Taking a shift from conventional to modern is a big step, especially at a whole national level. According to JLL, by 2025, the nation’s logistics sector’s cold chain segment is predicted to increase at a compound annual growth rate (CAGR) of more than 20% as a result of its conversion from traditional cold storage to modern storage space. The projections are based on the sector’s performance in recent months, when, despite post-Covid economic challenges, the organized cold chain segment has seen nationwide significant growth.|
As per JLL, Tier-I cities such as Mumbai, Delhi NCR, Bengaluru, Chennai, Pune, Kolkata, and Hyderabad, as well as Tier-II cities such as Lucknow, Kanpur, Ranchi, Patna, Bhubaneswar, Goa, Aurangabad, Ahmedabad, Kochi, and Coimbatore, have opportunities for organized cold storage/palletized cold storage. In the next two to three years, an additional 1.5 lakh to 2 lakh pallet capacity (frozen and chilled) could be added as part of temperature-monitored storage space.
The transportation and warehousing of temperature-sensitive products from point of origin to point of consumption is referred to as the cold chain, and it extends shelf life and prevents spoilage. Cold chain is a major industry playing role in the transportation of pharmaceuticals which are to be stored at a certain temperature always. In addition to this, the cold chain is a sector playing a vital role in chemical shipments.
Today, about 60% of cold storage capacity is centered in the states of West Bengal, Uttar Pradesh, and Bihar, with 85-90 percent of that capacity committed to potato storage. In India, cold storage accounts for 43.7 percent of total revenue from the cold chain industry, with only 36% having a capacity of less than 1,000 MT.
Yogesh Shevade, Head – JLL, India recently said that automation in the logistics sector will only grow in importance in the near future, and we see multimodal and cold supply chain innovation as catalysts for new demand segments. Investor demand for cold chain facilities is likely to increase as the appetite for products in the industrial sector grows, both from the equity and lending communities. While perishables output has risen steadily over the last five years, the cold chain sector’s potential remains unfulfilled given the large share of single commodity storage and surging land and refrigeration unit investment. In addition, there is a lack of critical supporting infrastructure, as well as a lack of awareness about how to handle perishable items.
In current times, the demand of consumers is increasing for fresh fruits and vegetables, dairy products, and other temperature-sensitive commodities that ring the bell for improved and modern cold chain infrastructure.
How is Transcom Logistics providing cold chain services?
At Transcom Logistics, best logistic company in Mumbai, modern approach is followed for the transportation of any sensitive goods. We have temperature-controlled storage as well as transportation facilities with real-time temperature monitoring. As of today, we have several clients with 100 percent satisfaction for all the cold chain services.