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Supply Chain - India Allogistx International Inc. 2130 Huntington Drive suit 205 South Pasadena, CA 91030 Office: 323.254.9550 Fax:

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Presentation on theme: "Supply Chain - India Allogistx International Inc. 2130 Huntington Drive suit 205 South Pasadena, CA 91030 Office: 323.254.9550 Fax:"— Presentation transcript:

1 Supply Chain - India Allogistx International Inc. 2130 Huntington Drive suit 205 South Pasadena, CA 91030 info@Allogistx.com Office: 323.254.9550 Fax: 323.315.9311 Allogistx International Inc. India 124-A, Naman Plaza 1 st Floor, Behind Shoppers Stop, Kandivali (west) Mumbai, India 400 067 info@Allogistx.com

2 Agenda -Evolving Indian Economy - Changing Supply Chain Dynamics - New Growth Drivers - Supply Chain Challenge - Emerging Solutions & New Platforms 2

3 India is Growing! Source: Economist India will be the third largest economy by 2040 3

4 Urban Population Increasing Urban population projected to cross 500 million by 2025 - Cities are expanding Agro Enterprise Without Borders, Singapore, 2009 4

5 Food Consumption Increasing Food demand increasing - Quality preference increasing 5

6 Retail Sales Growing Retail sales cross US$ 900 billion by 2010 Agro Enterprise Without Borders, Singapore, 2009 6

7 Growth Drivers  Demographic advantage:  Young population  Credit availability  Increasing discretionary incomes  Increasing retail space 7

8 Challenges  Inefficient Supply Chain  Infrastructure  Low Technology Penetration  Food Safety  Unorganized sector  Bureaucracy Sanjeev AsthanaAgro Enterprise Without Borders, Singapore, 2009 8

9 Disjointed Food Supply Chain Village Commission Agent SubFarmer District Commission Agent Wholesaler Retailer Consumer Low yield / non-standard quality Farmer No control on quantity / quality of raw material Price de-linked from market Processor Unscientific and unhygienic handling Village Lack of infrastructure leading to loss of quality Commission Distributor Poor market access Agent Loss in trade passed onto farmer Lack of infrastructure leading Mandi / Local No infrastructure for handling/grading Retailer agents Price quality correlation not assured High prices Transportation Unscientific method leading to loss of quality /damages Consumer Limited choice Inadequate infrastructure Wholesale Rampant wastage Non value adding players Opportunistic profiteering Sanjeev AsthanaAgro Enterprise Without Borders, Singapore, 2009 9

10 Poor Supply chain Infrastructure Poor infrastructure facilities for  Storage  Transportation  Processing  Packaging  Distribution About 3,500 cold storages/warehouses  Only 13m tons of storage capacity for production or 140 mn tons of Fruits/Vegetables Sanjeev AsthanaAgro Enterprise Without Borders, Singapore, 2009 10

11 Supply Chain - High Costs Inefficiencies in Distribution Lack of cold chain and warehouse structure Logistics costs in India are among the highest Fragmented retail structure Supply Led Growth World: 72% India: < 1% More than 5 million retail outlets selling food products Limited focus on food safety and hygiene Limited choice to the consumer Low investment in quality control, product innovation, private labeling and market intelligence Agro Enterprise Without Borders, Singapore, 2009 11

12 Underdeveloped Processing Industry Fruits and vegetables Country% Processed Malaysia 83% 2-3% of produce is processed 8%-37% lost in storage and transportation South Africa 80% Phillipines 78% - Inadequate storage and cold chain Thailand 72% Brazil 70% USA 65% - Inadequate processing and marketing infrastructure India 2-3 % Grains 3% is lost in storage Opportunity Significant growth potential & a challenge Agro Enterprise Without Borders, Singapore, 2009 13

13 Way Forward Private-Public-People Partnership can be growth engines for Supply Chain *Have someone who is Local as well as Global help you realize these opportunities… Agro Enterprise Without Borders, Singapore, 2009 18

14 Thank You! Allogistx International Inc. 2130 Huntington Drive suit 205 South Pasadena, CA 91030 info@Allogistx.com Office: 323.254.9550 Fax: 323.315.9311 Allogistx International Inc. India 124-A, Naman Plaza 1 st Floor, Behind Shoppers Stop, Kandivali (west) Mumbai, India 400 067 info@Allogistx.com Thank You!


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