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I N D I A – R E P O R T 
2014 
IIAR - NASHVILLE 
PRESENTATION BY 
SAMIR SHAH – RVC – INDIA / SOUTH ASIA.
India is expected to be the 4th largest economy and will 
continue to be the 2nd largest population in the world by 2025 
...
GEN
In developing countries more than 40% of the food losses occur at post 
harvest and processing levels, while in industrial...
INDIA STATISTICS
INDIA STATISTICS: WHEAT EXPORTS
INDIA STATISTICS: MEAT EXPORTS
PHM-Cold Store Integration 
(Value Chain) 
Most of the cold stores are stand alone units (84%), only 16% being part of a n...
ORGANIZATIONS / ASSOCIATIONS INVOLVED IN FOOD 
PROCESSING INDUSTRY. 
MOFPI MINISTRY OF FOOD PROCESSING 
NCCD NATIONAL CENT...
INDIA 12TH - 5 YEAR PLAN
INDIA 12TH - 5 YEAR PLAN ( 2012 – 2017 )
SCHEMES PURPOSE INVESTMENT PROMOTION 
MEGA FOOD PARKS STRONG FOOD PROCESSING INDUSTRY WITH 
EFFICIENT SUPPLY CHAIN INCLUDI...
INDIA 12TH - 5 YEAR PLAN ( 2012 – 2017 )
INDIA 12TH - 5 YEAR PLAN ( 2012 – 2017 )
INDIA 12TH - 5 YEAR PLAN ( 2012 – 2017 )
INDIA 12TH - 5 YEAR PLAN ( 2012 – 2017 )
INDIA 12TH - 5 YEAR PLAN ( 2012 – 2017 )
INDIA 12TH - 5 YEAR PLAN ( 2012 – 2017 )
INDIA 12TH - 5 YEAR PLAN ( 2012 – 2017 )
INDIA 12TH - 5 YEAR PLAN ( 2012 – 2017 )
INDIA 12TH - 5 YEAR PLAN ( 2012 – 2017 )
INDIA 12TH - 5 YEAR PLAN ( 2012 – 2017 ) 
PART 2 :: NATIONAL MISSION ON FOOD PROCESSING 
PROMOTE FACILITIES FOR POST HARVE...
PART 3 : NATIONAL CENTER OF COLD CHAIN DEVELOPMENT 
- A TASK FORCE 
AN AUTONOMOUS NODAL AGENCY TO DEVELOP COLD CHAIN IN IN...
INDIA 12TH - 5 YEAR PLAN ( 2012 – 2017 )
FOREIGN DIRECT INVESTMENT IN INDIA 
450 
400 
350 
300 
250 
200 
150 
100 
50 
0 
FD1 
2007-08 2008-09 2009-10 2010-11 20...
NOMENCLATURES 
CAGR COMPOUND ANNUAL GROWTH RATE 
FSSAI FOOD SAFETY & STANDARDS AUTHORITY OF INDIA 
PMH POST HARVEST INTEGR...
REFRENCES 
www.fao.org 
www.12thplan.gov.in 
www.planningcommission.ni.in 
www.emerson.com/india 
Central Institute of Pos...
Prospect for cold chain development in 
the next decade
Availability of Cold Storages 
• India has 6,488 cold storage with a cumulative installed capacity of approximately 30 
mi...
Difference in reefer exports between peak 
month and slack month per country
Role of Govt. in development process
CHALLENGES : 
High Operating Expenditure will see change 
• About 28% of the total expenses for cold storages in India is ...
CHALLENGES 
Govt. policy interventions to develop 
integrated Cold Chain 
• No Clear cut policy on cold chain development,...
CHALLENGES 
The gap in cold storage capacity in 
various states 
• Cold Storage Requirement: 611.30 lakh MT 
• Present Cap...
STRENGTH IN CHANGE : 
Energy Saving 
• Power consumption in most projects 0.16 units/day/MT. 
( for 5000MT against ideal o...
STRENGTH IN CHANGE: 
Socio - Economic Impact of Cold Chain 
• Farming Community getting better price encouraged their barg...
OPPORTUNITIES : 
Indian Cold Chain industry is expected to grow at a CAGR of ~28% over the next 4 years 
and reach a marke...
OPPORTUNITIES : 
India offers great market potential for cold chain logistic 
solution providers, including refrigerated t...
Cold stores are the major revenue contributors of the Indian 
Cold Chain industry and are majorly used for storing 
potato...
SUMMARY: 
The Government of India recognizes that development of cold chain is an essential next 
step in upgrading India’...
Compliance cost and benefit to economy 
- Pack house, Ropeways, Conveyor belts etc: 400 
-Cold storage with mezzanine floo...
Importance of standards for healthy 
development of cold chain projects
Cold Chain industry in India
The India Opportunity
Doing Business in India
India Statistics
Also, the Indian economy has been witnessing healthy 
growth rates in the past with the services sector making the 
major ...
India’s economic growth is driven primarily by domestic 
market (private consumption), followed by investments… 
11 12 11 ...
….thereby making its growth more sustainable, resilient and 
relatively more consistent than other BRIC countries 
Real GD...
However, there are few moderate risks associated with 
economic growth in India 
Exchange 
Rate 
Inflation 
Fiscal Deficit...
Logistics in India
The logistics industry in India has strong growth drivers, is 
highly fragmented and provides ample opportunities for 
int...
Key growth opportunities in the 
logistics sector in India
The size of the Indian warehousing industry is currently 
pegged at ~USD 11 Bn and is growing at over 10% annually 
1,600 ...
Huge emerging opportunities for foreign companies in the 
Indian cold chain industry, which is undergoing a major 
change,...
INDIA CHALLENGES:
Refrigeration Solutions By Metalex Cryogenics Limited, Pune
Refrigeration Solutions By Metalex Cryogenics Limited, Pune
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Refrigeration Solutions By Metalex Cryogenics Limited, Pune

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Started to create milestones, we, Metalex Cryogenics Limited. marked our presence in the year 1968 and operate in the manufacturing/servicing of research and development, production expertise, and international customer service since 46 years. Our quality services products have been always appreciated by our clients. Our spontaneous attitude and confident approach in offering an excellent range of Refrigerant Compressor, Ice Machines, Industrial Valves, Refrigerant Pumps, Pressure Vessels has deepened our roots in the market. We, Metalex Cryogenics Limited breathe with the aim of fully satisfying our clients with our high-quality products services. We are a unit of highly experienced professionals, all of them contributing at the best of their potentials to offer the highest degree of efficiency and client satisfaction.

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Refrigeration Solutions By Metalex Cryogenics Limited, Pune

  1. 1. I N D I A – R E P O R T 2014 IIAR - NASHVILLE PRESENTATION BY SAMIR SHAH – RVC – INDIA / SOUTH ASIA.
  2. 2. India is expected to be the 4th largest economy and will continue to be the 2nd largest population in the world by 2025 World Population by 2025 – 8,000 mn China 18% US Russia 359 mn 1.45 bn EU – 27 India 132 mn Brazil 1.43 bn 469 mn 213 mn 2% 3% 6% Region’s population as a % of total world’s population Total population 4% 18% Top 10 GDP Countries by 2025 Sources: United Nations population studies (Medium variant prospects); Goldman Sachs Economic Research (GDP estimates); International Monetary Fund; Reed Analysis
  3. 3. GEN
  4. 4. In developing countries more than 40% of the food losses occur at post harvest and processing levels, while in industrialized countries, more than 40% of the food losses occur at retail and consumer levels. Food waste at consumer level in industrialized countries (222 million ton) is almost as high as the total net food production in sub Saharan Africa (230 million ton).
  5. 5. INDIA STATISTICS
  6. 6. INDIA STATISTICS: WHEAT EXPORTS
  7. 7. INDIA STATISTICS: MEAT EXPORTS
  8. 8. PHM-Cold Store Integration (Value Chain) Most of the cold stores are stand alone units (84%), only 16% being part of a network (value chain). Transport services were not provided by 80% of the cold storage units. Of the 20% that provided transportation, 52% had an outsourced asset base.
  9. 9. ORGANIZATIONS / ASSOCIATIONS INVOLVED IN FOOD PROCESSING INDUSTRY. MOFPI MINISTRY OF FOOD PROCESSING NCCD NATIONAL CENTER OF COLD CHAIN DEVELOPMENT APEDA AGRICULTURAL & PROCESSED PRODUCT EXPORT DEVELOPMENT AUTHORITY. MPEDA MARINE PRODUCT EXPORT DEVELOPMENT AUTHORITY. NDDB NATIONAL DAIRY DEVELOPMENT BOARD. FOCS FEDERATION OF COLD STORES. NHB NATIONAL HORTICULTURE BOARD. NMFP NATIONAL MISSION ON FOOD PROCESSING.
  10. 10. INDIA 12TH - 5 YEAR PLAN
  11. 11. INDIA 12TH - 5 YEAR PLAN ( 2012 – 2017 )
  12. 12. SCHEMES PURPOSE INVESTMENT PROMOTION MEGA FOOD PARKS STRONG FOOD PROCESSING INDUSTRY WITH EFFICIENT SUPPLY CHAIN INCLUDING COLLECTION CENTERS , PPC, CPC, COLD CHAIN INFRASTRUCTURE, EACH MFP WILL HAVE APPROX 30/35 FP UNITS & EMPLOYS APPROX 30000 PEOPLE. APPROX 42 MILLION USD SUBSIDY OF 50% OF PROJECT COST EXCLUDING LAND. ( MAX OF USD 8.3 MILL) COLD CHAIN COLD CHAIN FACILITY FOR AGRI PRODUCE, FISH , MEAT, LINKAGE FROM FARM TO CONSUMER. ( COLD STORES/ CA STORES/ IQF) APPROX COST 4 MILL USD SUBSIDY OF 50% OF PLANT & MACHINERY COST A MAX OF USD 1.6 MILL) MORDERIZATION OF ABATTOIRS MORDERIZATION OF SLAUGHTER HOUSES A MUST FOR MEAT PLANT. VARIABLE BASED ON SIZE MAX SUBSIDY OF USD 2.5 MILL. R&D , CODEX , PROMOTIONAL ACTIVITIES. UNIVERSITY: 100% SUPSIDY ON COST OF LAB EQUI & 25% OF CIVIL WORK. PRIVATE SECTOR 50% COST OF LAB EQUIP & 25% COST OF CIVIL WORK. SCHEMES PROMOTED BY GOI FOR ENCOURAGING INVESTEMENT IN FOOD PROCESSING
  13. 13. INDIA 12TH - 5 YEAR PLAN ( 2012 – 2017 )
  14. 14. INDIA 12TH - 5 YEAR PLAN ( 2012 – 2017 )
  15. 15. INDIA 12TH - 5 YEAR PLAN ( 2012 – 2017 )
  16. 16. INDIA 12TH - 5 YEAR PLAN ( 2012 – 2017 )
  17. 17. INDIA 12TH - 5 YEAR PLAN ( 2012 – 2017 )
  18. 18. INDIA 12TH - 5 YEAR PLAN ( 2012 – 2017 )
  19. 19. INDIA 12TH - 5 YEAR PLAN ( 2012 – 2017 )
  20. 20. INDIA 12TH - 5 YEAR PLAN ( 2012 – 2017 )
  21. 21. INDIA 12TH - 5 YEAR PLAN ( 2012 – 2017 )
  22. 22. INDIA 12TH - 5 YEAR PLAN ( 2012 – 2017 ) PART 2 :: NATIONAL MISSION ON FOOD PROCESSING PROMOTE FACILITIES FOR POST HARVEST OPERATIONS SUCH AS COLD STORAGES DECENTRIZAING THE IMPLEMENTATION OF GOVT SCHEMES TO INCREASE REACH. AUGMENT THE CAPACITY OF FOOD PROCESSING SECTOR TECHNOLOGICALLY-CAPITAL INFUSION- HAND HOLDING INSTITUTIONIZE TRAINING – FOR EASY AVAILABILITY OF MANPOWER RAISE STANDARD OF FOOD SAFETY & HYGIENCE TO MEET FSSAI NORMS FACILIATE FOOD PROCESSING INDUSTRY TO ADOPT HACCP & ISO CERTIFICATION. TO AUGMENT SUPPLY FROM FARM TO FORK.
  23. 23. PART 3 : NATIONAL CENTER OF COLD CHAIN DEVELOPMENT - A TASK FORCE AN AUTONOMOUS NODAL AGENCY TO DEVELOP COLD CHAIN IN INDIA. THINK TANK TO GOVT – TRANSLATE INDUSTRIES RECOMMENDATON TO POLICY CREATE PRIVATE INVESTMENT ENVIROMENT IN COLD CHAIN SECTOR ADDRESS CONCERNS ON STANDARDS & PROTOCOLS PROMOTE & DEVELOP NEW TECHNOLOGIES & ADAPTION IN INDIA. CREATE AWARENESS PROGRAMMES FOR BEST PRODUCT HANDLING PRACTICES FOR SPECIFIC REQUIRMENTS AND CONDITIONS. Recommend guidelines to minimise environment impact and promote sustainability in the cold-chain.
  24. 24. INDIA 12TH - 5 YEAR PLAN ( 2012 – 2017 )
  25. 25. FOREIGN DIRECT INVESTMENT IN INDIA 450 400 350 300 250 200 150 100 50 0 FD1 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 FD1
  26. 26. NOMENCLATURES CAGR COMPOUND ANNUAL GROWTH RATE FSSAI FOOD SAFETY & STANDARDS AUTHORITY OF INDIA PMH POST HARVEST INTEGRATION
  27. 27. REFRENCES www.fao.org www.12thplan.gov.in www.planningcommission.ni.in www.emerson.com/india Central Institute of Post Harvest Engg & Tech Post Harvest Intergration
  28. 28. Prospect for cold chain development in the next decade
  29. 29. Availability of Cold Storages • India has 6,488 cold storage with a cumulative installed capacity of approximately 30 million Metric Tons • More than 30% of the cold storage units (~10 mill tons) have been built in the previous 10 years and reports states another 30+ million tons capacity is to be built • 12th Five year plan targets 40 lakh MT for cold chain infrastructure & reefer transport
  30. 30. Difference in reefer exports between peak month and slack month per country
  31. 31. Role of Govt. in development process
  32. 32. CHALLENGES : High Operating Expenditure will see change • About 28% of the total expenses for cold storages in India is accounted for by energy expenses compared to only 10% in the West • About 30-35% of the losses can be reduced by transporting the freshly harvested fruits and vegetables in refrigerated containers or in suitable containers, crates etc. • Investment costs in the back-up systems of cold storages further makes the setting up of cold storage difficult, unviable and uneconomical • Alternate sources of non-conventional energy to be tapped.
  33. 33. CHALLENGES Govt. policy interventions to develop integrated Cold Chain • No Clear cut policy on cold chain development, presently. • Need for Adoption of modern Technology in Warehousing Business Model of Cold Chain Infrastructure. • Enforcement of Technical Standards for Specialized / Reefer Transport System as regulatory tools for claiming subsidies. • Generating minimum critical mass of Skilled Man-Power. • Creating synergy for Indian produce and institutions. • Specialized Purpose Vehicle (SPV) for Cold Chain Logistics Initiative. • National Centre for Cold Chain Development (NCCD) activation.
  34. 34. CHALLENGES The gap in cold storage capacity in various states • Cold Storage Requirement: 611.30 lakh MT • Present Capacity: 242.98 lakh MT • Gap: 368.32 Lakh MT • 12th Five year plan targets 40 lakh MT for cold chain infrastructure & reefer transport Source: DMI & NSE study 2010
  35. 35. STRENGTH IN CHANGE : Energy Saving • Power consumption in most projects 0.16 units/day/MT. ( for 5000MT against ideal of 0.18-0.20 unit/day/MT, against 0.14 ideal. • 10 -15% energy saving, with automation • Weight loss reduced 8 -10% to 2.3% presently • Quality of the produced improvedUse of Automation like VFD, PLC especially in CA Store. • Change of trend for automation • Standards help in selection of equipment
  36. 36. STRENGTH IN CHANGE: Socio - Economic Impact of Cold Chain • Farming Community getting better price encouraged their bargaining power. • Availability of large period of fruit like Apple 9 months, Carrot & Lemon 5-6 months In onion through out of the year. • Diversification and improved quality of processed potato and seed potato. • Wide varities of F&V imported through cold chain. • Enhancement of processing industry raw material and LCC.
  37. 37. OPPORTUNITIES : Indian Cold Chain industry is expected to grow at a CAGR of ~28% over the next 4 years and reach a market size of ~USD 13 Bn in 2017 and is largely unorganised in nature. Thereby, presenting a great opportunity. Cold Chain Industry in India (in USD Bn)  Growing annually at 28% the total value of cold chain 2.0 4.7 12.8 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 2009 2013E 2017F industry in India is expected to reach ~USD 13 billion by 2017 through increased investments, modernization of existing facilities, and establishment of new ventures via private and government partnerships  India’s cold chain industry is still evolving, not well organized and operating below capacity  The Indian cold chain market is highly fragmented with more than 3,500 companies in the whole value system  Organized players contribute only ~8%–10% of the cold chain industry market  Most equipment in use is outdated and single commodity based  Need for cold chain – ‒ 11% of world’s total vegetables production is accounted by India alone but India’s 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 lack chilling facilities Source: Assocham, US Commercial Service, Media Reports, Reed Analysis
  38. 38. OPPORTUNITIES : India offers great market potential for cold chain logistic solution providers, including refrigerated transport Temperature Controlled Vehicles Market in India  According to industry estimates, approximately 104 million metric tons of perishable produce is transported between cities each year  Of this figure, about 100 million metric tons moves via non–reefer mode and only four million metric tons is transported by reefer  Even though, India has about 250 reefer transport operators (mostly small & non integrated firms) that transport perishable products and >30,000 refrigerated vehicles currently ply in India  Majority of the refrigerated vehicles (~80%) are utilized for milk and milk products transportation  The high cost of transportation is a major challenge for refrigerated vehicles market  Key growth drivers include meat products export , rising demand for confectionary, frozen food etc. Source: Assocham, Reed Analysis 80 152 316 27,400 36,000 51,800 60,000 50,000 40,000 30,000 20,000 10,000 - 350 300 250 200 150 100 50 - 2009 2013E 2017F USD Mn Units
  39. 39. Cold stores are the major revenue contributors of the Indian Cold Chain industry and are majorly used for storing potatoes. However, the market is gradually getting organised and focus towards multi purpose cold storages is rising Temperature Controlled Warehouse Market in India  There are ~5,381 number of total cold chain storages in India with 95% of total storage capacity under private players  ~36% these cold storages in India have capacity below 1,000 MT  65% of India’s cold chain storage capacity is contributed by the states of Uttar Pradesh and West Bengal  With the current capacity only less than 11% of what is produced can be stored  Cold storage capacity is expected to grow at ~13% per annum on a sustained basis over the next 4 years, with the organized market growing at a faster pace of ~20%  Key growth drivers include growth in organized retail and food service industry, government’s initiatives, rising export demand for processed and frozen food 2.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.3% Source: Assocham, E&Y, Reed Analysis 4.6 12.5 17 29 47 50 45 40 35 30 25 20 15 10 5 0 0.0 2009 2013E 2017F USD Bn Mn Tonnes Cold Storage Price-Volume Analysis 75.4% 23.1% 0.8% 0.4% Potatoes Multi Purpose Fruits & Vegetables Meat & Fish Milk Products  Huge variation in the share of potatoes storage capacity and revenue generation  Share of multi purpose cold storages is low in storage capacity but high in revenue generation  There is growing focus towards multi-purpose cold storages 20.0% 54.0% 12.0% 6.0% 8.0%
  40. 40. SUMMARY: The Government of India recognizes that development of cold chain is an essential next step in upgrading India’s food processing industry and therefore offers many incentives for promoting growth 100% FDI • FDI allowed through automatic route • Since 2011-12, cold chain has been given the infrastructure status . Infrastructure Status Viability Gap Funding • Up to 40% of the cost • 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 ~ USD 335 Mn & USD 650 Mn respectively. Over 50%-70% capital grant on projects Growing Emphasis On Food Parks & Integrated Cold Chain Development Source: Assocham, Reed Analysis
  41. 41. Compliance cost and benefit to economy - Pack house, Ropeways, Conveyor belts etc: 400 -Cold storage with mezzanine floors: 2,400 -Advance Cold storages: 640 -CA Storages: 1,440 -Onion storage: 750 -Refrigerated vans: 500 -Multi-modal transport system for horticulture produce: 100 -Fruit Ripening Chambers: 800 • Total: 7,030 (Rs. Crores in 12th Plan Working Group Report). • Investment of about Rs 7,000 crore to go upto Rs 18,000 crores, on the conservative estimates. • Sectors such as meat, fish, poultry, dairy products, confectionery and pharmaceuticals to double to Rs 40,000 crores.
  42. 42. Importance of standards for healthy development of cold chain projects
  43. 43. Cold Chain industry in India
  44. 44. The India Opportunity
  45. 45. Doing Business in India
  46. 46. India Statistics
  47. 47. Also, the Indian economy has been witnessing healthy growth rates in the past with the services sector making the major contribution to the economy 3.9 8.5 10.5 6.3 Real GDP Growth 3.2 3.8 5.1 6.3 6.5 6.7 6.7 12.0 10.0 8.0 6.0 4.0 2.0 0.0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Source: Worldbank  The share of agriculture has been declining over the past few years and the trend is expected to continue in the future.  However, the government realizes that a service sector based strategy may not be sustainable over a long horizon.  Accordingly, it is expected that policy push on infrastructure and acceleration in the pace of reforms and investment in key sectors, is likely to keep India on its high growth trajectory. 34% GDP – Sector Contribution 27% 17% 10% 23% 23% 26% 26% 43% 50% 57% 64% 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 1990 2000 2010 2020 Agriculture Manufacturing Services Source: Economic Survey of India
  48. 48. India’s economic growth is driven primarily by domestic market (private consumption), followed by investments… 11 12 11 59 57 56 59 60 Source: Worldbank 12 12 32 32 32 31 30 100 90 80 70 60 50 40 30 20 10 0 2008 2009 2010 2011 2012 Private Consumption Government Consumption Gross Fixed Investment 7% 7% 9% 8% 4% 10% 14% 6% 9% 4% 4% 8% 14% 4% 2% 16% 14% 12% 10% 8% 6% 4% 2% 0% 2008 2009 2010 2011 2012 Private Consumption Government Consumption Gross Fixed Investment Private Consumption, Government Consumption & Investment (as % of GDP) Private Consumption, Government Consumption and Investment Growth Rate India GDP (USD 1.8 trillion) Private Consumption (USD 1,105 billion) Government Consumption (USD 221 billion) Gross Fixed Investment (USD 553 billion)
  49. 49. ….thereby making its growth more sustainable, resilient and relatively more consistent than other BRIC countries Real GDP Growth Rate 9.3 9.8 3.9 8.5 10.5 6.3 India China Brazil Russia 3.2 3.8 5.1 6.3 6.5 6.7 6.7 12.7 14.2 9.6 9.2 10.4 9.3 7.7 7.6 7.3 7.0 7.0 7.0 7.0 4.0 6.1 5.2 -0.3 7.5 2.7 0.9 2.5 2.5 3.2 3.3 3.5 3.5 8.2 8.5 5.2 -7.8 4.5 4.3 3.4 1.5 3.0 3.5 3.5 3.5 3.5 20.0 15.0 10.0 5.0 0.0 -5.0 -10.0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Source: Worldbank GDP Growth  India & China fared well during the credit crunch compared to Brazil & Russia, who had negative growth rates.  While India and China are expected to witness similar GDP growth rates (~7%) over the forecast period.  Comparatively, both Brazil and Russia are expected to register lower GDP growth rates Growth Drivers  Private Consumption key contributor to GDP growth in India, Brazil and Russia.  Compared to this, China’s growth is driven by capital investments (~46%). Country Inflation % (CPI) 1 FDI (as % of GDP) 1 Forecast GDP Share (in %)1 Private Consumption Government Consumption Gross Fixed Investment India 10.4 1.3 60% 12% 30% China 2.7 3.1 36% 14% 46% Brazil 5.4 2.7 62% 21% 18% Russia 5.1 1.6 48% 19% 22% Note: 1) 2012 figures
  50. 50. However, there are few moderate risks associated with economic growth in India Exchange Rate Inflation Fiscal Deficit Risks to Growth Governance & Transparency
  51. 51. Logistics in India
  52. 52. The logistics industry in India has strong growth drivers, is highly fragmented and provides ample opportunities for international companies to establish their presence 223.2 364.7 CAGR - ~11% CAGR - ~10% 14.2 35.5 450.0 400.0 350.0 300.0 250.0 200.0 150.0 100.0 50.0 0.0 FY 13 FY 18 Organised Unorganised 80% 57% 40% 6% 10% 0% 20% 40% 60% 80% 100% India China Europe USA Japan Percentage of logistics activity by organized sector Logistics spend (in USD bn) 237.3 400.2 CAGR - ~20% Source: World Bank report on trade logistics 007, SPA Research Source: Oxford economics Global economic data bank; 13% of GDP is assumed as logistics spend in FY13; 11% of GDP is assumed as logistics spend in FY18 Strong growth drivers for organized logistics include  Favourable demographics driving demand  Increasing urbanization, spread of modern retail and cluster-based manufacturing  Rising exports (~13% CAGR between FY08 and FY13) and imports (~14% CAGR between FY08 and FY13)  Demand for higher end services & infrastructure driven by greater presence of MNCs & maturity in end-users
  53. 53. Key growth opportunities in the logistics sector in India
  54. 54. The size of the Indian warehousing industry is currently pegged at ~USD 11 Bn and is growing at over 10% annually 1,600 Warehousing capacity (in Mn Sq. Ft.) Current warehouse industry size with sub segments in FY13 1,722 1,852 1,993 2,500 2,000 1,500 1,000 500 0 2011-12 2012-13 2013-14 2014-15 Source: CRISIL report on warehousing Source: CRISIL report on warehousing 16% 14% 55%  Traditionally, warehouses in India were “godowns”, gradually they are evolving into modern setups  By 2015, the share of organized sector of the warehousing industry is estimated to reach 15% from the current 9% indicating immense potential for foreign players  This demand shall be driven by a combination of growing GDP, maturing industry segments, GST implementation, rising external trade and share of organized retail 15% Agri CFS/ICD Industrial/retail Cold Store Total Market Size: ~USD 11Bn
  55. 55. Huge emerging opportunities for foreign companies in the Indian cold chain industry, which is undergoing a major change, due to Government focus on food preservation Size of Cold Chain industry in India (in USD Bn) 2.0 4.7 12.8 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 2009 2013E 2017F Drivers of the Cold Chain Industry in India Budget 2011-2012 provided infrastructure status to the cold chain sector India is the second largest producer of vegetables and fruits in the world after China Growth in organized retail Government initiatives Demand from pharma Source: Assocham, US Commercial Service, Media Reports, Reed Analysis
  56. 56. INDIA CHALLENGES:

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