The evolving cold chain transporter has shown much promise in the last eight years. With considerable investment in vehicles, infrastructure and technology, Coldrush Logistics is realising its full potential as a renowned player in the cold chain segment, writes Rajesh Rajgor
The cold chain industry has seen quite a transformation in the last five years. Increasing urbanisation and the growth of organised retail, food servicing and food processing sectors are boosting the growth of the cold chain industry in India. So much so that the portfolio of temperature-controlled refrigerated boxes, storages and deep-freezing transportation for dairy, fruits and vegetables, meat and poultry has impressively expanded in recent years. However, more is less for a market like India that aims at establishing integrated cold chain and preservation facilities across the length and breadth of the country.
A study on the all-India cold chain infrastructure capacity carried out by NABARD Consultancy Service (NABCONS) assessed the requirement at 350 lakh MT capacity of cold storage for perishable fruits and vegetables. Currently, the overall cold storage capacity across the country is 374.25 lakh MT. There’s been a lot of water under the bridge since; much of the desired is realised, but the demand too has risen. Emphasis on healthcare has also played a crucial role in India focusing not only on cold chain transportation but also cold storages. The trend is now shifting towards establishing multipurpose cold storages and providing end-to-end services to control temperature throughout the value chain.
In this regard, Coldrush Logistics is fast emerging as a reputed player in the segment. The company was established in 2012 by an enthusiastic group of investors and industry professionals and has grown from a humble beginning of two trucks to 200+ vehicles in a span of eight years. Reminiscing about the journey, Kartik Shah, CEO, Coldrush Logistics, says: “Our vision from the beginning has been clear: we want to provide customers with the right temperature logistics services, maintain clients ‘just in time’ production schedules and provide detailed accountability of the products. Cold storage was a natural extension of our business and within three years of our inception we opened our first warehouse in Indore.”
“Today, we have 12 warehouses in the country, helping us extend our reach pan-India,” he adds. Coldrush Logistics has expanded in a truly major way with branches and warehousing facilities across the major logistics hubs of the country. “We are proud to be present in major centres like Indore, Ahmedabad, Kanpur, Chakan (Pune), Kurali (Pune), Hyderabad, Kolkata, Mehsana (Gujarat), Vizag, Banur (Chandigarh) and Kochi, with a total pallet-holding capacity of 32,000. We handle over 300 customers from pharmaceuticals, FMCG, QSRs, meat and seafood, dairy, etc. with our customised and well-oiled work horses of 202 vehicles from the stables of Ashok Leyland and Tata Motors,” Shah informs.
Of the 202, vehicles, the company has recently developed 20 new reefer trucks for safe handling of pharmaceutical products, especially the vaccines. Although the company has made numerous investments and advancements in their business from time to time, this development is quite opportune for intensive vaccine transportation. Shah explains: “The newly designed boxes are tailor-made with racks to suit the loading and unloading requirements of different locations without causing any damage. Mostly, a dedicated vehicle is given for one company, but even in that case their goods have to be delivered at multiple locations, which if not taken adequate care of, can hamper the quality of the goods. Hence, we have invested in these new multi-temperature reefer boxes.”
Penetrating the Value Chain
Coldrush Logistics’ business offerings include end-to-end, multi-user logistics solutions, multi-temperature cold boxes and rooms. The end-to-end solutions include refrigerated and dry – primary and secondary – transportation, refrigerated warehousing, third-party logistics (3PL), and value-added services like portable cold storage. The company continues to provide full truck load (FTL) and less-than-truck load (LTL) for dedicated clients. The company’s business mantra is providing ‘disciplined customer service’ right through the value chain. “Our customers should be able to relax and have peace of mind when they choose to work with us. Preferring us should become their habit,” Shah says.
“Our storage facilities in close proximity to ports and national highways, experienced teams, large dedicated fleet ensuring back-up in case of any contingency along with essential services like hygiene, sanitization and maintenance of containers and vehicles makes us an easy partner to work with,” he adds. A large share of 30-40% business is derived from the pharmaceutical industry and the metro cities but the company is equally strong in other sectors too. This includes QSRs, dairy, FMCG and industrial products that require cold chain, especially in Tier I and II cities. “Out of our 12 warehouse cold storages only two are in metro cities, namely, Hyderabad and Kolkata. The rest are all in fledgling Tier I and II markets. Our vision has always been to expand services in these semi-urban towns that can yield 80% of the business every year,” explains Shah.
Expansion Plans
The variety that these unexplored towns offer is what adds to the potential business opportunity for Coldrush Logistics. Shah elaborates: “Every location has a different requirement and we too are adaptive to the market needs. For instance, Banur is a pharmaceutical and dairy market, Kolkata is largely a market for fish and Visakhapatnam is for marine products while in Chakan we have mix of QSR, fruits, chocolates and vegetables. Allotting dedicated fleet for one customer at multiple locations is what we prefer and advise to the clients. Commitment and focused efforts create a win-win situation for us as well as the customers.”
With such basics firmly in place, Coldrush Logistics now aspires to replicate the business model and explore the potential of the north-eastern states. “Our dream is to target the regions known as seven sisters and have cold storages and branch offices in each of the capital city of the north-eastern states in the next 3-5 years. Increased purchasing power of people clubbed with the government’s push for thrust on fast-paced infrastructure development will be the key to opening the competencies of the region,” states Shah. And while building confidence and strengthening infrastructure, the company has ambitious goals too. “In the next five years we want to add another 150-200 trucks to handle 1,00,000 pallets and be a prominent player in cold chain logistics,” Shah says.
The Work Horses
At present, Coldrush Logistics boasts of 202 trucks, well-trained drivers and equal number of other staff. The team comprises 400+ drivers, key account managers and other professionals with average experience of over 20 years in logistics and warehousing. Combine this with modern-day vehicles designed to meet specific applications and the business can only flourish. Shah asserts: “Our work force is our primary asset. Drivers and helpers to the loading-unloading staff, maintenance workers and account managers are the key pillars on which our company thrives. Giving them the right tools and techniques to perform is our responsibility. Our vehicles’ average age is four years and the new vehicles – right from the SCVs and ICVs – help us truly realise our potential,” says Shah.
As the country moves onwards to the vaccination drive, Shah feels that logistics will play as important a role as storage. “Handling of vaccination is not new for us or for that matter anyone in the industry. We have been handling vaccines for polio, hepatitis, measles and several other diseases. So, once the temperature requirement is analysed, the logistics can be locked and worked upon. Given the need for vaccination, there will hardly be any long-term storage required as the off-take will be pretty quick,” Shah points out. “A country known for frugal methods can utilise several thousand deep freezers used for ice-cream storages that can offer up to -25 degrees available in each town, if at all long-term periodic storage is required,” he adds.
“We look forward to this opportunity to serve society and as an industry too we all are geared up for the challenge and are really looking ahead to meet the requirements of vaccine transportation,” he adds. With its clear focus on cold chain transportation and the experience that Coldrush Logistics’ showcases today – not to forget the considerable investment in vehicles, infrastructure and technology – the company is at the top along with seasoned players in the industry. It is thus not an understatement to state that the company is realising its full potential as a renowned player in the cold chain segment.
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“Our vision from the beginning has been clear: we want to provide customers with the right temperature logistics services, maintain clients ‘just in time’ production schedules and provide detailed accountability of the products.
– Kartik Shah, CEO, Coldrush Logistics