Business Potential for Cold Storage Facility in JNPT Outlook to FY25

The report titled “Business Potential for Cold Storage Facility in JNPT Outlook to FY25 – Driven by increasing Trade of Food Products and Pharmaceuticals along with growth in QSR” provides a comprehensive analysis on the status of the cold storage market in the JNPT area in Mumbai. The report covers various aspects including the current market scenario for cold storage facility in JNPT, pricing trends, pros and cons for setting up cold storage in the area, major growth drivers, investment in infrastructure, tech disruptions and innovations, and competition benchmarking. The report concludes with market projections for future of the industry including forecasted industry size by revenue and pallet positions along with potential end users.

JNPT Cold Storage Market Overview and Size: JNPT Cluster on account of its proximity to the port has emerged as a suitable warehouse hub for EXIM cargo that is mainly inbound. Located closer to the financial capital of India, it has an advantage of having access to a very well connected highway network. The cold storage market has grown at a CAGR of 3.5% over the period 2017-2019 with ~42 companies generating revenue of more than ₹ 170 Cr during FY20. The significant growth in the demand for temperature-sensitive products such as meat and seafood, dairy, fruits and vegetables along with increase in exports and imports of such products from the JNPT Port has propelled the growth of the cold storage industry over the period. With greater investment and more quality demanding clientele, the market is expected to fully embrace the wide spectrum of innovations such as WMS, RFID tags and be truly global standard.

JNPT Cold Storage Market Segmentation:

By Temperature Range: Temperature Controlled warehouses (Chilled and Frozen) are the largest contributor to the revenue of the cold storage market in JNPT with a largest share during FY20. Frozen cold storages or freezers primarily cater to products such as meat and related products, fish and other seafood, poultry, ice-creams, frozen ready-to-eat meals and frozen fruits & vegetables.

By End-Users: Majority of the cold storages in JNPT store agricultural products such as pulses, spices and imported fruits and vegetables occupying highest share to the overall space as on 31st October 2020 followed by pharmaceuticals. More than 70% of the total cold storage capacity is single commodity, dedicated for storing agri-products, pharma or meat and seafood.

Competitive Landscape of Major Players Operating in the JNPT Cold Storage Market

Cold Storage Market: Competition within the market was observed to be bifurcated into fragmented smaller players and about 10-15 larger companies acquiring majority of market share. Many players operate in the market on both 2PL and 3PL basis. Major companies providing cold storage services include Savla Cold Storage, Snowman Logistics, JWL Cold Store, Rishi Ice and Cold Storage, Western Super fresh, Kool Solutions India, Primanand Cold Storage, Mehta Cold Storage and others

JNPT Cold Storage Market Future Outlook & Projections

The cold storage market in JNPT is expected to experience medium level of growth owing to improving infrastructure, increasing industrial output, significant consolidation of the market, and increasing import export volumes from the port.  The industry is expected to witness entry of new players and new mergers and acquisition between the players. Reduction in Dwell times in JNPT from 82 hours in 2016-17 to 59 hours in 2018-19 are expected to reduce further. Moreover, Automatic route FDI (~100%) and External Commercial Borrowing (ECB) allowed in developing in cold chain infrastructure along with government subsidies, tax benefits and grants are further going to drive the market demand in the coming years.

Key Topics Covered in the Report

• JNPT Cold Storage Market Introduction
• JNPT Infrastructure
• Pros a Entry Barriers and Pre-requisites for Cold Storage Facility in JNPT, Mumbai
• Pros and Cons for Setting up Cold Storage Facility in JNPT, Mumbai
• Reasons for End User Companies to Shift down to JNPT, Mumbai
• Number of Cold Storages in JNPT Area, 2020
• Cold chain warehousing potential for multiple commodities (F&V Market, Meat and Seafood, Ex-Im Temperature Controlled Consignments, Confectionary, Ice Cream, Frozen Food, Dairy, Pharmaceutical, RTE/ RTC etc.)
• Competition Assessment in JNPT Area separately for Cold Storage Assessment on the Basis of Nature of Competition, Competitive Factors and Major Companies
• Number of Cold Storage in JNPT, Mumbai segregated by Organized and Unorganized Sector Including parameters such as Price Per Pallet, Type of Facilities, Size, Major Clients, End User Catered, Revenues*, Employees, Vintage and others.
• Preferred Location Assessment in JNPT Area
• Financial Model to Setup Cold Chain Facility in JNPT Area
• Future Potential for the Demand of Cold Storage Space in JNPT, Mumbai