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Supply Chain - India

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

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Supply Chain - India

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  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, 1st 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 4 Agro Enterprise Without Borders, Singapore, 2009

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

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

  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 8 SanjeevAsthana Agro Enterprise Without Borders, Singapore, 2009

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

  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 10 SanjeevAsthana Agro Enterprise Without Borders, Singapore, 2009

  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 72% • World: < 1% • India: • 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 11 Agro Enterprise Without Borders, Singapore, 2009

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

  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… 18 Agro Enterprise Without Borders, Singapore, 2009

  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 Thank You! Allogistx International Inc. India F-54, 1st Floor Sej Plaza Marve Road Malad (west) Mumbai, India 400 064 • info@Allogistx.com

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