Cold

Logistics
Chain

Sector Analysis Nov-Dec, 2011

Rishab Sapra & Shridhar Joshi

Cold Chain
Logistics

Sector Analysis by
Rishab Sapra
rishabsapra@gmail.com
Shridhar Joshi
joshridhar@gmail.com
Business Design, 2011-2013
Welingkar Institute of Management and
Research

What is Logistics ?
Introduction to Cold Chain Logistics
History and Breakthroughs
Global Scenario
Indian Ice Age
Value Parameters
Users

What is Logistics ?
Logistics is the
management
of the flow of goods
from
origin to destination to
meet
customer
Right
Time, Right
requirements

Place
@ Minimum Cost

Started as a
business concept

Transporta
tion

Security

Inventory

Logist
ics
Warehousi
ng

Packaging

Informatio
n
Manageme
nt

Source: Global Agri System Pvt. Ltd. R

hat is Cold Chain Logistic

LOGISTICS

TEMPERATURE
CONTROL
(REFRIGERATION
)

COLD CHAIN
LOGISTICS

Major Sectors : Food and Beverages, BioPharmaceutical

The Cold chain logistics infrastructure

Supply
Procurem
ent
Precooling
System
Farms (Rural
Markets)
Manufacturer
s

Transport
Refrigerated
Trucks
Refrigerated
Railway
Wagons
Refrigerated
Cargo
Containers

Storage
Cold Storage
Warehouses

Transport
Refrigerated
Trucks
Refrigerated
Railway
Wagons
Refrigerated
Cargo
Containers

End
Customer
Retail,
Terminal,
Markets,
Factory,
Ports, Airport

Global Cold Chain Facts:

Food Sector

Fruits &
Vegetables

Meat

Fish &
Seafood

Dairy
Products

Beverages

In European and American developed countries, the rate of

refrigerated transport is up to 80-90%,
pre-cooling preservation is up to 80-100%,
and the loss rate is below 5%.
25% of the total food production is processed foods. A
booming industry

Cold chain in Food Sector

Industry Temperature Standards

Banana

Chill

Frozen

Deep Frozen

13C 2C -18C -29C

Temperature
and
Shelf Life

Product

Refrigerated
Shelf Life
(Days)

Optimum
Temperature
(Celcius)

Apple

90-240

Bananas

7-28

13.5

Bell Peppers

21-35

Cabbage

14-20

Eggs

180

1.1

Onions

30-180

Lettuce

12-14

0.6

Fresh Meat (beef,

lamb, pork,
poultry)

14-65

-2

Oranges

21-90

Pears

120-180

-0.6

Potatoes

30-50

10

Seafood (shrimp,
lobster, crab)

120-360

-17.8

Strawberries

5-10

0.6

Tomatoes

7-14

12

bal Cold Chain Facts: Bio-Pharmaceut

Pharmaceu
tical

Biotech

Vaccines

Blood
Products

Clinical
Trials

bal Bio-Pharma Cold-chain market

0 : $5.1 billion
2011 : $6.6 billion
4 : 7 of the top 10 global pharma products in will require cold-chain han
cines growing on average 8% per year for the next five years
Source: www.fiercebiotech.com/press-releases/

source: www.coldchainpharm.com/

Cold chain in
Pharmaceutical Sector

Global Cold ChainBio-pharma logistics spending

Pharmaceutical
Sector
growth

Cold chain logistics spending

expanded from $5.1 billion
in 2008
to $6.6 billion in 2011

Cold chain shipment growth

by region

Sources: http://www.aircargoinsights.com/news/cold-chain-pharmaceuticals-worth-billio
http://www.aircargoinsights.com/more-market/global-biopharma-demand-on-the-rise/

HISTORY &
BREAKTHROUGHS
1797 British fishermen used natural ice to preserve their fish

stock piles
Late 1820sMovement of food from rural areas to urban consumption
markets
1851s Mechanical refrigeration and Air-conditioning plant
patented by Dr. John Gorrie
1867 The refrigerated railroad car was patented by J.B.
Sutherland of Detroit

1870s Trade of food between colonial powers and their colonies

France received mutton carcasses from South America
Great Britain imported frozen beef from Australia, pork
from
New Zealand
1882 SS
Dunedin,
the first ship to complete transportation of
frozen meat.
1910
600,000 tons of frozen meat was being brought into Great Britain alone
1920s
Group of CFCs - Freon used in refrigeration was developed.
Source:
http://people.hofstra.edu/geotrans/eng/ch5en/appl5en/ch5a

HISTORY & BREAKTHROUGHS

1857 The first shipment of refrigerated beef was made from the Chicago
1866
1867
1868

1869
1873

1876
1877

stockyards to the East in an ordinary box car packed with ice.

Parker Earle of Illinois shipped strawberries in iced boxes by rail from
southern Illinois to Chicago.
The first patent for a specialized refrigerator car (US Patent #71,423) was
issued to JB Sutherland of Detroit, Michigan.
William Davis of Detroit developed a refrigerator car cooled by a frozen icesalt mixture, and patented it in the USA. The patent was sold to George
Hammond, a local meat packer who went on to amass a fortune in
refrigerated shipping.
Henry Peyton Howard (1829-1913) of the United States transported a
shipload of beef frozen in a salt-ice mixture from Indianola, Texas, to New
Orleans and served it in hospitals, hotels and restaurants.
Timothy C. Eastman exported chilled beef by ship from America to London,
and shortly thereafter built up his trade to an annual tonnage of around
10,000 t. The insulated cargo space was cooled by ice, which was loaded
on departure. The success of this method was limited by distance and
climate.
French engineer Charles Tellier and the steamship Frigorifique achieved the
first overseas shipment of meat under artificial refrigeration. Three methylether refrigerating machines kept the cargo in a chilled state during the
12,000 km voyage from France to Argentina and the return trip. The
preservation of the meat was less Source:
than perfect; full success would have to
http://www33.brinkster.com/iiiii/inventions/reftranstimeli
wait until the voyage of the Paraguay.
ne.asp

HISTORY & BREAKTHROUGHS

1877 The French vessel Paraguay, equipped with refrigeration machinery by
Ferdinand Carr, traveled from France to Buenos Aires and back. 150 t of
1878 meat, kept at -27 to -30 deg C, arrived in Argentina in excellent condition
1878

1879

1879
1880
1880
1881

after 50 days.
Gustavus F. Swift (1839-1903) of the United States put into operation a
refrigerator car to ship fresh meats. The car body was well insulated and
the interior cooled by ice. Fifteen years later the operation had expanded
to 97 thousand units.
Henry Bell (1848-1931) and John Bell (1850-1929) of Scotland and Joseph
James Coleman (1838-1888) of England completed the Bell-Coleman
dense-air machine on the Anchor liner Circassia, which successfully
brought a cargo of chilled beef from the USA to London.
The Strathleven, equipped with a Bell-Coleman air machine and loaded
with beef, mutton, butter and kegs, sailed from Melbourne to London and
arrived with the frozen cargo in good condition after a 9-week voyage of
about 24,000 km.
The first patent for a mechanically refrigerated railcar was issued in the
USA (#230615, to Charles William Cooper).
Alfred Seale Haslam (1844-1927) of England equipped the liner Orient with
Haslam refrigeration compressors. He bought the Bell-Coleman dense-air
Source:
patents in 1878 and eventually equipped
four hundred plants and ships
http://www33.brinkster.com/iiiii/inventions/reftranstimeli
ne.asp
with Bell-Coleman machines.

HISTORY & BREAKTHROUGHS

1885 Berries from the Norfolk (Virginia) area were shipped by

refrigerator car to New York.

1887 Parker Earle joined F.A. Thomas of Chicago in the fruit shipping
business. The company owned 60 ice-cooled railcars by 1888, and
600 by 1891.
1888 An experimental Chicago-to-Florida shipment of beef from Armour
and Company was made in a car cooled by ethyl chloride
compression machinery.
1888 Florida oranges reached New York under refrigeration for the first
time.
1889 The first cooled shipment of deciduous fruit from California
entered the New York market.
1890 In London, first mechanically refrigerated barge introduced.
1890 After acquiring the patent rights of Franz Windhausen's CO2compression refrigeration system, J. & E. Hall installed the first
marine CO2 machine on the Highland Chief.
1898 Russia put its first refrigerator cars into service. Russia had 1900
such cars by 1908, 3000 by 1910, 5900 by 1916. The cars were
employed mainly for transportSource:
of Siberian butter. The journey from
http://www33.brinkster.com/iiiii/inventions/reftranstimeli
Siberia to Baltic ports lasted about
ne.asp 12 days. Reicing stations were

HISTORY & BREAKTHROUGHS

1899 Refrigerated fruit traffic within the USA reached 90,000 t per year.
Transport from California to NY averaged 12 days in 1900.
1900 A worldwide survey found 356 refrigerated ships, 37% of which
had air machines, 37% ammonia compressors and 25% CO2
compressors.
1900 Refrigerator cars in the USA numbered about 50,000.
1900 During the year, Great Britain imported 360,000 metric tons of
refrigerated meat: 220,000 t from Argentina, 95,000 t from New
Zealand, and 45,000 t from Australia.
1901 The first refrigerated banana ship, the Port Morant, was equipped
with a CO2 machine and carried 23,000 stems at controlled
temperature from Jamaica to England.
1901 Carl von Linde equipped a Russian train with a mobile mechanical
refrigeration plant to distribute cooling to the cars carrying the
goods. Similar systems continued to be used in Russia through at
least 1975.
1902 According to a study of Lloyd's Register, 460 ships had
refrigerating plants in 1902. The marine refrigeration industry at
Source:
this time was dominated by the
British.
http://www33.brinkster.com/iiiii/inventions/reftranstimeli
1904 US pomologist G. Harold Powell
introduced the technique of
ne.asp

HISTORY & BREAKTHROUGHS

1906 Pacific Fruit Express began operations with more than 6,000

refrigerated cars, transporting fruit and vegetables across the

United States from Western producers to Eastern consumers.
1907 US traffic in refrigerated fruit reached a yearly total of 600,000 t,
up from 430,000 t in 1905.
1910 Great Britain refrigerated meat imports rose to 760,000 t/year.
1910 By this time British company J. & E. Hall had installed 1800 CO 2
refrigeration machines in ships.
1913 British fleet included 230 refrigerated ships with total cargo
capacity of 440,000 t.
1913 The number of thermally insulated railcars in the USA amounted
to about 100,000. Most of these were cooled by ice.
1923 London used 120 metal barges of 60 to 120 t, insulated or
mechanically cooled, for transport of meat on inland waterways.
1925 The Pacific Fruit Express had 34,000 refrigerator cars and the Fruit
Growers' Express 22,000.

1925
Mechanically refrigerated road vehicles, especially for the delivery
of milk and ice cream, began to
appear around this time.
Source:
1930
http://www33.brinkster.com/iiiii/inventions/reftranstimeli
ne.asp

HISTORY & BREAKTHROUGHS

1931 The total volume of ice-cooled railcar cargo space in America was
of the same order as that of public cold stores at the time (12.5
million m, vs. 13 million m).
1931 The number of refrigerator cars in the USA reached a maximum of
about 183,000.
1935 Refrigerated imports into Britain in 1935 totaled 1 million metric
tons of meat, 500,000 t of butter, 130,000 t of cheese, 430,000 t
of apples and pears, and 20 million stems of bananas.
1936 The Italian army used 150 refrigerated containers to transport
frozen meat to its troops on the Ethiopian front. Great Britain and
the Netherlands had also built prototype refrigerated containers
by this time.
1939 The USA had roughly 18,000 vehicles for refrigerated road
transport, between 2000-2500 of which were mechanically cooled.
Many of the rest were kept cold by solid carbon dioxide ("dry ice"),
regular ice, or eutectic plates. The number of these vehicles, as
well as the proportion that were mechanically refrigerated,
steadily grew during the next Source:
few decades with the growth of the
http://www33.brinkster.com/iiiii/inventions/reftranstimeli
trucking industry and the development
of superhighways.
ne.asp

HISTORY &
BREAKTHROUGHS
1949 Refrigeration system made its way into the trucking

industry by roof-mounted cooling device, patented by Fred

Jones.
1950s Temperature controlled movement of pharmaceuticals and
medical supplies
1950s In the United States, Food and Drug Administration
restrictions over the stability of the cold chain incited many
of these companies to rely on specialty couriers rather than
completely overhauling their supply chain facilities. A
specialized cold chain industry was born
After 1960s*
Blown air containers were replaced by self powered
containers.

2010 Fed ex using GPS for tracking. Fedex Sense Aware

Source:
http://people.hofstra.edu/geotrans/eng/ch5en/appl5en/ch5a

HISTORY &
1970, Tropicana orange juice was
BREAKTHROUGHS
shipped in bulk via insulated boxcars
in one weekly round-trip from
Bradenton, Florida, to Kearny, New
Jersey.
By 1972, they were carrying around
1,000,000 US gallons(around
38,00,000 Litres)

Illinois Central Railroad #14713,

a ventilated fruit car dating from 1893

A circa 1870 refrigerator car

design. Hatches in the roof
provided access to the
ice tanks at each end

Top icing of bagged

vegetables in a
refrigerator car

Unloading frozen pork

from the Clan Line ship
Clan MacDougall in the
mid-20th century

BREAKTHROUGHS IN
INDIA
In 2004, Safexpress Pvt Ltd first company in the Indian
logistics industry to use the GPS
Maersk India, had taken steps to facilitate research in
the production, harvesting, warehousing, and
packaging of bananas. The company provided end-toend cold chain logistics support, besides undertaking
training of local banana exporters in cold chain
management.

BREAKTHROUGHS IN
INDIA
Sun logistics, FlexiTank in 2010

BREAKTHROUGHS IN INDIA
Kale Logistics India Develop UPLIFT with ICAAI ( Air Cargo Agents
Association of India )

Global Cold Chain Players

The Global top cold chain companies includes PRW companies
from Argentina, Australia, Canada, China, Denmark, Finland,
Germany, Italy, Japan, Mexico, Norway, Sweden, Vietnam and
United States of America

Americold logistics LLC , Canada, USA $ 1.62 billion

VersacoldArgentina, Australia, Canada, New Zealand $ 900
million
Millard refrigerated services, Canada, USA $ 230 million
Nichirei logistics group inc., Japan, Netherlands, Poland $
95 million
MUK Logistics GmbH, Germany $ 60 million
Nordic cold storage LLC, USA $ 27 million
Swire cold storage, Australia, Vietnam $7.5 million
Gruppo Marconi Logistica Italy

Value Parameters
Product Safety Physical / Chemical / Microbiological
Network (Geographical coverage)
Transportation Time
Temperature Range Availability (Product Range
Covered)
End to End Solutions (Integrated approach)
Temperature & Humidity Control
Tracking methods- Temperature and Location
Trust and Reliability of service provider
Regulatory Compliances
Security
*Carbon Footprint
Cost

Value Parameters (Revised)

Network (Geographical coverage)
Temperature Range Availability (Product Range
Covered)
End to End Solutions (Integrated approach)
Temperature & Humidity Control
Tracking Methods
Real time information feedback
Security
Cost
Trust /Reliability of service provider
Flexibility of service provider
Ability to meet Tech Specs
Regulatory Compliances
Carbon Footprint
Transportation Time

Stakeholders
User Industries
Infrastructure

Fruit and Vegetable Businesses

Warehouse / Cold Storage Owners
Food Processing Businesses
Refrigeration and Cold Chain Equipment
Horticulture
Technology suppliers
Livestock Producers
Refrigeration Solution Providers
Seafood Companies
Specialized Equipment Providers
Pharmaceutical companies
ICDs (Inland Containers Depots)
Hotels and Restaurants
Sea / Air Ports
Large format retailers and
Transport Vehicles
wholesalers
Security
Small Retailers
Laboratories/ Healthcare Centers
Medical Equipment Manufacturers
Oil refineries and chemical industries
CROs ( Contract Research
Authorities
and Associations
Organisations)
Government Agencies (Planning commission, customs, etc.)
DCGI (Drugs Controller General of India )
CDSCO (Central Drug Standard Control Organization )
ARW ( International association of refrigerated warehouses )
Global Cold Chain Alliances
Academic and Research Institutions
Growers Association of Fruits and Vegetables

Stakeholders
Stakeholders
Intermediaries

Logistics Service Provider

Cold Logistics players (Shipping lines, Transporters, Container
Companies) Warehousing Agents
Supply Chain Solution Providers
Packaging Service Providers
Banks and Financial Institution
Consultants from the relevant spheres who are interested in
knowledge building.
Others
Power / Electricity
Shelf Life
Temperature
Humidity
Distance
Seasonal Changes
Roads Connectivity

Cold Chain: India

In India 30 per cent of the fruits and vegetables grown in
India get wastedbecause of lack of cold storage facilities and
energy infrastructure.
Only 8% of the produce is processed in India
Commodity wise Capacity
Utilization, 2000
The total cold chain
Commodity
Cold chain
market in India is
capacity
estimated at $3.2 billion
(Percentage)
in 2009
Potato
92.82*
Expected to touch $9
Multi purpose
7.63
Billion by 2015
Fruit & vegetable
1.07
Growing at 20-25 per
Fish
0.73
cent CAGR
Meat
0.15
Cold chain industry
Dairy & milk
0.68
Cold storage 88 %
Others (Pharma,
0.36
Cold transport 12 %
100 % FDI allowed
Life sciences)
Source: IBEF

Source: Global AgriSystem Pvt. Ltd. Repo

Cold Chain: India

Food Sector
User Industry
Food

India

Growth
( CAGR )

Processed Food

$ 17.8 Billion

13.5 %

Agriculture

$ 200 Billion

3.8 %

Branded Frozen Source:$Ministry

212 Million
20-25
% Industries,
of state for Food
Processing
CCI Report
Food

Bio-Pharmaceutical Sector
User Industry

India

Pharmaceutical

$12 Billion

Growth
( CAGR )
10-11 %

Clinical
Research

$ 2.2 Billion

23 %

Generic Drugs

$ 11 Billion

17 %

Healthcare

$ 36 Billion

Sources : AIMA, BCG,

CII 15 %

Current State: Cold

Chain India
India has a total of roughly 5,400 cold storages
with a capacity of 24 million MT, over 90 per cent
of which are suitable to store potato products only
and are fairly archaic.

State wise Distribution of Cold Chains

Microsoft Excel
97-2003 Worksheet

Commodity wise Distribution Of Cold

Storages

Microsoft Excel
97-2003 Worksheet

Source: http://agmarknet.nic.in/coldstorage.h

Cold Chain: Daily

Consumption in India

9000 trucks of fruit

14000 trucks of vegetables
4000 trucks of potatoes
8000 trucks of onions
13 Lakh Chickens

Source: Ingersol Rand at ICE EXPO 201

Top Players in India

1) Snowman Frozen Foods
A joint venture between Gateway
Distiparks, Mitsubishi Corp &
Nichirei Logistics Group. Nichirei of
Japan is the fourth largest in this
business in the world
Income $10.2 million in 2010
2) Fresh and Healthy Enterprises
A subsidiary of the state-owned
Container Corporation of India
(Concor), which deals in
transporting containers via rail
Indias largest CA store with
capacity of 12,000 MT at Rai in
Sonepat, Haryana.
3) Coldstar Logistics
Incubated by Tuscan Ventures, a $
50 million venture capital fund in
2010.
3 existing and 9 WIP warehouses

4) RK Foodland
A 35 year old 3pl company with
pan-India presence.
Clients include Dominos, Abbott,
GSK, Cadbury.
5) GATI RedSun
A leading cold chain company for
perishable goods and frozen items
The Hyderabad-based Gati recently
bought a majority stake in the
company. Gati plans to scale up
operations in cold chain logistics
6) Adani Agrifresh
A logistics venture formed by the
Gujarat-based $ 6 Billion Adani
Group
Has invested $ 40 Millions in setting
up 3 CA stores in HP.
Promotes FARMPIK Brand in North

COLD CHAIN: TRENDS IN

INDIA
Backward Integration by
Retail companies
Many Ice factories have
converted their factories
into cold storages

Classification of cold
chains

Negative temp. (Frozen Material)

Cold Chain
Positive Temp. (Chilled Material) Cold
Chain
Single Product Cold Chain
Multi Product Cold Chain
Supply Side Cold Chain
Distribution Side Cold Chain

Cold Chain: Front End

Industry Expos :
ICE EXPO (India Cold
Chain Expo)
Food Tec India
Dairy and Food Tech EXPO
Food And Bev Tech
Trade Magazines
Log India
TransREporter
Logistics Times
FoodAndBev
Consultants
ACR Consulting
Cross Tree Consultants
Fresh Food Technologies

Advertisement
s
Company
Websites
Direct Sales

Advertisem
ents
Integrated cold
chain service
provider
Typical ads
listing various
services and
stats.
QR Code and
helpline to
guide
customers
towards further

Advertisem
ents
Party and Warehousing

3rd
solutions provider

Advertisem
ents
Backend
products
provider
Product display
State wise
contact details,
QR Code, toll
free no.

Ads of
Equipment
providers

Cold Chain: Backend

Refrigeration system
Insulated Wall Panels, Metal Roofing system
Material handling equipment's
Pallet racking system
Dock equipment's and special doors
Special cold storage doors
Contractors and Civil Engineers
Vehicle reefer units
Vehicle supply Fresh line Processing equipment
Process Grading and Sorting
Consultants

Food Service Distribution Centre concept design

consultant
Local Indian Architectural & Structural Consultant: Stup
Consultants
Integrated Building ManagementSource:
System
: Tata
Primary
Research ICE EXPO 20

Backend: Refrigeration
Providers
WAREHOUSES (Static Refrigeration)

Major Compressor Manufacturers:

FREON: Danfoss (Major market share 50%),
Emerson, Bitzer
AMMONIA: Kirloskar Pneumatic Ltd (60% Market
share), Frick (Indian Companies)
TRANSPORT REFRIGERATION (Refrigeration on
the move)
Source: Primary Research Akhil Lutharia, Consultan
Carrier, Thermoking, Blue
Star Total of 70 %

Insulation Experts
Owens corning
Lamiflux
Bayer Material Sciences

Material Handling Equipment

Forklifts
Voltas Limited
Godrej & Boyce

Pallet Racking and shelving

systems

SSI- Schaefer
Godrej & Boyce

Doors and Docks

Metaflex
Dan Foss
Lloyd Insulations (India) Limited
Salco
HiCon
Rite-Hite

Backend: Role of
Consultants

Refrigeration Equipment
Investigate mechanical equipment (evaporators,
compressors, condensers, humidifiers, etc.), Recommend
and implement changes, if necessary, to improve
functionality or reduce operating costs, or both.
Utility Audits
Review of previous and current configuration, usage and
billings.
Ripening/Precooling Technology
Optimize results with existing equipment, and also show
how investments in new equipment could improve the
bottom line.
Project Design & Management
Needs Analysis, Design, and Construction Management for
additional capacity.

Transportation
Reefer trucks

First Mile & Last

Mile Delivery

Sample Cold
Room

Cold Chain Cost breakup

Capital Expenditure

Costs

Construction cost

Rs. 300-350 per sq ft.

Cooling Equipment

Rs. 18,000-20,000 per MT

Power Consumption

3.5 KW per MT

Diesel Generator

Rs. 50-80 lakhs

Forklifts

Rs. 4-7 lakhs

Pallets

Rs. 500

Reefer Trucks

Rs. 25-30 lakhs for 9-13 tonnes

Source: Anderson Consulting Report on cold chain

Cold Chain Cost breakup

Office + Logistics

Costs

Communication System
(VSAT Links)

Rs. 8-10 lakhs

Office infrastructure

Rs. 50-60 lakhs

Computing Power

Rs. 5 lakhs

Website Design

Rs. 1-2 Lakh

Working capital

Rs. 3 crores

Blanket Costs
( Excluding civil constr.)

Rs. 50,000-52,000 per MT +

reefer vehicles

Source: Anderson Consulting Report on cold chain

Drivers
Growth in organized retail
Reliance, future, bharti- walmart, etc.
Growth in processed food sector
$ 70 bn in 2010. Projected growth to $ 150bn
by 2015
Changing consumption pattern
Increase in consumption levels
22 million MT supply against 31 million MT
demand
Government Initiatives
Mega food parks, Subsidies

Challenges

Lack of Road Infrastructure

Continuity of the cold supply chain
Uneven distribution of cold chains
High capital investment
-Rs.80-90/sq.ft.($ 1.6-2.0) against Rs.30/sq.ft. ($
0.6) in west
Power supply
-17-18% power deficit
-30% of total expenses against 10% in west
Management of different temperatures
Awareness and Mindsets
Error Irreversibility
-Highly temperature sensitive cargo

Government Policy &

Initiatives
1. All the relevant schemes pertaining to the Cold
Chain Industry have been outlined and a separate
compendium has been prepared containing all these
schemes.
2. A Special Purpose Vehicle has been set up for the
Cold Chain Logistics
3. Setting up of National Centre for Cold Chain
Development (NCCD).
NCCD Activities are:
Training and Capacity Building
Research and Development
Building standards through International
benchmarking
Interaction with National / International bodies for
development of cold chain infrastructure and trade
in perishable

Government Incentives
Some of these incentives are
Budget 2010-2011 proposed a concessional import duty
of five per cent with full exemption from service tax
to set up and expand cold chains. The proposal also
included duty-free import of refrigeration unit, which is
required to make refrigerated vans or trucks. It also
exempted trailers and semi-trailers used in agriculture from
excise duty
The Budget exempted air-conditioning equipment and
refrigeration panels used in cold chain
infrastructure, including conveyor belts, from excise duty.
It also extended excise duty exemption to conveyor belts.
Budget 2009-2010, Government of India introduced tax
benefits for companies making investments in setting up
cold chain facilities
Other past incentives include access to external commercial
borrowings, 100 per cent FDI and provision of up to 25

Need Gaps
Lack of knowhow and trained manpower
Lack of backward & forward linkages to
supplement cold chain (High VDC Variable Distribution Cost)
High cost of power: Agricultural sector is
offered subsidized power tariffs by the
Government of India,
Cold chain industry is instead subjected to
industrial power tariffs.

Need Gaps
104 million metric tons
Perishable produce is transported
between cities each year.
Only 4 million metric tons
moves via reefer mode.
Optimization in reefer transport
Lack of two-way cargo movement/ back haulage
delay timely deliveries and reduce the efficient
utilization of fleets.

Need Gaps
Infrastructure: Coolers, warehouses,
refrigerated trucks, carriers, shopping malls
and others. Needs to study the potential risks and
the return on investment (RoI)
Third-party logistics:
Manual- handling reduces the product quality and
life.
Lack of end-to-end solutions. One can also
adapt state-of-the-art techniques such as cross
docking that will reduce the transit times and
inventory.
FP industry: The Central government allows 100%
FDI in this sector.

Need Gaps
Reefer location tracking challenges
(Technology effectiveness & penetration
low)
Discontinuous Energy Supply for hours
(Backup power is very expensive)
Lack of 3 Party solution providers for
small players. Geographical and service
range expanding on project basis from big
players. Logistics providers with air conditioned trucks,
automatic handling equipment and trained manpower will provide
end-to-end support.

Education and awareness. Low

acceptance due to high costs

Fruit and Vegetable

Businesses 2

Chocolates 3

Diary 3

Seafood Companies 1

Livestock Producers 1

Hotels 1

Quick Service Restaurants 3

Large Format Retailers and

Wholesalers 3

Small Retailers 1

Segmentation
Matrix

Net Te Te Tra Rea Pro Cos Tru Fle Tec Reg Tra
wor mp mp cki l
duc t
st / xibi hni ula nsp
k
era era ng tim t
Reli lity cal tor ort
(Ge tur tur Met e
Sec
abil of Sta y
atio
ogr e
e & hod info urit
ity ser nda Co n
aph Ran Hu s rm y
of vic rds mpl Tim
ical ge mid
atio
ser e
Co ian e
cov Ava ity
n
vic pro mpl ces
era ilab Con
fee
e
vid ian
ge) ility trol
dba
pro er ce
ck
vid
er

Strategy Canvas
6
5
4
3
2
1
0

Snowman
RK Foodland
Fresh & Healthy
ColdStar
GATI Redsun
Adani Agrifresh
ColdEx

TRENDS
PPP model for supply chains
Indian cold chain business is fragmented in a big
way.
Organised retailers can give a boost to the much
needed supply chain logistics in the country.
More private sector investment is required in the
areas of infrastructure especially in warehousing,
technology, cold chain and logistics in order to
harness the full potential of the Indian food
processing sector

Increased FDI in Multi-brand Retail on

the anvil
This will boost the investments in the cold chain
infrastructure. Backward Integration by

TRENDS
Centers NCCD
The Central government has established the National
Centre for Cold Chain Development (NCCD) as an
autonomous body.
The NCCD has constituted the following committees:
Technical specification and Standards Committees
Project preparation, Appraisal and Project Certification
Committee
Training and HRD Committee
R&D Committee
Test Laboratory and Product Certification Committee
Application of Non-conventional Energy Sources in
Cold Chain Infrastructure.
The establishment of cold chain is being supported
through programmes of NHM, NHB, APEDA and Ministry
of Food Processing Industries.

Thank you

reefers
Shipping linesMaersk Line, Evergreen
Line,Hamburg Sud, Hapag-Lloyd,
K Line, Mac Andrews, MISC, CSAVNorasia, Rickmers Line, Safmarine,
Yang Ming Line, UASC and Zim Line.
Indias state-owned shipping
company Shipping Corp. of India, is
also a member.

Source: http
://www.livemint.com/2007/09/18020040
/Shipping-refrigerated-cargo-fr.html