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Abstract :
India is the second largest producer of fruits and vegetables in the world. Due to lack of adequate cold storage facilities, more than INR 100 bn worth of fresh produce is wasted every year in the country. In absence of improvements in the area of cold chain infrastructure, food wastage problem is likely to grow furthermore. More modern facilities along with planned establishment between the point of production and market can help India improve the situation, helping it lower wastage and increase profitability.
Netscribes’ latest market research report titled Cold Chain Market in India 2014 illuminates the dynamics in the domestic cold storage and chain operations. Growth in organized retail and the food processing sector drives the cold chain market in India. Further shift towards horticultural crops by farmers to evade risk boosts the demand for cold chain. Rising demand for cold storage in pharmaceutical sector is also driving the growth in cold chain market.
Table of Contents :
Slide 1: Executive Summary
Macroeconomic Indicators
Slide 2: GDP at Factor Cost: Quarterly (2011-12 – 2014-15), Inflation Rate: Monthly (Jul 2013 – Dec 2013)
Slide 3: Gross Fiscal Deficit: Monthly (Feb 2013 – Jul 2013), Exchange Rate: Half Yearly (Apr 2014 – Sep 2014)
Slide 4: Lending Rate: Annual (2011-12 – 2014-15), Trade Balance: Annual (2010-11 – 2013-14), FDI: Annual (2009-10 – 2012-13)
Introduction
Slide 5-11: Cold Chain – Overview, Cold Storage Classification, Cold Chain Logistics Services, Impact of Cold Chain on Shelf Life, Developments in Refrigeration Systems in Cold Storage, Energy-efficient Refrigeration for Food Storage,
Market Overview
Slide 12-15: Market Overview – Global, Market Overview – India, Refrigerated Transport Market
Government Initiatives
Slide 16-19: Fiscal Incentive For Investment In Cold Chain (2014-15), Recent Government Initiatives, MoFPI Scheme for Cold Chain Infrastructure Development, Other Financial Support Schemes
Assisted Cold Chain Projects
Slide 20-32: Information regarding major assisted cold chain projects approved across various states in India
Drivers & Challenges
Slide 33: Drivers and Challenges – Summary
Slide 34-38: Drivers
Slide 39-40: Challenges
Competitive Landscape
Slide 41: Porter’s Five Forces Analysis
Slide 42-46: Competitive Benchmarking
Slide 47-54: Major Public Players
Slide 55-75: Major Private Players
Recent Developments
Slide 76-77: Key Recent Developments – Cold Chain Market
Strategic Recommendations
Slide 78-79: Recommendations
Appendix
Slide 80: Key Ratios Description
Slide 81: Sources of Information
2. 2
COLD CHAIN MARKET IN INDIA 2014.PPT
Executive Summary
Drivers:
Market
Overview
Drivers & Challenges
Competitive Landscape
Cold chain logistics market in India is valued at INR x1 bn in 20--, growing from around INR x2 bn in 20--
Investments in Indian cold chain industry is expected to cross INR x3 bn by 20--
Presently with deficit of x4%, aspect1 needs to increase x5% to eradicate result1
New companies are venturing into service1 due to higher profitability
Challenges:
Key Players
Brahmanand Himghar Ltd.
Snowman Logistics Ltd.
Fresh Healthy Enterprises Ltd.
Dev Bhumi Cold Chain Ltd.
Gati Kausar India Ltd.
Kelvin Cold Chain Logistics Pvt. Ltd.
Lack of Logistical Support
Uneven Distribution of Cold chains
Cost of Establishment and Maintenance
Growth in Organized Retail
Shift towards Horticultural Crops
Growth in Processed Food Sector
Demand from Pharmaceutical Sector
Changing Consumption Pattern
Recent Developments
Development1
Development2
Development3
3. 3
COLD CHAIN MARKET IN INDIA 2014.PPT
•Macro Economic Indicators
•Introduction
•Market Overview
•Government Initiatives
•Assisted Cold Chain Projects
•Drivers and Challenges
•Competitive Landscape
•Recent Developments
•Strategic Recommendations
•Appendix
4. 4
Economic Indicators (-/-)
COLD CHAIN MARKET IN INDIA 2014.PPT
11
12
13
14
15
b1
a1
INR tn
Q4
c4
b4
a4
Q3
c3
b3
a3
Q2
d2
c2
b2
a2
Q1
d1
c1
2010-11 2011-12 2012-13 2013-14
GDP at Factor Cost: Quarterly
Inflation Rate: Monthly
0.0
0.5
1.0
1.5
2.0
%
Jun 2013 - Jul 2013
p
Jul 2013 - Aug 2013
q
Oct 2013 - Nov 2013
t
Sep 2013 - Oct 2013
s
Aug 2013 - Sep 2013
r
5. 5
Introduction
Cold Chain – Overview
COLD CHAIN MARKET IN INDIA 2014.PPT
Cold Chain
A cold chain is a temperature-controlled supply chain, which consists of storage and distribution activities and maintains a product at a given temperature range
Segments
Refrigerated Transport
Surface Storage
Uses reefer (refrigerated) trucks, cars, van, rail, containers and ships for transporting perishable products
It consists of refrigerated warehouses for storage of essential products
Key
Activities
Transportation
Procurement
It includes all activities related to transportation of produce to the market from farms or manufacturing location
Involves activities such as aggregation, grading , sorting , pre-cooling, packaging from farms or manufacturers
Manufacturers /
Farms
Cold Storage
Refrigerated
Transport
Refrigerated
Transport
Retail, Terminal, Markets, Factory, Port or Airport
Supply / Procurement
Storage
Transport
End-customer
Transport
6. 6
Cold chain industry is highly fragmented and somewhat
dominated by segment1
• Cold chain logistics market in India is valued at INR y1 bn in 20--, growing from around INR y2 bn in 20--
• Cold chain industry in India is largely untapped and somewhat dominated by the segment2
• Investments in Indian cold chain industry is expected to cross INR y3 bn by 20--
•Out of the total farm exports of INR y4 tn, fruits and vegetables accounts for ~INR y5 bn because of spoilage
Annually y5% of the fresh food produced in the country is wasted due to rotting costing producers and other stakeholders in the
operations estimated INR y6 bn
Wastage of fruits and vegetables are higher in the region1 and region2 of country due to the regions’ condition1 and condition2
• Cold chain primarily comprises of two segments – storage consisting of approximately y7% of the market share and
transportation comprising around y8%
Market Overview – India (1/3)
COLD CHAIN MARKET IN INDIA 2014.PPT
Cold Chain Logistics – Market Size & Growth
20--
a2
20--
a1
a5
a4
20-- 20--
a3
+y%
a6
20-- 20--
INR bn
7. 7
Assisted Cold Chain Projects (-/-)
COLD CHAIN MARKET IN INDIA 2014.PPT
Party
State
Product(s)
Date of Final Approval
Grant Approved
Grant Released
CompanyName
StateName
ProductName
28.01.20--
CompanyName
StateName
ProductName
28.01.20--
CompanyName
StateName
ProductName
28.01.20--
CompanyName
StateName
ProductName
28.01.20--
CompanyName
StateName
ProductName
28.01.20--
CompanyName
StateName
ProductName
28.01.20--
CompanyName
StateName
ProductName
28.01.20--
CompanyName
StateName
ProductName
28.01.20--
CompanyName
StateName
ProductName
28.01.20--
CompanyName
StateName
ProductName
28.01.20--
8. 8
COLD CHAIN MARKET IN INDIA 2014.PPT
Drivers & Challenges – Summary
Drivers
Growth in Organized Retail
Shift towards Horticultural Crops
Growth in Processed Food Sector
Demand from Pharmaceutical Sector
Changing Consumption Pattern
Challenges
Lack of Logistical Support
Uneven Distribution of Cold chains
Cost of Establishment and Maintenance
9. 9
COLD CHAIN MARKET IN INDIA 2014.PPT
SAMPLE
Porter’s Five Forces Analysis
Bargaining Power of Buyers
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Impact
High
Threat of New Entrants
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Impact
Medium
Bargaining Power of Suppliers
•Text text text text text text text text text text text text text text text text text text text text text text text text text
Impact
Medium
Threat of Substitutes
•Text text text text text text text text text text text text text text text text text text text text text text text text text
Impact
Low
Competitive Rivalry
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Impact
Medium
10. 10
SAMPLE
Key Ratios of Top 4 Companies – Operational Basis (FY 2013) (1/3)
Competitive Benchmarking (-/-)
0
%
company4
d2
d1
company3
c2
c1
company2
b2
b1
company1
a2
a1
Net Margin
Operating Margin
•Company1 recorded operating margin of -%, higher than that of company2, company3 and company4 which recorded operating margin of -%, - and -% respectively
•Thermax however recorded the highest net margin of -% higher than that of Ion Exchange, SPML and Va Tech Wabag which recorded net margins of -%, -% and -% respectively
COLD CHAIN MARKET IN INDIA 2014.PPT
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SAMPLE
Public: Domestic Company – Company 1 (1/4)
Key People
Products and Services
Company Information
Offices and Centres – India
Corporate Address
Tel No.
Fax No.
Website
Year of Incorporation
Ticker Symbol
Stock Exchange
Category
Products/Services
Sectors (EPC)
Name
Designation
Head Office
COLD CHAIN MARKET IN INDIA 2014.PPT
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SAMPLE
Financial Snapshot
Key Ratios
Financial Summary
•The company incurred a net loss of INR - bn in FY 2013, as compared to net profit of INR - bn in FY 2012
•The company reported total income of INR - bn in FY 2013, registering a decrease of -% over FY 2012
•The company earned an operating margin of -% in FY 2013, a decrease of - percentage points over FY 2012
•The company reported debt to equity ratio of - in FY 2013, an increase of - % over FY 2012
Key Financial Performance Indicators
Indicators
Value (17/01/2014)
Market Capitalization (INR mn)
Total Enterprise Value (INR mn)
EPS (INR)
PE Ratio (Absolute)
Particulars
y-o-y change (2013-12)
2013
2012
2011
2010
Profitability Ratios
Operating Margin
Net Margin
Profit Before Tax Margin
Return on Equity
Return on Capital Employed
Return on Working Capital
Return on Assets
Return on Fixed Assets
Cost Ratios
Operating costs (% of Sales)
Administration costs (% of Sales)
Interest costs (% of Sales)
Liquidity Ratios
Current Ratio
Cash Ratio
Leverage Ratios
Debt to Equity Ratio
Debt to Capital Ratio
Interest Coverage Ratio
Efficiency Ratios
Fixed Asset Turnover
Asset Turnover
Current Asset Turnover
Working Capital Turnover
Capital Employed Turnover
Improved
Decline
Net Profit/Loss
Total Income
0
2010
s1
t1
INR bn
INR bn
2013
t4
s4
2012
s3
t3
2011
s2
t2
Public: Domestic Company – Company 1 (2/4)
COLD CHAIN MARKET IN INDIA 2014.PPT
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SAMPLE
Key Business Segments
Key Geographic Segments
Business Highlights
Description
News
Overview
•Text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text
•Text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text
Extensive Product Portfolio
•Text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text
0%
g1
2013
Construction and Engineering
0%
2013
f4
e4
2012
f3
e3
2011
f2
e2
2010
f1
e1
Overseas
India
Public: Domestic Company – Company 1 (3/4)
COLD CHAIN MARKET IN INDIA 2014.PPT
14. 14
SAMPLE
Public: Domestic Company – Company 1 (4/4)
T
O
W
S
COLD CHAIN MARKET IN INDIA 2014.PPT
15. 15
SAMPLE
Private: Domestic Company – Company 2 (1/5)
Key People
Products and Services
Company Information
Offices and Centres – India
Category
Products/Services
Products
Name
Designation
Ahmedabad
Corporate Address
Tel No.
Fax No.
Website
Year of Incorporation
Head Office
COLD CHAIN MARKET IN INDIA 2014.PPT
16. 16
SAMPLE
Shareholders of the Company as on 28.09.2012
Ownership Structure
Name
No. of Shares held
X
X
Total
30%
70%
Corporate Bodies
Foreign holdings
Private: Domestic Company – Company 2 (2/5)
COLD CHAIN MARKET IN INDIA 2014.PPT
17. 17
SAMPLE
Financial Snapshot
Key Ratios
Improved
Decline
Financial Summary
•The company earned a net profit of INR - mn in FY 2013, as compared to net loss of INR - mn in FY 2012
•The company reported total income of INR - mn in FY 2013, registering an increase of -% over FY 2012
•The company earned an operating margin of -% in FY 2013, an increase of - percentage points over FY 2012
•The company reported debt to equity ratio of - in FY 2013, a decrease of -% over FY 2012
Net Profit/Loss
Total Income
0
v3
u3
2011
2013
v4
u4
2012
INR mn
INR mn
v2
2010
u1
v1
u2
Private: Domestic Company – Company 2 (3/5)
Particulars
y-o-y change (2013-12)
2013
2012
2011
2010
Profitability Ratios
Operating Margin
Net Margin
Profit Before Tax Margin
Return on Equity
Return on Capital Employed
Return on Working Capital
Return on Assets
Return on Fixed Assets
Cost Ratios
Operating costs (% of Sales)
Administration costs (% of Sales)
Interest costs (% of Sales)
Liquidity Ratios
Current Ratio
Cash Ratio
Leverage Ratios
Debt to Equity Ratio
Debt to Capital Ratio
Interest Coverage Ratio
Efficiency Ratios
Fixed Asset Turnover
Asset Turnover
Current Asset Turnover
Working Capital Turnover
Capital Employed Turnover
COLD CHAIN MARKET IN INDIA 2014.PPT
18. 18
SAMPLE
Business Highlights
Description
News
Overview
•Text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text
•Text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text
Extensive Product Portfolio
•Text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text
Private: Domestic Company – Company 2 (4/5)
COLD CHAIN MARKET IN INDIA 2014.PPT
19. 19
SAMPLE
Private: Domestic Company – Company 2 – SWOT Analysis (5/5)
T
O
W
S
COLD CHAIN MARKET IN INDIA 2014.PPT
20. 20
COLD CHAIN MARKET IN INDIA 2014.PPT
Recent Developments – Cold Chain Market (1/2)
•text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text
•text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text
Development1
•text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text
•text text text text text text text text text text text text text text text text
•text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text
•Text text text text text text text text text text text text text text text text text text text text text text text text text text text text
Development2
•text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text
•text text text text text text text text text text text text text text text text
•text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text
•Text text text text text text text text text text text text text text text text text text text text text
Development3
21. 21
Strategic Recommendations (1/2)
COLD CHAIN MARKET IN INDIA 2014.PPT
•Companies need to focus on specific1 and specific2 early to leverage on specific3
Recommendation1
Recommendation2
22. 22
Appendix
Ratio
Calculations
Operating Margin
(Operating Income/Revenues)*100
Net Margin
(Net Profit / Revenues) *100
Profit Before Tax Margin
(Income Before Tax / Revenues *100
Return on Equity (ROE)
(Net Income / Shareholders Equity)*100
Return on Capital (ROCE)
EBIT / (Total Assets – Current Liabilities)*100
Return on Working Capital
(EBIT / Working Capital) *100
Return on Assets
(EBIT / Total Assets)*100
Return on Fixed Assets
(EBIT / Fixed Assets) *100
Operating Costs (% of Sales)
(Operating Expenses / Sales) *100
Administration Costs (% of Sales)
(Administrative Expenses / Sales) *100
Interest Costs (% of Sales)
(Interest Expenses / Sales) *100
Ratio
Calculations
Current Ratio
Current Assets / Current Liabilities
Cash Ratio
{(Cash & Bank Balance + Marketable Securities) / Current Liabilities)}
Debt to Equity
Total Liabilities / Shareholders Equity
Debt to Capital Ratio
{Total Debt / (Shareholders Equity + Total Debt)}
Interest Coverage Ratio
EBIT / Interest Expense
Fixed Asset Turnover
Sales / Fixed Assets
Asset Turnover
Sales / Total Assets
Current Asset Turnover
Sales / Current Assets
Working Capital Turnover
Sales / Working Capital
Capital Employed Turnover
Sales / (Shareholders Equity + Total Debt)
COLD CHAIN MARKET IN INDIA 2014.PPT
23. 23
Sources of Information
Open Sources
Premium Databases
Company Websites
Annual Reports of Companies
Telecommunication & Technology Magazines
Magazines and Journals
Regulatory Websites
Leading Newspapers
Electronic Media
Print Media
SECONDARY RESEARCH
PRIMARY RESEARCH
Interviews
Leading Industry Experts
COLD CHAIN MARKET IN INDIA 2014.PPT
24. 24
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The Cold Chain Market – India 2014 report is a part of Netscribes’ Automotive & Logistics Series.
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COLD CHAIN MARKET IN INDIA 2014.PPT