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Cold chain market in India is $3 Bn and is estimated to be $8 Bn by 2015 Cold Storage logistics: Cold chains or refrigerated centres are essential for storage and distribution of perishable goods and temperature-sensitive pharmaceuticals and biological preparations and forms an integral part of their supply chain. The cold chain industry is estimated to be as large as Rs 10,000-15,000 crore, growing at 20-25 per cent and is expected to touch Rs 40,000 crore by 2015.Cold Storage industry in India is a little over hundred years old . A large percentage of cold storage facilities in India are under-utilized or completely unused for most of the year. The gap for stationary cold storage infrastructure is over 60% and a whopping 80% in mobile cold storage facilities like refrigerated trucks and rail wagons. In the next three years, the cold chain industry expects to see a huge capacity addition with cold storage investment expected to increase manifold. Current status of cold storages in India: India cold storage infrastructure was built way back in the mid '60s mainly for potatoes and potato seeds and there was no massive investments in cold storage. There is no nationwide provider of cold storage facilities. India has a total 5316 cold storages with a capacity of 23333694 MTs. Private sector cold storages in India account for 4820 with a capacity of 222343607MTs ,cooperative sector 363 numbers with 989445 MTs, Public sector account for 133 numbers worth a capacity of

100642 MTs. These cold storages mainly serve the potato products. There is a lack of facilities such as cold storage vegetable, cold storage fruits, cold storage tamarin, cold storage fish, cold storage meat, cold storage milk and diary products. The current cold chain capacity in the organised sector is around 60,000 tonnes and will grow almost 40 per cent by 2010. Cold storage services is available for only 10% of the produce. Transportation of fruit and vegetables through cold chain is almost negligible in India compared with 80-85% in the US or 30-40% in Thailand. The current inefficiencies in the supply chain lead to wastage of fruits and vegetables worth Rs 1 lakh crore annuallyCommodity wise distribution of major cold chains in India Commodity Percent of cold chains Potato 92.82 Multi purpose 7.63 Fruit & vegetable 1.07 Fish 0.73 Meat 0.15 Dairy & milk 0.68 Others 0.36 Cold chain in India -RealityAbsence of Modern Post Harvest Management Non-existence of World Class Integrated Cold Supply Chain Across the Country Isolated Stores without Logistics Support Users Currently Utilize Services of Cold Stores with Archaic Storage Technology Cold Stores used for low value products Mainly potatoes Loss of quality and hence value of the perishables Short duration storage dictated by market imbalancesIndia cold chains potential and opportunities: India is the second largest producer of fruits and vegetables in the world with 10% of the world's total fruit production India is the leading producer of fruits in the worldat 32 million tonnes (MT) annually, that translates into 8 per cent of global production; in vegetables, it is second in the world (after China), producing 71 MT per year, which gives the country a 15 per cent share of the world market. Food processing is a key area for India. India processes about 1.3% of its total fruits and vegetable as against 80% in USA, 70% in France, 80% in Malaysia and 30% in Thailand. India needs high quality cold chain to become top exporter and processor of fruits and vegetables. As high as 40 per cent of the fruits and vegetables grown in India (thats some 40 MTworth a staggering $13 billion) gets wasted because of lack of cold storage facilities and energy infrastructure. Indias waste is huge enough to feed countries like Brazil and Vietnam. The reason for this colossal wastage is the yawning gaps in the cold chain, or even the absence of a cold chain to preserve fruits and vegetables. Such infrastructure is virtually nonexistent, cold storage capacities are insufficient, cold storages in close proximity of farms dont exist, transportation is in efficient, and temperature-controlled transportation extremely rare. Establishing world class cold storage logistics, play a crucial role in turning around the global foods shortage by eliminating wastages, and be in a position to feed the world.Cold storage companies Leading Cold chain companies with established cold chain infrastructure in India are thee state-owned Container Corporation of India (Concor), R.K. Foodland, Refcon Carriers,

Indraprastha Cold Chain, Bulaki Deep Freeze, and Glacio Cold Chain. These existing players are expanding their capacities in a big way .Two majors names in the cold chain industry, Snowman and Kausar, have been bought over. Hyderabadheadquartered logistics player Gati acquired Kausar India, and transportation & logistics major Gateway Distiparks acquired a controlling stake in Snowman Frozen Foods.. The Future Group, meantime, has integrated backwardfrom food retailing to storage and transportationwith the launch of Future Logistics. XPS Cold Chain, a division of Transport Corporation of India , Container Corporation of India floated Fresh & Healthy Enterprise are also the leading cold chain logistic infrastructure companies.Investments Cold Chains is estimated to be $1.2 billions:In an attempt to leverage the retail boom, global giants, Indian corporates, airport infrastructure companies and the railways are planning to build refrigerated warehouses and perishable products cargo centres across the country. The total investment committed is already around $1.2 billion. Reliance Logistics, Future Group (which will use the network for its own retail business) and Kerala based Eastern Group are some of the Indian companies working on entering the sector. The Spire Groups joint venture with Apollo, called Apollo Everest Kool Solutions (Spire has a North American subsidiary called Everest Cold Storage), has plans to set up at least 15 temperature controlled warehouses in India starting 2008. Malaysian logistics giant Haisan Resources Berhad (Haisan) also plans to enter the business. Haisans wholly-owned subsidiary, IGLO International, has signed an agreement with the Beta Empire Group and Pace CFS for starting discussion on a possible joint venture to establish cold chain logistics operations in India. The Beta Empire Group is one of the largest food processing companies in South-East Asia while Pace CFS is already running a container freight station (CFS) in Kochi, Kerala. Reliance Logistics and Future Group, had firmed up plans to set up related infrastructure, including refrigerated transport vehicles, cold storage facilities and processing centres and cold containers mainly targeting milk products, meat products, fruits, vegetables, packed food items, beverages and biologicals.Cold storage warehouses in Airports Cochin International Airport, Mumbai International Airport, Delhi International Airport and greenfield international airport projects such as Bangalore and Hyderabad are also setting up refrigerated warehouses for perishable cargoes next to the airports. Cochin International Airport is building a state-of-the-art centre for perishable cargo, which can handle 40,000 million tonnes perishable cargo per year which will help the farmers of the state who are cultivating such products in and around the region.Cold chain equipments The major facilities /equipments required for integrated cold storage equipment logistics are refrigerated warehouse ,chilled stores for temporary storage, refrigerated trucks, refrigerated rail wagons, refrigerated container trains, refrigerated transport vehicle, cold chain containers, Cold stores, modified atmosphere stores/warehouses and controlled atmosphere stores for long term storage/warehouses, mobile pre cooling vans, The cold chain logistics is a highly capital-intensive industry with a large-size cold chain has a payback period of as high as five years. With a policy of 100%FDI in cold chains and 16% excise duty concessions for cold storage refrigeration equipments a number of foreign logistics cold storage equipment suppliers is expected to enter the Indian market. The top cold chain logistics equipment companies are GE Equipment Services for cold storage and transportation equipment, Spire Group Limited is a Toronto-headquartered corporation for its

refrigerated warehouses. Cold chain policy 100 per cent foreign direct investment allowed in the cold chain sector.Union Budget 2008-09 provides full excise duty exemption on cold chain refrigeration equipment (consisting of compressor, condenser units, evaporator) above 2 tonne refrigeration (TR) utilising power of 50 kw and above from excise duties.The above cold storage policy initiatives could encourage retailers to set up their own back-end logistics. It is effectively a 16% saving on the capital cost, which is substantial. With 100 per cent foreign direct investment being allowed by Indian Government in the cold chain sector with the infrastructure-status conferred upon it, there will be other multinationals (like Spire group) too who will be keen to get a slice of the Indian cold storage logistics market.IARW Global Top 25 List of public refrigerated warehouses Top refrigerated warehouse companies AmeriCold Logistics LLC, Canada, USA VersaCold (an Eimskip Company), Argentina, Australia, Canada, New Zealand, USA Millard Refrigerated Services, Canada, USA Swire Cold Storage, Australia Swire Cold Storage Vietnam, Vietnam United States Cold Storage, USA Preferred Freezer Services, USA, China, Vietnam Nichirei Logistics Group, Inc., Japan, Netherlands, Poland Burris Refrigerated Logistics, USA Interstate Warehousing, Inc., USA MUK Logistik GmbH, Germany Nordic Cold Storage, LLC, USA Inland Cold Storage, USA Cloverleaf Cold Storage Co., USA Total Logistic Control, LLC, USA Columbia Colstor, Inc., USA Gruppo Marconi Logistica Integrata, Italy Richmond Cold Storage Company, USA Frigoscandia Distribution AB, Denmark, Finland, Norway, Sweden Henningsen Cold Storage Co., USA Frialsa Frigorificos S.A. De C.V., Mexico Hanson Logistics, USA Oxford Logistics Group, Australia Terminal Freezers, Inc., USA Confederation Freezers, Canada Conestoga Cold Storage, Canada Congebec Logistics, Inc., Canada