XPS plans expansion in western region

XPS, a subsidiary of the logistics major Transport Corporation of India, has plans to expand its cold chain services in Mumbai, Pune and Gujarat.

The Delhi-based company is planning to invest Rs 2 crore in 20 additional Mitsui trucks, installed with cold chain reefer units, to ply in the region to service the increasing demand for cold chain carriers.

Chander Agarwal, general manager - new ventures, XPS, said the company is targeting a revenue of Rs 5.5 crore from the cold chain business during this fiscal. The company expects a 45 per cent growth from this region, he said.

XPS already has 40 carriers plying in the region and enjoys a 30 per cent share of the cold chain business in the state. Its clientele includes Dr Reddy's Laboratories, Domino's Pizza, Cadbury India Ltd, Indian Immunologicals, Bharti Healthcare and GCMMF.

The demand for cold chain containers has been growing in the country at a rate of 25 per cent a year with the burgeoning of the pharma and hospitality businesses.

Cold chain containers are used to store and transport drugs, vaccines, empty gelatin capsules and F&B items such as sea foods, butter, cheese, confectionery items and fruits.

The cold chain market in India is projected at Rs 8,000-10,000 crore per annum. Said Agarwal, "Despite the brisk growth rate, the supply is no where near the demand as the business is capital intensive. As a result, annually about Rs 2,000 crore worth of food stuff is wasted, because timely transportation to demand destinations is not available."