Business

‘Cold chains to grow at 20% CAGR by 2025’

The national cold chain sector is expected to grow at over 20% CAGR by 2025 due to its transformation from conventional cold storage to modern storage space, JLL said in a report. There is an opportunity for organised cold storage/palletized cold storage in Tier-I cities like Mumbai, Delhi NCR, Bengaluru, Chennai, Pune, Kolkata, Hyderabad as well as Tier-II cities like Lucknow, Kanpur, Ranchi, Patna, Bhubaneswar, Goa, Aurangabad, Ahmedabad, Kochi and Coimbatore, JLL said.

An additional 1.5 lakh to 2 lakh pallet capacity (frozen and chilled) may be added as part of temperature-controlled storage space in the next two to three years, it added.

“Automation in the logistics sector will only become more pronounced in the coming years and we see innovation in the multi-modal and cold supply chain as catalysts for new segments of demand. Both from the equity and lending community, the appetite for the yield in the industrial sector is likely to further drive the investor demand for cold chain facilities,” said Yogesh Shevade, Head, Industrial Services, JLL, India.

“The rationale behind the expansion is primarily driven by capturing higher market share by organised cold chain operators, changing consumer behaviour for quality products, and securing supply reliability in a pandemic like situation,” he added.

Today, about 60% of cold storage capacity is concentrated in the states of West Bengal, Uttar Pradesh and Bihar, out of which storage of potatoes accounts for 85-90% of the capacity. Cold storage in India contributes 43.7% of the total revenue from the cold chain industry and only 36% have a capacity below 1,000 MT, the report said.


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Printable version | Jun 22, 2021 9:55:04 PM | https://www.thehindu.com/business/cold-chains-to-grow-at-20-cagr-by-2025/article34537774.ece

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