Published on January 25th, 20170
Boxco Logistics and Coldman to Collaborate on Cold Chain Business
Boxco Logistics India Pvt Ltd, the logistics arm of the integrated logistics, services and transportation conglomerate J. M. BAXI Group, has inked a Memorandum of Understanding (MoU) with Bangalore-based cold chain service provider Coldman Logistics Pvt Ltd, for collaborating on developing and operating cold chain businesses across the J. M. Baxi Group’s cargo handling terminals.
Under the cold chain alliance, the first facility to come into operation will be BOXCO’s Temperature Controlled Warehouse (TCW) at Sonepat in Haryana. The TCW is very strategically located, in close proximity to Asia’s largest wholesale fruits and vegetables market (Azadpur Mandi, Delhi), Mega Food Park (Panipat), Delhi NCR region, the upcoming Delhi Mumbai Industrial Corridor (DMIC) and Kundli Manesar Palwal Expressway. The facility will have storage capacity of 8,300 tonnes, with multiple temperature zones and fully mechanised handling equipment.
Coldman Logistics, a recent entrant into the cold chain business is led by Ravi Kannan, the former CEO of Mumbai-listed Snowman Logistics Ltd.
“The indirect costs in the cold chain business are high due to inadequate infrastructure,” says a logistics industry executive.
Poor connectivity between the production and consumption centres, lack of good road infrastructure and varied tax structures across the country has so far prevented large-scale investments in building a nationwide cold chain storage infrastructure.
Despite being the second largest producer of fresh fruits and vegetables, India is a virtual non-entity on the world trade map in terms of volumes. “Due to lack of post-harvest management facilities, absence of suitable cold stores and the lack of an organized distribution system, the wastage of fresh produce in India is as much as 25 -30%,” said a cold chain industry official.
The spoilage and wastage of fruits and vegetables due to improper handling practices and inadequate storage infrastructure is estimated to be worth thousands of crores, according to industry estimates. This has further led to an increase in the importance of warehouses and cold chains in India.
The domestic market is characterized by oversupply in the peak season and shortage in off-season, resulting in off-season prices that are often 3 – 4 times more than seasonal prices. “The lack of appropriate storage and logistic infrastructure jacks up the prices for the ultimate consumers. As a result, neither does the produce reach the consumer in the optimal condition nor does the producer get fairly remunerated,” the industry official mentioned earlier said. Ends/Share Follow