Chief Advisor to Principal Advisor

Globalisation

 Process Integration.

 Bilateral trade.

 Diminishing world,
singular demands.
 Right-Cost Country
optimisation.
 Business friendly
Global Banking.
 Borderless consumer.
Growth in Demand Aspirations
initial areas outpaces Bottlenecks provide further
extends parity. development. raise costs. scope.

Parity feeds Lack of development High costs restricts;

demand; new creates bottlenecks. feeds aspirations.
consumption.

Enduring Scope is Unending Opportunity.

 Chain of business
 Chain of transactions.
 Chain of information.
 Chain of operations.
 Chain of processes.
 Chain of policies.
 Chain of people.
 Value chain.
Demographics, National Priorities,
Sustainability, Technology,
Information, Affiliation.

Enduring Scope is Unending Opportunity.

Uneven, non-holistic development of
resources!
Cold-chain requires integration across
total activity chain!
Changing priorities, impatient populace –
short cuts!
Fear of missing the bus – short term
strategy for long term solutions!
Integrated infrastructure development.
Reverse haulage – capacity utilisation.
Market capture – barriers and tariffs.
Training and Skilled deployment.
Rapid demo-graphic changes.
Changing global strategies.
Technology adaption.
Investment inertia.
 Trend is to move from post-facto control mode to
first mile preventive mode.

Impacts independent development agendas;

FSMA / changed deployment of resources.

FSSAI /
Others Benefits stakeholders from early compliance;
lowered rejects, opens strategic options.

More inclusion among stakeholders.

 Prevent Inspect Recall Partner

Controls Compliance Response Administer

Resource Costs Onus Business

Labs Fees Distrust New markets

Skills Procurement Sharing New pricing

The largest producer of milk (133 million tonnes).
Largest producer of mangoes (15 million tonnes).
Largest producer of bananas (29 million tonnes).
Largest exporter of beef (1.52 million tons),
largest buffalo livestock (105 million).
Second in fruit (80 mlllion tonnes) and vegetable
production (160 million tonnes).
Third-largest producer of fish (8.3 million tonnes).
Third largest pharmaceutical producer, 8% of
global production.
Human population of 1.22
billion.

with a GDP of USD 1.94 Trillion.

Post harvest value loss ~18-40%

of farm produce.

Foreign Trade USD 795 billion.

Coastline is more than 7,500 km long.
Interspersed with more than 200 ports.
International cargo: 95% by volume and 75% by
value is carried by sea.
Ports capacity 1,247 million tonnes, doubling by
2017.
Railways: 87,087 km, across 7,083 stations and
operates more than 18,000 trains every day.
4.2 million km Roads : National Highways -
76,818 km, State Highways - 154,522 km, District
Roads - 2,577,396 km, Rural Roads - 1,433,577 km.
not a single perishables
gateway!

only ~8000 reefer trucks.

limited reefer rail options.

Containerisation at 20%.
4th largest electricity consumer, fifth largest
installed capacity (246 GW) with 11.5% renewable
capacity.
300 clear days, Solar radiation 4 to 7 kWh/m2;
area 3.287 million sqkms.
Solar reception 5000 Petawatt-hours per year.
Fifth largest in wind power; 18,634MW in 2013.
Among lowest ecological footprints of 0.9
gha/person.
Starkly different, tightly clustered; six major
climatic zones.
DTR: (Tmax) – (Tmin) of 20°C

Shortfall of power, reliance

on diesel gensets.

Insulation and energy

efficiency standards.

Portability options min.

 Total population million Population annual % change
1250 2.5  Indian Economy: growing at
1200
1150 2.0
more than 8% for last decade,
1100 population growing @ 1.5%

% Growth
1.5
annually for last two decades.
millions

1050
1000 1.0
950  Continuous urbanisation of
900 0.5 India due to expanding
850
800 0.0
development.
 Projections: on-going Key socio-
Urban population % Total population million
economic changes and four fold
1250 32.0 growth in the size of middle to
1200 31.0 rich class Indian households;
1150
1100
30.0 resulting doubling household
29.0
consumptions by 2020.
millions

1050
28.0
% of total

1000
950
27.0  Young populace, aspirations
900 26.0 overreached and to stay
850 25.0 stretched.
800 24.0
 GDP USD 1.94 trill in 2012 from 1.25 trill Domestic spend (USD from ₹) 31-Jan-2012 1003
in 2006 (+56% in 6 years).
785
Spending growth: $991 billion in 2010 to 735

$3.6 trillion by 2020 (5.8% of global 593 565 >2 x from 2005
consumption, doubling from 2.7%). 474 444
354
1,870,000 Consumer Food outlets (2012).

FY05 FY07 FY09 FY11

Increase in
consumer Per Capita Disposable Income Per Capita Disposable Spending
class pop.
3%
India Spends on
Quality & Purchasing
Hygiene Increased power, Rise in 4% Food and Grocery
consciousness income 6%
Demand for Others
(Cold Chain) 10%
Quality Clothing and Fashion
Foods 60%
17% Electronics

Easy Changed Beauty and Welness

consumer consumer
credit mindset Furniture and Fixtures

Source: Boston Consulting & CII, IRIS, MoSPI- Govt of India.

 180
Agriculture 160
Horticulture Production

cultivated area: 150 140

Million 155.0
Metric Tons
million hectares 128.4
134.1
146.6 x 2.6
120 129.1

• Area under
100
Horticulture: 23 million 101.2
x 2.8
hectares (15%) 80 88.6
81.0
74.9
71.5
60 65.6 68.5
58.5

$260 billion to 40 50.9

43.0

Indian GDP by 20 28.6

Agriculture 0

• 35% of this is from Fruits Vegetables Plantation Crops Others

Horticulture.
Within Horticulture, perishable commodities trends higher
& drives growing demand for perishable handling.
Others: includes Spices, Loose Flowers, Nuts, Mushroom, Aromatic/medicinal and Honey .
Source: Horticulture Division, Ministry of Agriculture and CrossTree Analysis
 Trends - Annual Average WPI Inflation
Inflationary trend (40 years) shows 11.5
(from 1970 to 2012)
Food as prime driver with
perishables contributing highest. 10.5
9.9
Despite producers showing robust 10.2

response by increasing supply, yet 9.5 9.2

inflationary pressure exists. 8.5

Inflation %
8.5
This may indicate that demand for
perishable products continues to 7.9
outstrip supply.
7.5

This also indicates a lack of 6.5

efficient supply systems which 5.9
6.6

continues to feed inflation in food 5.5

5.9

items. 1971-72 to
1981-82
1982-83 to
1993-94
1995-96 to
2004-05
2005-06 to
2011-12
All Commodity 10.2 7.9 5.9 6.6
Primary Food 8.5 9.2 5.9 9.9

Continual demand for food distribution and F&V 9.0 10.6 7.5 9.2
Milk 7.1 9.0 5.7 10.1
cold chain is foreseen over coming decade. Eggs, Meat, Fish 11.0 9.4 6.4 11.8

Source: RBI, Office of Economic Adviser, MoCI, Govt of India

40 36.7
Indian Pharmaceutical USD Billion
32.4
30 Exports
24.7
28.4
• Global Cold chain logistics spend from
21.5
20
Total
18.4 16.7
$5.2 billion in 2008 to $6.9 billion in 2012.
15.6
13.4 13.5
11.5
7.2 8.3
10.5 • Growth in Asia outstripped all regions.
10 4.9 4.9 6.1
3.7
• Asia & India continue to grow into a major
0
2007 2008 2009 2010 2011 2012F 2013F 2014F 2015F hub for Bio-Pharma, cold chain demand
Higher-than-average growth in vaccines & specialty from the sector continues to rise.
pharmaceuticals and heightened regulatory
requirements continues to drive cold chain for pharma.
Cold chain shipment growth by region
10
BioPharma Logistics Spending (USD Billion) $0.6 to 0.8 billion (33% Growth)
North America Europe Asia Rest of World Rest of World
8 1.1 Cold Logistics Growth
$1.0 to 1.5 billion (50% Growth)
USD Billion
0.8 2.2 2012e
6 Asia
0.6
1.5 2008
0.6 1.2 $1.5 to 1.9 billion (27% Growth)
4 1.0 2.3
1.9 Europe
1.7
1.5
2 $2.1to 2.7billion (29% Growth)
2.7 3.2 North
2.1 2.5
America
0
2008 2009 2012e 2015e 0 0.5 1 1.5 2 2.5 3
Notes : Figures exclude clinical trials which is separate specialised logistics.
Sources: Cold-Chain BioPharma Logistics Sourcebook 2011 & UN Comptrade database, Orkash and CrossTree Analysis
2,000 160 Size of Retail Market (USD Billion) 780.5
800.0
1,800
Food Service Outlets (‘000) 140 700.0 Modern Retail
1,600
120 600.0
1,400 Traditional
100 486.4
1,200 500.0
396.1
1,000 80 400.0
800 60 300.0
600
40 200.0
400
20
88.6
200 100.0 41.4
27.8
0 0 0.0
2005 2006 2007 2008 2009 2010 2011 2012E 2013E 2014E 2015E 2010 2012 2015P
Standalone (LHS) Leisure (RHS) Retail (RHS)
Traditional Modern

 India is 5th largest retail market worldwide. Others 90%

 1,968,000 Consumer Food outlets by 2015. Clothing &

Fashion 89%
Beauty &
Wellness 88%
Organised Retail Market is growing despite FDI. This
feeds demand for cold chain. Simultaneous growth in the Electronics 96%
food service sector accelerates need for the cold-chain. Furniture &
Furnishings 77%
Food &
Grocery 99%
Note : Total Food Service Outlets is a sum of Standalone , Leisure and Retail outlets
Source : Euromonitor, IBEF, IRIS and CrossTree Analysis
 As of last recorded national level data , India has 6488 cold storage with a cumulative
installed capacity of approximately 30 million Metric Tons .
CC Market U$ Billion 6.9
7000 12% 35000
Storage Transport
Cold Storage Availability
3.8
Segments
6000 30000
Storage
2.1 1.9 Transport
5000 0.9 25000
0.2

4000 2007-08 2010-11 2014-15 88% 20000

Number

(‘000) tons
3000 15000
Number of Cold Storages

2000 Installed Capacity in '000 tons (Cumulative) 10000

1000 5000

0 0
1955 1960 1965 1970 1975 1979 1986 2004 2007 2009 2010 2011 2012#

1955-1986 In the Last Decade

Key Trends
• More than 25% of the cold storage units (~10 mill tons) have been built post 2004.
• Growth (CAGR 2004-12 ) : Numbers of Cold Storage : 3.57%, Capacity : 5.19%. Growth in Transport capacity 22%
• Current short fall of 4000 reefer trucks, govt states another 30+ million tons capacity needed.

The witnessed growth in the Cold Storage sector is accepted to only accelerate in the coming years
Notes: 2009 and 2010 numbers only for NHB and NHM assisted cold storages. Numbers as of Dec 2012
Source: NHB, NHM, Directorate of Marketing and Inspection 2009, Orkash & Crosstree Analysis
Capacity mostly focused on single product types –
a long learning curve established
Minimal outreach for foods and pharma –
localised operations, earlier focus was storage.
Chain approach to counter Irregular parameters
across regions and within days.
Fragmented development did not encourage
holistic cool logistics for single source service.
Refrigerated systems need adaption to India
specific needs in design and capacity utilisation.
Capacity mostly focused on single product types –
a long learning curve established
Minimal outreach for foods and pharma –
localised operations, earlier focus was storage.
Chain approach to counter Irregular parameters
across regions and within days.
Fragmented development did not encourage
holistic cool logistics for single source service.
Refrigerated systems need adaption to India
specific needs in design and capacity utilisation.
 Agri/Foods PPP, Grants,
Focus on Move to
identified as NCCD takes Negotiable 100% FDI in
Market links uniform
priority shape Warehouse food sector
development VAT/GST
sector Receipts

Encourages Liberalises Credits

Encourages Rationalises Liberalising
holistic Marketing Grants &
Investments Tax Laws FDI Inflow
development Norms Subsidies

Government as
‘Catalyst’
Increasing focus to create enabling infrastructure by govt. While this support was earlier
focused on static cold storages, recent developments have been to include refrigerated trucks
including containers. NCCD to play pivotal role to correlate industry expectations and policies.
 NCCD as umbrella agency
Capital to address concerns.
Investment
Subsidy / RIDF
Scheme
Outlay Amounts for Infrastructure
1500
Development 1187.5
(Five Year Plans)

USD Billion
1000
593.9
Subsidies
Public
available for
Entrepreneur
constructing
Integrated Cold 500
Guarantee Chain Scheme
Cold Chains by
Scheme 40.9
Govt. of India
0
Xth Plan XIth Plan XIIth Plan

Initiatives for Infrastructure Development

PPP-IAD • Mega Food Parks Scheme.
NVIUC • Integrated Cold Chain Scheme.
• State level Initiatives.
• National Horticulture Board.
• National Horti and FPI Missions.
Central Excise Duty
• 100% exemption for specified equipments for storages or transport, self loading /
unloading trailers / semi-trailers.

Customs Duty
• Full exemption from basic customs duty for manufacture of refrigerated vans/trucks; bio-
polymer/bio-plastics;
• Concessional duty of 5% for initial installing or expansion of a cold storage, cold room,
processing, etc.

Service Tax Exemption

• ‘Erection, Commissioning or Installation’ of Mechanized Handling Systems; Cold Storage
and transport;
• Cold-chain Service of storage and transporting agriculture produce.
• Technical Testing; Analysis Service and ‘Technical Inspection and Certification Service’.

Capital Investment
• Cold Chain & FDI: 100% FDI through automatic route.
• Investment linked Tax deduction : 150% of capital investment deductible.
• Government subsidy on investment: 40 to 55% subsidy on storage and transport
 Industry, PSUs, Government, Investors, Entrepreneurs, Farming
Associations & Knowledge Houses - All Working Together!
Training, HRD and
R&D Committee.
2
Committee for Application of
non-Conventional Energy
Technical Specification, Sources in Cold Chain
Standards, Test
Laboratory & Product 1 3 Infrastructure.

Certification Committee.

Executive
Committee
Liaison with other NLAs
and States 6 Committee for Supply
4 Chain & Logistics.

NCCD Members, other

5 cold chain sectors
 Cold Supply Chain (India): Poised for a Quantum Jump

Best practises for Sub-continent conditions, market.

Skill development & training establishments.
Appropriate & integrated Infrastructure development.
Adoption of energy efficient technology.
Partner with Indian logistics companies.
Adapting from mass storage to direct access storage.
Manage and develop Multiple markets in region.
Anticipate ahead of a developing market.
Innovators and solutions biased companies.
Technology Provision and implementation.
Cold Logistics and Supply Chain services.
Specialised Infrastructure designers and planners.
Expertise in alternate energy, environmental protection.
Scalable, Energy efficient Refrigeration technology.
Refrigerated Vehicles and last mile delivery systems.
Education, Training & Cold chain management experts.
Knowledge Managers and Integration specialists.
Food / Pharma Exports Eggs, Beef, Ice Cream

QSR Majors Polio Eradicated

The Source and the Destination
Nodal Body for Cold-chain Development
Ministry of Agriculture
Contact-NCCD@gov.in