Supply Chain - India
Allogistx International Inc.2130 Huntington Drive suit 205South Pasadena, CA 91030 [email protected]: 323.254.9550Fax: 323.315.9311
Allogistx International Inc. India124-A, Naman Plaza1st Floor, Behind Shoppers Stop,Kandivali (west)Mumbai, India 400 [email protected]
Agenda
-Evolving Indian Economy
- Changing Supply Chain Dynamics
- New Growth Drivers
- Supply Chain Challenge
- Emerging Solutions & New Platforms
2
Urban Population Increasing
• Urban population projected to cross 500 million by 2025
- Cities are expanding Agro Enterprise Without Borders, Singapore, 2009 4
Retail Sales Growing
• Retail sales cross US$ 900 billion by 2010 Agro Enterprise Without Borders, Singapore, 2009 6
Growth Drivers
Demographic advantage: Young population Credit availability Increasing discretionary incomes Increasing retail space
7
Challenges
Inefficient Supply Chain
Infrastructure
Low Technology Penetration
Food Safety
Unorganized sector
Bureaucracy
Sanjeev Asthana Agro Enterprise Without Borders, Singapore, 2009 8
Disjointed Food Supply Chain
Village Commission
AgentSub Farmer
District Commission
AgentWholesaler Retailer Consumer
• Low yield / non-standard qualityFarmer
• No control on quantity / quality of raw material
• Price de-linked from market Processor
• Unscientific and unhygienic handlingVillage
• 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 Asthana Agro Enterprise Without Borders, Singapore, 2009 9
Poor Supply chain Infrastructure • Poor infrastructure facilities for
StorageTransportationProcessingPackagingDistribution
• About 3,500 cold storages/warehouses Only 13m tons of storage capacity for production or 140 mn
tons of Fruits/Vegetables
Sanjeev Asthana Agro Enterprise Without Borders, Singapore, 2009 10
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
Underdeveloped Processing Industry
• Fruits and vegetables Country % Processed
Malaysia 83% 2-3% of produce is processed8%-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
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
Thank You!
Allogistx International Inc.2130 Huntington Drive suit
205South Pasadena, CA 91030 [email protected]: 323.254.9550Fax: 323.315.9311
Allogistx International Inc. India
124-A, Naman Plaza1st Floor, Behind Shoppers Stop,Kandivali (west)Mumbai, India 400 [email protected]
Thank You!