives

100% FDI

FDI allowed through automatic route

Infrastructure Status

Since 2011-12, cold chain has been given the infrastructure status .

Viability Gap Funding

Up to 40% of the cost

5% concession on import duty, service tax exemption, excise duty

Monetary & Tax Benefits

exemption on several items. Subsidy of over 25% to 33.3% on the cold storage project cost.

Establishment of National Centre for Cold Chain Development

Growing Emphasis On Food Parks & Integrated Cold Chain Development

Established in 2011, to look infrastructure

into matters

related to

cold chain

Proposed financial outplay for cold chain infrastructure & food parks of around INR 1,675 Crore & INR 3,250 Crore respectively. Over 50%-70% capital grant on projects. 9

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