🚦'Cold Storage & Cold Chain Logistics in India' and 'Snowman'🚦
Detail Thread 👇
(Information shared here is not a recommendation to buy)
Detail Thread 👇
(Information shared here is not a recommendation to buy)
1] What is Cold Storage: Cold Storage is a large refrigerated room or building designed for storage of goods in an environment below the outdoor temperature.
This facility is typically used to stock the following:
Food & Groceries
Health Care
Others
This facility is typically used to stock the following:
Food & Groceries
Health Care
Others
2]
Food & Groceries: Vegetables |Fruits | Dairy Products | Meat |Seafood
Health Care: Drugs | Pharmaceuticals |Vaccines |Blood
Others: Flowers |Wine | Tobacco |Chemicals
Temp Ranges:
Frozen -20 & below
Chill 0 to 10
Mildly Chilled 10 to 20 &
Normal > 20
Food & Groceries: Vegetables |Fruits | Dairy Products | Meat |Seafood
Health Care: Drugs | Pharmaceuticals |Vaccines |Blood
Others: Flowers |Wine | Tobacco |Chemicals
Temp Ranges:
Frozen -20 & below
Chill 0 to 10
Mildly Chilled 10 to 20 &
Normal > 20
3] What is Cold Chain Logistics:
Cold chain logistics is the transport of temperature-controlled goods, such as temperature-sensitive foods, beverages, bio-pharmaceutical products & vaccine
The cold chain sector is a combination of surface storage and refrigerated transport
Cold chain logistics is the transport of temperature-controlled goods, such as temperature-sensitive foods, beverages, bio-pharmaceutical products & vaccine
The cold chain sector is a combination of surface storage and refrigerated transport
4] y Cold Storage, Cold Chain & its Significance:
a. CS facilities play a vital role in improving the shelf life.
b. Post COVID, this segment attracted a robust demand for online grocery & fresh food sales.
a. CS facilities play a vital role in improving the shelf life.
b. Post COVID, this segment attracted a robust demand for online grocery & fresh food sales.
5] Significance:
Food & Groceries: *The annual post-harvest loss of major
agricultural produce is worth about $ 13B
*The loss is highest for fruits & vegetables, at 5-16%
*More than 75% of the CS capacity is used for only storing horticulture crops including potatoes
..
Food & Groceries: *The annual post-harvest loss of major
agricultural produce is worth about $ 13B
*The loss is highest for fruits & vegetables, at 5-16%
*More than 75% of the CS capacity is used for only storing horticulture crops including potatoes
..
6]
Healthcare: 25% of the vaccines expire before reaching doctors and patients.
Others: CS, CC sector in India is still evolving & potential remains untapped.
Healthcare: 25% of the vaccines expire before reaching doctors and patients.
Others: CS, CC sector in India is still evolving & potential remains untapped.
7] Data Points:
1. Largest milk producer globally
2. 2nd largest food producer globally
3. 6th largest Food & Groceries market globally
4. 3rd largest producer of generic medicine globally accounts for 20% of the global supply (by vol)
1. Largest milk producer globally
2. 2nd largest food producer globally
3. 6th largest Food & Groceries market globally
4. 3rd largest producer of generic medicine globally accounts for 20% of the global supply (by vol)
8] Data Points:
5. Contributes to more than half of the global supply of vaccines
6. The Indian wine industry has an annual turnover of about USD 83 million
• India houses the first Asian Winery outside China that sells 1 million cases in a year
5. Contributes to more than half of the global supply of vaccines
6. The Indian wine industry has an annual turnover of about USD 83 million
• India houses the first Asian Winery outside China that sells 1 million cases in a year
9] Challenges, why potential is untapped?
1. High Investment - refrigerator units & land
2. Awareness
3. Inexperienced in CS, CC
1. High Investment - refrigerator units & land
2. Awareness
3. Inexperienced in CS, CC
10] Poor CS & CC infrastructure had dampened India's food exports.
Many developed countries have stringent guidelines for import of processed food products
Many developed countries have stringent guidelines for import of processed food products
11] Gap Analysis:
As per NCCD only 75% of the installed cold storage capacity is being utilized.
(nccd.gov.in/PDF/DSCC_Repor…)
CS, CC facilities r meant for single-purpose storage, thus facilities remains idle for 6 mths due to seasonality of the produce.
As per NCCD only 75% of the installed cold storage capacity is being utilized.
(nccd.gov.in/PDF/DSCC_Repor…)
CS, CC facilities r meant for single-purpose storage, thus facilities remains idle for 6 mths due to seasonality of the produce.
12] 3 Top states in terms of the spatial spread of CS capacity:
UP: 39%
WB: 16%
Gujarat: 10%
To improve supply chain efficiency, the Govt has developed CS facilities across the country over the last decade.
The overall CS capacity in India stands at about 39 million tonnes
UP: 39%
WB: 16%
Gujarat: 10%
To improve supply chain efficiency, the Govt has developed CS facilities across the country over the last decade.
The overall CS capacity in India stands at about 39 million tonnes
13] Supply Gap in Cold Chain:
Pack Houses: 99.6%
Ripening Chambers: 91%
Reefer Freight: 85%
We currently have:
Pack Houses: 250
Ripening Chambers: Used for Mango & Banana ripening only
Reefer Freight: 4.2 Million Tons
Pack Houses: 99.6%
Ripening Chambers: 91%
Reefer Freight: 85%
We currently have:
Pack Houses: 250
Ripening Chambers: Used for Mango & Banana ripening only
Reefer Freight: 4.2 Million Tons
14]
Potential: There is a considerable lag in terms of other cold chain
infrastructure as mentioned above: pack houses, ripening chambers and reefer freight.
Key Players in CS: Snowman, Coldman, Roshan Frozen & Cold Storage, Crystal, Gubba CS,
Coldex, Coldstar, Kelvin,
Foodland.
Potential: There is a considerable lag in terms of other cold chain
infrastructure as mentioned above: pack houses, ripening chambers and reefer freight.
Key Players in CS: Snowman, Coldman, Roshan Frozen & Cold Storage, Crystal, Gubba CS,
Coldex, Coldstar, Kelvin,
Foodland.
15] Untapped Potential:
1. Gaps mentioned above
2. Organized Retail Food Processing
3. Online Purchase of vegetables & groceries
4. During COVID outbreak the e-commerce sector grew nearly 20%
1. Gaps mentioned above
2. Organized Retail Food Processing
3. Online Purchase of vegetables & groceries
4. During COVID outbreak the e-commerce sector grew nearly 20%
16] By 2023
Food & Groceries organized industry grow to 829 B (it was negligible as of 2015)
F&G Retail: 2.1B to 8.7B
Dairy Industry: 110B to 259B
Food Processing & Pharma: 33B & 90B
This growth drive CS Sector
CS Capacity: 40 to 80 million tonnes
CS Segment: 3.5B to 7.0 B
Food & Groceries organized industry grow to 829 B (it was negligible as of 2015)
F&G Retail: 2.1B to 8.7B
Dairy Industry: 110B to 259B
Food Processing & Pharma: 33B & 90B
This growth drive CS Sector
CS Capacity: 40 to 80 million tonnes
CS Segment: 3.5B to 7.0 B
17] *Snowman Logistics*:
Bengaluru-based Snowman Logistics is mkt leader in cold chain logistics with over 30% of capacity amongst integrated organised cold chain service providers in India.
Snowman Logistic commenced their business as a trader of frozen marine products in 1998
Bengaluru-based Snowman Logistics is mkt leader in cold chain logistics with over 30% of capacity amongst integrated organised cold chain service providers in India.
Snowman Logistic commenced their business as a trader of frozen marine products in 1998
18] Snowman commenced cold storage operations at 4 locations. Operations of company classified in to –
Temperature Controlled Services &
Ambient distribution
*Snowman continues to be the market leader in the cold chain industry
Temperature Controlled Services &
Ambient distribution
*Snowman continues to be the market leader in the cold chain industry
19] *In 2018, Snowman Logistics Ltd. aims to grow at 22 percent a year, after the frozen food company doubles its capacity in the next three years
Crisil Research: “This will swell the industry to Rs 47,200 cr in financial year 2022 from Rs 24,800 cr
bloombergquint.com/business/2018/…
Crisil Research: “This will swell the industry to Rs 47,200 cr in financial year 2022 from Rs 24,800 cr
bloombergquint.com/business/2018/…
20] Financials & SHP:
Mkt Cap: 1000 Cr
Debt to Equity: 0.42
Equity: 167 Cr
Pledged %: 0
SHP:
Gateway Distriparks: 40.25%
Adani: 26%
CMP: 67
ATH: 125
Mkt Cap: 1000 Cr
Debt to Equity: 0.42
Equity: 167 Cr
Pledged %: 0
SHP:
Gateway Distriparks: 40.25%
Adani: 26%
CMP: 67
ATH: 125
21] Not Sure on the below news:
The Adani Ports & SEZ has acquired 40.25 per cent stake in Snowman Logistics from its parent company, Gateway Distriparks
businesstoday.in/current/corpor…
The Adani Ports & SEZ has acquired 40.25 per cent stake in Snowman Logistics from its parent company, Gateway Distriparks
businesstoday.in/current/corpor…
22] Here is a corporate video of Snowman Logistics.
Imp: Though I am impressed with CS sector potential. Honestly, I am not impressed with Snowman's Financials.
*End*
Imp: Though I am impressed with CS sector potential. Honestly, I am not impressed with Snowman's Financials.
*End*
Pre covid tweet, Govt's support on CS Sector👇
https://twitter.com/AEHarshada/status/1223486805351075840?s=19
Impact of Farm Bill on CS Sector 👇
https://twitter.com/darshanvmehta1/status/1311553366544146434?s=19
H'ble PM's @narendramodi tweet on CS Sector 👇
https://twitter.com/narendramodi/status/1329814734258855937?s=19
UPS & DHL r building football field sized freezer farm for CS of Covid vaccine deliveries.
UPS is building capacity for -80°C storage; DHL expands in Indianapolis
How we are progressing here, @kiranshaw ?
pharmaceuticalcommerce.com/cold-chain-foc…
UPS is building capacity for -80°C storage; DHL expands in Indianapolis
How we are progressing here, @kiranshaw ?
pharmaceuticalcommerce.com/cold-chain-foc…
The CS infra requirements during Vaccine drive is huge👇
https://twitter.com/connectgurmeet/status/1328600446907408384?s=20
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