Cold Chain - Growing Logistics Segment in India

Cold Chain Logistics is the technology and invocation that allows a reliable and safe transport of products and goods which are temperature-sensitive in nature.  According to Wikipedia, “ A cold chain is a temperature-controlled supply chain”. 

The cold chain logistics is a need of an hour! The reason is, any product that is labeled as “perishable” will require cold chain logistics management. The perishable good includes fresh agricultural goods, seafood, frozen products, chemicals, and pharmaceutical products. This technology allows to preserve and extend the shelf life of goods during transport. 

Cold Chain logistics mainly have 3 segments: cold Storage, cold chain solutions, and cold chain management. Now, Let’s understand each segment in detail.

• Cold storage 

The demand for storage of perishable or short shelf-life items is increasing day by day. The perishable good requires a well-maintained environment. So, the cold storage facilities requirements are on the high rise.

Mostly frozen and refrigerated food items are stored in cold storage. Nowadays, petrochemicals, pharmaceuticals, and high-tech electronic industries are also using this facility.

• Cold chain solutions

The cold chain solutions are the one-stop-shop services offered by many logistics companies for all of your logistics needs. The cold chain solutions give end-to-end facilities, from safe transport to secure storage.

• Cold Chain Management

Cold chain management is an essential part of the logistics and supply chain processes. Many logistics companies are starting cold chain management systems for especially catering to particular demands of clients. The cold chain logistics companies like Lancer Container Lines, the ultimate goal of offering the best cold chain logistics services at fair prices.

Cold Chain Logistics in India 

The Indian cold chain logistics market is growing exponentially because of the growth in sectors like organized retail, processed food, pharmaceuticals, etc. And according to the JLL, “India's cold chain sector is expected to grow at over 20 percent CAGR by 2025.” The proximity to population centers, growth of population in urban locations, changing consumer choices, and increase in consumer spending are the most basic drivers for the growth of the cold chain. In the coming years, the industry will experiences growth due to automation and technological advancement.

Challenges Faced by Indian Cold Chain Logistics Sector

• Lack of technical support

• High capital investment

• Inadequate amount of awareness for handling perishable goods

• Security risk 

• Increased Regulations on Cold Chain Management

The key to solving such challenges is to prepare, plan ahead, and have a robust risk management strategy in place, supported by processes and technologies.

In spite of all the challenges, the government of India is supporting cold chain logistics in many ways. The financial and technological assistance by the government will boost the development of the cold chain for the agro-food sector. The big players are investing in cold chain infrastructure and small players are outsourcing the services from logistics companies.

If you want more information on cold chain management or general cold chain solutions, you can get in touch with us.