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Supply Chain - India Allogistx International Inc. 2130 Huntington Drive suit 205 South Pasadena, CA 91030 Office: 323.254.9550 Fax:

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Presentation on theme: "Supply Chain - India Allogistx International Inc. 2130 Huntington Drive suit 205 South Pasadena, CA 91030 Office: 323.254.9550 Fax:"— Presentation transcript:

1 Supply Chain - India Allogistx International Inc. 2130 Huntington Drive suit 205 South Pasadena, CA 91030 info@Allogistx.com Office: 323.254.9550 Fax: 323.315.9311 Allogistx International Inc. F-54, 1 st Floor Sej Plaza Marve Road, Malad (west) Mumbai, India 400 064 info@Allogistx.com

2 Agenda -Evolving Indian Economy -Logistics Outlook - Changing Supply Chain Dynamics - New Growth Drivers - Supply Chain Challenge - Emerging Solutions & New Platforms 2

3 India is Growing! Source: Economist India will be the third largest economy by 2040 3

4 Urban Population Increasing Urban population projected to cross 500 million by 2025 - Cities are expanding Agro Enterprise Without Borders, Singapore, 2009 4

5 Food Consumption Increasing Food demand increasing - Quality preference increasing 5

6 Retail Sales Growing Retail sales will cross US$ 900 billion by 2014 Agro Enterprise Without Borders, Singapore, 2009 6

7 Growth Drivers  Demographic advantage:  Young population  Credit availability  Increasing discretionary incomes  Increasing retail space 7

8 Logistics Outlook Indian Economy is growing at over 8% and Logistics industry is booming India is poised for a major growth in the coming years and Indian Freight Forwarding is poised to become the next exciting growth sector. According to World Bank LPI (Logistics Performance Index) survey conducted among 155 countries India ranked 47th and continues to be the top performer in South Asia. The survey also concluded that excluding high-income countries, India is also among the 10 most significant over performers.

9 Size of the Industry… Logistics Industry size $ 200 billion by 2020 The Indian logistics market recorded revenues of about $ 82.10 billion in 2010, witnessing a growth of about 9.2 percent over the previous year. Indian logistics market is likely to cross the $ 200 billion figure by 2020. Strong growth of key manufacturing industry sectors such as automotive, engineering, pharmaceuticals, food processing and textiles among others shall contribute significantly to this growth

10 Challenges  Inefficient Supply Chain  Infrastructure  Low Technology Penetration  Food Safety  Unorganized sector  Bureaucracy  Lack of scalability Sanjeev AsthanaAgro Enterprise Without Borders, Singapore, 2009 8

11 Disjointed Food Supply Chain Village Commission Agent SubFarmer District Commission Agent Wholesaler Retailer Consumer Low yield / non-standard quality Farmer No control on quantity / quality of raw material Price de-linked from market Processor Unscientific and unhygienic handling Village Lack of infrastructure leading to loss of quality Commission Distributor Poor market access Agent Loss in trade passed onto farmer Lack of infrastructure leading Mandi / Local No infrastructure for handling/grading Retailer agents Price quality correlation not assured High prices Transportation Unscientific method leading to loss of quality /damages Consumer Limited choice Inadequate infrastructure Wholesale Rampant wastage Non value adding players Opportunistic profiteering Sanjeev AsthanaAgro Enterprise Without Borders, Singapore, 2009 9

12 Poor Supply chain Infrastructure Poor infrastructure facilities for  Storage  Transportation  Processing  Packaging  Distribution About 3,500 cold storages/warehouses  Only 13m tons of storage capacity for production or 140 mn tons of Fruits/Vegetables Sanjeev AsthanaAgro Enterprise Without Borders, Singapore, 2009 10

13 Supply Chain - High Costs Inefficiencies in Distribution Lack of cold chain and warehouse structure Logistics costs in India are among the highest Fragmented retail structure Supply Led Growth World: 72% India: < 1% More than 5 million retail outlets selling food products Limited focus on food safety and hygiene Limited choice to the consumer Low investment in quality control, product innovation, private labeling and market intelligence Agro Enterprise Without Borders, Singapore, 2009 11

14 Underdeveloped Processing Industry Fruits and vegetables Country% Processed Malaysia 83% 2-3% of produce is processed 8%-37% lost in storage and transportation South Africa 80% Phillipines 78% - Inadequate storage and cold chain Thailand 72% Brazil 70% USA 65% - Inadequate processing and marketing infrastructure India 2-3 % Grains 3% is lost in storage Opportunity Significant growth potential & a challenge Agro Enterprise Without Borders, Singapore, 2009 13

15 Way Forward Private-Public-People Partnership can be growth engines for Supply Chain *Have someone who is Local as well as Global help you realize these opportunities… Agro Enterprise Without Borders, Singapore, 2009 18

16 Thank You! Allogistx International Inc. 2130 Huntington Drive suit 205 South Pasadena, CA 91030 info@Allogistx.com Office: 323.254.9550 Fax: 323.315.9311 Allogistx International Inc. India F-54, 1 st Floor Sej Plaza Marve Road Malad (west) Mumbai, India 400 064 info@Allogistx.com Thank You!


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