Supply Chain - India

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Supply Chain - India

• Allogistx International Inc.
• 2130 Huntington Drive suit 205
• South Pasadena, CA 91030
• info_at_Allogistx.com
• Office 323.254.9550
• Fax [phone]

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

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Agenda

• Evolving Indian Economy
• Logistics Outlook
• Changing Supply Chain Dynamics
• New Growth Drivers
• Supply Chain Challenge
• Emerging Solutions New Platforms

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India is Growing!
Source Economist
India will be the third largest economy by
2040
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Urban Population Increasing
Urban population projected to cross 500
million by 2025
- Cities are expanding
Agro Enterprise Without Borders, Singapore, 2009
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Food Consumption Increasing
Food demand increasing
- Quality preference increasing
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Retail Sales Growing
Retail sales will cross US 900 billion by
2014
Agro Enterprise Without Borders, Singapore, 2009
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Growth Drivers

• Demographic advantage
• Young population
• Credit availability
• Increasing discretionary incomes
• Increasing retail space

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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.

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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

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Challenges

• Inefficient Supply Chain
• Infrastructure
• Low Technology Penetration
• Food Safety
• Unorganized sector
• Bureaucracy
• Lack of scalability

Sanjeev Asthana
Agro Enterprise Without Borders, Singapore, 2009
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Disjointed Food Supply Chain
Village Commission Agent
District Commission Agent
Sub
Farmer
Wholesaler
Consumer
Retailer
Low yield / non-standard quality
Farmer
No control on quantity / quality of raw material
Price de-linked from market
Processor
Unscientific and unhygienic handling
Village
Lack of infrastructure leading to loss of
quality
Commission
Poor market access
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
High prices
Unscientific method leading to loss of quality
/damages
Transportation
Consumer
Limited choice
Inadequate infrastructure
Wholesale
Rampant wastage
Non value adding players
Opportunistic profiteering
Sanjeev Asthana
Agro Enterprise Without Borders, Singapore, 2009
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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

Sanjeev Asthana
Agro Enterprise Without Borders, Singapore, 2009
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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
lt 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
Agro Enterprise Without Borders, Singapore, 2009
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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
Agro Enterprise Without Borders, Singapore, 2009
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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
Agro Enterprise Without Borders, Singapore, 2009
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Thank You!
Thank You!

• Allogistx International Inc.
• 2130 Huntington Drive suit 205
• South Pasadena, CA 91030
• info_at_Allogistx.com
• Office 323.254.9550
• Fax [phone]

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