Dr.Harsev Singh CEO Reliance Dairy Foods Ltd.

1. Dr.Harsev Singh CEO Reliance Dairy Foods Ltd. Supply Chain & Infrastructure Bottlenecks 1

2. A supply chain can be looked into as set of agribusiness activities and products that lead to a produce that reaches the final consumer

3. Major Shift from Traditional Farming • The Indian agricultural sector is witnessing a major shift from traditional farming to horticulture, meat and poultry and dairy products, all of which are perishables. • The demand for these products are increasing owing to change in consumption habits of the consumers • Due to this increase in demand, diversification and value addition are the key words in the Indian agriculture today.

4. Weak Infrastructure • In India, the infrastructure connecting these partners is very weak. • Each stakeholder: farmers, wholesalers, food manufacturers, retailers all work in silos. • Demand forecasting is totally absent and the farmers try to push what they produce in to the market. • Data integration, financial flow management, supply-demand matching, collaborative forecasting, information sharing, goods movement synchronization through efficient transport schedulingare lacking.

5. Weak Infrastructure • Inefficient price signals • Limited reach of mandis • Too many intermediaries, information asymmetry: • Inadequate infrastructure for storage • Lack of cold storage infrastructure

6. Infrastructure Bottlenecks

7. Infrastructure Bottlenecks

8. Cold Storage • The total value of India’s cold chain industry is currently estimated at USD 3 billion and reportedly growing at an annual rate of 20-25 per cent. • The total value for the industry is expected to reach at USD 8 billion by 2015 • It can be achieved through increased investments, modernization of existing facilities, and establishment of new ventures via private and government partnerships. • India has 5,400 cold storage facilities, with a combined capacity of 23.66 million metric tons that can store less than 11% of what is produced.

9. Logistics Customers are demanding a “single point of contact” for all logistics services and are looking for “one-stop logistics shopping” unable to cope with complexities across their supply chains

10. Logistics Appreciation of high logistics cost and opportunities for major savings Increasing competition for both users and providers of logistics, who have to continually improve operations to remain competitive New types of operations, which can force changes to logistics – such as just-in-time, total quality management, flexible operations, time compression etc. Need for improved technology for identifying locating and tracking materials

11. Logistics National logistics cost vis-à-vis the share of 3PL in the logistics market Source : Compiled from Various Sources

12. Areas Requires Strengthening • Pre-cooling facilities • Cold Storages • Refrigerated Carriers • Packaging • Warehouse and Information Management systems • Traceability • Financial and Insurance Institutions

13. Way Forward Partnership should be in areas of Infrastructure creation / utilization Processing R&D Technology Transfer / Skill up gradation Creation of Cold Chain Development of a Robust & Effective Supply Chain

14. Conclusion Although it’s still early days, these solutions should lead to better supply chain management in Indian agriculture, reducing inefficiencies and increasing farmer realizations, as well as curbing food waste

15. Thanks !!! End