Cold Chain Logistics India

Posted by Rahul on February 10th, 2018

The key Indian industries where cold chain logistics act very 'of import' role are fruits and vegetables, milk and milk products ( ice cream ) , Poultry and processed meat , marine products , pharmaceutic ( mainly vaccines ) and chemicals . An effective cold chain industry guarantees availability of food products as well as prevents spoilage of medicines . The growth in formed retail , turning interest in horticultural crops , demand for cold chain logistics from pharmaceutical industry and assorted initiatives by government are some of the reasons why there is a regenerated interest in this sector especially by private sector players .

Government initiatives , turning formed retail , pharmaceutic industry , horticultural produce and food processing would goad the demand for cold chain logistics in the coming years .

Private sector participation has increased in the cold chain industry to provide to the increasing demand for cold chain logistics . Harmonizing to recently printed report by TechSci Research “India Cold Chain Market Forecast and Opportunities , 2017” the cold chain market of India is expected to turn at the compounded one-year growth rate ( CAGR ) of 28 % during 2012-2017 , which will do it a whooping US $ 11.6 Billion ( Rs . The report includes metameric market projections and demand forecasting .

At the current capacity in India , only less than 11 % of what is produced can be stored . Often termed as the sunrise sector , cold chain logistics keep huge growth potential in India and there is a outstanding need to react to the eminent growth opportunities in the cold chain logistics sector , which identifies cold chain sector as a promising & moneymaking investment option . Initiatives to hike the cold chain infrastructure :

• 100 % FDI through government route

• Since 2011-12 cold chain has been given infrastructure status

• Viability gap funding up to 40 % of the cost

• 5 % concession on import duty , service tax exemption , strike duty exemption on respective items

• Subsidy of over 25 to 33.3 % on the cold storage project cost

• Establishment of National Centre for Cold Chain Development

• Proposed fiscal outplay for cold chain infrastructure & food parks of US $ 335 million and US $ 650 million respectively

• Over 50 to 70 % capital grant on projects .

Some other facts about Indian cold chain industry :

• Organized players lend only ~8 to 10 % of the cold chain industry market

• 36 % of these cold storages in India have capacity below 1,000 MT

• 65 % of India’s cold chain storage capacity is lent by the states of Uttar Pradesh and West Bengal

The expertise in supply chain management , warehousing , and other operations that a 3rd party logistics firm can proffer is of significant value to companies . Not only will the 3rd party logistics steadfast manage warehousing , transportation , and other operations more efficiently and with more expertise than the client would on their own , but the amount of capital necessitated to engage the 3rd party firm is generally less than would otherwise be necessitated for logistics operations . For many companies , the most effective and cost-efficient choice for supply chain management , warehousing , and other logistics operations , is to outsource those functions to a 3rd party logistics company .

A 3rd party logistics firm can proffer your company a number of cardinal services , including :

Logistics expertise

Network analysis

Mode and load network optimization

Cost containment strategization

Pulling off vendor compliance

Systems support