1. INTERVIEW14 CARGOTALK OCTOBER 2015
Taking the produce from farm to fork
QGive us an overview
of your business
model.Tell us about the
services you offer.
Incorporated in 2000 by Gian
Chand Arora, IG International (IGI) is
a marketer and distributor of high
quality fresh fruit across India. The
company handles an annual volume
of over 1500 refrigerated containers
from 20 countries and distributes
these through its 27 wholesale outlets
across India.IG International imports
fresh fruits such as apples, cherries,
kiwis, oranges, plums, pears and
sweet tamarind, to name a few.
Along with imports, we have an
interest in exports, third party logistics
and temperature controlled ware-
housing also.We are primarily export-
ing potatoes and grapes to Russia,
Europe and South East Asia. The
company also has a subsidiary by the
name of IG Supply Chain.
QCould you please tell
us more about your
subsidiary IGI Supply
Chain?
IG Supply Chain is a wholly
owned subsidiary of IGIPL and caters
to the business of third party logistics
and temperature controlled ware-
housing.The company is among the
top five players in the temperature
controlled warehousing sector. The
subsidiary has a present capacity of
25,000 pallets and has facilities in
Mumbai, Chennai, Bangalore, Jaipur
and Amravati.
QWhat hurdles do you
face in the import and
export of perishables?
How do you contribute to
smoother and easier
functioning?
Well, when it comes to obsta-
cles, I would like to focus on the
lack of infrastructure development,
a fragmented distribution system,
obsolete technology, low product
quality and a lack of trained per-
sonnel to name a few.
We leverage the infrastruc-
ture to make use of the physical
channels already in place for the
delivery of other products. We
believe in creating our own net-
work or to work with several small
and sometimes unreliable players
to make our product travel through
all the channels and reach our
customers. This needs skills and
IG excels in it.We have the distrib-
utor warehouse much closer to
the customer.
Technology is the something
we are handicapped without. We
consider modern techniques and
do not hesitate to trust new mech-
anisms to smoothen the process
if it does make a huge difference.
QWould you like to
comment on India's
current cold chain sector
scenario? If you have to
name three requirements
for the betterment of the
cold chain industry, what
would these be?
India ranks first in the world in
the production of fruits and second
in that of vegetables accounting for
10 and 15 per cent, respectively, of
the total global production. Despite
this, the per capita fruit and veg-
etable availability of fruit is low due
to post-harvest losses and those
losses can account for almost
one-third (25-30
per cent) of the
total production.The
quality of the prod-
ucts also diminishes
by the time they
reach the end con-
sumers. The prime
reason for this huge
wastage and inferior
produce is the lack of
infrastructure–the
cold chain arrange-
ment, from the
source of produce to
the end point of sale
where the perishable
goods can be stored
after harvest.
Requirements
for betterment would,
firstly, be a robust
cold chain. To benefit from a
larger production capacity
and pass it on to consumers in
the form of reduced prices as
well as to producers in terms
of reduced wastage is the need
of the day. Secondly, it would be
the use of the latest technology to
reduce the time consumed in taking
the produce from farm to fork.
QCurrently, you are
exporting potatoes
and table grapes to
Russia, Europe and
South East Asia. Are you
planning to increase the
number of countries and
export commodities? If
yes, please elaborate.
The number of countries
is dependent on a protocol.
The Agricultural and Processed
Food Products Export Development
Authority (APEDA) is trying to get
the protocol to other countries
for exports of potatoes and
grapes. As soon as more
countries open to up
to grapes and potatoes
we will consider
adding more countries
for exports.
QHow much growth (in
terms of percentage)
has your company
registered in 2014-15 and
what are your
expectations for this
financial year?
We have registered a growth of
20 to 30 per cent in 2014-15 and this
year we expect to grow at around
10–15 per cent.
CT BUREAU
Tarun Arora, Director, IG International talks about his company, the opportunities available in the Indian cold
chain sector, the constraints in the import and export of perishables and how these can be removed. He
emphasises that technology is equally important.
Tarun Arora
Director
IG International
IG has a fleet of 75
refrigerated trucks and
15 trailers.