22-23 November 2018
National Rail Museum, Chanakyapuri, New Delhi
Logistics Expo, Logistics Exhibition, Logistics Conference, Logistics Trade Shows, Logistic Summit, Logistics Expo, Logistics Exhibition, Logistics Conference, Logistics Trade Shows, Logistic Summit

Cold Chain & Warehousing Market Overview

  • The cold chain market in India has been evolving over the years. The market, which was valued at $167 billion in 2016, is projected to reach $235 billion by 2020. The growth will be driven by increased investments, growth of end-user industries, modernisation of existing facilities, and establishment of new ventures via private and government partnerships.
  • The Government of India offers certain incentives for promoting the growth of cold chain industry. Since 2011-12, this industry has been given the infrastructure status. Further, 100 per cent FDI is allowed through automatic route.
  • However, the industry is beset with challenges like inadequate infrastructure, lack of trained personnel, outdated technology and inconsistent power supply. India has about 6,300 cold storage facilities with a capacity of 30.11 million tonnes, which are only able to store about 11 per cent of the country's total perishable produce. Despite India being the world’s largest producer of milk and second largest producer of fruits and vegetables, about 40 to 50 per cent of the total output worth $440 billion ends up being wasted.
  • The Indian cold chain market is unorganised and highly fragmented with more than 3,500 companies in the whole value system. Organised players contribute only 8-10 per cent of the cold chain industry market. At present, the cold chain capacity is about 9 million tonnes. Consumption-driven demand will receive a huge boost with a rise in private investments for setting up industrial parks and warehouses.
  • Warehousing comprises industrial and agricultural storage. Of the total warehousing space of about 1,800 million sq feet in India, the industrial and agricultural segments constitute about 86 per cent and 14 per cent, respectively. Government organisations including Food Corporation of India, Central Warehousing Corporation and the state warehousing corporations account for about two-thirds of the agricultural warehousing segment. Warehousing also includes cold storage, comprising over 5,300 units; most of which are concentrated in the states of Uttar Pradesh, Punjab and West Bengal.
  • India’s industrial and warehousing segment has been witnessing increased activity over the past few years on the back of our growing economy. The growth was primarily driven by the demand in manufacturing segment, and need for storage of raw material and finished products from industries such as automobiles, pharmaceuticals and food processing. The sustained growth of the segment, coupled with the implementation of the GST, will result in efficient supply chains and lower compliance costs. The industry is estimated to grow at a CAGR of 10 per cent during 2016-2022.
  • The Indian warehousing industry is in a consolidation mode and large players in the segment are all set to capitalise on this trend by expanding their warehousing capabilities in the form of large-format warehouses, providing value-added services. The implementation of GST across India, is having a positive impact on the warehousing segment.