Upload
sudhansu777
View
216
Download
0
Embed Size (px)
Citation preview
7/26/2019 SSL - Final Delhi Kundli (Market Assessment) - March 2014.pdf
1/29
Final Report
Market Assessment for Agricultural Warehousing
Kundli (Sonepat district), Haryana
March, 2014
Shree Shubham Logistics Ltd
7/26/2019 SSL - Final Delhi Kundli (Market Assessment) - March 2014.pdf
2/29
CRISIL KundliMarket Assessment
About CRISIL Limited
CRISIL is a global analytical company providing ratings, research, and risk and policy advisory services. We are India's leading
ratings agency. We are also the foremost provider of high-end research to the world's largest banks and leading corporations.
About CRISIL Research
CRISIL Research is India's largest independent and integrated research house. We provide insights, opinions, and analysis on
the Indian economy, industries, capital markets and companies. We are India's most credible provider of economy and industry
research. Our industry research covers 70 sectors and is known for its rich insights and perspectives. Our analysis is supported
by inputs from our network of more than 4,500 primary sources, including industry experts, industry associations, and trade
channels. We play a key role in India's fixed income markets. We are India's largest provider of valuations of fixed income
securities, serving the mutual fund, insurance, and banking industries. We are the sole provider of debt and hybrid indices to
India's mutual fund and life insurance industries. We pioneered independent equity research in India, and are today India's
largest independent equity research house. Our defining trait is the ability to convert information and data into expert
judgements and forecasts with complete objectivity. We leverage our deep understanding of the macroeconomy and our
extensive sector coverage to provide unique insights on micro-macro and cross-sectoral linkages. We deliver our research
through an innovative web-based research platform. Our talent pool comprises economists, sector experts, company analysts,
and information management specialists.
CRISIL Privacy
CRISIL respects your privacy. We use your contact information, such as your name, address, and email id, to fulfil your requestand service your account and to provide you with additional information from CRISIL and other parts of McGraw Hill Financialyou may find of interest.
For further information, or to let us know your preferences with respect to receiving marketing materials, please visitwww.crisil.com/privacy. You can view McGraw Hill Financials Customer Privacy Policy athttp://www.mhfi.com/privacy.
Last updated: May, 2013
Disclaimer
CRISIL Research, a division of CRISIL Limited (CRISIL) has prepared this report (Report) based on the information
obtained by CRISIL from sources which it considers reliable. By accessing and using the Report, the user acknowledges and
accepts the following: While CRISIL takes reasonable care in preparing the Report, CRISIL does not guarantee the accuracy,
adequacy or completeness of the Report and/or their suitability for any specific purpose. CRISIL is not responsible for any
errors or omissions or for the results obtained from the use of the Report. The information contained in the Report is general
information and is not intended to be an advice or recommendation on any particular matter. The users are advised to exercise
their discretion and/or seek professional advice before relying or acting on this Report or any part thereof. CRISIL expressly
states that neither it nor its directors, employees and representatives accept any liability with regard to any access, use of or
reliance on, the Report and that CRISIL expressly disclaims all such liability. No part of this Report shall be quoted out of
context or in the manner that it distorts its context or meaning.
http://www.mhfi.com/privacyhttp://www.mhfi.com/privacyhttp://www.mhfi.com/privacy7/26/2019 SSL - Final Delhi Kundli (Market Assessment) - March 2014.pdf
3/29
BACKGROUND .............................................................................................................. 1
EXECUTIVE SUMMARY ................................................................................................ 2
SONEPATDISTRICT PROFILE ................................................................................... 4
OPPORTUNITY ASSESSMENT .................................................................................... 7
RISK/CONSTRAINTS....................................................................................................20
MARKET SPEAKS ........................................................................................................21
ANNEXURE ...................................................................................................................22
Contents
7/26/2019 SSL - Final Delhi Kundli (Market Assessment) - March 2014.pdf
4/29
7/26/2019 SSL - Final Delhi Kundli (Market Assessment) - March 2014.pdf
5/29
1
BACKGROUND
About the Client
Shree Shubham Logistics Limited (SSL) (the client) is an end-to-end logistics solutions provider to commodity
stakeholders and provides services encompassing storage and preservation with a chain of dry and cold storage
units, weighing, testing and certification (grading and sorting facilities for standardization of agricultural produce),
collateral management for commodity financing against warehouse receipts/stocks with the help of banks,
fumigation and pest management, commodity procurement etc.
SSL has developed global standard agri-logistics parks in the states of Rajasthan, Gujarat, Madhya Pradesh and
Maharashtra. Currently, SSL is managing warehouses across 120 locations with storage capacity over 1.40 Million
Metric Tonnes.
Shree Shubham Logistics Ltd (SSL), hereafter referred to as the Client has commissioned CRISIL Research to
perform detailed market assessment for establishing new agricultural warehouses in 30 districts in India as part of
their Phase 3 expansion.
The 30 districts were selected post a secondary research based analysis encompassing 20 parameters (potential
demand, infrastructure related, risk/constraints) across 174 districts across the 6 states of interest of the client (UP,
AP, Chhattisgarh, Bihar, Delhi, Karnataka). The parameters used in the analysis considered indicators for agri-
warehousing demand potential as well as the risks associated with it.
For the 30 districts selected, primary and secondary research activities were undertaken to perform detailed market
assessment that qualifies and quantifies the market opportunity for agri-warehousing. Further to detailed marketassessment, financial assessment was performed on 15 identified districts to assess financial viability of a
proposed warehouse in a selected location in the district.
Objective of the report
This report attempts to assess the opportunity for key commodities of Kundli district from a warehousing
perspective. The process involves studying various parameters relating to both demand and supply sides,
forecasting warehousing demand and assessing the opportunity based on the prevailing and expected supply
scenario.
Approach towards preparation of report
CRISIL Research has assessed the potential of agri-warehousing based on its detailed understanding in terms of
the current demand-supply dynamics, key trends and evolving market dynamics on both demand and supply fronts.
For the report, we have visited the district and interacted with Mandi officials, Traders, CWC/SWC Managers and
Cold Chain players etc. Inputs and assumptions for financial assessment were arrived at based on primary
research interactions with market participants, banks and inputs from SSL on historical costs typical for their type of
warehouses.All references of current year in this report pertain to FY 2012-13.
7/26/2019 SSL - Final Delhi Kundli (Market Assessment) - March 2014.pdf
6/29
2
CRISIL KundliOpportunity Assessment
EXECUTIVE SUMMARY
Kundli is one of the villages in Rai Mandal, Sonepat district of Haryana. It is surrounded by localities of Sersa, Janti
Kalan, Nangal Kalan, Nathupur and Bazidpur. It is a cold storage cluster in itself, primarily storing fruits, pulses,
spices and dry fruits.
Good road and rail connectivity
Kundli lies on NH 1, also known as G.T. Road, connecting Delhi to Karnal. Also there are many railway stations
such as Holambi Kalan and Narela within 10 km distance of Kundli. Also, Sonepat railway station is a major station
near Kundli. The region, due to its proximity to Delhi city, is eventually connected to all the parts of India through
rail and road.
Declining production of food grains in SonepatCrop production in the district was estimated to be 1,091,169 MT in 2012-13. The growth in food grain production in
Sonepat district has been falling and this is expected to continue due to the decline in yields and decreasing area
under cultivation in the wake of rapid urbanisation.
Cold storage cluster located near highway and proposed mandi
There are no government dry warehouses or cold storages in this region. The private cold storages are clustered in
and around the Kundli region villages within a radius of ~ 10 km. This region has an aggregate cold storage
capacity of ~350,000 MT. These cold storages cater to the traders and merchants of the Azadpur mandi (fruits) and
wholesale market in Delhi city (spices and pulses). The major commodities stored in these warehouses are pulses,
spices, dry fruits and fruits. The construction quality of the cold storages is medium to high and there is high
security environment with boundary walls.
Limited opportunity for cold storage due to oversupply scenario
The current cold storage demand of 297,500 MT is estimated to grow by a CAGR of 6 per cent to 375,587 MT in
2016-17, on the basis of growth in consumption and growth in trading activity in the northern region of India. Given
the current capacity of ~350,000 MT, there is additional cold storage opportunity of 67,319 MT.
7/26/2019 SSL - Final Delhi Kundli (Market Assessment) - March 2014.pdf
7/29
3
Opportunity Assessment for Agri Warehousing in Kundli (Grams and Chillies)
Potential demand for warehousing
Supply Analysis
Estimated Cold Storage Opportunity67,319 MT
Major aggregation
center
Growth factor
(6%)
Current Cold Storage
Demand
Current
Capacity(350,000
MT)
PeakUtilisation
(85 %)
Cold Storage
Capacity
(350,000 MT)
Primary interactions with market
participants of the district
Trading activity-Traders, Mandi officials
Crop Production & Arrivals- Agri dept,
Mandi officials
Consumption growth (Population)
1.94% historic
growth in
population
Current demand
(297,500 MT)1
Delhi being an aggregation center,production factor is not relevant. Trading
and population will drive the cold storage
demand
2
No significantexports from the
district
3
Future years demand(375,587 MT)
Potential Demand(375,587 MT)
Expected Supply(350,000 MT)
5
Key growth factors
Current
Capacity
(350,000 MT)
2016-172016-17
4% increase in
trading factorduring 2010-12
4*
Assuming op t imum level of ut i l izat ion at dry warehousing
industry level is 90%
7/26/2019 SSL - Final Delhi Kundli (Market Assessment) - March 2014.pdf
8/29
4
CRISIL KundliOpportunity Assessment
SONEPATDISTRICT PROFILE
3.1 Location & Topography
Kundli is a small town located in Sonepat district. Also, it falls in the neighbourhood of prominent Haryana towns of
Rohtak and Panipat. Due to its proximity to Delhi (~ 3 Km), Kundli was developed as a prime industrial region.
Many cold storages are developed in this area which are catering requirement for Delhi and Haryana. It is well
connected through AH-2 (Grand trunk road). Due to limited space availability in Delhi and nearby areas, Kundli is
viewed as a next development hub like Gurgaon near Delhi. Further, Haryana State government has announced to
build up Kundli as a major educational hub. The geographical area is 5 Km. It lies North latitudes 2898N and
7702E with average elevation of 224.15 meter above the sea level (735.4 ft).
Below is the district map with marked district border
Source: Google maps
7/26/2019 SSL - Final Delhi Kundli (Market Assessment) - March 2014.pdf
9/29
5
3.2 Economy
Sonipat district GDP growing at average rate of 10% during 2005-06 to 2009-10
Sonipat district has witnessed a significant growth of ~10%, slightly lower than the Haryana state.
3.3 Infrastructure
Being one of the major industrial hubs in Sonepat district, Kundli has around 641 production units which is the 2nd
highest in the district. Various types of manufacturing units in Kundli industrial estate belongs to Home furnishing,
lights, rubber, books, sanitary and stainless steel etc. In recent times Kundli has also seen development of various
educational universities and institutions namely, Rajiv Gandhi Educational City - (comprising 10 educational
institutions), National Institute of Food Technology Entrepreneurship and Management (NIFTEM) etc.
Sonipati: Real GDP at constant prices (2004-05)
Source: CRISIL Research
52735
5844062898
68729
77068
-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
2005-06 2006-07 2007-08 2008-09 2009-10
Rs Cr
7/26/2019 SSL - Final Delhi Kundli (Market Assessment) - March 2014.pdf
10/29
6
CRISIL KundliOpportunity Assessment
Kundli-Sonepat: Key Facts
Parameters Units
Geographical Features
Latitude 2848' & 2917' North
Longitude 76 28&7713 East
Geographical area Sq Km 2,260
Population
Male No 798,948
Female No 681,132
Total No 1,028,393
Agriculture
Total area Hectare 214,250
Forest cover Hectare 7,359Non agriculture land Hectare 33,194
Cultivable barren land Hectare 8,403
Railways length Km 73
Roads
National Highway Km 64
PWD Km 25
Major District Highway Km 28
Other District/ Rural Roads Km 419
Kachha Road Km 76
Total registered industrial units no. 13,039
Source: Distr ict Adminis tration, CRISIL Research
7/26/2019 SSL - Final Delhi Kundli (Market Assessment) - March 2014.pdf
11/29
7
OPPORTUNITY ASSESSMENT
The Kundli area is primarily a cold storage cluster. There are about 70 cold storages in this region. All these are
multipurpose cold storages catering to the cold storage demand arising mainly from Delhi. The Azadpur mandi in
Delhi is the largest mandi in Asia for fruits and vegetables. The arrivals in the mandis are from different regions of
India with apples coming from Himachal Pradesh, Jammu & Kashmir and other fruits like oranges, banana and
mango coming from Southern states like Maharashtra and Andhra Pradesh. Vegetables like potato come from
Uttar Pradesh, Punjab, and Haryana etc. Thus most of the arrivals are from different states and some are also
imported.
As per our interactions, we have learnt that the major commodities which are stored in the cold storages are pulses
(chana, rajma), spices, dry fruits and fruits. Chana comes majorly from Rajasthan, whereas spices come from
Andhra Pradesh and fruits from different parts of India.
Since, Azadpur mandi is the largest in the world in terms of arrivals and there was limited cold storage capacity in
Delhi to cater to cold storage demand, Kundli came up as an alternate destination for cold storage in the outskirts
of Delhi. Also Delhi, is a major trading hub, it acts as an aggregation point where the arrivals of crops are from
mandis and imports from other countries. At the same time, the dispatch of these crops is towards exports, to other
states and for local consumption.
Since, Kundli is a part of Sonepat district; we have given the demand side analysis from the district point of view.
We have analysed the mandi arrivals of major commodities to proxy the arrivals of fruits to be stored in cold stores.
Aggregation
Exports
Local Consumption
Imports Distribution to otherstates
Mandi arrivals
Non-mandi arrivals
7/26/2019 SSL - Final Delhi Kundli (Market Assessment) - March 2014.pdf
12/29
8
CRISIL KundliOpportunity Assessment
4.1 Demand Side Analysis
Declining trend in crop production
Crop production in the district was estimated to be 1,091,169 MT in 2012-13. The production of crop has beendecreasing at a CAGR of 8.5 per cent during 2006-07 to 2012-13. This is due to reduction in the yields of crops
along with no significant increase in area under cultivation, which has registered only 1 per cent CAGR during
2006-07 to 2012-13, owing to rapid urbanisation in Delhi, which it shares its border with, in the past decade.
Sonepat: Crop Production (lakh metric tons)
Source: Ministry of Agriculture, Industry, CRISIL research
18.6
16.1
13.3
11.911.3 10.9 10.9
-
2
4
6
8
10
12
14
16
18
20
2006-07 2007-08 2008-09 2009-10 2010-11 E 2011-12 E 2012-13 E
Area under Cultivation (hectares)
Source: Departm ent of Agriculture, CRISIL Research
254,830 258,096272,474
265,669 265,941 266,214 266,486
20,000
70,000
120,000
170,000
220,000
270,000
320,000
2006-07 2007-08 2008-09 2009-10 2010-11 E 2011-12 E 2012-13 E
7/26/2019 SSL - Final Delhi Kundli (Market Assessment) - March 2014.pdf
13/29
9
Wheat and rice form ~82 per cent of the agricultural produce
Wheat and rice constitute nearly 82 per cent of the total agricultural produce in the district, followed by sugarcane,
potato and bajra. The production in sugarcane has been declining consistently in the past decade, due to
preference for crops like wheat and rice. Other crops like maize, arhar (tur), cotton etc. form the rest of the pie.
Other Crops
Sonepat: Split of major crop forming Others, by production
Source: Ministry of Agriculture, Industry, CRISIL research
Sonepat : Split of Crop production 2012-13
Source: Ministry of Agriculture, Industry, CRISIL research
Wheat, 58.7%Rice, 23.2%
Sugarcane,15.1%
Others, 2.9%
Bajra, 2.3%
Maize, 0.2%Arhar(tur),0.4%
Rapeseedand
Mustard,
0.3%
Cotton(lint),0.2%
Potato,
1.4%
Onion, 0.1%
7/26/2019 SSL - Final Delhi Kundli (Market Assessment) - March 2014.pdf
14/29
10
CRISIL KundliOpportunity Assessment
In the past 5 years, wheat production has consistently been above 610,000 MT. Wheat production has registered a
CAGR of 1.7 per cent from 2006-07 to 2012-13 and expected to maintain the same growth till 2012-13
Sonepat: Crop Production (lakh metric tons)
Source: Ministry of Agriculture, Industry, CRISIL research
Rice is the 2nd largest crop in the district after wheat with an average production of ~230,000 MT in the last 5years. Rice production is expected to register a CAGR of 7 per cent till 2012-13. Sugarcane, as mentioned earlier
has been on a declining trend from 2006-07 to 2009-10. This trend has continued over the next three years to
2012-13. Other crops such as bajra, maize, rapeseed and mustard, arhar etc constitute the remaining ~ 3 per cent
of production.
Top six commodities constitute ~ 47 per cent of the total arrivals in Azadpur mandi
As mentioned earlier, to focus on the cold storage cluster, we have analysed the arrivals of Azadpur mandi that is a
mandi for fruits and vegetables only. Apple, banana, mango, potato, onion and tomato are estimated to account for
~47 per cent of total arrivals in 2012-13.
6.46.1
6.9
6.1 6.2 6.36.4
1.8 1.9 1.92.2 2.3
2.4 2.5
10.0
7.6
4.0
3.02.4
1.91.6
0.4 0.5 0.5 0.5 0.3 0.2 0.3
-
2
4
6
8
10
12
2006-07 2007-08 2008-09 2009-10 2010-11 E 2011-12 E 2012-13 E
Wheat Rice Sugarcane Others
7/26/2019 SSL - Final Delhi Kundli (Market Assessment) - March 2014.pdf
15/29
11
Crop share in Mandi Arrivals at Azadpur (2012-13)
Source: Mandi Samiti, CRISIL Research
Azadpur: Total Mandi Arrivals
Source: APMC, CRISIL Research
Our analysis and market interactions suggest that apple arrivals are the highest in the months of September to
December, whereas that for mango is between April and July. Other major commodities like potatoes, tomatoes
and bananas arrive almost throughout the year. Out of these, mainly apples are stored in cold storages apart from
small quantities of grapes, oranges and mangoes seasonally.
Apple, 13%
Banana, 3%
Mango, 4%
Potato, 12%
Onion, 10%
Tomato, 5%
App le
Banana
Mango
Potato
Onion
Tomato
Year Total arrivals in M T
2010-11 4,532,445
2011-12 4,503,677
2012-13 E 4,510,554
7/26/2019 SSL - Final Delhi Kundli (Market Assessment) - March 2014.pdf
16/29
12
CRISIL KundliOpportunity Assessment
4.2 Supply Side Analysis
As discussed in the previous sections, the principal commodities from the warehousing standpoint in Kundli region
are pulses, spices, dry fruits and fruits. A majority of these commodities arriving in Delhi are stored at first in the
cold storages within Delhi city and later in the Kundli cluster. The cluster covers a 10 km radius from the Kundli
HSIDC (Haryana State Industrial Development Coportation). The main regions in this cluster are:
1. HSIDC, Kundli
2. Nathupur
3. HSIDC, RAI
4. Piu-Maniyari Road
A pictorial map showing the few of these villages is shown below:
Source: Google Maps
There are no government warehouses in and around this region. The cluster of these cold storages forms an
aggregate capacity of ~350,000 MT. The major parties storing the food grains are traders and merchants of Delhi in
the Azadpur mandi.
7/26/2019 SSL - Final Delhi Kundli (Market Assessment) - March 2014.pdf
17/29
13
Based on our interactions with warehouse players and key market participants, we learnt that many cold storages
have come up in the last 2-3 years. The prime reason for this being the proposed shifting of the Azadpur mandi to
Tikri, which is closer to Kundli. Also since there is no space for cold storages to come up in the city, it wasinevitable for new cold storages to come up on the outskirts and Kundli formed an optimal location.
In the early phase of setting up cold storages, some traders from the Azadpur mandi came up with these cold
storages and served the demand from other traders apart from their captive consumption. Later, as the
warehousing intensity of commodities increased with increase in trade along with commodities like spices and
pulses also being warehoused, the demand for cold stores also increased. Thus, the utilisation and rentals for the
same increased eventually making it a profitable business for these traders. This attracted other traders to come up
with cold stores of their own. With relatively low prices of land, easier land conversion norms of Haryana
government and high subsidy (maximum of Rs 1.2 crores) setting up a cold store became easier. Also, the majorpart of investment is land. This has led to higher competition and increasing cold store capacities in the last two
years. Although, the average utilisation in this cluster has remained at similar levels of ~75 per cent, the rentals
have declined by 30-40 per cent. This shows the increasing competition due to the added capacities.
All these regions lie along the NH 1 which connects Delhi to Karnal also known as G.T.Road. Thus this cluster
provides high road connectivity. The new proposed fruit mandi in Tikri, which would replace the Azadpur mandi, is
just 5 km from Kundli village. This has led to price escalation in this region. The land rates are in the range of Rs
7000-10000 per sq yard which translates to Rs 3.4 - 4.8 crore per acre, depending upon the proximity to NH1 from
the location of cold storage. The average land rates in this cluster is estimated to be ~ 4 crore per acre.
7/26/2019 SSL - Final Delhi Kundli (Market Assessment) - March 2014.pdf
18/29
14
CRISIL KundliOpportunity Assessment
Competition Profile
Competition Profile: Private cold storages
As mentioned earlier, the aggregate capacity of this cluster is ~350,000 MT with an average size of ~ 5,000 MT.
The utilisation levels range from 70-80 per cent with average utilisation of ~ 75 per cent. Most of these are
multipurpose cold storages and their rentals are more or less the same.
Kundli: Cold Storages
Cold Store Location
Sai Kripa Cold Storage HSIDC Kundli
KHI Cold Storage HSIDC Kundli
Shiv Shakti Cold Storage HSIDC Kundli
R J Cold Storage HSIDC Kundli
Kartar Devi Cold Storage HSIDC Kundli
Kufri Cold Storage HSIDC Kundli
MDH Cold Store Kundli village
Sumagalam Cold Storage Kundli village
Golden Almonds Kundli villageJ M Coolhouse Kundli village
Vrindavan Cold Storage Kundli village
Jubin Cold Storage Nathupur
Harshana Cold Storage Nathupur
Seven Star Nathupur
Ishwar Cold Storage Nathupur
KMC Cool Chain Nathupur
Avalanche Cold Storage HSIDC RAI
Pragati Cold Storage HSIDC RAI
Leh Cold Storage HSIDC RAI
Others
Total capacity 350,000
Source: CRISIL Rese arch
Commodity Rental
Chilies (month) Rs 12-15/40 kg bagFruits (month) Rs 10-12/box
Pulses (month) Rs 15-20/50 kg bag
7/26/2019 SSL - Final Delhi Kundli (Market Assessment) - March 2014.pdf
19/29
15
Construction quality of cold storage is medium to high
The observed construction quality of many cold storages is high with boundary walls and a secure environment.
However, they did not have dedicated weighing service like own weigh bridges. Since, the customers are mainly
wholesalers and traders, who have their own means of financing, none of the cold storages provided collateral
management services.
Kundli: Cold Warehouses Competition Profile
Observedconstruction Quality
Security Environment Dedicated Weighingservices
Equipments/Technolo
gy (Lifting Machinery)
Sai Kripa Cold Storage Medium High No Medium
KHI Cold Storage Medium High No Medium
Shiv Shakti Cold Storage High High No Medium
R J Cold Storage High High No Medium
Kartar Devi Cold Storage High High No Medium
Kufri Cold Storage High High No Medium
MDH Cold Store High High No Medium
Sumagalam Cold Storage Medium High No Medium
Golden Almonds High High No MediumJ M Coolhouse High High No Medium
Vrindavan Cold Storage Medium High No Medium
Jubin Cold Storage High High No Medium
Harshana Cold Storage High High No Medium
Seven Star High High No Medium
Ishwar Cold Storage Medium High No Medium
KMC Cool Chain High High No Medium
Avalanche Cold Storage High High No Medium
Pragati Cold Storage High High No Medium
Leh Cold Storage High High No Medium
Note: Rankings: Low-Poor Quality, Medium- Medium Quality, High- Good quality
Observed construction quality-include parameters like, height, ventilation and relative newness of the building
Soucrce: Industry,CRISIL Research
7/26/2019 SSL - Final Delhi Kundli (Market Assessment) - March 2014.pdf
20/29
16
CRISIL KundliOpportunity Assessment
4.3 Opportunity Analysis
To assess the opportunity for cold storages in Kundli region, we have analyzed the demand-supply situation in the
district for the key items stored in the cold stores. The chart below presents the demand and supply side factors
considered for the demand outlook and cold storage opportunity assessment.
Kundli: Cold Storage Customer Concentration
Retailers/ FarmersWholesellers/traders/
Industrial Customers
Sai Kripa Cold Storage 5-10% 90-95%
KHI Cold Storage 5-10% 90-95%Shiv Shakti Cold Storage 5-10% 90-95%
R J Cold Storage 5-10% 90-95%
Kartar Devi Cold Storage 5-10% 90-95%
Kufri Cold Storage 5-10% 90-95%
MDH Cold Store 5-10% 90-95%
Sumagalam Cold Storage 5-10% 90-95%
Golden Almonds 5-10% 90-95%
J M Coolhouse 5-10% 90-95%
Vrindavan Cold Storage 5-10% 90-95%
Jubin Cold Storage 5-10% 90-95%
Harshana Cold Storage 5-10% 90-95%
Seven Star 5-10% 90-95%
Ishwar Cold Storage 5-10% 90-95%
KMC Cool Chain 5-10% 90-95%
Avalanche Cold Storage 5-10% 90-95%
Pragati Cold Storage 5-10% 90-95%
Leh Cold Storage 5-10% 90-95%
Soucrce: Industry,CRISIL Research
7/26/2019 SSL - Final Delhi Kundli (Market Assessment) - March 2014.pdf
21/29
17
4.3.1 Cold Warehousing Opportunity Analysis
Demand for cold storages to increase at 6 per cent CAGR in the district
The commodities stored in the cold storages are meant for consumption as well as trading. The current cold
storage demand of 297,500 MT is arrived by considering aggregate cold storage capacity of 350,000MT at a peak
utilization of 85 percent. However, we expect the demand for warehousing to grow at a CAGR of 6 per cent over
the next five years. The CAGR of 6 per cent is mainly contributed by the following factors
i) 1.94 per cent growth in population and hence the growth in consumption
ii) 4 per cent growth in trading activity
We expect the above historic factors to maintain the same trend, going forward.
7/26/2019 SSL - Final Delhi Kundli (Market Assessment) - March 2014.pdf
22/29
18
CRISIL KundliOpportunity Assessment
The current cold storage demand of 297,500 MT is estimated to grow by a CAGR of 6 per cent to 375,587 MT in
2016-17. The current supply of warehouses is 350,000 MT and no additions are expected to come in near future.
Thus, 67,319 MT of additional cold storage capacity is estimated to be required. The opportunity is estimated
Crops: Cold Storage Demand (MT)
Source: Department of Agriculture, CRISIL Research
2,97,5003,15,350
3,34,271
3,54,3273,75,587
-
50,000
1,00,000
1,50,000
2,00,000
2,50,000
3,00,000
3,50,000
4,00,000
2012-13 2013-14 2014-15 2015-16 2016-17
(MT) CAGR: 6.0%
Opportunity: Cold Storage (MT)
Source: CRISIL Research
2,97,500
3,15,3503,34,271
3,54,3273,75,587
3,50,000 3,50,000 3,50,000 3,50,000 3,50,000
-
50,000
1,00,000
1,50,000
2,00,000
2,50,000
3,00,000
3,50,000
4,00,000
2012-13 2013-14 2014-15 2015-16 2016-17
Demand Supply
(MT)
(19,444) 389 21,412 43,69767,319
7/26/2019 SSL - Final Delhi Kundli (Market Assessment) - March 2014.pdf
23/29
19
based on the 90 per cent optimal utilisation of the existing supply in the long term, which is in line with the market
trend.
7/26/2019 SSL - Final Delhi Kundli (Market Assessment) - March 2014.pdf
24/29
20
CRISIL KundliOpportunity Assessment
RISK/CONSTRAINTS
Socio economic factors
The chapter provides key socio economic risk factors which play pivotal role for agriculture warehouse. The risk
factors/constraints are graded on High, Medium and Low scale depending upon the intensity of risk related to
particular factor. Key factors identified are as follows: 1. Naxal activity, 2. Drought intensity, 3. Flood intensity and 4.
Law & order.
There are no Naxalite incidences in Delhi. Hence risk intensity for Naxal activity is low.
The region has seen instances of drought in the past. Southern and western regions of Haryana are at a greater
risk of drought and hence, the drought intensity is medium.
There have been occasional floods in the region. However, the areas lying near the tributaries of the river Yamuna
are at higher risk during monsoons.
In historic years, law & order situation in the state remained at medium levels. Considering the impact of various
socio economic factors on particular district we have assigned risk intensity as follows:
Risk factors status: Kundli
Factors Risk Intensity
Naxal activity Low
Drought intensity Medium
Flood intensity Medium
Law & order Medium
Source: Industry, CRISIL Research
7/26/2019 SSL - Final Delhi Kundli (Market Assessment) - March 2014.pdf
25/29
21
MARKET SPEAKS
This section presents the summary of market interactions with key market participants in the district
Nowadays as apples which are being suppl ied from Shimla and J&K are also stored in cold storages
there itself , the requirement for cold storage has part ial ly reduc ed in the Delhi region Manager, Private
cold storage
The possib i l i ty of Tikr i being the replacement of Azadpur mandi h as led to a craze to set up cold s torages
here. Owner, private cold storage
The comp etit ion is very h igh . The rentals here are half the rentals offered in Lawrenc e Road (cluster of
cold s torages in the ci ty) just to have higher ut i l isat ion. Manager, private cold storage
Ear l ier say one trader used to serve four other traders. Now, two o f those have set up their own
warehouses thus increasing the compet i t ion.Owner of cold storage and trader in spices
7/26/2019 SSL - Final Delhi Kundli (Market Assessment) - March 2014.pdf
26/29
22
CRISIL KundliOpportunity Assessment
ANNEXURE
Private cold storage
7/26/2019 SSL - Final Delhi Kundli (Market Assessment) - March 2014.pdf
27/29
Our Capabilities
Making Markets Function Better
Economy and Industry Research
Largest team of economy and industry research analysts in India
Coverage on 70 industries and 139 sub-sectors; provide growth forecasts, profitability analysis, emergingtrends, expected investments, industry structure and regulatory frameworks
90 per cent of Indias commercial banks use our industry research for credit decisions
Special coverage on key growth sectors including real estate, infrastructure, logistics, and financialservices
Inputs to Indias leading corporates in market sizing, demand forecasting, and project feasibility
Published the first India-focused report on Ultra High Net-worth Individuals All opinions and forecasts reviewed by a highly qualified panel with over 200 years of cumulative
experience
Funds and Fixed Income Research
Largest and most comprehensive database on Indias debt market, covering more than 15,000 securities
Largest provider of fixed income valuations in India
Value more than Rs.53 trillion (USD 960 billion) of Indian debt securities, comprising outstandingsecurities
Sole provider of fixed income and hybrid indices to mutual funds and insurance companies; we maintain
12 standard indices and over 80 customised indices
Ranking of Indian mutual fund schemes covering 70 per cent of assets under management and Rs.4.7trillion (USD 85 billion) by value
Retained by Indias Employees Provident Fund Organisation, the worlds largest retirement schemecovering over 60 million individuals, for selecting fund managers and monitoring their performance
Equity and Company Research
Largest independent equity research house in India, focusing on small and mid-cap companies; coverageexceeds 120 companies
Released company reports on all 1,440 companies listed and traded on the National Stock Exchange; aglobal first for any stock exchange
First research house to release exchange-commissioned equity research reports in India
Assigned the first IPO grade in India
7/26/2019 SSL - Final Delhi Kundli (Market Assessment) - March 2014.pdf
28/29
7/26/2019 SSL - Final Delhi Kundli (Market Assessment) - March 2014.pdf
29/29
Ahmedabad
706, Venus Atlantis
Nr. Reliance Petrol Pump
Prahladnagar, Ahmedabad, India
Phone: +91 79 4024 4500
Fax: +91 79 2755 9863
Bengaluru
W-101, Sunrise Chambers
22, Ulsoor RoadBengaluru - 560 042, India.
Phone: +91 80 2558 0899
+91 80 2559 4802
Fax: +91 80 2559 4801
Chennai
Thappar House
43 / 44, Montieth Road, Egmore
Chennai - 600 008, India.
Phone: +91 44 2854 6205/06
+91 44 2854 6093
Fax: +91 44 2854 7531
Hyderabad
3rd Floor, Uma Chambers
Plot No. 9&10, Nagarjuna Hills
(Near Punjagutta Cross Road)
Hyderabad - 500 482, India
Phone: +91 40 2335 8103/05
Fax: +91 40 2335 7507
Kolkata
Horizon, Block B, 4th floor
57 Chowringhee Road
Kolkata - 700 071, India.
Phone: +91 33 2289 1949/50
Fax: +91 33 2283 0597
Gurgaon
Plot No. 46
Sector 44Opp. PF Office
Gurgaon - 122 003, India
Phone: +91 124 6722 000
Pune
1187/17, Ghole Road
Shivaji Nagar
Pune - 411 005, India
Phone: +91 20 2553 9064/67
Fax: +91 20 4018 1930
Our Offices
CRISIL Limited
CRISIL House, Central Avenue, Hiranandani Business Park,Powai, Mumbai400076. India
Phone: +91 22 3342 3000 | Fax: +91 22 3342 8088