The cold chain market in India is forecast to grow at a Compound Annual Growth Rate of 26.80% over the period 2014-2018, according to a latest report from Research and Markets. The cold chain industry in India was valued at Rs 24,500 crore (~$ 4 billion) in FY 2013 and has been growing at ~18% for the last three years. In its previous report, Research and Markets estimated that the industry will be worth approximately Rs 52,000 crore (~$ 10billion) by FY 2017, growing at CAGR of ~20%.
India is the second largest producer of fruits and vegetables (about 200million metric tonnes) but it has a very limited integrated cold-chain infrastructure, with only ~5,400 stand-alone cold storages having a total capacity of ~23.6million metric tonnes.
Surface storage warehousing in India has a capacity of around 23.6 million metric tonnes as of 2010, and private sector cold storages in the country accounts for a capacity of 22.24 million metric tonnes; cooperative sector for 1.88 million metric tonnes; while the public sector accounts for 0.47million metric tonnes and the surface storage in cold chain industry to reach 95 million metric tonnes (MT) by 2017.
The new initiatives announced during the Union Budget - modernization of existing facilities, new ventures via private and government partnerships, etc. – will boost the integrated cold chain industry in India. Besides change in lifestyle and demand for processed or packaged food is creating the need for cold storage solutions across India adds the report.
Some of the key players in Cold Chain Market in India include: Brahmanand Himghar, Dev Bhumi Cold Chain, Fresh and Healthy Enterprises, Gateway Distriparks, Gati, Amar Cold Storage, Gubba Cold Storage , M.J. Logistic Services, Radhakrishna Foodland, ColdEx , Coldstar Logistics, Future Supply Chain Solutions., OOCL Logistics India, XPS Cold Chain.
Commenting on the report, an analyst from the team said “The creation of a cold chain infrastructure is a capital-intensive project, which requires a substantial amount of investment. The investment risk is too large to be borne by any single player because of the low utilization of capacity in the initial phase. The participation of private players will scale up the investment required to set up cold storage facilities and government participation will enable the smooth and seamless setting up of cold chains. The Food Corporation of India is hiring cold storage warehouses from the private sector to address food wastage and the scarcity of cold storage. State initiatives are also adopting the Public Private Partnership (PPP) model. For instance, Karnataka has set up cold storage facilities by partnering with KAPPEC and Ken Agritech.”