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Cold Storage Story

Cold storage sector which is still untapped nudges to wake up to the call and turn the temperature(business) from frigid cold to hot !

Tags: Supply Chain, FMCG, Cold Storage

BY Retailer  |  comments ( 50 )  | 
cold storage

In a supply chain, a produce hauls at different stages before finally reaching the end user, i.e from farm to factory to retail to end users. And at each small haul, it needs to be oxygenated so as to preserve its freshness and stretch its life. This breath of life is provided by cold storage. Produce, seafood, meat, pharmaceuticals and biomedical products are some items that need cold storage.

 

Story of Mc Donald’s Cold Chain:

Through a unique cold chain, Mc D reduces maintenance and waste and keeps the freshness and nutritional value of raw and processed food. This is related to the procurement, storage transport and retail sale of perishable products, all under controlled temperature.The chain constitutes:

  • Schreiber Dynamix Dairy Industry -suppliers of cheese.
  • Vista Processed Food Pvt ltd provide high class services like de boning, blending, forming, coating, frying and deep freezing.
  • Mrs. Bector Food Specialties – supplies Buns, Liquid Condiments, Batter & Breading.
  • Radhakrishna Foodland (P) Ltd.  – logistics and distribution partner.
  • Amrit Food, (A division of Amrit Corp Ltd.)  - suppliers of Dairy based products (Soft Serve Mix and Milk Shake Mix).
  • Innovative Foods – supply fresh Fish.

 

Status of Cold Storage and its potential in India

The estimated annual production of fruits and vegetables in the country is about 130 million tonnes accounting to 18 per cent of our agricultural output.  Moreover, the lack of cold storage and cold chain facilities are becoming major bottlenecks in tapping the vast potential. The cold storage facilities now available are mostly for a single commodity like potato, orange, apple, grapes, pomegranates, flowers, etc. which results in poor capacity utilization.

 

Commodity wise distribution of cold storage capacity

Commodity

Units

Capacity (lakh tonnes)

Potato

2,012

92.82

Multi purpose

447

7.63

Fruits and Vegetables

 

198

1.07               

Meat

23

0.09

Fish

360

0.73

Meat & Fish

30

0.15

Milk & Dairy Products

272

0.68

Others

101

0.36

 

Out of the above 3443 cold storage units, 2975 are in private sector, 303 are in co operative sector and the rest are in public sector.

 

As per a retailer, "India's vast produce rot due to lack of cold storage resulting in increased cost of the same produce as they die before they could even enter the market".

 

Super market products

Some super market products from the trusted cold storage company Carrier  Airconditioning & Refrigeration Ltd are multideck, semi multideck, servicecase, service counter, iron freezer and chiller freezer combo.

 

 

Why cold storage is not at par as its foreign counter part?

Rene Bach Larsen, MD of GEODIS Overseas Pvt Ltd. feels that consumers in India is still not quality concious and thus not willing to pay the added cost of refrigeration. Moreover, India still lacks the correct startegising of cold storage. For example, cold storage are conspicious by their absence in Airports that are centres of whirring activities. Moreover, India is a direct producer of perishable goods so the consumption is also direct unlike in abroad that survives on imports.

 

 

Why foreign investors give cold shoulder to cold storage?

Although, there is a lot of potential in this sector yet the foreign investor is shying away from taking the risk. Rene cites the reasons," It is primarily lack of infrastructure like road, proper distribution chain and the high cost of setting up a cold storage unit. He also feels that barring a few Indians, others are not willing to pay high price for quality goods as is in abroad where produce are highly outsourced and hence demand more cold storage” .

 

Even Vineet Kanojia's, GM, Safexpress, take on this problem is not different from Rene,as he believes that cold storage is still in a nascent stage and thus evolving. The viability has to come both from Consumer side and Service provider's side. He concludes that, "May be in the future we will see some improvement as the government is promising lot of aid to this sector".

 

 

Conclusion:

In India, less than 2 per cent of the fruits and vegetables produced are processed as against 65 per cent in the US and 70 per cent in Brazil, as per farm ministry estimates. 

 

Moreover, wastage of fruits and vegetables due to poor post-harvest management and lack of cold chain facilities have been estimated to cost up to Rs 500 billion annually, as reported in the fifth and final report of the National Commission of Farmers.

Sensing the large gap and to provide solution, Finance Minister Pranab Mukherjee announced a number of schemes to attract investment in this sector as he wants to bring down "difference between the farm gate prices, wholesale prices and retail prices”. He also said that, "External Commercial Borrowings will henceforth be available for cold storage or cold room facility, including for farm level pre-cooling, for preservation or storage of agricultural and allied produce, marine products and meat”.

 

And to further ease the problem, he has exempted customs duty on crucial refrigeration units needed to produce refrigerated vehicles. He also allows extending of hiring private warehouses by state run Food Corp to seven years from five years to meet the storage deficit.

 

Saurabh Goyal of Thinklink services that specialises in investment advisory, consulting and project management in the supply chain and logistics sector including cold chains,  informs that, “the potential for cold chain development in India is huge, rate of food processing in India is low and is growing,  waste in the perishable F&B category is a key point that needs to be addressed, and there are a number of other sectors apart from food which also rely on reliable cold chain development, expected market size for cold chain services in India is expected to reach US$ 10 billion in the next 5 years”.

 

Advice to new investors

After weighing the pros and cons, the advice from the Industry for those who would like to enter into this sector is, "Plan your network well and invest with a long term view in scalable systems and technology, if possible work with local partners".


 

 

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Satyender Rana June 28, 2016 at 6:42 pm

I have a land near NH 10. Far away a distance from Delhi n Gurgaon is 50-60 km.I want to start cold storage bussiness. pls tell me how can i start it .

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N. Abdul Wahab May 12, 2016 at 7:36 am

I represent a Chennai-based Company which sets up and installs COLD STORAGE FACILITIES ( small & large ) right from assessing your needs and tailoring them accordingly. We are in this cold storage line for over 30 years and have set up many such facilities. We can assist you in setting up cold storage for fruits, vegetables, marine products, pharmaceuticals, etc. In short, preserve products which can be stored for longer periods of time and still remain fresh. with no deterioration. Those who are interested can contact us with their requirement details.(amalg999@gmail.com)

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Gaurav Shawel February 10, 2015 at 12:08 pm

Hello Sir, I have a space about 5000 sq ft in Najafgarh, New Delhi. And I am interested to start up my cold storage business. Please advice me how to proceed into this. I can also go for partnership with any company who already into cold storage business. Regards Gaurav Shawel

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AMIT KUMAR September 26, 2014 at 9:39 am

Dear Sir, I am interested to setup a cold storage project in India. Please send me the details for the project of cold storage project and what will be investment of money,is it advisable doing in south India ,what is the marketing scope. What is the return I can expect.

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ANANGPAL SINGH SHEORAN September 08, 2014 at 12:51 pm

wish to have cold storage biz in India.

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Ashish Madaan December 24, 2013 at 10:52 am

Our company, Mitaso Comtel Ltd. is a Highly reputed name in Manufacturing, Trading and Supplying an exclusive assortment of PUF Panels, Cold Room, Container Cold Room, Cold Storages. People who need Cold Storages and Warehouse kindly contact undersigned. We are located in Faridabad near Delhi.\\r\\n\\r\\nHarsh Mittal\\r\\n9811036630\\r\\ninfo@mitaso.in, web: www.mitaso.in

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February 28, 2013 at 11:13 am

hi , your article of very informative and gave a certain insight into the cold storage business.

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Sabir Ahmad May 25, 2012 at 1:53 pm

We have a Cold Storage in the name of M/S Hind Agro & Allied Industries in NCR of 5000M/Ton capacity have idle space for storing commodities like fruits , vegetable, Milk product, Kirana,Dry fruits And other perishable commodities.People who need warehouse space for storing such type of commodities may kindly contact to under signed in a very cheap rates . We have the pick and delivery facilities our own.The location of the Cold Storage is near Delhi 100 KM away just 1.5 hour journey from Delhi.\r\nSabir Ahmad (9999648530)

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Sabir Ahmad May 25, 2012 at 1:44 pm

We have a Cold Storage in the name of M/S Hind Agro & Allied Industries in NCR have idle space for storing commodities like fruits , vegetable, Milk product, Kirana,Dry fruits And other perishable commodities.People who need warehouse space for storing such type of commodities may kindly contact to under signed in a very cheap rates . We have the pick and delivery facilities our own.The location of the Cold Storage is near Delhi 100 KM away just 1.5 hour journey from Delhi. Sabir Ahmad (9999648530)

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BALDEV RAJ September 16, 2011 at 7:10 pm

i have set up a cold store in Gurdaspur Distt. of Punjab recently. I have space of about 90000 sqt.to be leased on rental basis for banana ripening. also one chamber of of similiar capacity for fruites. please send me the name of any interfested parties.

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Sujeet Singh August 28, 2011 at 2:04 pm

Sir,what is the estimated cost to set-up a cold storage of 5oo MT and if there is any government scheme for rural area then please convey the information.

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S.vinay Kumar August 12, 2011 at 9:48 pm

Sir, can u please me the details for the cold storage which should meet the given capacities 1)potato 500 MT 2) onion -250 MT 3) Tomato 125 MT 4) Dry fruits 125 MT Please send me the details as well as the electricity details. Thank you

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Ashish July 27, 2011 at 9:46 am

Sir, i want to establish a cold store in Sagar(MP). Please send me full information about land requirment,machinery cost,money investment etc.

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Puneet Jolly June 17, 2011 at 11:21 am

Please advise on the requirements of cold storage in Punjab/Haryana region. We look forward to long term investing in cold storage on a large scale and eventually developing a cold chain logistics company. Your help is solicited in this matter.

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Puneet Jolly June 17, 2011 at 11:20 am

Please advise on the requirements of cold storage in Punjab/Haryana region. We look forward to long term investing in cold storage on a large scale and eventually developing a cold chain logistics company. Your help is solicited in this matter.

Reply |

AMIT June 04, 2011 at 9:25 am

CAN YOU ADVICE ME ON SETTING UP COLD STORAGE BUSINESS IN GOA. ON INVESTMENT BASIS,KIND OF COLD STORAGE NEEDED,FUTURE,ANY INCENTIVES FROM GOA GOVT.OR LAND ALLOCAIION POSSIBLE & FURTHER

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Vipin April 30, 2011 at 10:21 am

i have cold storage in Kundli Delhi NCR with a capacity of 11000 mt, any person in need of cold storage contact me on 9871882400 or kmccold@yahoo.com

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C.B.Kumar April 29, 2011 at 9:08 pm

Hi! I am in distribution business of ice-cream in Patna(Bihar). There is good opportunity here to set up cold storage. Could you please help me with a techno commercial consultant who could arrange me the total consultancy support.

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Skpatel April 20, 2011 at 2:19 am

interested 2 setup cold storage in Bhubaneswar Orissa, pls let me know potentiality & other related business scope

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Jagadish Balasubramaniam April 15, 2011 at 6:25 am

Dear Sir, I am interested to setup a cold storage project in south India , Tamilnadu city : coimbatore . Please send me the details for the project of franchise for cold storage project and what will be investment of money,is it advisible doing in south india ,what is the marketing scope. What is the return I can expect.

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Gyan Sharma April 03, 2011 at 3:40 pm

Dear Sir, I am based in UK now and planning to return to Indian in next 6 months. I am interested to setup a cold storage project some where in north India. Please send me the details for the project of franchise for cold storage project and what will be investment of money. What is the return I can expect.

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Parmita Singh March 14, 2011 at 12:20 am

Hi Seema, You've covered quite a few interesting facts in your article. I'm evaluating projects/franchise opportunities in this areas. Could you please send more information and guidance? Thank you. contact member@franchiseindia.com

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Ajay Bhalotia March 13, 2011 at 11:01 am

We r an Agri base business with turnover of 50 crore, interested in setting up cold storage in NCR Delhi for vegetable.Pl arrange consultant for the same. Contact No. 09811880003. contact member@franchiseindia.com

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Jaffer March 09, 2011 at 5:15 am

Hi sir, I am Jaffer.I am basically from Thanjavure.Currently,I am working with Capgemini in Global Business Development.I am looking to kick start a business in my town,kumbakonam.I am interested in the above cold chain stuff.Could you please help me to take it forward. Contact me M.Jaffer Contact member@franchiseindia.com

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Rakesh Rastogi February 28, 2011 at 8:12 am

Dear Sir, Please send me the details for the project or frinchise for the cold. Contact: kuber.rakesh@rediffmail.com Contact: member@franchiseindia.com

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Anuraag Panchal February 14, 2011 at 12:24 am

We have expertise in designing, supplying and installing potato cold storage with following features: * Low power consumption * High compressor service life * Maintaining 2 deg C temp with over 95% RH for keeping high quality of potatos for long duration * Heat recovery Ventilators with over 80% energy efficiency are part of the design * Can offer as a combination of Potato cold storage cum ice block plant ETC Our Design Team: Mr Sharanjit Singh B.E. 32 yrs Exp Ex Gaylord Ice Creams, India Mr Anuraag Panchal B.Tech.(IIT), MBA 15 yrs Exp Ex Carrier, Ex Danfoss www.indiamart.com/sigma-refrigeration.com Contact: member@franchiseindia.com

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Srinivas February 06, 2011 at 11:37 am

Dear Sir, I would like to enter this cold storage business sector, kindly provide me more detail. Contact: member@franchiseindia.com

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Mukunthan January 24, 2011 at 6:55 am

We own and operate two cold storages in Tamilnadu with a combined capacity of 10000 MT. We are planning to expand our operations and looking for private equity investors. Kindly let us know of interested investors. Contact: member@franchiseindia.com

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Sameer Sahu January 22, 2011 at 4:08 am

hello... Sir kindly give me the details for the project in gurgaon. Sameer368@indiatimes.com Contact: member@franchiseindia.com

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Dr G Venkateswarlu January 19, 2011 at 1:41 am

Dear Sir, Please send me the details for the project or frinchise for the cold. .Contact: member@franchiseindia.com

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Jaithacker January 14, 2011 at 5:04 am

lease give the details pf investment land required how to start u Contact: member@franchiseindia.com

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Swaraj January 13, 2011 at 11:37 pm

Hi sir, I am swaraj.I am basically from Pondicherry.Currently,I am working with Capgemini in Global Business Development.I am looking to kick start a business in my hometown,Pondicherry.I am interested in the above cold chain stuff.Could you please help me to take it forward. Contact details:8106373010.email-swarajkay@gmail.com Contact: member@franchiseindia.com

Reply |

B S SUBUDHI January 08, 2011 at 7:55 pm

Please send me information about cold storage, sector wise presence of cold storage in India. Is there any technology to promote low capacity cold storage, portable cold stores to cater to the storing of seasonal and high perishable fruits/vegetables etc. Role of cooperative cold stores in the country and what is the number of such cold stores. Contact: member@franchiseindia.com

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Gaurav January 04, 2011 at 2:13 am

Sir,Kindly give me the details for this project in Assam. Contact: member@franchiseindia.com

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HarpreetSingh January 04, 2011 at 1:08 am

hello.......sir Please send me the details for the project or franchise for the cold storage.in delhi.... Harpreet Singh zoom2harpreet@gmail.com Contact: member@franchiseindia.com

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MANISH CHANDNA January 03, 2011 at 10:51 pm

KINDLY SEND US FRANCHISEE OPPURTUNITIES OR ANY OTHER RELATED PROJECT RELATED TO COLD STORAGES. Contact: member@franchiseindia.com

Reply |

Brian LU January 03, 2011 at 10:47 pm

Please send me the details for the franchise of the cold storage in all across India. Contact: brian.lu@everharvest.co Contact: member@franchiseindia.com

Reply |

Jignesh Mehra January 03, 2011 at 3:36 am

Dear Sir, please send me the details Cold Storage franchise in Gujarat and Maharashtra. Contact: member@franchiseindia.com

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Rohit Jain January 02, 2011 at 12:58 pm

Dear Sir Pls send the complete details related to govt schemes for setting up a cold storage. rohit7865@gmail.com Contact: member@franchiseindia.com

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Parveen Lohchab December 28, 2010 at 7:14 am

sir, i want to open a cold storage in hissar .i want to know how much investment required to open and run a cold storage . pls forwerd me the details of the project . i ll be very thankfull to u . thanks regards parveen lohchab Contact: member@franchiseindia.com

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Shailesh December 23, 2010 at 9:28 am

Respected Sir I am interested in Cold Storage business please let me know. contact member@franchiseindia.com

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G Sridhar Reddy December 23, 2010 at 8:16 am

dear sir i am intersted know how to setup cold storage and potetial near hyderabad andhra pradesh looking towards francise pl send details regarding this field investment rage contact member@franchiseindia.com

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Parveen November 30, 2010 at 6:43 am

Dear Sir, Please send me the details for the franchise of the cold storage in Punjab and Himachal. contact member@franchiseindia.com

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Kunal November 25, 2010 at 12:15 pm

sir please forward me the detail of the project

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Pradeep November 20, 2010 at 5:45 am

Dear Sir, I want to set up Cold Storage for Potato in UP. Need a project report on the same. Thanks

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BRIJESH KUMAR DHANRAJ October 25, 2010 at 7:20 am

Dear Sir, Please send me the details for the project of franchise for the cold project and what will be investment of money

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Dr.arunpatel October 22, 2010 at 9:53 am

Dear Sir, Please send me the details for the project or franchise for the cold storage. contact member@franchiseindia.com

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Nitin Garg October 02, 2010 at 12:12 pm

int in your project could u gave me detail how to get enter in it,and details also. contact saurabh.goyal@thinklink-scs.com

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Sohel October 02, 2010 at 2:38 am

good.

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Sunil Beria October 02, 2010 at 2:07 am

Dear Sir, Please send me the details for the project or frinchise for the cold storage. Sunil Beria supapu123@rediff.com 09435134182 Contact Susheela at member@franchiseindia.com

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