Cold Chain, Temperature Controlled Supply Chain

The cold chain has become one of the most important supply chain practices in the world today especially because it is used in the pharmaceutical, food, chemical as well as in the floral industries. India has a huge opportunity to become a leading global food supplier if only it has the right marketing strategies and of course efficient supply & cold chains management. Cold chain is a logistic system that provides a series of facilities for maintaining ideal storage conditions for perishables from the point of origin to the point of consumption in the food supply chain. The chain needs to start at the farm level (e.g. harvest methods, Pre-cooling) and cover up to the consumer level or at least to the retail level. A well organized cold chain reduces spoilage, retains the quality of the harvested products and guarantees a cost efficient delivery to the consumer given adequate attention for customer service. The food supply chain is complex with perishable goods and numerous small stake holders.  The Indian cold chains market is largely untapped and lined by several players in the unorganized sector which clues for immense investment and development opportunities. It is at a threshold of exponential increase due to developments taking place in food and retail industry of India. Retail is India's largest industry, accounting for over 10 per cent of the country's GDP.  The businesses started with traditional corner stores andhave emerged tosupermarkets and modern retail stores.


The total cold chain market in India is worth Rs. 21,375 million, which is equivalent to US$ 475 million. Chiller Segment, which includes F & V pack houses, Potato, apple contributes Rs. 16050 million (US$ 357 Million) to the cold chain market. The profile for the cold chain unit is created as per requirement of the 3rd / 4th years. Optimum utilization starts in 5th year. Being capital intensive project key indicators considered on the 15th year operation. There were 66,765 refrigerators and freezers installed and operational in the country. The cold chain equipment in the country has been installed based on population density of each district. Out of total 66,765 equipment, 63,726 (95%) were placed in 20 larger states and rest of 5% equipment was installed in smaller states and Union Territories. We have realized that there is great amount of wastage happening in post Harvest activities. This wastage is being estimated at 25% of total produce or approx Rs.50000Cr US $10 Billion. Indian Agriculture sector accounts for 26% of country ‘s GDP, produces 64% employment and 18% of country’s exporter and second largest vegetable Exporter but Indian share is only 1% of world trade.


Ministry of Food Processing Industries through its Scheme for Cold Chain, Value Addition and Preservation Infrastructure is promoting integrated cold chain projects in the country with an aim to provide integrated and complete cold chain and preservation infrastructure facilities without any break, from the farm gate to the Consumer, Enable linking of groups of producers to the processors and market through well equipped supply chain, establish value addition with infrastructural facilities like sorting, grading, packaging and processing for horticulture including organic produce, marine, dairy, poultry, etc.

The Scheme aims to establish value addition with infrastructural facilities like sorting, grading, storing, associated processing and packaging for a variety of products such as fruit and vegetable, marine, dairy, poultry, etc. The assistance under the Scheme includes financial assistance (grant-in-aid) of 50% the total cost of plant and machinery and technical civil works in General areas and 75% for NE region and difficult areas (North East including Sikkim and J&K, Himachal Pradesh and Uttarakhand) subject to a maximum of Rs 10 Crore.

India may lag behind the developed countries in cold chain infrastructure, but the new-found focus will allow it to pick up the best from the West. There’s scope to bring down inefficiencies in a big way. For instance, cold chain utilization is just 10 per cent in India, and 25 per cent in China, as against 80-90 per cent in developed countries. Losses, too, are lower in the West, at just 5 per cent, as against 35-40 per cent in India and China. However, there’s a long way to go before India can match up to those high standards. The cold chain industry itself 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.

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Cold Chain

Cold chain is the supply and distribution of commodities that must be kept within a defined temperature range throughout the shipping and storage cycle and the management of that cycle. It is used to help extend and ensure the shelf life of products such as fresh agricultural produce, seafood, frozen food, photographic film, chemicals and pharmaceutical drugs. A streamlined, well maintained cold chain helps to reduce costs, improve product integrity, increase customer satisfaction and reduce wastage and returns of expired stock. The a wide range of equipments of cold chain are Pre cooling Machine, Cold storage, Blast Freezer & Chiller, Hydro cooler Machine and IQF Equipments. A cold chain is an essential component of post harvesting and provides a complete series of storage facilities while maintaining a coherent environment. Government is promoting integrated cold chain projects in the country with an aim to provide integrated and complete cold chain and preservation infrastructure facilities. Cold chain facilities are limited and the focus of the recent budget on bringing in more investment will boost this sector.
Plant capacity: -Plant & machinery: -
Working capital: -T.C.I: o
Return: 0.01%Break even: N/A
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COLD CHAIN

PRODUCT PROFILE Cold chain has become one of the most important supply chain practices in the world today especially because it is used in the pharmaceutical, food, chemical as well as in the floral industries. Cold chain is a logistic system that provides a series of facilities for maintaining ideal storage conditions for perishables from the point of origin to the point of consumption in the food supply chain. The chain needs to start at the farm level (e.g. harvest methods, Pre cooling) and cover up to the consumer level or at least to the retail level. A well organized cold chain reduces spoilage, retains the quality of the harvested products and guarantees a cost efficient delivery to the consumer given adequate attention for customer service. The food supply chain is complex with perishable goods and numerous small stake holders. The Indian cold chains market is largely untapped and lined by several players in the unorganized sector which clues for immense investment and development opportunities. It is at a threshold of exponential increase due to developments taking place in food and retail industry of India. Cold chain application Increased shelf life: • Precooling • Chilled storage • Freezing and frozen storage • Transport refrigeration Cold chain can add value by: • Reducing losses • Reducing cost • Expanding markets • Extending time to sell • Extending shell life • Permitting aggregation to commercial quantities • Changing forms Global Market India has a huge opportunity to become a leading global food supplier if only it has the right marketing strategies and of course efficient supply & cold chains management. Retail is India's largest industry, accounting for over 10 per cent of the country's GDP. The businesses started with traditional corner stores and have emerged to supermarkets and modern retail stores. The total cold chain market in India is worth Rs. 21,375 million, which is equivalent to US$ 475 million. Chiller Segment, which includes F & V pack houses, contributes Rs. 16050 million (US$ 357 Million) to the cold chain market. The profile for the cold chain unit is created as per requirement of the 3rd / 4th years. Optimum utilization starts in 5th year. Being capital intensive project key indicators considered on the 15th year operation. There were 66,765 refrigerators and freezers installed and operational in the country. The cold chain equipment in the country has been installed based on population density of each district. Out of total 66,765 equipment, 63,726 (95%) were placed in 20 larger states and rest of 5% equipment was installed in smaller states and Union Territories. Ministry of Food Processing Industries through its Scheme for Cold Chain, Value Addition and Preservation Infrastructure is promoting integrated cold chain projects in the country with an aim to provide integrated and complete cold chain and preservation infrastructure facilities without any break, from the farm gate to the consumer, enable linking of groups of producers to the processors and market through well equipped supply chain, establish value addition with infrastructural facilities like sorting, grading, packaging and processing for horticulture including organic produce, marine, dairy, poultry, etc. The cold chain industry itself is estimated to be as large as Rs 10,000 to 15,000 crore, growing at 20 to 25 per cent and is expected to touch Rs 40,000 crore by 2015.
Plant capacity: 6050 T/APlant & machinery: 1214 Lakhs
Working capital: -T.C.I: Cost of the project: 3770 Lakhs
Return: 19.39%Break even: 39.62%
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Market Research Report on Cold Chain Logistics in India (Cold Storage and Reefers)- Present Scenario, Future Prospects, Market Potential, Opportunities, Growth Drivers, Industry Size, Analysis & Forecasts Upto 2017

Cold chain sector in India is gaining ground with greater government thrust on reducing food wastage and has a bright future ahead of itself. Gauging the market prospects of the sector, Niir Project Consultancy Services has published a new report titled ‘Market Research Report on Cold Chain Logistics in India (Cold Storage and Reefers)- Present Scenario, Future Prospects, Market Potential, Opportunities, Growth Drivers, Industry Size, Analysis & Forecasts Upto 2017’ giving valuable insights into the sector and illuminating the roadmap to its growth. The report scrutinizes the integrated cold chain sector in various lights to provide data bites on areas like the present scenario, value drivers of the industry, future prospects, challenges faced by the industry, demand-supply scenario, porter’s 5 force analysis and information on key players operating in the industry. The report begins by sharing the very basic information about the industry like its definition, components, structure and user industries. It elaborates on the above mentioned points with the aim of enhancing the basic industry knowledge of the reader. After that it proceeds to elaborate on the value drivers that will contribute to the growth of the sector. Indian cold chain industry will be driven by the resurgence of user industries primarily coupled with escalating government support and emergence of the organized retail sector in the industry. The above mentioned data is meticulously expounded and supported by graphical representation and forecasts of key indicators. Now to deepen the analysis on the growth prospects of the industry, the report discusses opportunities existing in the country for the sector. The favorable Indian demographical situation, rising incomes and urbanization are some apparent opportunities for the cold chain players. Additionally rising food expenditure by Indians and governmental focus on effective healthcare and nutrition will keep the industry buoyant. However the industry faces some impediments in the form of weak infrastructure and power and land sourcing issues. Opportunities outweigh the challenges faced by the industry and hence it has ample fuel to last its growth drive in the nation. The market potential of the cold chain sector in India is captured, in the report, by analyzing the demand and supply situation of cold chains in India. The cold chain facilities in India are utilized by industries like processed food, dairy, meat & poultry, horticulture and food service industry. The production numbers of the mentioned user industries is a reliable way of demand assessment. The report also includes key forecasts of user industry’s production data. Similarly supply side of the cold chain industry is netted by the number of cold storages, with existing capacities, operating in the industry and the data about cold chain projects set up under various government schemes. Moving forward, the report analyzes the attractiveness of the sector by evaluating the status of porters 5 forces prevalent in the sector. Any sector is said to be most attractive when the 5 forces are at their weakest and the report explicates the forces methodically to simplify the analysis. Lastly to conclude the analysis, the report shares company information on key players like Kausar India Ltd, Snowman Logistics Ltd and Fresh & Healthy Enterprises Ltd. The next segment provides complete financial details of cold chain players in the country. It covers contact information like address of registered office, director’s name and financial comparison covering balance sheet, profit & loss account and several financial ratios of the players. The report ends with a promising outlook of the sector. Indian cold chain sector has bright future ahead of itself with the much revered governmental support and changing consumer dynamics. Indian market is evolving with changing lifestyles, rising urbanization and growing disposable incomes which will be the key benefactors of growth in cold chain user industries like Food service industry, processed food industry and organized retail industry. Additionally mounting government endeavors towards reducing food wastage and penetrating healthcare in deep corners of the country will help in strengthening cold chain infrastructure in India. The cold chain sector in India is still in the nascent stage with enormous growth potential on the back of climatic diversification and geographically vast size of the country. Indian cold chain sector was estimated to be at INR 245 billion in 2013 and we anticipate it to cross INR 600 billion mark in the next 4 years. Reasons for Buying this Report: • This research report helps you get a detail picture of the industry by providing overview of the industry along with the market definition, structure and its components • The report provides in-depth market analysis covering major growth driving factors for the industry and opportunities & challenges prevalent • This report helps to understand the present status of the industry by elucidating a comprehensive porter 5 force analysis and scrutiny of the demand – supply situation • Report provides analysis and in-depth financial comparison of major players/competitors • The report provides forecasts of key parameters which helps to anticipate the industry performance Our Approach: • Our research reports broadly cover Indian markets, present analysis, outlook and forecast for a period of five years. • The market forecasts are developed on the basis of secondary research and are cross-validated through interactions with the industry players • We use reliable sources of information and databases. And information from such sources is processed by us and included in the report Table of Contents 1 OVERVIEW 1.1 Definition 1.2 Components 1.3 Structure 1.4 Segmentation 2 GROWTH DRIVERS 2.1 Growth in User Industries 2.1.1 QSR industry 2.1.2 Pharmaceutical Industry 2.1.3 Processed Food Industry 2.2 Growing Organized Retail 2.3 Need for Reducing Food Wastage 2.4 Government Support 3 OPPORTUNITIES & CHALLENGES 3.1 Opportunities 3.1.1 Growing Affordability 3.1.2 Evolving Demographics 3.1.3 FDI in Retail 3.1.4 Government Focus on Food Preservation and Healthcare 3.1.5 Rising Food Expenditure 3.2 Challenges 3.2.1 Technological Obsolescence 3.2.2 Weak Infrastructure 4 DEMAND-SUPPLY ANALYSIS 4.1 Demand Analysis 4.2 Supply Analysis 5 PORTER’S 5 FORCE ANALYSIS 5.1 Bargaining Power of Buyers 5.2 Bargaining Power of Suppliers 5.3 Threat of Substitutes 5.4 Rivalry among Existing Players 5.5 Threat of New Entrants 6 KEY PLAYERS 6.1 Company Profiles 6.1.1 Kausar India Ltd 6.1.2 Snowman Logistics Ltd 6.1.3 Fresh & Healthy Enterprises Ltd 6.2 Key Player Financials 6.2.1 Contact Details 6.2.1.1 Registered Office Address 6.2.1.2 Director’s Name 6.2.2 Financial Comparison 6.2.2.1 Income & Expenditure 6.2.2.2 Growth in Income & Expenditure 6.2.2.3 Assets 6.2.2.4 Liabilities 6.2.2.5 Structure of Assets & Liabilities 6.2.2.6 Growth in Assets & Liabilities 6.2.2.7 Cash Flow 6.2.2.8 Liquidity Ratios 6.2.2.9 Profitability Ratios 6.2.2.10 Return Ratios 6.2.2.11 Working Capital & Turnover Ratios 7 MARKET SIZE & OUTLOOK 8 ABOUT NPCS 9 DISCLAIMER List of Figures & Tables Figure 1 Cold Chain Figuration Figure 2 Key Steps Involved in a Cold Chain Figure 3 Indian Cold Chain Industry- Components Figure 4 Indian Cold Chain Industry- User Segments Figure 5 Indian Cold Chain Industry- User Industries Figure 6 QSR Industry in India- Market Size (2011-17, In USD Billions) Figure 7 Indian Pharmaceutical Industry- Market Size (2012-17, In INR Billions) Figure 8 Cold Storage Capacity (As a % of Total Food Production) Figure 9 Food Retail Industry- Structure Figure 10 Food Wastage in India across Various Categories (As a % of Total Production) Figure 11 India's Annual Per Capita Income (2008-14, In INR) Figure 12 Indian Middle Class Population (Current-2026) Figure 13 Indian Population Distribution by Age Figure 14 Indian Population- Rural & Urban (In Crores) Figure 15 Share of Food Expenditure in Total Household Expenditure Figure 16 Production of Fruits & Vegetables in India (FY10-17, In Million Tonnes) Figure 17 Milk Production in India (FY09-17, In Million Tonnes) Figure 18 Sectors Served by TCV- By Volume Figure 19 Meat Production in India (2008-14, In Million Tonnes) Figure 20 Cold Storage Capacity in India (2007-17, In Million Tonnes) Figure 21 Number of Cold Storages in India (2007-12, In Units) Figure 22 Region-wise Capacity Distribution of Cold Storages in India Figure 23 Indian Cold Chain Industry- Market Size (2009-17, In INR Billions) Table 1 Level of Food Processing Over Various Food Segments Table 2 Presence of Key Food Retailers in India- Total Stores Table 3 State-wise Meat Production in India (2008-14, In '000 Tonnes) Table 4 Selected State-wise Establishment of Cold Storage under Agricultural Cooperatives (NHM, NHB and HMNEH Schemes) in India Table 5 Selected State-wise Number of Cold Chain Projects Assisted under Scheme for Cold Chain, Value Addition and Preservation Infrastructure in India Table 6 Selected State-wise Number of Cold Storages and Capacity Set up for Fisheries in India Table 7 Bargaining Power of Buyers Table 8 Bargaining Power of Suppliers Table 9 Threat of Substitutes Table 10 Rivalry among Existing Players Table 11 Threat of New Entrants Table 12 Kausar India Ltd- Financial Summary (2010-12, In INR Millions) Table 13 Snowman Logistics Ltd- Financial Summary (2010-12, In INR Millions) Table 14 Fresh & Healthy Enterprises Ltd- Financial Summary (2011-13, In INR Millions)
Plant capacity: -Plant & machinery: -
Working capital: -T.C.I: -
Return: 1.00%Break even: 1.00%
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India Emerging Business Opportunities: Cold Chain Sector (Why to Invest, Project Potential, Core Financials, Market Size & Industry Analysis)

Often termed as the sunrise sector, cold chain logistics hold immense growth potential in India. Rising Indian Population, mounting consumer incomes and changing preferences have led to increased focus on food security and health services. The demand for processed food has also risen sharply necessitating the support from efficient cold chain logistics of the country. Responding to the high growth opportunities in the cold chain logistics sector, Niir Project Consultancy Services has released a new research report titled ‘India Emerging Business Opportunities: Cold Chain Sector (Why to Invest, Project Potential, Core Financials, Market Size & Industry Analysis)’ which identifies cold chain sector as a promising & lucrative investment option. The report classifies the sector after scrutinizing the various aspects like value drivers of the sector, the regulatory environment and prevalent subsidies, potential buyers, present players and the project details. While expanding a current business or while venturing into new business, entrepreneurs are often faced with the dilemma of zeroing in on a suitable product/line. And before diversifying/venturing into any product, they wish to study the following aspects of the identified product: • Good Present/Future Demand • Export-Import Market Potential • Raw Material & Manpower Availability • Project Costs and Payback Period We at NPCS, through our reliable expertise in the project consultancy and market research field, have identified cold chain project which satisfies all the above mentioned requirements and has high growth potential in the Indian markets. The report, at first, discusses the present scenario and components of the industry as a whole covering the structure, segmentation and components. And then moves on to elaborately illustrate the factors that make case for investing in the sector. Industries like organized food retail and QSR (Quick Service Restaurants) owe much of their growth to the cold chain sector. An effective cold chain infrastructure forms the very backbone of the food industry in India. In the view of rising population and appalling healthcare status, ensuring food security to every Indian and easy availability of medicines has scored as a top priority in government agenda. The sector has effervescent future with the much revered government backing, apparent growth in user industries and favorable demographics of the country. Elaborating on the government support, the report disseminates information on various subsidies and government schemes applicable for cold chain development in the country followed by the outlook of the sector. The report further navigates through the key player information of the sector. It includes company profiles of players like Kausar India, Snowman Logistics and Fresh & healthy Enterprises along with a snapshot of their financials and contact details of other players as well. Now, the part which forms the core of the report is the ‘Project Details’ segment. It includes project details like list of machinery and basic project financials. Project financials like plant capacity, costs involved in setting up of project, working capital requirements, projected revenue and profit are listed in the report. Indian market is evolving with changing lifestyles, rising urbanization and growing disposable incomes which will be the key benefactors of growth in cold chain user industries like Food service industry, processed food industry and organized retail industry. Additionally mounting government endeavors towards reducing food wastage and penetrating healthcare in deep corners of the country will help in strengthening cold chain infrastructure in India. The cold chain sector in India is still in the nascent stage with enormous growth potential on the back of climatic diversification and geographically vast size of the country. Indian cold chain sector was estimated to be at INR 245 billion in 2013 and we anticipate it to cross INR 600 billion mark in the next 4 years. Reasons for buying the report: • This report helps you to identify a profitable project for investing or diversifying into by throwing light to crucial areas like industry size, market potential of the product and reasons for investing in the product • This report provides vital information on the product like its definition, characteristics and segmentation • This report helps you market and place the product correctly by identifying the target customer group of the product • This report helps you understand the viability of the project by disclosing details like machinery required, project costs and snapshot of other project financials • The report provides a glimpse of important subsidies applicable on the industry • The report provides forecasts of key parameters which helps to anticipate the industry performance and make sound business decisions Our Approach: • Our research reports broadly cover Indian markets, present analysis, outlook and forecast for a period of five years. • The market forecasts are developed on the basis of secondary research and are cross-validated through interactions with the industry players • We use reliable sources of information and databases. And information from such sources is processed by us and included in the report Table of Contents 1 OVERVIEW 1.1 Definition 1.2 Components 1.3 Structure 1.4 Segmentation 2 POTENTIAL BUYERS 3 REASONS FOR INVESTING 3.1 Expanding Organized Retail 3.2 High Food Wastage 3.3 Numerous User Industries 3.3.1 QSR industry 3.3.2 Pharmaceutical Industry 3.3.3 Processed Food Industry 3.4 Government Support 3.5 Favorable Demographics 3.6 Growing Affordability 4 REGULATORY ENVIRONMENT 4.1 Subsidies & Incentives for Investment in Cold Chains 4.2 Government Schemes & Benefits 5 PRESENT PLAYERS 5.1 Company Profiles 5.1.1 Kausar India Ltd 5.1.2 Snowman Logistics Ltd 5.1.3 Fresh & Healthy Enterprises Ltd 5.2 Contact Details 7 OUTLOOK 8 PROJECT DETAILS 8.1 List of Machinery 8.2 Project Financials 9 ABOUT NPCS 10 DISCLAIMER List of Figures & Tables Figure 1 Cold Chain Figuration Figure 2 Key Steps Involved in a Cold Chain Figure 3 Indian Cold Chain Industry- Components Figure 4 Indian Cold Chain Industry- User Segments Figure 5 Indian Cold Chain Industry- User Industries Figure 6 Indian Food Retail Industry- Structure Figure 7 Food Wastage in India across Various Categories (As a % of Total Production) Figure 8 QSR Industry in India- Market Size (2011-17, In USD Billions) Figure 9 Indian Pharmaceutical Industry- Market Size (2012-17, In INR Billions) Figure 10 Cold Storage Capacity (As a % of Total Food Production) Figure 11 Indian Population Distribution by Age Figure 12 Indian Population- Rural & Urban (In Crores) Figure 13 India's Annual Per Capita Income (2008-14, In INR) Figure 14 Indian Middle Class Population (Current-2026) Figure 15 Indian Cold Chain Industry- Market Size (2009-17, In INR Billions) Table 1 Presence of Key Food Retailers in India- Total Stores Table 2 Level of Food Processing Over Various Food Segments Table 3 Kausar India Ltd- Financial Summary (2010-12, In INR Millions) Table 4 Snowman Logistics Ltd- Financial Summary (2010-12, In INR Millions) Table 5 Fresh & Healthy Enterprises Ltd- Financial Summary (2011-13, In INR Millions) Table 6 Contact Details of Key Players in Cold Chain Segment Table 7 Cold Storage- List of Machinery Table 8 Cold Chain Plant- Capacity Table 9 Cold Chain Plant- Fixed Capital Requirements Table 10 Cold Chain Plant- Monthly Working Capital Requirements Table 11 Cold Chain Plant- Total Cost of Project Table 12 Cold Chain Plant- 5 Year Profit Analysis (INR Million)
Plant capacity: -Plant & machinery: -
Working capital: -T.C.I: -
Return: 1.00%Break even: N/A
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  • One Lac / Lakh / Lakhs is equivalent to one hundred thousand (100,000)
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  • T.C.I is Total Capital Investment
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