Cold chain industry in India needs a reboot
India is an agrarian country, being one of the largest producers of fruits, vegetables, meat, seafood and dairy products. However, we lose a large percentage of the produce due to insufficient cold storage facilities in the country. Temperature-sensitive products require more care and constant monitoring. Indian farmers put in tremendous hard work to grow a crop nonetheless due to absence of proper infrastructure, transport and storage facility they end up storing the temperature-sensitive crops in an ordinary room and transport them in normal trucks. The result is that the quality and freshness is degraded when the product finally reaches the market.
What is the need of the hour?
The current scenario demands the presence of modern multi-commodity cold storage, pack houses, temperature-controlled transport along with cold chain management to maintain a smooth flow in the cold chain ecosystem. Most of the cold storages developed in India have been only for potato and onion and limited to specific states such as UP, West Bengal, Punjab and Gujarat. However, recent studies have proven that Indian consumers are turning more health-conscious, creating a demand for more vegetables, fruits and seafood. This is one of the key drivers for building a network of modern multi-chamber cold storages for these commodities.
The Indian market needs players who can think, invest and bring new solutions & technologies to market, enabling the right quality and costs keeping in mind safety, standard, energy-efficiency and cost-effectiveness in mind.
All India Cold Chain Seminar (AICCS) is an excellent exhibition to bring together the cold storage owners and users from across India. This show yields a platform to showcase cold-chain solutions, modernisation techniques, alternate energy solutions and new technologies such as the Internet of Things.
Join hands with All India Cold Chain Seminar 2020 scheduled from 2-4 July 2020 at India Expo Mart, Greater Noida – a new centralised accessible location, which will act as a platform to target visitors from focused states. The location, Delhi-NCR is the hub of agriculture, horticulture, floriculture as well as the meat industry facilitating the arrival of more key buyers from these sectors.
Cold Chain market in India is expected to reach INR 470 billion by 2022
The beginning of the new decade will certainly give drive growth and create opportunities in the India cold chain market. There are a slew of reasons driving the growth of cold chain market such as new policies, initiatives and introduction of new technologies.
- India cold chain market is unorganized and dominated by traditional cold storage facilities which are majorly dedicated to the storage of potatoes. The cold storage capacity has grown 1.2 times during 2012 to 2017
- The distribution of cold storages is highly uneven with majority of the cold storages located in Uttar Pradesh, Gujarat, Punjab and Maharashtra
- Majority of the cold storages are owned and operated by domestic companies. Snowman Logistics is one of the leading players in the industry
India Cold Chain industry poses a compelling future albeit with challenges. The market will be facilitated by favorable government initiatives and enhancement in technology to improve the quality of storage and transportation facility.
The market will witness a transition from traditional cold storages to fully integrated cold chain projects which would bring about efficiency and increased productivity of cold chain companies. Furthermore, with the rising exports of seafood, dairy products and other perishable items, major players will upgrade their facilities in order to store broad variety of products under a wider temperature range.
Adani enters into cold chain logistics with acquisitionof Snowman Logistics
Billionaire Gautam Adani's port-to-power Adani group has acquired majority stake in Snowman Logistics Ltd for ₹296 crore to foray into cold chain logistics. Adani Logistics Ltd, a wholly-owned subsidiary of Adani Ports and SEZ Ltd, signed definitive agreements to acquire 40.25% stake in Snowman Logistics Ltd from Gateway Distriparks Ltd, the company said in a statement.
Snowman is market leader in cold chain logistics with over 30% of capacity amongst integrated organised cold chain service providers in India. The acquisition gives Adani Logistics platform to double its capacity in the next five years. The buyout is in line with the firm's strategy to move from port gate to customer gate.
"The purchase price of ₹44 per share represents a 3.2% premium to the market price of December 27, 2019 and a 12 per cent premium to 60 day average," it said.
As part of the transaction, Adani Logistics will make a mandatory open offer as per the Substantial Acquisition of Shares and Takeover Guidelines, 2011 for a maximum 26% of the public shareholding in the Snowman Logistics.
Key technologies to redefine the future of Cold Chain
There is a slew of new technologies, which when absorbed in the Cold Chain are going to trigger a huge transformation. The few cracks visible in the cold chain, hampering the growth of the industry in India will be filled by the implementation of the technologies stated below further increasing the efficiency of logistics processes throughout the food supply chain. Scroll down to understand them better!
Making use of tracker technologies like GPS, companies can track down the food source and also get proper evidence on how food remains fresh from the farm to fork, indirectly helping in creating a competitive edge by building the authenticity of their brand.
Retailers can ensure the quality of fresh foods in while they are being transported by maintaining the unbroken temperature control. By implementing the use of IoT devices cloud-based software applications, refrigerated cargo containers can be monitored and tracked down remotely.
Blockchain Meets Cold Chain
Blockchain is information comprising of a digital database, which can help in creating a more transparent route for fresh foods. With new technologies being gradually absorbed, retailers are trying to find a way to change this data into marketing messaging to get more loyal customers.
Next-Generation AI based Cold Chain logistics
Smart technologies in logistics are turning out to be a major focus within supply chain management as faster and more accurate shipping reduces lead times and transportation expenses. The application of AI into supply chain related tasks holds high potential in fixing the gap in the cold chain.
With new government schemes and initiatives, things are going to get much easier for the cold chain sector in India. Furthermore, platforms such as All India Cold Chain Seminar 2020 are going to create many new business opportunities further enabling growth. All India Cold Chain Seminar 2020 is India’s oldest seminar-cum-exhibition converging the entire cold chain under one roof. This year the show will be held in Greater Noida at a newly built world-class exhibition centre, India Expo Center and Mart from 2-4 July 2020.