Cold Chain Market India

Cold Chain Market – India

June 2011

2COLD CHAINS MARKET IN INDIA 2011.PPT

Executive Summary

Market

Drivers & Challenges

Trends

Competition

Cold chain are important for agricultural productivity in IndiaThe market is expected to grow to INR 157 bn by 2015 at a CAGR of 11% It is going to witness strong growth in capacity creation backed by government policies

Drivers:– Growth in organized retail– Shift towards horticultural crops– Growth in processed food sector – Demand from pharmaceutical sector– Changing consumption pattern

Challenges:– Lack of logistical support– Uneven distribution of cold chains– Cost structure– Power supply

Entry of foreign players Rail based reefers Cold chains facilities at airportsBackward integration

Development

Scenario

Huge amounts of food grain, fruits and vegetables get wasted mainly due to poor storage infrastructure, creating huge scope for the development of cold chain in India

Private participation is expected to bring in efficiency which is required for the agricultural sector Government has classified cold chain as ‘infrastructure’ as announced in the 2011‐12 budget

Major Players

Brahmanand Himghar Gati Future Supply Chain Solutions

Fresh and Healthy Enterprise Dev Bhumi Cold Chain Radha Krishna Foodland


�Introduction

�Market Overview

�Development Scenario

�Drivers & Challenges

�Trends

�Competition


Cold chains help to preserve products by maintaining the surrounding temperature

Cold Chain A cold chain is a temperature‐controlled supply chain, it consists of storage and distributionactivities which maintains a product at a given temperature range

Segments

Refrigerated Transport Surface Storage

It uses refrigerator trucks, cars, van, rail, containers and ships for transporting

perishable products

It consists of refrigerated warehouses for storage of essential products

Manufacturers / Farms

Cold StorageRefrigerated

TransportRefrigerated

Transport

Retail / Terminal/ Markets / Factory / Port / Airport

Supply / Procurement Storage Transport End‐customerTransport

Key

Activities

TransportationProcurement

It includes all activities related to transportation of produce to the market from farms or manufacturing location

Involves activities such as aggregation, grading , sorting , pre‐cooling, packaging

from farms or manufacturers

Source: Press Articles


�Introduction

�Market Overview



�Trends

�Competition


Cold chain market in India is going to witness strong growth in capacity creation backed by government policies

� Cold chain is an important infrastructure for agricultural productivity in India

�Market will get a boost in capacity creation from the last two budgets announced by the government Multinational corporations and PE firms have also started investing in cold chain services

� In 2010, with a capacity of 23.6 mt in 5,386 cold storage, India had to store a production 180 mt Around 30% of fruits and vegetables and 5% of food grain get wasted in India

� India has huge opportunity for cold storage facility Only 2% of fruits and vegetables in India get processed as compared to 65% in USA and 70% in Brazil

While 80% of fruit and vegetable production in USA go through cold storage, only 0.2% of it goes through in India

Wastage of fruits and vegetables due to lack of cold chain facilities have been estimated at INR 500 bn annually

Cold chain will get a boost from the reduction of duty on air‐conditioners and storage equipment from 7.5% to 2.5%

�With integrated cold chain and supply management, India is expected to save INR 800 bn annually

Cold Chain Market – Overview Market Size and Growth

Source: Construction Update “Cold storage: the chain gets hotter”, Apr 2011; Retail Franchise India “Cold Storage Story”, Sep 2010; FNB news “Make cold storage private players‐friendly”, Sep 2010; KPMG “KBuzz Sector Insights”, Feb 2011

24210

50

100

150

200

127

18

109

2012e

113

15

98

2011e

101

12

89

2010

89

9

80

2009

84

9

75

INR bn

+11%

2015e

157

133

2014e

141

120

2013e

TransportationStorage

Market Segmentation

10%

90%

15%

85%

2010 2015e

TransportationStorage


Government backing to boost the capacity creation for cold storages in India

� Surface storage accounts for majority of the cold chain services in India

� India has 5,386 cold storages with a capacity of 23.7 mn metric tonnes

�Majority of the cold storage facilities are utilized for potato storage and are located in states of UP, Uttaranchal, Maharashtra & West Bengal

� Cold storage infrastructure is set to undergo major revamp with government backing

Surface Storage Market – Overview Cold Storages Distribution (2009)

Source: Directorate of Marketing and Inspection ”Cold Storage ”; FNB news “Make cold storage private players‐friendly”, Sep 2010

Surface Storage

8%

30%2%

7% 5%

9%

5%

3%

5%

2%

3%3%

6%

10%

Comprise 2 % of total cold storages

Commodity Wise Distribution (2009)

9%Meat and Fish

4%

Milk and Milk Products

3%

Fruits and Vegetables

2%

Others56%

Potatoes

27%

Multipurpose


New players are now venturing into the more profitable refrigerated transport services

� Refrigerated transport involves usage of refrigerated vehicles for transportation of goods

� Key products that move through reefers include Ice cream and dairy products

Processed meat & poultry

Marine products

Preventive medicine (mainly vaccines)

Chemicals

Small quantities of fresh fruits and vegetables

� In terms of volume, current reefer transportation business is about 4 mn metric tonnes and is expected to reach 14 mn metric tonnes within 5 years

� Refrigerated transport offers the largest margins in cold chain logistics At least 50 companies are offering refrigerated transport services in India

� Key players in this segment include Gateway Distriparks

Gati – Kausar Dev Bhumi Cold Chain

Refrigerated Transport Market – Overview

Source: Transport Reporter “Cold Chain getting hot” ; U.S. Trade & Development Agency “Building Capacity in India's Cold Chain Infrastructure” 2008 ; Supply Chains “Food chains to benefit from incentives for cold storage in India; Press Articles

Refrigerated Transport

Refrigerated Transport Process

Grading/

Sorting/

Precooling/

Packing

Domestic Supply Exports

Procurement

Refrigerated Transport

Cold Storages


�Introduction

�Market Overview



�Trends

�Competition


Current Scenario

�Huge amount of food grain and fruits and vegetables get wasted mainly due to poor storage infrastructure creating huge scope for the development of cold chain in India

� Being the second largest producer of fruits and vegetables globally, Indian market is highly attractive for investments in cold storage solutions

Future Outlook

� Infrastructure status along with 100% FDI allowance is expected to boost the probability of investment by private players in the cold chain sector

� This will help in investment as cold chain is a highly capital and technology intensive industry with a large size cold chain having a payback period of around five years

�Global and domestic players have started building cold chain solutions across India and have already invested around INR 54.2bn till 2010

Policy

� 100% FDI allowance for the setting up of processing plants will attract huge investments from the private players in the cold chain sector

� Concessions imposed on import duty and exemption of service taxes for installation and commissioning equipment would drive extensive foreign investment

Demand for cold chain and favourable policy creating huge investment opportunity Indian and global players

Investment Opportunities

Source: TransReporter “Cold Chain getting hot”, Mar 2010

With rising demand, 100% FDI allowance and the infrastructure‐status conferred upon it, the cold chain market expects to see a huge capacity addition with investment expected to increase by many manifolds


Public private partnership is expected to help in the development of cold chain in a big way

Source: Construction Update “Cold storage: the chain gets hotter”, Apr 2011

� Proper warehousing infrastructure will help farmers to avail facilities to hold, meet the liquidity and restore distress sale Expected to give huge scope to PPP in cold chain, which mainly addresses cash crops, horticultural and floricultural crops

� In order to address wastage and deficit in storage capacity, Food Corporation of India (FCI) is hiring godowns from private parties for a guaranteed period of seven years Private players can increase their storage capacity so that whenever storage is required, the capacity can be hired by FCI’s

� Indian Railways is planning to set up cold chain and warehousing facilities in PPP model across almost 7,000 railway stations and is also planning to introduce special trains for carrying agricultural productsWill help increase private participation in a great extent

Will also help to reduce the losses of agricultural products caused due to lack of storage facilities

� State wise initiatives are being taken for development of cold chains under PPP model

Karnataka has already set up a cold chain through partnering of KAPPEC and Ken Agritech

Maharashtra and Tamil Nadu are also planning for developing cold storage facilities through private participation

� Private participation in cold chain is thus expected to bring sustainable efficiency to the agricultural sector

Public Private Partnership (PPP) model is being considered as an efficient way to develop cold chain in India

Although returns in cold storage is expected to be less, the scope for expansion is huge as both Ministry of Agriculture and Ministry of Finance are involved in ensuring that the profit motive of private players is insured Although returns in cold storage is expected to be less, the scope for expansion is huge as both Ministry of

Agriculture and Ministry of Finance are involved in ensuring that the profit motive of private players is insured

Private Participation


Cold chain sector is expected to receive major impetus from the government

�Government of India has classified cold chain as infrastructure in its 2011‐12 budget It will provide project import status for cold storage, warehouse and mandis

It also provides project eligibility for raising funds through external commercial borrowing and viability gap funding Has reduced custom duty to 2.5% on cold storage equipment while excise duty has been exempted for cold storage conveyer belts and refrigeration panels

It also emphasizes on hiring private warehouses by state run food Corp to 7 years from 5 years to meet the storage deficit

Government Initiatives

Source: The Hindu “Cold storage unit in Vizag nearing completion”, Apr 2011; Fresh Plaza “Firms can set up cold storage centres near railway stations”, Sep 2010

During FY 2011, 24 cold storage projects with a capacity of 0.14 mt have been approved under National Horticulture Mission while107 cold storage projects with a capacity of over 0.5 mt have been approved by the National Horticulture Board

During FY 2011, 24 cold storage projects with a capacity of 0.14 mt have been approved under National Horticulture Mission while107 cold storage projects with a capacity of over 0.5 mt have been approved by the National Horticulture Board

Terminal Market

Railways

Port andshipping

�Government is working on revamping mandis (terminal market) so as to reduce post harvest losses, link the farmer directly to the market and provide more alternative to sell their produce Half of the project cost is expected to be funded by the government At present there are about 20 terminal markets across Maharashtra, Tamil Nadu, Bihar, and Orissa and 75 more terminal markets with sophisticated storing and cooling technology are still required

�Railways ministry is also working on proposals to allow corporate entities to set up cold storage centres along side railways stations Prospective operators would facilitate cold chain supply of perishable cargo and the agreement will be valid for a period of 3 years

� Shipping and port industry is also looking to introduce cold storage facilities at the port It has been estimated that cold storage units with 20,000 tonne capacity being set up in Vishakhapatnam with INR 75 mn and will be completed in next two months


�Introduction

�Market Overview



�Trends

�Competition


Drivers & Challenges – Summary

Demand from Pharmaceutical sector

Growth in Processed Food Sector

Changing consumption pattern

Drivers

Growth in Organized Retail

Shift towards horticultural cropsCost Structure

Lack of Logistical Support

Challenges

Uneven Distribution of Cold chains

Power Supply


Growth in organized retail and shift towards horticultural crops has created a demand for cold chains in India

�Modern retail sector necessitates efficient supply between source and the end consumer

� According to estimates, nearly 40% of fruits and vegetables are spoiled during transportation

� A number of players are thus investing in supply chains, including a warehouse and a cold chain network to ensure the preservation of the produce


�Due to increasing risks and investments in grain crops farmers are cultivating horticultural crops

�Horticultural crops need refrigerated storage, hence demand for cold chains is likely to increase

Shift Towards Horticultural Crops

Impact

Source: “CRISIL news Organised retail in India to triple by 2010” Dec 2005 “; Directorate of Economic and Statistics “Area and Production of Horticulture Crops”


1,090

350

0

1,000

2,000

INR bn

+26%

20102005

Production (Thousand Tonnes)

Area (Thousand Hectares)

202,678192,210182,817

0

50,000

100,000

150,000

200,000

250,000

0

10,000

20,000

30,000

‘

200820072006

Shift Towards Horticultural Crops

Impact


Food processing sector is the key target segment for this industry

� Changing consumer trend towards convenience and processed foods indicate a future for greater storage capacities

� Government of India’s plans on setting up 30 mega food This is likely to propel demand for cold storage facilities

Growth in Processed Food Sector Impact

Source: Rabobank “Role of Logistics in Food Business” Aug 2006

Fruit & Vegetables

585.6

307.2

52.80

200

400

600

INR bn

+27%

2014e20102004

Dairy

4,694.4

2,716.81,238.4

0

2,000

4,000

6,000 +14%

2014e20102004

INR bn

Snack & ready to eat foods

518.4

158.428.8

0

200

400

600

INR bn

+34%

2014e20102004

Marine Products

403.2

182.476.8

0

200

400

600+18%

2014e20102004

INR bn


Demand from pharmaceutical sector is driving growth in this sector

� Pharmaceutical sector depends on cold chain networks for storage of biotech drugs & vaccines as life‐saving drugs and products including vaccines are temperature sensitive

� Indian pharmaceutical companies are increasingly seeking opportunities to supply drugs to the world market, thus cold‐chain management practices will be required to achieve this goal

� At present cold storage capacity in India in inadequate with a positive outlook for the pharma industry leading to an urgent need to develop integrated cold chain facilities Mumbai International Airport has already installed four new cold rooms for pharmaceuticals along with trained staff to handle it

Organization of Pharmaceutical Producers of India has tied up with Delhi International Airport Ltd. to overhaul and add to the existing cold chain facility in Delhi

Demand from pharmaceutical sector Impact

Source: Economic Times “India key market for vaccine makers‐ Pharmaceuticals‐Healthcare”; McKinsey “Indian Pharma 2015”

45

31

0

20

40

60

INR bn

+20%

20102008

Growth in Vaccine Market Growth of Pharma Industry

960

302

0

500

1,000

2015e2008

INR bn+18%


Changing consumption pattern is expected to create huge demand for cold storage in India

� Changing consumption pattern of consumers is expected to create huge demand for cold storage

� Changing lifestyles has led to consumers spending minimal time on cooking which has led to an

inclination towards packaged food among the working population

� Consumer across the country, which includes metros, tier II and tier III cities, are accessing frozen

food and fresh vegetable

Transportation of packaged food requires players to develop a cold chain so as to deliver them before they

perish

� This shift of consumption patters will lead to the development of the cold chain solutions market

in India

Changing consumption pattern Impact

Source: TransREporter “Cold Chain getting hot”, Mar 2010


Lack of logistical support and uneven distribution of cold chains impede industry growth

� Fragmented cold chain industry has not encouraged the growth of cold logistics for perishable horticulture produce

� Collection of fresh produce in small quantities from remote and scattered small farms located at far off locations remains a logistical challenge

� Fresh produce are left on the road or fields till sufficient quantity is accumulated to make a truck load for transportation to the local markets

� Transportation of fresh harvested produce is generally in open body trucks

� Standard cold stores and refrigerated transport systems neither have the refrigeration capacity nor the air circulation needed for pre‐cooling fresh horticulture produce at the farm level or at the existing collection centers

Lack of Logistical Support Impact

Source: Business Standard “Sops for cold chains insufficient” Jul 2008 ; Directorate of Marketing and Inspection “ Cold Storage ”; Walco Engineering” Mobile Forced Air‐Cooling Systems”; Cold Chain Summit 2007

�Majority of the cold storages are located in the states of Uttar Pradesh, Uttaranchal, Maharashtra, West Bengal, Punjab and Gujarat

� Cold storage facilities now available are mostly for single commodities such as potato, orange, apple, grapes, pomegranate and flowers, which result in poor capacity utilization

� This affects financial viability due to seasonal nature of such commodities

� The under‐utilized capacities, especially in the metros has depressed the pricing power

Uneven Distribution of Cold chains / Capacity distribution Impact


Higher operating costs make setting up cold storages difficult and unviable

�Operating costs for Indian cold storage units are higher as compared to units in the US

� Energy expenses make up about 28% of the total expenses for Indian cold storages compared to

10% in the West

� These factors make setting up cold storages difficult, unviable and uneconomical

� About 30‐35% of the losses can be reduced by transporting the freshly harvested fruits and

vegetables in refrigerated containers thus closing this gap in the cold chain

Cost Structure Impact

Source: “Post harvest losses due to gaps in cold chain in India‐A solution”

1,440

2,880

0

1,000

2,000

3,000

India US

INR

Operating Cost per Cubic meter per year


Power shortage is expected to create challenges for the development of cold chain

� India’s power deficit is about 10%, with a peak deficit of 17% leading to chronic power shortage

� The power shortage in the country could lead to significant impacts on cold chain sector which is

dependant on electricity for refrigeration

� The purpose of setting up cold chains will be defeated if the power supply is erratic

This would require investment in back‐up systems, which adds to the capital investment costs

Power Supply Impact

Source: IFC “Tata Ultra Mega” ; Ministry of New and Renewable Energy (MNRE), Central electricity Authority; Birla Power Solutions Ltd. “Prospectus" Mar 2006; Live Mint.com “Tax incentive to attract funds for warehouses, cold storages” Jul 2009

Future Demand‐Supply Scenario

2007 2012 2017Supply

255

77%

23%

Demand

315

55%

45%

Supply

147

76%

24%

Demand

197

54%

Supply

101

74%

Demand

120

59%

46%26%41%

Base

Peak

Demand Supply Gap ~ 17%

Generation

Average Energy Demand

0

200400

600

800

Energy (BU)

XIXVIIIVIIVI


�Introduction

�Market Overview



�Trends

�Competition


Rail based Reefers Cold Chains Facilities at Airport

Entry of foreign players Backward Integration

Key Trends

Trends – Summary


Foreign players have become interested in the Indian market due to initiatives taken by government

Source: TransREporter “Cold Chain getting hot”, Mar 2010; The Hindu “Singapore companies keen on cold‐chain logistics in Indian FPI”, May 2010

Entry of foreign players

Cold storage policy initiative taken by the government has beckoned cold chain majors to set up their own back end logistics in India

Cold storage policy initiative taken by the government has beckoned cold chain majors to set up their own back end logistics in India

� Food tech Holland has recently been launched in India by the Ministry Of Food Processing Industries Consortium of highly innovative Dutch food companies, providing hi‐tech solution along the supply chain

Cluster is also expected to work with India's National Cold Chain center of excellence to develop cold chain capability

� Spire Group Ltd, a Toronto‐based company, has recently joined hands with the tyre major Apollo to start

Apollo Logisolution, a cold chain logistics venture in India Expected to invest INR 11.5 bn in the development of cold chain in India

� GE Equipment Services is looking at entering India’s cold chain logistics market, especially cold storage

and transportation equipment

�Malaysia’s Haisen has signed an agreement with the Beta Empire Group and Pace CFS for a possible joint

venture to establish cold chain logistics in India

� Singapore‐based companies have also expressed their interest in setting up cold‐chain logistics in

business parks being set up for food processing industries in India

Recently, some of the major foreign players have started showing interest in developing cold chain in India mainly due to initiatives taken by the government


Railways are now providing cold chain solutions through its rail‐based reefers

� CONCOR has reefer services available at ICD Dadri and ICD Kanpur terminals and is also moving them to the domestic terminal at Turbhe

� Plans to offer these services from other terminals as well subject to materialization of adequate traffic levels

CONCOR

Source: Container Corporation of India “Cold Chain/Reefers”; DNA “Gateway to move reefers on rail”, Jan 2008; Business Line “APL India Linx plans reefer cargo service”, Jul 2007

Railways is planning to encourage creation of facilities of setting up cold storage and temperature controlled perishable cargo centers and its transportation through rail‐based reefers

� Has integrated its services with the railway container service to transport refrigerated containers

� Operates export‐bound refrigerated containers through container rakes on the Delhi‐Mumbai route

Gateway Distriparks

� Container transportation arm of Singapore‐based Neptune Orient Lines, also offers such services

� Operates reefer containers between its terminal at Loni (near Delhi) and Jawaharlal Nehru port

APL India Linx

Rail Based Reefers


Cold chains are now being set up at airports to facilitate international trade

Source: India Aviation “Cold chain management at Mumbai Airport and New Delhi Airport to improve”, Jan 2009; Fierce Pharma Manufacturing “Hyderabad Airport joins cold chain age”, Dec 2010; Fresh Produce India “India to develop cold chain facilities”, Jan 2011

Airports across various cities in India are also setting up cold chain facilities for handling perishable cargoes and facilitating international trade

Cold Chain Facilities at Airports

� Organization of Pharmaceutical Producers of India (OPPI) has tied up with Delhi International Airport Limited (DIAL) and Mumbai International Airport Pvt. Ltd. (MIAL), where 80‐90% of the export and import trade of pharmaceuticals take place

� DIAL is planning to construct 4,000 square metres of additional cold room capacity compared with the present cold room capacity of 400 square meters

�MIAL has already installed 4 new cold rooms for pharmaceuticals and has trained handling staff to ensure adherence to standard operating procedures

Delhi and Mumbai

� Hyderabad International Airport has installed a Pharma Zone at its cargo terminal, which is a temperature‐controlled facility that includes a dedicated area for 2‐8 degree Celsius storage

Amritsar

� Punjab government is planning to build a perishable cargo centre with a 30,000 tonnes storage capacity at Amritsar International Airport to aid the export of fresh produce It has also planned to construct around a dozen integrated pack houses to maintain a cold chain for produce destined for the airport

Hyderabad


Large retail firms are integrating backwards in order to explore strong opportunities in the cold chain sector

Source: Business Standard “Sops for cold chains insufficient” August 2009; International Food Drinks and Hospitality Exhibition “Out of cold storage” May 2008

Backward Integration

� Future Group has integrated backward—from food retailing to storage and transportation with the

launch of Future Logistics Future Logistics focuses on verticals including courier service, road transportation, freight forwarding, cold chain

infrastructure

�Reliance Retail has also started creating cold chains for their businesses in India Reliance Retail Limited (RRL) is investing INR 250 bn for its ‘farm to fork’ strategy

Its supply chain would comprise of trade in the open market as well as serving the Reliance Fresh outlets

�Cold chain solutions is also a part of McDonalds’ supply chain in India

Retailers are now integrating backwards and developing cold chain solutions to benefit from the highly promising cold chain sector


�Introduction

�Market Overview



�Trends

�Competition


7% 2%

91%

The market is dominated by the private sector with minimal presence of the public sector

� Investment and growth opportunity for cold chain is huge as it is still not yet developed in India Investments have been announced by Reliance, Bharti, ITC, Godrej, Tata, Aditya Birla Group and Future Group to offer a ready market for third‐party cold chain logistics players

� Cold chain capacity in the organized sector was around 60,000 tonnes in 2009 Capacity additions & investments in next 3 years with existing players expanding capacities as well as new players

Highly capital intensive industry with an average payback period of around 5 years

�Distribution offers the largest margins in cold chain logistics

At least 50 companies are offering refrigerated transport services in India

�Major companies have shown interest in cold chain market in India, including Snowman Frozen Foods, Fresh and Healthy Enterprises and Apollo‐Everest Cool Solutions

Competition – Overview Sector Wise Split – Surface Storage (2009)

Source: Directorate of Marketing and Inspection ” Cold Storage ”; Rabobank “Role of Logistics in Food Business” August 2006 ; U.S. Trade & Development Agency “Building Capacity in India's Cold Chain Infrastructure” 2008; International Food Drinks and Hospitality Exhibition “Out of cold storage”, May 2008

Public Sector

Co-operative Sector

Private Sector

� More than 90% of the cold storage capacity in India is owned and maintained by the private sector

� Government of India encourages and supports the participation of private players to develop the highly capital intensive cold chain sector

� Public sector is also gearing up and actively participating in the development of cold chain solutions


Major Players in the Market (1/8)

Corporate Information Financial Performance

Headquarters Kolkata, West Bengal

Founded 1990

Services Cold storage facilities

Key People Rajendra Kumar Agarwal – MD

Company Snapshot: Brahmanand Himghar Ltd.

Business Highlights

� Brahmanand Himghar Ltd. engages in the operation of cold storages in India.

It operates a 14,000 metric ton cold storage for the preservation of potatoes in Midnapore district, West Bengal and a 4,100 metric

ton cold storage in Seraikela‐Kharsawan district, Jharkhand

� Formerly known as Brahmanand Development Pvt Ltd., it subsequently became a public company under the name of

Brahmanand Developments Ltd with effect from June 16, 1994

66.571.0

34.4

48.9

0

20

40

60

80

0

5

10

15

20

25

2007

INR mn INR mn

201020092008

Net Profit

Total Revenue

Source: Company Websites; Capital IQ; Factiva




Headquarters Navi Mumbai, Maharashtra

Founded 1998

ServicesCold storage, refrigerated transport and logistic solutions

Key People Prem Kishan Gupta – MD

Company Snapshot: Gateway Distriparks Ltd.

Business Highlights

�Gateway Distriparks Ltd. acquired 50.1% stake in Snowman Frozen Foods in 2007 and carries out its cold chain operations through it Snowman Frozen Foods boasts of 18 ISO 22000 certified warehouses and over 100 transport vehicles

It is India’s first cold supply chain company with a nationwide presence connecting more than 100 cities and distributing to more than 4,400 outlets

� It also provides logistics solutions for the international trading community and the shipping industry in India

� Is planning a four‐fold capacity increase in the cold chain segment to take advantage of the government's stimulus measures to improve the food distribution system in India

5.2

4.5

2.7

1.6

0

2

4

6

0.0

0.2

0.4

0.6

0.8

INR bnINR bn

2010200920082007

Total Revenue

Net Profit





Headquarters Secunderabad, Andhra Pradesh

Founded 1989

ServicesCold chain logistics solutions, refrigerated transport

Key People Mahendra Kumar Agarwal – CEO

Company Snapshot: Gati Ltd.

Business Highlights

�Gati Ltd. operates its cold chain logistics solutions through Gati ‐ Kausar Kausar India, which specializes in refrigerated transportation, was acquired by Gati Ltd. in 2007 for INR 143 mn

� It is the largest ISO 9001: 2008 certified refrigerated transport company in India with a fleet capacity of transporting 100,000 tons annually

� Provides refrigerated transportation of temperature‐sensitive products such as meat, dairy products and pharmaceuticals and also offers customized solutions for temperature‐sensitive shipments

� Competencies lie in their wide reach, cutting‐edge technology and a vast fleet of refrigerated vehicles equipped with advanced climate‐control systems

�Has been awarded the Consumer Super Brand status in the logistics category in 2006‐07 and 2009‐10

9261.17904.17168.4

5679.7

0

2000

4000

6000

8000

10000

‐200

‐100

0

100

200

300

20092008

INR mnINR mn

20102007

Total Revenue

Net Profit

Source: Company Websites; Capital IQ; Factiva; VC Circle.com “Gati Acquires 53% In Delhi's Specialised Logistics Firm Kausar” Aug 2007



Corporate Information Business Highlights

Headquarters Porbandar, Gujrat

Founded 1981

Services

Cold storage plant, industrial refrigeration, cold stores and freezers

Key People Surendra Patel – Head

Company Snapshot: Amar Cold Storage

� Amar Cold Storage is ISO 9001:2000 certified and provides cold storage facilities

� It also rents out its cold storage plants to other companies

�Maintains highest international requirements in the areas of quality, hygiene, environmental protection, and safety and are completely ISO and HACCP certified



Headquarters Navi Mumbai, India

Founded NA

ServicesControlled warehouses and logistics solutions

Key People NA

Company Snapshot: Apollo Logisolution Ltd.

� It has executed a joint venture with Canada‐based

Spire Group Ltd. for INR 10.225 bn to construct and

operate temperature—controlled warehouses in

India

� Apollo Logisolutions plans to invest INR 13 bn by

2015




Headquarters New Delhi, India

Founded 2003

ServicesControlled atmosphere storage, logistics and allied services

Key People Sanjay Aggarwal – Chairman

Company Snapshot: Dev Bhumi Cold Chain

�Has various kinds of specialized storages including deep freeze, chill store, controlled atmosphere storage, modified atmosphere storage

� Is commissioning its own powerful mobile pre cooler units mounted on 20 trucks

� Has state‐of‐the‐art cold storage chambers with capacity to store 3,000 mt

Source: Company Websites; Capital IQ; Factiva; FnBnews “Dev Bhumi offers advanced cold chain facility”


Headquarters Sonipath, Haryana

Founded 2006

Services Cold chain logistics

Key People N.K Jawa – CEO

Company Snapshot: Fresh and Healthy Enterprise Ltd.

�Was incorporated with INR 350 mn and is a fully owned subsidiary of Container Corporation of India (CONCOR)

� It has been set up to create world class cold chain infrastructure in the country and to provide complete cold chain logistics solutions

� CONCOR will be investing around INR 10‐15 bn for expansion of its cold chain logistics infrastructure




Headquarters Mumbai, Maharashtra

Founded 2007

Services

Cold chain logistics and storage, supply chain management and distribution

Key People Rakesh Biyani – Director

Company Snapshot: Future Supply Chain Solutions Ltd.

� Future Supply Chain Solutions is planning to raise INR 10 bn by selling stake either through an IPO or private equity placements by end of 2012

�Had received INR 500 mn of a INR 1.5 bn funding in 2009

Source: Company Websites; Capital IQ; Factiva; IndiaPE “Future Group's logistics arm plans to raise Rs 1,000 crore”, Jun 2011


Headquarters Hyderabad, Andhra Pradesh

Founded NA

Services Cold storage facilities

Key People Gubba Nagender Rao – Promoter

Company Snapshot: Gubba Cold Storage Ltd.

� It offers cold storage service out of Hyderabad, AP

� Its service includes Commercial Seed and Parent

Seed cold storage, Pre‐Cooling of fresh produce and

Custom Cold Rooms for Pharma & Food Products




Headquarters New Delhi, India

Founded 1993

ServicesStorage, transportation, distribution, and cold chain solutions

Key People Sarvjit Singh – President

Company Snapshot: M.J. Logistic Services Ltd.

� It provides storage, transportation, distribution, and cold chain solutions to FMCG, auto components, retail, paints, and food businesses in India

� Has strong presence in Delhi NCR, and operations in Haryana, Punjab, Himachal Pradesh, and Uttarakhand

� Provides end‐to‐end handling and shipping of temperature sensitive products (‐25°C to +15°C)

Source: Capital IQ; Factiva



Founded 2003

ServicesInnovative logistics and supply‐chain services

Key People NA

Company Snapshot: OOCL Logistics India Pvt. Ltd.

� Company operates technologically advanced reefer containers to ensure that cargo is shipped under strict controlled temperature

� It has some unique technologies such as Advanced Fresh Air Management Plus (AFAM+) system and ultra‐cool Magnum reefer containers which will preserve even the most delicate cargo in all conditions



Source: Capital IQ; Factiva


Headquarters Gurgaon, Haryana

Founded NA

Services Integrated logistics solutions

Key People Gopinath Pillai – Chairman

Company Snapshot: XPS Cold Chain

� A subsidiary of Transport Corporation of India (TCI Group)

� Services include providing vehicles on trip and dedicated basis and also provide a detailed log of temperature variation during transportation

� Its vehicle fleet consist of containers of 10‐24 feet with a payload of 1.5‐7 mt with highly sophisticated reefer units



Founded 1987

Services

Warehouse and transportation management – Temperature Controlled

Key People Raju Shete – Chairman

Company Snapshot: Radha Krishna Foodland

� RK Foodland provides supply chain solutions to agri, retail, QSR, food service and pharma industry and has established its footprint pan‐India

�Maintains a “zero‐tolerance” approach to quality, health, hygiene, safety, environment, maintenance and compliance

� Proposes to foray into private labels segment and has partnership with Bharti‐Walmart and McDonalds


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Cold Chain Market India

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