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Crystal Logistic Raises $10 Mn Funding From Neev Fund

Crystal Logistic Raises $10 Mn Funding From Neev Fund

Kolkata-based complete cold logistics and supply chain service provider Crystal Logistic Cool Chain Ltd. has raised its first private equity funding of $10 Mn (INR 66 Cr), led by Neev Fund.

The cold chain industry comprises both cold chain storages and cold chain logistics supply management. This includes managing the transport of perishable goods under a temperature-controlled environment.

Neev Fund, backed by State Bank of India, was launched in November 2015 by PM Narendra Modi to help low income states with equity partnerships for small infrastructure development. The fund had earlier invested in another cold chain logistics service provider, Milk Mantra in January 2017.

Launched in 1962 by Murari Lal Agarwal, primarily as a transport service provider, Crystal Logistic switched to cold chain operations in 2001. Crystal Logistic’s service portfolio includes end-to-end, temperature-controlled, logistics solutions. These comprise third-party logistics (3PL), refrigerated and dry – primary and secondary – transportation, refrigerated warehousing and value-added services on a pan-India network. Crystal also provides solutions such as Express Refrigerated Transportation for LTL (Less-Than-Truck Load) consignments and portable cold storage.

The company’s clients include Amul, Creambell, KFC, Pizza Hut, ITC, Britannia and Mother Dairy, among others.

The raised funds will be used in expanding the company’s infrastructure and warehousing capacity by building sophisticated cold chain distribution hubs across India.

As stated by Murari Lal Agarwal, Chairman, Crystal Logistic Cool Chain Ltd, “The cold storage market in India is highly fragmented with over 3,500 players in the unorganised sector and less than 50 in the organised sector. Crystal Logistic is the only company in the country to provide a complete range of services in the cold chain logistics industry and this sector is expected to grow at a CAGR of over 15% by 2020. There is an opportunity for us to take the leadership position in this vertical.”

The total value of the cold chain industry in India is expected to reach ~$13 Bn by 2017. The data is in line with a report issued by Indiacoldchainshow.com, which is known for organising India’s biggest trade show on the cold chain industry. Also, according to industry estimates, around 104 million metric tonnes of perishable produce is transported between cities each year  Of this figure, about 100 million metric tonnes moves via non-reefer mode and only 4 million metric tonnes is transported by reefer.

As per a press release issued by Crystal Logistic, in India 95% of the total cold storage market share is with private players and it is a major revenue contributor for the Indian cold chain industry. The key growth drivers include growth in organised retail and food services industry, government initiatives, and rising demand for processed and frozen food.

Other companies in the cold chain logistics space are Snowman, Coldex, Kelvincoldchain, Gati Kausar, Cold Star Logistics and more.

Author

Meha Agarwal

Inc42 Staff

Meha has engineering and MBA degrees, but she has always been a writer at heart. It was the perfect combination of utilising her research and analytical skills and her enthusiasm for writing that sparked her interest in writing about the Indian startup ecosystem – the latest tech and gadgets and the startups that create them. She is always on the lookout for industry-specific stories in niche areas of interest such as ecommerce, fintech, greentech and more.

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