WELCOME

SEMINAR ON

COLD SUPPLY CHAIN

FLOW OF PRESENTATION
OVERVIEW OF COLD CHAIN STATUS OF COLD CHAIN IN INDIA MARKET POTENTIAL GROWTH DRIVERS KEY CHALLENGES GOVERNMENT INITIATIVES RECENT TRENDS CONCLUSION
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Cold supply chain may be defined as a logistic system that provides a series of facilities for maintaining ideal storage conditions for perishables from the point of production to the point of consumption (end user).
Basically a supply chain provides series of facilities like

COLD SUPPLY CHAIN

controlled temperature & RH. Cold Chain retains the longevity of Product characteristics supply chain Active ingredients Nutritive value Freshness

Cold supply chain

WHY COLD CHAIN..???

Buying Behaviour
1. 2. 3. 4. 5. 6. 7.

Appearance
Taste and Flavour Freshness Ripening stage Price Nutrition Value Shelf Life
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THE MIRACLE OF COLD CHAIN

The apples that are available in todays supermarkets in India

could be as old as six months- six year and could have been grown in apple orchards in New Zealand and stored in a Controlled Atmosphere.

They would look and taste as if they were plucked from the

apple orchard yesterday.

Source:http://www.slideshare.net/cmaheshwar/cold-chain-summit-17-18-december-2010
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PRODUCTS
Fruits & vegetables Milk & milk products Meat & fishery products

Flowers
Ready-to-eat / cook

Pharmaceuticals

Ice cream & confectionery

 Procurement and delivery systems Pre-cooling facilities Refrigerated vehicles

Cold stores / C A stores

Grading, sorting and packaging

Warehouses
Information systems
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COLD CHAIN: FLOW CHART (MEAT)

Sheep / Goat farm

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TEMPERATURE CONTROLLED ENVIRONMENTS

Dry ice: Pharmaceuticals

Gel packs: Chilled products (2- 8oc)

Eutectic plates.

Liquid nitrogen Quilts.

TEMPERATURE STANDARDS FOR THE PRODUCTS

EFFECT OF STORAGE ON EATING QUALITY

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Source:FICCI report

SHELF LIFE OF SOME FRUITS & VEGETABLES (IN DAYS)

F&V SENSITIVITY TO CHILLING Most Moderately Least sensitive sensitive sensitive Potato Apple Beet Tomato Orange Carrot Cucumber Carrot Turnip Banana Peas Date Beans Cauliflower Cabbage

CHILLING INJURY
Commodity Banana Lowest temp. (oC) 12.8

Beans
Cucumber Mangoes Potato
Source: Avalon Consulting Research

12.8
7.2 7 3.3
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Source: crosstree.info/Documents

FACTS ABOUT INDIA :HUGE POTENTIAL

Largest producer of milk with 121.5 million tonnes. (www.financialexpress.com) Second largest producer of fruits with 75.7 million tonnes. (NHB) Second largest producer of vegetables with 141.3 million tonnes. (NHB) Produces 6.5 million tonnes of meat and poultry. (www.mofpi.nic.in) Fish production of 6.1 million tonnes. (www.fishnewseu.com/) Huge fresh Product production but Only 2% share in world trade. Out of total fruit and vegetable produce, nearly 30 per cent gets

wasted.(http://www.fhel.co.in)
Fifth largest retail market.

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STATUS OF COLD SUPPLY CHAIN

Estimated market turnover Rs. 13,000 crore, in 2011 & expected to touch Rs

62,000 crore by 2015 with the growth rate of 22-25 per cent.
India has cold storage capacity of 21.7 million tonnes,( 5,101 units) against the

requirement of out of 31 million tonnes.

Cold storage facility is there only for 10% of the fresh produce.

The value of reefer transportation business in India is estimated at about Rs.

1100 crores ($ 250 million).

About 104 million tonnes of perishable transportation in a country, out of which

around 4 million tones through reefer transport.

About 55000 reefer vehicles are involved in perishable products transportation

of which dairy constitute about 80%, only 11000 reefer vehicles for all other categories.
Source: indiacoldchainexpo.com

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IMPORTANCE OF COLD CHAIN IN INDIA

Diversified food basket Huge Opportunity to supply fresh produce worldwide (fruits/ vegetables /organic food)

Set up of a Food Security bill.

Cold chain investment $2billion expected growth is $9.09 billion by 2015 Revenue by export According to industry analysts, integrated cold chains would help India in saving Rs. 750 bn (75000 crore) annually by avoiding wastage of perishable horticulture produce (30%), besides garnering additional export revenue of Rs. 250 bn. The post harvest losses of fruits and vegetables alone in India is more than the total production of fresh fruits and vegetables in Great Britain.

Source:www.coldchainexpo.com

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PERCENT WASTAGE OF FRUIT & VEGETABLES

Products within state outside state Onion 2 1 Potato 2 2 Okra 2 2 Banana 3 4 Tomato 2 2 Average 3 2 within district local market Total 2 6 11 3 4 11 1 8 13 4 9 20 2 14 20 1 8 14

Source: http://www.facts-about-india.com/transportation-in-India.php

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COLD CHAIN: MARKET SIZE & POTENTIAL The Indian Cold Chain Market Size Estimates of cold chain in $ Industry is 88 % is storage billion and rest of 12 % is 12.0 transportation. 10.7
10.0

Total market size of $ 2.6

billion (Rs 13,000 crore)

8.0 6.0

Cold chain has potential

4.4

4.0
2.3 0.3 0.6 1.7

to grow to $ 12.4 billion 2.0 (Rs 62,000 crore) by 0.0 2015 will grow at 22-25% Source: www.marketreports.com/ annually

2007-08
Cold Storage

2010-11

2014-15

Cold Transportation
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COLD CHAIN
Segment
Surface storage
Uses refrigerated trucks, vans, rails, cargo, containers. Refrigerated Transport Consist of refrigeratedware houses, CA, Cold storages

Key activities

Storage quality

Transportation

Transportation from field to consumer

To assure technical& quality parameters to ensure shelf life

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COLD STORAGES: CAPACITY

Total installed capacity of 21.7 million tonnes and additional capacity of 114 million tonnes is required by 2015 Larger capacity per installed units are required (at production as well as consumption centers) Availability (2011): 5101 Requirement (2015): 24323
Capacity & Requirement
30000 25000 20000 15000 10000 5000 0 5101 22 2007-08 9963 47 2010-11 2014-15 24323 136 160 140 120 100 80 60 40 20 0

No. of units
Source: http://www.snowman.in/

Capacity in Million MT
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COLD STORAGES IN INDIA

1800 Numbers of Cold Storage Units 10000 1567 9000 7000 6000 795 437 434 420 5000 4000 374 3000 276 243 238 179 138 2000 1000 0 Capacity in 000' MT 8000

Uttar Pradesh is the leading

1600 State wise Distribution and Total Installed Cold Storage Capacity 1400 1200 1000

state with the maximum number of cold storages in the country, followed by Maharashtra & West Bengal
In terms of the total capacity,

800
600 400 200 0

Number

Capacity in 000' MT

Uttar Pradesh stands first with the total capacities of 8.93 million MT, followed by West Bengal (5.34 million MT,) together account for more than 60 percent of the cold storage capacity of the country.
Source: indiacoldchainexpo.com

% Share of States in All India Total Installed Capacities

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COLD STORAGES
Sector Private Cooperative 358 7 2652 Public
Types of Cold Storage Ownership

Number

4590

134 3 716

Percentage 90 Avg. capacity / Plant (tonnes) 4480

Controlled Atmosphere (CA) Storages There are very limited players in the country who is having the CA facility for perishable commodities. Total CA facility available is 40000 tonnes. Adani Agrifresh It has 3 CA facilities of 6000 MT each in HP for apples Fresh & Healthy It has a CA facility of 12,000 MT for apples. DevBhumi Has a CA facility of 5000 MT for apples, strawberry and pears.

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STATE WISE CAPACITIES & UTILISATION OF COLD STORAGES

14000 12304

West Bengal has the highest average capacity of 12,304 MT per cold storage, followed by Uttar Pradesh with 5,700 MT per cold storage and Madhya Pradesh with 4,261 MT per cold storage. The all India capacity utilization of cold storages is about 58 percent. Andhra Pradesh has the highest capacity utilization at about 92

12000
State-wise Average Capacity of Cold Storage Units (in MT)

Avg. Capacity in MT

10000 8000 6000 4000 2000 0 1169 5700 3185 3826 2604 2974 1614 4261

1835

1837

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 46% 55%

92%

Average Capacity Utilization of Cold Storage

percent while West Bengal has the lowest capacity utilization at about 29 percent.

60%
52% 43% 29% 35%

51%

48%

Source: fcaoi.org/aboutus.html

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COMMODITY WISE DISTRIBUTION OF COLD STORAGES

Commodity Potato Percent of cold Storages 87.82
Fruits & Vegetables, 1.07 Fish, 0.37 Meat, 0.15 Dairy, 0.68 Other, 0.36 Multi-purpose, 9.63

Multi purpose
Fruit & vegetable Fish

9.63
1.07 0.73

Meat
Dairy & milk Others Total

0.15
0.68 0.36 100 Commodity wise distribution of cold storages in India
Potato, 87.82

Source: http://www.potatoindia.com/

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COLD STORAGE UTILIZATION

Monthly Capacity Utillization in %
100 90 80 70 60 50 40 30 20 10 0

% Average

Source: www.acrconsultants.net

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COLD STORAGE REQUIREMENTS

Typical Cold Storage Requirement
The

storage requirement varies from commodity to commodity.

Generally, a humidity level of 85 95 percent and different temperature levels are required for storing different commodities.

Commodities Storage Temp oC Relative Humidity % Apple 0 to 2 90 95 Grapes -1 to 0 85 90 Mangoes 7 to 10 90 95 Oranges 4 to 6 90 95 Papaya 13 to 15 85 90 Pears -1 to 0 90 95 Pomegranate 8 to 10 90 95 Guava 7 to 10 85 90 Banana 13 to 15 90 95 Litchi 2 to 7 90 95 Cabbage 0 to 2 90 95 Carrots 0 to 2 85 90 Cauliflower 1 to 2 85 90 Cucumber 10 to 13 85 90 Onions dry 0 65 70 Onions green 0 to 2 85 90 Peas Green 0 to 2 90 95 Potatoes 1 to 4 85 90 Okra 7 10 90 95 Tomato Green 10 to 13 85 90 Tomato Ripe 4 to 7 85 90 Brinjal 8 to 10 85 90 Cut Roses -1 to 4 95 98 Meat & Poultry 4 to 6 80 90 Fish & Marine 0-4 90 95 Liquid Milk 1 to 4 Ice Cream -14 to -18 Source: www.concorindia.com/ Butter 2 to 4

Storage Life 7 26 weeks 4 6 Weeks 4 6 weeks 9 13 weeks 1 3 weeks 2 4 weeks 2 months 2 3 weeks 2 3 weeks 3 4 weeks 9 13 weeks 13 17 weeks 4 6 weeks 10 20 days 1 8 months 17 26 weeks 2 3 weeks 26 35 weeks 1 2 weeks 2 4 weeks 7 10 days 3 4 weeks 2 4 weeks 7 10 days 15 20 days 7 10 days 6 9 months 24 9 12 months

TRANSPORTATION OF FRESH PRODUCTS

Mode of Transport
Unrefrigerated mode; traditional packing Unrefrigerated mode; cartons and boxes Refrigerated mode Freezer mode
Averton consultency report 2009

percentage
82 13 4 1

AIRFLOW INSIDE REEFER CONTAINER

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Reefer Transport
Key facts:
Reefer Vehicles Estimates
140000 120000 100000 80000 60000 40000 54925 120670

55000 reefer vehicle for perishables Dairy reefer has 44000 vehicles, only 11000 left for rest of perishables. Additional reefer vehicle requirement of 1.2 lakh by 2015

25000

20000 0
2007-08 2010-11 2014-15
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Source: http://www.vtransgroup.com/

AIR CARGO
Air Cargo Transport in India (million tonnes) Air Cargo Transport in India (million tonnes)
5
4.5 4
4.83

Year

Domestic

Internat Total ional

2002-03
2006-07 2010-11 2014-15

0.33
0.53 0.92 1.78

0.65
1.02 1.98 4.83

0.98
1.55 2.90 6.61

3.5
3 2.5
1.98

Source: www.aircargonews.net

1.78

Tax relaxation by Government of India for private air cargo. Major commodities transported are flowers, fruits & vegetables

1.5 1
0.65 0.33

1.02 0.53

0.92

0.5
0

2002-03

2006-07

2010-11

2014-15

Domestic

International
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GROWTH DRIVERS

Shift towards horticultural crops Growth in organized food retail

Increasing growth of food processing & Changing food

habits(ready to eat & cook )

Rising middle class population & disposable income

Innovative technologies in cold chain

Infrastructure status to cold chain Government initiatives Third party logistics
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CHALLENGES
Inadequate Infrastructure. High capital investment., Operating cost (Rs. 80-90/ cubic feet)

Inadequate Power supply.

Less cold storages at airports, Railway station Constricted cargo space on flights. Uneven distribution of cold chains. Short duration storages. Seasonal production and irregular supply. Lack of advance technologies & trained human resource.

Improper handling of produce results high level of wastage and

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MAJOR PLAYERS (INDIA)

Snowman Crystal logistics. Refcon Carriers R.K. Foodland Trans cold chain Sensitech

Bulkani deep freeze

Glacio cold chain Container Corporation

Apollo Everest Kool

of India (Concor) Indraprastha Cold Chain Fresh and Healthy Enterprises Ltd (FHEL) Weber distribution

Solutions Kausar India Ltd. M/s. Dev Bhumi Cold Chain Pvt. Ltd Everast Cold Storage. Future Logistics. XPS Cold Chain. And Many more
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 Cold chains, as an infrastructure sub-sector.

100 per cent foreign direct investment

UNION BUDGET 2011

Customs duty reduced to 2.5% to set up cold storages. Exemption of excise duty (16 %) on air conditioning equipment/ conveyor belts for cold storages. Duty-free import of refrigeration unit, which is required to make refrigerated vans or trucks. In the budget 24 projects with a total capacity of 1.4 lakh tonnes have been sanctioned under the National Horticultural Mission.

RAILWAY BUDGET 2011: Provision for creation of cold storages for perishable goods at certain select stations in partnership with the private sector.

FYP 11
Integrated cold chain facilities and strategic distribution centres. Building 30 mega food parks. Government subsidy of about Rs 380 crore.
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GOVERNMENT POLICY & INITIATIVES

NHM provided financial assistance of Rs 44.87 crore for the

establishment of 156 cold storages (2005 - 06 to 2009 -10).

NHB provided assistance for the establishment of 2,172 cold

storages with subsidy of Rs 604.60 crore from (1999 2010).

APEDA provides assistance for setting up of integrated pack

houses which include pre-cooling, sorting, grading and cold storage facilities.
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
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CURRENT TRENDS
Emerging companies
Government Initiatives

Singapore Companies

Luvata Gailtal,sterreich
General Electric

Punj Lloyd
Dev Bhumi Cold Chain Pvt. Ltd.

Infrastructure Schemes(CCIS) Development of Strategic Distribution Centers (SDC) Creation of National Green Grid

Spire carriers
Everest Cool Solutions GATI Ltd.

PROGRAMMES 1. Cold chain summit 2. Cold Chain Expo (ICE)

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NATIONAL GREEN GRID - THE CONCEPT

Baltimore(Maryland state, United States)

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GOVT. CAN DO THIS?

Creation of integrated cold chain logistics infrastructure

Technology upgradation.
Capital investmet - private sector participation, FDI Aid in acquisition of land to set up facilities for cold storage,
food processing, etc.

Examine FDI restrictions in retail

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MARKET POTENTIAL OF F&V

Market size will grow from $ 46 billions in 2010 to $ 48 billions by 2015 @ 6% growth rate.
Value contribution of processed F&V would grow from 13% in 2010 to 26% in 2015 High level of processing will need robust Cold Chain with respect to: Regular Supply Storage of raw Finished Product Maintaining the Quality
Market Size in $ billions
50 45 40 35 30 25 20 15 10 13 3 26 44 46 48

5 0

2006-07 2010-11 Processed

2014-15 Nonprocessed

Source: www.marketreports.com/ 36

DOMESTIC Vs COLD SUPPLY CHAIN (FRUIT & VEGETABLES )

DOMESTIC

Farmer
Conventional Transport

Commission Agent

Processor
Wholesaler

Consumer

Retailer
Auction, Storage at Mandi Conventional/ Reefer Transport

RETAIL

Conventional Transportation

Conventional/ Reefer Transportation

Retail Chains Procurement Centres Wholesaler

Retail Outlet1
Retail Chains District Warehouse / Distribution Centre

Farmer

Commission Agent

Retail Outlet 2

Consumer
Retail Outlet 3 Retail Outlet 4

Conventional Transportation

Conventional/ Pack House/ Cold Conventional/ Ambient/ Air Reefer TransportStorage Reefer Transport Cooled Storage

EXPORT
Reefer Transport

Procurement Centre (Pack House/ Cold Room)

Reefer Transport

Reefer Transport

Farmer
Pre-cooling/ Cold Storage

Commission Agent

Wholesaler/ Exporter
Pack House/ Cold Storage

Processing Grading / Sorting

Reefer Transport

Reefer Transport

Export Terminal

Importer

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APPLE
Apples Production in India (000'MT)
1400 1200 1000 1222

Jammu and Kashmir

Major producing states of apples are

Himachal Pradesh

In 000'MT

800 600 400 200

0 J& K HP Uttranchal Arunachal Pradesh

268
123 10

Jammu &Kashmir 70% HP 20% Uttarakhand - 6 % Arunachal Pradesh rest of the apples

Punjab

Uttarakhand Haryana
Delhi

Arunachal Pradesh

Uttar Pradesh
Rajasthan Bihar

Sikkim
Nagaland

Jharkhand
Gujrat

West Tripura Mizoram Bengal

Madhya Pradesh
Chattisgarh Orissa

Maharashtra

The total production is 16 lakh metric tonnes.

Goa

Andhra Pradesh Karnatak a

Harvesting season is June end to October.

Production Areas
Kerala Tamil Nadu

I. DOMESTIC SUPPLY CHAIN Conventional Transport Corporates Commission Agents Packaging/ CA/ Cold Storage Distributor Centres Wholesalers Auction at Mandi/ Cold Storage/ CA/Pack House Ambient/ Aircooled Stores Reefer Transport

Farmers

Reefer Transport

Retailers

Packed in wooden boxes and transported in normal trucks/ jeeps to storage centres (near to production areas) At storage centres, apples are sorted & graded and packed in corrugated fibre board (CFB) cartons of 1020 kgs Apples are generally stored in cold storage/ CA storage both at near production and consumption centres These cold storages/ CA are owned by commission agents/ big traders/corporate Apples are transported in both normal trucks and refrigerated trucks

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APPLE (Contd)
II. EXPORT SUPPLY CHAIN Procurement Centre (Pack House/ Cold Room) Reefer Transport Farmer Reefer Transport Reefer Transport Wholesaler/ Exporter Pack House/ Cold Storage Commission Agent Pre-cooling/ Cold Storage Reefer Transport Reefer Transport Processing Grading / Sorting / Export Terminal Importer Packaging

Apple export from India is negligible i.e. only 1.5 percent of total production Around 90 percent of Indias apple export is to Bangladesh,. For export, apples are generally stored under cold storage near mandi

III. PROFIT MARGIN Commission Agents/ Corporates

Farmers

Wholesalers

Retailers

Selling Price(Rs.) Margins (Rs.) Days to transit Wastage

35-40 0 3-5%

39-44 5 -10% 1-2 0%

65-70 10-15% 3-10 5%

75-80 20-25% 0-2 2%

Total wastage of about 5-10% across the entire supply chain At Cold Storage / CA, the level of wastage is about 5% due to moisture loss, during the storage period

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OPERATIONS IN COLD CHAIN (APPLES)

Technologies/ Facilities Pre-cooling Description
Apples are placed in a cool and ventilated place to remove the field heat in plastic crates Pre-cooling centres are near the production regions Forced Air method of pre-cooling is used in general for apples (bulk pre-cooling) Temp: 4 to 70C, RH: 75 to 85% Duration: 7-10 hours Use of automatic grading and packaging machines After receiving, apples are washed, graded and packed in corrugated fibre board (CFB) cartons of 10-20 kgs Pre-cooled and graded apples are kept in Cold Storages/ CA Cold Storage requirement o Temperature: 2 to 4oC, RH: 85% o Shelf life: 2 to 3 months CA Storage requirement o Temperature: 0 to 1oC, RH: 90-95% o Gases: 2%-2.5% O2, < 1% CO2 and 96-98% N2 o Shelf Life: 7 to 9 months In Reefer (8 MT) and non Reefer trucks (10MT) Prestorage treatment with antioxidant with a week of harvesting

Grading & Packaging

Cold Storage/ CA Storage

Reefer Transport Others

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CONCLUSION
The Retail growth, increased production of perishable

products have created a huge opportunity for cold chain in India. The key factor that will decide how the cold chain sector grows over the next few years will be, how strong, and how sustainable the investment flow is.
PPP in the sector as well as greater involvement of railways

and airports can strengthen the cold chain infrastructure.

The integration of various elements and stakeholders of cold

chain management, forge workable partnerships (even public-private partnerships wherever possible) is required to realize the vision for an efficient and integrated cold chain management throughout the country.
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Storage instead of wasting can.

.Lead Us Towards a hunger Free world

THANK YOU
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