Press Release: 21 June 2017
The Cold Chain Logistics market in India is estimated to grow at CAGR of 27% and expand at CAGR of 23.88% in value terms to 2019. Given automation and improved mechanization in transportation and storing of products, the commodities can last longer under controlled temperature, reducing costs to refrigerate and distribute the products. PE Investment in Cold Chain Industry is one of the market trends.
What are the Market Drivers?
- The market drivers have been the entry of foreign insulation equipment manufacturers & refrigeration, private investments, and need of greater cold storage facilities and logistics, especially from the pharmaceutical industry.
- Allowance of 100% FDI has been enabled for the cold chain market in India along with several relaxations and financial incentives.
What are the Market Challenges?
Presently, more than 3,500 companies operating are unorganized and fragmented in nature. But, organized players contribute 8%-10% to the cold chain supply base.
- High operation costs, lack of small size reefer vehicles for shipment from distributor to retailer, high ambient temperature.
- 5,381 cold chain storages in India contribute 95% of total storage capacity under private players.
- 36% of above mentioned cold storages in India have capacity below 1,000 MT.
- Unawareness on the significance of maintaining Cold chain services, poor road condition and high number of toll nakas.
Ways to develop end-to-end Chain Solutions for Application across Industries
Standards & Protocols: The substantial improvement in cool chain supply management comes from introduction of processes for safety, handling, designing, operations for finishing of products and raw produce.
Mobile Infrastructure: It includes pre-market and post-production stages, which are designed to meet the logistical load factors, as cold chain also extends to retail or point of sale for merchandise infrastructure. Static infrastructure on the other hand deals with storage and cross doc distribution hubs.
Skilled Resources: There are efforts to skilled human resources for implementing the above-mentioned aspects in a cold chain and make use of advanced technology to ease the logistical business and supply chain management.
Scenario of Supply Chain Analytics Market in India
The Supply chain analytics market may emerge victorious from $2.5 billion in 2015 to $4.8 billion by 2019, at CAGR of 14.6% during the forecast period, in India. Globally, the supply chain analytics growth rate is fastest in the APAC, LA and MEA region because of the increasing awareness for benefits in supply chain analytics amidst the business organizations running in numerous verticals.