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LOGO Slide 2 Global Cold Chain Logistics Market Growth Drivers:- Increasing globalization of food industry Global efforts towards sustainable growth Increasing contribution of emerging economies Changing consumer taste and preferences. Major International Players Americold, Swire Cold, Preferred Freezer Services, Nichirei Logistics Group, Partner Logistics etc. Top Five Nations on The Basis of Cold Storage Space Growth During 1998-2010 2 TechSci Research Source: IARW Slide 3 India Cold Chain Market Scenario NRHMs allocation has been proposed to be increased to USD 3.7 Billion in 2012-13 from USD 3.23 Billion in 2011-12 100 per cent FDI is permitted for health and medical services under the automatic route. 3 11% of worlds total vegetables production is accounted by India alone but Indias share in global vegetable trade is only 1.7%. 127 Million Tonnes of milk was produced in 2011-12, but cold storage capacity is only available for 70,000-80,000 Tonnes of milk. 20%-30% of fish production is annually wasted in India. ~25,000 unregistered slaughter houses are present in India, which generally lacks chilling facilities. Projected Growth of India Cold Chain Market In INR Billion TechSci Research Slide 4 Temperature Controlled Vehicles Market Mostly operated by small & non integrated firms. 30,000+ refrigerated vehicles are plying in India. 25,000 of refrigerated vehicles are utilized for milk and milk products transportation. The high cost of transportation is a major challenge for refrigerated vehicles market. Growth Drivers: Meat products export, Rising demand of confectionary, Frozen food etc. 4 TechSci Research Slide 5 Refrigerated Vehicles Demand By Verticals 5 Increasing demand for milk and milk products from every corner of the country High meat export demand from Middle Eastern countries Increasing focus on supply chain in Pharmaceutical sector TechSci Research Slide 6 India Temperature Controlled Warehouse Market 95% of total storage capacity is under private players. 36%+ of the total cold storages in India have capacity below 1000 MT. 5381+ number of total cold chain storages in India. Major contributor in the revenues of cold chain industry of India. Growth Driver: Growth in Organized Retail & Food Service Industry, Governments initiatives, Rising export demand for processed & frozen food. 6 Projected Growth of India Cold Chain Market TechSci Research Slide 7 Regional Distribution of Cold Storage 7 Gujarat(5.2%) Maharashtra (2.2%) Karnataka(1.7%) share of Indias cold chain storage capacity is contributed by Uttar Pradesh & West Bengal. Punjab (5.5%) Madhya Pradesh(3.3%) Andhra Pradesh(3.7%) West Bengal (23.2%) Bihar(4.7%) Uttar Pradesh(41.4%) Source: Directorate of Marketing & Inspection TechSci Research ~10 Lakh Tonnes AP In Fish Production with 13.5 LT -ASSOCHAM 2 nd AP In Tomato Production with 5.9 LT -NHB 1st AP In Papaya Production with 1.1 LT 1 st AP In Mango Production with 3.3 LT -NHB 2 nd LT Lakh tonnes 65% Slide 8 Cold Storage Price-Volume Analysis 8 By Value TechSci Research Huge Variation in the share of potatoes storage capacity and revenues generation. Share of multi purpose cold storages is low in storage capacity but high in revenues generation. Growing focus towards the multi-purpose cold storages. Slide 9 Government Initiatives 9 FDI allowed through automatic route 100% FDI Since 2011-12, cold chain has been given the infrastructure status. Infrastructure Status Up to 40% of the cost Viability Gap Funding 5% concession on import duty, service tax exemption, excise duty exemption on several items. Subsidy of over 25% to 33.3% on the cold storage project cost. Monetary & Tax Benefits Established in 2011, to look into matters related to cold chain infrastructure Establishment of National Centre for Cold Chain Development Proposed financial outplay for cold chain infrastructure & food parks of around INR 1,675 Crore & INR 3,250 Crore respectively. Over 50%-70% capital grant on projects. Growing Emphasis On Food Parks & Integrated Cold Chain Development TechSci Research Slide 10 LOGO