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Cold Chain Infrastructure & Financing 13 December, 2014, ASSOCHAM, Hyderabad.

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Presentation on theme: "Cold Chain Infrastructure & Financing 13 December, 2014, ASSOCHAM, Hyderabad."— Presentation transcript:

1 Cold Chain Infrastructure & Financing 13 December, 2014, ASSOCHAM, Hyderabad

2 Opportunity Dairy ($25 billion) Agriculture ($12 billion) Meat ($10 billion) Healthcare ($6 billion) Fruit pulp & concentrates ($1 billion) Bakery & processed food ($1 billion) Chocolate & ice cream ($ 1 billion) Expected: FY 14 - 15 1. YoY expected growth till 2020: 12% 2. High wastage and tightening of regulations: Farm level wastage in agri. Regulations for meat, diary and healthcare getting tighter not only in US & EU but also in Middle East & N America. 3. Growth beyond metros – quality of lifestyle and higher growth in tier 2, 3 & 4 cities (Emerging cities) apart from the high single digit growth in metros. 4. Government policies and overall support mechanism – subsidies, tax holidays and NCCD.

3 1. Limited or non existence of integrated credible service providers. 1 player offering warehousing, transportation (FTL & LTL), within city distribution, portable cold storage, air freight, etc. 2. Capacity and capability in emerging cities and towns. 3. High cost: Most operate on cost + model, no reverse engineering. 4. Environment: No carbon emission understanding or reduction programmes. 5. Information flow: Lack of real time visibility. 1. Consolidation and expansion: Consolidated between organized and unorganized. Not competing instead complementing each other. 2. Innovation and infra development. LTL, dedicated milk runs, world class warehouses, etc 3. Increased competition. Forcing service providers to work on cost reduction and ancillary revenue. 4. Go green initiatives: Going paperless, newer trucks that emit less, solar energy for warehouses, etc. 5. Technology: Tech start ups specifically focused on logistics & SCM. Trend (Challenges & opportunities)

4 Innovations (Portable cold storage – Arctic Store) Internal door release Sliding air curtains Internal lighting Flat floor with ramp secured for transport One hand easy to operate doors Features of portable cold storage Actual images of Arctic Store. 1. Available in 10', 20' and 40' lengths Perfect for short, medium & long term storage use. 2. From -40 o C to + 60 o C. 3. Modern, power efficient & highly effective machinery with reduced DB emissions & low power consumption. 4. Delivered with in built data logger & power lead.

5 Innovations (Portable cold storage – Arctic SuperStore) 1. Can be set up in 1/3 rd time required for a brick and mortar cold storage warehouse. 2. No regulatory hurdles. 3. No CAPEX involved, good for short, medium and long term. 4. Can be dismantled easily after application is over. 5. Can be fruitful for tier 2 & 3 cities apart from villages. 6. Easy & reliable to set up.

6 Innovations (Reefer container generator set, known as CLIP ON GEN SETS ) 1.Gen sets are to be attached to containers when electrical points are not available – good for rail application in India. 2.From +25 to - 25 C degrees. 3.Can provide temp regulation up to 9 days. 4.Reliable, easy to use and effective.

7 Evolution (Cold Chain Warehousing ) STATE OF ART, AUTOMATED, STRATEGICALLY LOCATED COLD CHAIN warehouses cropping across the country not only for the niche healthcare segment but also for agri and related sectors with a lot of knowledge transfer from the world over. Actual images of Crystal warehouse in Kolkata. GDP & TAPA (Transportation Asset Protection Association) certified facilities Subsidies and tax exemptions or holidays on cold storages Entry of global players though focused on niche segment for now Interest taken by global retailers and fast food giants at a farm level Steps in the right direction

8 Finance for Infrastructure A Large market for food and pharma the 2 basic need of humans. Only 11% is Stored of what is produced. Transportation is 88% and Cold Storage forms 12% of the Total. Required huge Capex as Infrastructure projects with long term gestation with relaxation on Collateral. High borrowing cost.

9 THANK YOU


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