Warehouses and Cold Chains in India

The report covers a brief picture of India’s logistics sector, and a detailed picture of the Indian warehouse and cold chain sector. It will focus on the various constituents of this space, the current state of infrastructure and taxation and regulatory issues that impact the sector. The report also seeks to highlight the key infrastructure and policy challenges that are faced by the industry.

The competitive landscape is focused on the major sector participants in terms of specialists and integrated third party logistics players. It also provides a brief overview of the major players that operate in the sector.

The report also covers some of the major drivers for the sector going forward and the outlook for the industry including changes in technology, impact of changes in related sectors such as retail, as well as government initiatives that will play a major role in shaping the future of the industry.

Executive Summary

Warehouse and Cold Chains are segments of the logistics sector that have surfaced as critical components of supply chain networks in India. The rapid evolution of organized retail in India along with the emerging large food processing sector has made modern and well developed warehousing and cold chain infrastructure indispensable for storage and transportation of perishable goods. India which is world’s largest producer of fruits and the second largest producer of vegetables does not have facilities for proper storage. Around 25 to 30 percent of fruits and vegetables get spoiled due to improper handling practices and inadequate storage infrastructure.

Organized retail in India grew from USD 16.99 billion in 2006–07 to USD 25.44 billion in 2007–08, a growth of 49.7 percent. According to the retail and fashion research firm, Images Multimedia, India’s organized retail market has the potential to reach USD 45 billion by 2010. Food retail is presenting the most significant growth opportunity for retailers. The development of a modern retail sector will necessitate streamlined supply networks with well developed storage infrastructure between the source and the end consumer. A number of large players are already investing huge sums to develop their supply chains, including a warehouse and cold chain network to ensure the preservation of produce from the farm till the plate. Pharmaceutical sector also depends upon cold chain networks for storage of biotech drugs and vaccines.

The traditional preference for fresh produce among Indians has been a hindrance to the growth of large storage capacities. Additionally, poor connectivity between the production and consumption centers and varied tax structures across the country has also prevented large scale investments in building a nationwide storage infrastructure.

However, the changing consumer trend towards convenience and processed foods indicate a future for greater storage capacities. In addition, introduction of Value added tax (VAT) and a potential shift to a national Goods and Services Tax are also likely to provide an impetus to the sector. Government of India (GoI) is also taking initiatives such as national highway development program and is partnering with Indian Railways to establish storage infrastructure.

Table of Content

• Overview of Global Logistics Industry

• Market Dynamics in India
1. Indian Logistics Industry
2. Warehouses
3. Cold Chains

• Catalyst Industries for Warehouses & Coldchains

• Opportunities and Challenges

• Technology in Warehousing Industry

• Competitive Landscape
1. Competitive Analysis
2. Major Players
3. Key Financial Ratios
4. Financial Analysis

• Industry Regulations & Taxation

• Porter’s Five Forces Model

• Future Outlook

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