Frost & Sullivan study reveals humungous growth opportunity ahead for TLC market in India

Temperature Controlled Logistics (TCL) market in India recorded revenues of $ 3.83 billion in FY 2013. The TCL industry structure in India comprises a few organised service providers and a large number of unorganised service providers. Within organised providers too, there are very few with national coverage that can offer both temperature controlled transportation and temperature controlled warehousing services, according to a statement issued by Frost & Sullivan.
From the TCL services user industry side, agriculture, dairy and meat represent the leading segments. As of FY 2013, only about one-third of these industries’ spend on TCL activities was outsourced to service providers. Of this, less than half was managed by organised service providers, while the rest was held by unorganised service providers.
With the current cold chain infrastructure in India being only a fraction of the actual need, the overall TCL sector presents itself as a large and growing business opportunity. But understanding the TCL related practices and preferences of end-user industries is of prime importance for logistics service providers intending to explore the opportunity.
Srinath Manda, Programme Manager, Transportation & Logistics Practice, Frost & Sullivan said: “The TCL industry in India is still nascent, with bright prospects over a long term for participants, as a large share of the potential addressable market in user industries such as agriculture and dairy is yet to be tapped. However, TCL service providers need to address a few challenges such as dominance of unorganized segment and rising costs. Through our upcoming briefing we will analyze the current status, trends and factors driving this market along with an insightful outlook”.
The complimentary Frost & Sullivan Analyst Briefing (AB) titled, ‘Temperature Controlled Logistics Services Market in India – Immense Growth Opportunity Ahead’ will delve into various aspects of the market and its unique requirements in India. The webinar will be hosted by Manda and is to be held on Wednesday, March 12, 2014, at 3:30 pm IST.


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