Value added services: The role of a warehouse is now transforming from a conventional storehouse to an inventory management set-up with a greater emphasis on value added services. They have stared providing additional services like consolidation and breaking up of cargo, packaging, labelling, bar coding & reverse logistics. It has emerged as a critical growth driver, leading to large investments by logistics companies for the development of warehouses and logistics parks. Warehousing and related activities currently account for about 20% of the total logistics industry.

Cold Storage
Cold storages have emerged as critical components of supply chain networks in India. The rapid evolution of organised retail in India along with the emergence of a large food processing sector has made it essential to have cold storage infrastructure for storage of perishable goods. India is the world's largest producer of fruits, the second largest producer of vegetables after China, and ranks among the leading producers of milk, pulses and a range of cereal crops. The temperature controlled supply chains or cold chains are a significant proportion of the retail food market. Fast foods, ready meals and frozen products have increased market share in recent years.

Government statistics indicate that India has about 5,400 cold storage facilities with a total capacity of about 24mt. The cold chain logistics business offers US$ 240 million (INR 10 billion) market opportunity in India as organized retail will require cold-chain logistics support and value accretion over the long term. In spite of the vast natural resources and abundant agricultural produce India ranks below 10th in the export of food products. Efficient supply chain is critical input for increasing exports.

According to a FICCI study, about 30-35% of the country's 60mt of fruits and vegetables produced get wasted due to inadequacies in cold storage and other facilities. In value terms, food worth Rs 58,000 Crores gets wasted in India, which is more than the total production of fresh fruits and vegetables in the UK.

The CII has estimated that India's cold-chain infrastructure will require at least Rs 18,000-20,000 Crores investment over the next five years to meet the growing requirement of this facility, while the industry size, at the current pace, will grow from Rs 8,000-10,000 Crores to Rs 40,000 Crores by 2015.

Growth Drivers

       Food Processing and Preserving Industry: The State incentives to Food Processing and Preserving Industry        are creating significant demand for logistics infrastructure. The growth in international trade and organised        retail trade coupled with thrust on food processing has led to high demand for cold chains —nearly 340 million        sq ft is needed by 2015 according to a report from Jones Lang LaSalle Meghraj (JLLM).

       Food & beverage segment: The increasing complexities in managing supply chains for short shelf-life        products is driving the growth for thermal transportation and refrigerated warehousing.

       Government Initiatives: The Government of India (GOI) has accorded high priority to the establishment of        cold chains and offers incentives such as:

  • Foreign equity participation of 51% is permitted for cold chain projects.
  • No restriction on import of cold storage equipment or establishing cold storages in India.
  • Capital investment subsidy of 25% (maximum US$ INR 0.1 million) to promoters.
  • Tax breaks for refrigeration equipment imports and set-up costs

Growth in organized retail, shift towards horticultural crops, and demand from Pharmaceutical sector is driving growth in this sector.

Business Overview:
The Demerged Undertaking having been transferred to and vested in the Company in accordance with the Scheme, the Company is the successor of the Agencies and Services Undertaking of M/s Binny Limited.
History and Management:
The Company was incorporated under the Act as a public limited company on 20th December, 2007 with an authorized share capital of Rs. 10,00,000/- divided into 1,00,000 equity shares of Rs.10/- each registered under CIN No. U17120TN2007PLC065807. The Company obtained the Certificate for Commencement of Business on 06th February, 2008.
The Registered Office of the Company is at TCP Sapthagiri Bhavan, No.4, Karpagambal Nagar, Mylapore, Chennai – 600 004.
The Company entered into the Scheme with M/s Binny Limited and their respective shareholders and creditors. The Scheme was sanctioned by Hon’ble High Court of Madras on 22nd April, 2010. As per terms of the Scheme, on the scheme coming into effect, the Agencies and Services Undertaking of M/s Binny Ltd shall stand transferred to and vested in the company from 1st January, 2010, the appointed date.


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