Temperature controlled Logistics India

Posted by Rahul on February 16th, 2018

Government initiatives, turning formed retail, pharmacy industry, horticultural produce, and food processing have a high demand for temperature-controlled logistics in India.

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

Private sector participation has increased in the temperature controlled industry to provide to the increasing demand for temperature-controlled logistics. According to a recently printed report by Techs Research “India Temperature controlled Market Forecast and Opportunities, 2017” the temperature controlled market of India is expected to turn at the compounded one-year growth rate ( CAGR ) of 28 % during 2012-2017, which will do it the whopping US $ 11.6 Billion (Rs. The report includes mesmeric 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, temperature controlled logistics keep huge growth potential in India and there is an outstanding need to react to the imminent growth opportunities in the temperature controlled logistics sector, which identifies the temperature controlled sector as a promising & moneymaking investment option. Initiatives to hike the temperature controlled infrastructure:

• 100 % FDI through government route

• Since 2011-12 temperature controlled 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 Temperature controlled Development

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.