Gati to build cold storage capacity in India

Hyderabad, India: Distribution company Gati is investing Rs200 crore setting up ten cold storage plants across the country over the next four years.

Harry Lagad, executive director says: “This calendar, we plan to open two cold storage units – one in Bangalore and the other in Delhi.”

He told Indian newspaper Business Standard: “Our overall plan is to have 10 cold storage units across the country in the next four years which will be our main hubs linked to our distribution networks. Also on the cards is shifting our hub from Ghaziabad to Kundli in north Uttar Pradesh where we will also start some cross-docking,” Lagad told Business Standard.

As part of its restructuring strategy, Gati recently bought Delhi-based cold chain company Kausar (India), which will offer cold and ambient supply chain solutions.

Lagad said that each of the proposed units would be around 40,000sq ft and the company would increase Kausar’s 150-refrigerated truck fleet to 500 vehicles for long and short haul over the next five years.

“We are looking to rope in a small private equity player or a large international organisation who could bring in expertise and best practices into our cold chain management and distribution business,” Lagad said.

The cold chain market in India is valued around Rs12,000 crore and was projected to touch Rs30,000 crore by 2020, he said.


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