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Indian cold chain industry fragmented; Expected to witness CAGR of 28%
Nov 14, 2017

The cold chain industry has evolved over the years, and has played an indispensable role in helping other industries thrive, ultimately boosting the Indian economy.
The Indian cold chain industry, expected to grow at a compound annual growth rate (CAGR) of 28 per cent over the next four years, is poised to reach a market size of $13 billion in 2017-2018 through increased investments, modernisation of existing facilities, and establishment of new ventures via private and government partnerships.
The Indian cold chain market is highly fragmented, with over 3,500 companies in the whole value system, with organised players contributing between eight and 10 per cent of the cold chain industry market.
However, the market is gradually getting organised and focus towards multi-purpose cold storages is rising.
In simple terms, a cold chain or cool chain is a temperature-controlled supply chain. An unbroken cold chain is an uninterrupted series of refrigerated production, storage and distribution activities, along with associated equipment and logistics, which maintain a desired low-temperature range.
It is used to preserve and to extend and ensure the shelf life of products, such as fresh agricultural produce, seafood, frozen food, photographic film, chemicals, and pharmaceutical drugs.
The major driving force behind the growth of cold chain facilities in India will be the growth of the end-user industries.
Cold chain has a host of industries as users and tangible growth in these industries will necessitate the development of the cold chain industries in India. 
Importance of cold chain in user industries
Quick service restaurants
A fast-paced lifestyle, changing eating habits, higher purchasing power of consumers are not only fuelling expansion and growth of quick service restaurants (QSRs) across India, but also of the cold chain logistics industry, which helps food reach fast and fresh.
The market for chain restaurants, including cafes and QSRs, is expected to grow at 20 per cent a year to reach Rs 51,000 crore ($8 billion) by 2021. 
The budding incidence of eating out and the growth of the QSR industry requires larger amount of perishable food products to be transported from point of origin to outlets.

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