Indian Cold Chain Market: Complexity and Opportunity
Add bookmarkThe Indian cold chain market is highly fragmented in which about 3500+ players are present. Whilst the current life science supply chain in India is extremely complex, it presents great market opportunities for those working in the temperature controlled supply chain.
According to the TechSci Research report "India Cold Chain Market Forecast & Opportunities, 2017" the cold chain market in India is anticipated to grow at a CAGR (Constant Annual Growth Rate) of 28.7% during 2012-2017, which will make the market reach US$ 11.6 Billion by 2017.
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"The demand for cold chain logistics from organized retail, pharmaceutical industry has been growing day-by-day," said the report.
In an interview with Cold Chain IQ, Bhusan Mohapatra, Head-Commercial Indian Immunologicals, noted that the predicted growth in the Indian vaccine market indicates a lot of opportunities for those involved in the cold chain, from the manufacturer to logistics service provider, the technology provider to trace & track and related software provider.
When asked specifically about the pharmaceutical cold chain market in India, TechSci Research’s Research Director, Karan Chechi, said to Cold Chain IQ: "Currently the market value of temperature controlled vehicles which are deployed for the transportation of pharmaceutical products is more than USD 3.8 Million, which is likely to reach at around USD 17.1 Million in next five years."
Chechi continued: "Under the 12th Five Year Plan (2012-2017), The Department of Pharmaceutical has asked for the assistance of around INR 50 Crore (USD 9.2 Million) for setting up the cold chain facilities across India.The market value of vaccine market in India is around USD 180.5 Million, which is growing at a healthy pace of around 25%-30% annually. Vaccines require the support of temperature controlled environment right from the point of their initial stage of production to their final distribution. This indicates the unexplored potential for both the domestic as well as the international players which are present in the cold chain management system."
The report noted that over the past few years, the Indian cold chain industry has witnessed some positive changes: "Private sector participation has increased in the cold chain industry to cater to the increasing demand for cold chain logistics."
"It is anticipated that many large domestic and foreign companies will join the league in coming years to cater the growing demand of cold chain logistics. This will inject required investment and latest technology in the Indian cold chain industry in near future. Cold chain industry of India is also expected to witness some major mergers and acquisitions by the big companies to establish their base and to expand their reach," said Chechi.
The pharmaceutical distribution system in India is undergoing a paradigm shift and we will continue to see improvements, through compliance with the latest standards and the implementation of the latest technologies for supply chain management.
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