Supply Chain Leadership Council
Transcript of Supply Chain Leadership Council
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KPMG predicts high demand, RoI in the Indian food retail and logistics
sector; Yum wins two awards
Mumbai, December 03, 2010
Global audit and advisory firm KPMG has predicted that the USD 70bn food retail industry will more
than double to USD 150bn by 2025. Speaking at the first edition of Food Retail, Logistics & Packaging
Summit & Awards organiz ed by the Supply Chain Leaders hip Council, Ramesh Srinivas, Executive
Director, KPMG said, High gr owth in food retail is limited by sub-optimal supply chain caused by low
investment in the sector. He added that the food sector, in spite of its large share of GDP and theconsumer basket, only received 3.3% out of the gross FDI flows in India between 2000 and 2010.
Purvin Patel, COO, RK Foodland explained that t he cold chain industry is c onstr ained by quality supply
claiming that 22mn tons of capacity is not sufficient to serve the current 31mn tons of demand. He
predicted that the size of the c urrent cold chain market is Rs. 13,500crores which is expected to
grow to Rs 54,000 crores in 2015. Vishal Sharma, MD & CEO, Tuscan Ventures unveiled his funds
investment in Cold Star Logist ics at this summit while explaining that his decision to incubate a cold
chain solutions prov iding company was based on that the number of s izeable, quality and scalable
targets in this industry are few and far between.
Several industry veterans including Vivek Sarabhai of Cadbury-Kraft Foods, Lt Colonel Vijay Nair of
Hypercity and Ashu Khanna of Marico spoke of how innovation is helping to accelerate growth in this
sector. Vivek Sarabhai highlighted the importance of supply chains driven by customer focus and
feedback informingthat Cadburys extreme focus on the maintenanceof a cold chain is based on
that, in the past , almost 69% of consumer complaints were r elated to c hocolate damaged by heat. He
explained that a number of tec hnological innovations lie at the core of collaborative partnerships
between service users and vendors and are changing the way cold supply chains are maintained.
These include remote t emperatur e monitoring, door open alarm and SMS or email alerts in c ases of
procedure violations. Another example of packaging innovation discussed was that a cardboard box
designed with 2:1:2 r atio offers the same volume with less board consumption which reduces
packaging material cost and enhances load capacity. The discussions went a step beyond when
participants discussed the possibility of replacing all corrugated box packaging in the food industry
with shrink wrapping saving cost and increasing transportation efficiencies. Abhijit Upadhye, Sr.
Director National Supply Chain, McDonalds India suggested that trust and values driven
partnerships with longer term views will succeed in the wake of the unconventional pressures that
the expected growth will put on operat ions and supply chains related to food retail in India. Pradeep
Dubey of Snowmans, I ndias largest cold chain company, informed of his companys growth plans from
the current 16,500 pallets capacity to more than double in the next few years. Most cold chain
companies present in t he summit suggested similarly aggressiv e plans.
Later in the evening, Cyrus Broacha and Gautami Seksaria, Founder & Partner, Supply Chain
Leadership Council, hosted I ndias first food supply cha in awards t itled KPMG-SCLC Food Retail,
Logistics & Packaging Awards 10. The list of winners, selected by an expert group from KPMG out ofscores of nominations, is as below.
Food Supply Chain Manager of the Year (Manufacturer/Processor) - Cadbury and Pepsico
(Handed by Manish Saigal, Executive Director & National Industry Head Transportation &
Logistics, KPMG*)
Food Supply Chain Manager of the Year (QSR) - Yum Restaurants (Manish Saigal*)
Food Supply Chain Manager of the Year (Modern Format Retailer) - Future Value Retail (Manish
Saigal*)
Food Logistics Personality of the Year - A shok Kumar, VP - Supply Chain, Pepsico India (Purvin
Patel, COO, RK Foodland*)
Cold Logistics Service Provider of the Year Snowmans (Manish Saigal *)
Cold Chain Pers onality of the Year - Pawanexh Kohli, Chief Cold Chain Solutions Officer, Gati
(Purvin Patel*)
Cold Logistics Tech Enabling Company of the Year Brist lecone (Vishal Sharma, MD & CEO,
Tuscan Ventures*)
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