New investment class with untapped potential
The Indian cold storage market is currently very fragmented and unorganized with 8,200 facilities, that are largely suitable for storing single commodities, mainly potatoes. We believe that there is an ample opportunity for developers and third-party logistics players for developing multi-purpose cold chain facilities in India. Colliers forecasts the Indian cold chain sector to grow at 14% CAGR till 2023, driven by a surge in online grocery, pharmaceuticals sales and the ongoing Covid-19 vaccination drive.
We recommend that:
• Occupiers explore smaller cold storage facilities closer to distribution centers, for efficient last-mile delivery.
• Developers develop multi-commodity leasable built to suit assets with superior building specifications and optimum capacity for improving revenues.
• Developers diversify cold storage offerings, catering to higher-value commodities such as chemicals and pharmaceuticals.