The document discusses the evolving supply chain landscape in India. It notes that India's economy and population are growing rapidly, with urban population projected to exceed 500 million by 2025. This growth is driving increases in food consumption, retail sales, and demand across key industries. However, India's supply chain faces many challenges including an inefficient system, lack of infrastructure and technology, food safety issues, and an unorganized sector. The document advocates for private-public partnerships to help modernize India's supply chain and realize its significant growth opportunities.

1. Supply Chain - India
Allogistx International Inc.
2130 Huntington Drive suit 205
South Pasadena, CA 91030
info@Allogistx.com
Office: 323.254.9550
Fax: 323.315.9311
Allogistx International Inc.
F-54, 1st Floor
Sej Plaza
Marve Road, Malad (west)
Mumbai, India 400 064
info@Allogistx.com

2. Agenda
-Evolving Indian Economy
-Logistics Outlook
- Changing Supply Chain Dynamics
- New Growth Drivers
- Supply Chain Challenge
- Emerging Solutions & New Platforms
2

3. India is Growing! Source: Economist
• India will be the third largest economy by 2040 3

4. Urban Population Increasing
• Urban population projected to cross 500 million by 2025
- Cities are expanding
Agro Enterprise Without Borders, Singapore, 2009 4

5. Food Consumption Increasing
• Food demand increasing - Quality preference increasing
5

6. Retail Sales Growing
• Retail sales will cross US$ 900 billion by 2014
Agro Enterprise Without Borders, Singapore, 2009 6

7. Growth Drivers
 Demographic advantage:
 Young population
 Credit availability
 Increasing discretionary incomes
 Increasing retail space
7

8. Logistics Outlook
• Indian Economy is growing at over 8% and Logistics
industry is booming
India is poised for a major growth in the coming
years and Indian Freight Forwarding is poised to
become the next exciting growth sector.
• According to World Bank LPI (Logistics Performance
Index) survey conducted among 155 countries India
ranked 47th and continues to be the top performer
in South Asia. The survey also concluded that
excluding high-income countries, India is also among
the 10 most significant over performers.

9. Size of the Industry…
• Logistics Industry size $ 200 billion by 2020
• The Indian logistics market recorded revenues of
about $ 82.10 billion in 2010, witnessing a growth of
about 9.2 percent over the previous year.
• Indian logistics market is likely to cross the $ 200
billion figure by 2020. Strong growth of key
manufacturing industry sectors such as automotive,
engineering, pharmaceuticals, food processing and
textiles among others shall contribute significantly to
this growth

10. Challenges
Inefficient Supply Chain
Infrastructure
Low Technology Penetration
Food Safety
Unorganized sector
Bureaucracy
Lack of scalability
Sanjeev AsthanaA gro Enterprise Without Borders, Singapore, 2009 8

11. Disjointed Food Supply Chain
Village
Farmer Sub
Commission
Agent
District
Commission
Agent
Wholesaler Retailer Consumer
• Low yield / non-standard quality
Farmer • No control on quantity / quality of
raw material
• Price de-linked from market
Processor
• Unscientific and unhygienic handling
Village
• Lack of infrastructure leading to loss
of quality
Commission • Poor market access Distributor
Agent
• Loss in trade passed onto farmer
Mandi / Local • No infrastructure for • Lack of infrastructure leading
handling/grading Retailer
agents
•Price quality correlation not
assured
• High prices
Transportation
• Unscientific method leading to
loss of quality /damages Consumer • Limited choice
• Inadequate infrastructure
Wholesale •Rampant wastage •Opportunistic profiteering Non value adding players
Sanjeev AsthanaA gro Enterprise Without Borders, Singapore, 2009 9

12. Poor Supply chain Infrastructure
• Poor infrastructure facilities for
Storage
Transportation
Processing
Packaging
Distribution
• About 3,500 cold storages/warehouses
Only 13m tons of storage capacity for production or 140 mn
tons of Fruits/Vegetables
Sanjeev AsthanaA gro Enterprise Without Borders, Singapore, 2009 10

13. Supply Chain - High Costs
• Inefficiencies in Distribution
• Lack of cold chain and warehouse structure
• Logistics costs in India are among the highest
• Fragmented retail structure
• Supply Led Growth
• World: 72%
• India: < 1%
• More than 5 million retail outlets selling food products
• Limited focus on food safety and hygiene
• Limited choice to the consumer
• Low investment in quality control, product innovation, private
labeling and market intelligence
Agro Enterprise Without Borders, Singapore, 2009 11

14. Underdeveloped Processing Industry
• Fruits Country % Processed and vegetables
Malaysia 83%
2-3% of produce is processed
8%-37% lost in storage and transportation South Africa 80%
Phillipines 78%
Thailand 72%
Brazil 70%
- Inadequate storage and cold chain
USA 65% - Inadequate processing and marketing
India 2-3 % infrastructure
• Grains 3% is lost in storage
Opportunity Significant growth potential & a challenge
Agro Enterprise Without Borders, Singapore, 2009 13

15. Way Forward
Private-Public-People Partnership can be
growth engines for Supply Chain
*Have someone who is Local as well as
Global help you realize these
opportunities…
Agro Enterprise Without Borders, Singapore, 2009 18

16. Thank You!
Thank You!
Allogistx International Inc.
2130 Huntington Drive suit
205
South Pasadena, CA 91030
info@Allogistx.com
Office: 323.254.9550
Fax: 323.315.9311
Allogistx International Inc.
India
F-54, 1st Floor
Sej Plaza
Marve Road
Malad (west)
Mumbai, India 400 064
info@Allogistx.com