The document outlines India's economic projections, highlighting that it is expected to become the fourth-largest economy with a population estimate of 1.45 billion by 2025. It emphasizes the crucial role of cold chain infrastructure in improving the food processing industry and details government initiatives, including financial subsidies and policy frameworks to boost investments in this sector. The report also identifies challenges such as energy costs and the need for modernization in cold storage capacities, while indicating significant growth opportunities within the industry.

1. I N D I A – R E P O R T
2014
IIAR - NASHVILLE
PRESENTATION BY
SAMIR SHAH – RVC – INDIA / SOUTH ASIA.

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. GEN

5. 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).

6. INDIA STATISTICS

7. INDIA STATISTICS: WHEAT EXPORTS

8. INDIA STATISTICS: MEAT EXPORTS

10. 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.

11. 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.

12. INDIA 12TH - 5 YEAR PLAN

13. INDIA 12TH - 5 YEAR PLAN ( 2012 – 2017 )

14. 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

15. INDIA 12TH - 5 YEAR PLAN ( 2012 – 2017 )

16. INDIA 12TH - 5 YEAR PLAN ( 2012 – 2017 )

17. INDIA 12TH - 5 YEAR PLAN ( 2012 – 2017 )

18. INDIA 12TH - 5 YEAR PLAN ( 2012 – 2017 )

19. INDIA 12TH - 5 YEAR PLAN ( 2012 – 2017 )

20. INDIA 12TH - 5 YEAR PLAN ( 2012 – 2017 )

21. INDIA 12TH - 5 YEAR PLAN ( 2012 – 2017 )

22. INDIA 12TH - 5 YEAR PLAN ( 2012 – 2017 )

23. INDIA 12TH - 5 YEAR PLAN ( 2012 – 2017 )

24. 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.

25. 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.

26. INDIA 12TH - 5 YEAR PLAN ( 2012 – 2017 )

27. 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

28. NOMENCLATURES
CAGR COMPOUND ANNUAL GROWTH RATE
FSSAI FOOD SAFETY & STANDARDS AUTHORITY OF INDIA
PMH POST HARVEST INTEGRATION

29. 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

30. Prospect for cold chain development in
the next decade

31. 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

32. Difference in reefer exports between peak
month and slack month per country

33. Role of Govt. in development process

34. 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.

35. 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.

36. 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

37. 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

38. 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.

39. 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

40. 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

41. 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%

42. 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

43. 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.

44. Importance of standards for healthy
development of cold chain projects

45. Cold Chain industry in India

46. The India Opportunity

47. Doing Business in India

48. India Statistics

49. 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

50. 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)

51. ….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

52. However, there are few moderate risks associated with
economic growth in India
Exchange
Rate
Inflation
Fiscal Deficit
Risks to
Growth
Governance &
Transparency

53. Logistics in India

54. 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

55. Key growth opportunities in the
logistics sector in India

56. 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

57. 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

58. INDIA CHALLENGES: