Logistics & Packaging

FMCG (Logistics Park)
Cryogenic Warehouses
Multimodal Logistics Park
KINFRA Logistics Park
Free Trade Warehousing Zone (FTWZ)

Sector: Agro & Food Processing, Logistics, Location: Palakkad

SETTING UP OF A FMCG FOCUSSED LOGISTICS PARK AND FOOD
PROCESSING FACILITY AT PALAKKAD

  • Kerala consumes 10% of FMCG produced in India.
  • With Tax holidays closing soon, Kerala would be a natural choice for a FMCG Park
  • FMCG Park is a park concept proposed to overcome systemic gaps in logistics facilities for large FMCG product players and FMCG Clusters.
  • Proposed at 226 acres of land at Kanjikode, Palakkad which has the availability of sufficient land, proximity to road and rail connectivity, besides proximity to the
    neighbouring markets of Tamil Nadu and Karnataka.
  • Avant-garde, large-scale export-oriented food processing facility, can be proposed in a stretch of 50-100 acres with Primary Processing Centers, Product focused infrastructure including packaging centers, Technology Center, Food Testing Labs and Food Research Center.

MARKET LANDSCAPE

  • The FMCG market in India is expected to increase at at a CAGR of 14.9 % to reach US $220 billion by 2025, from US $110 billion in 2020.
  • The Indian processed food market is projected to expand to US $ 470 billion by 2025 from US$ 263 billion in 2019-20.
  • The FMCG sector's revenue growth will double from 5-6% in FY21 to 10-12% in FY22, according to CRISIL Ratings. Price increases across product categories will offset the impact of rising raw material prices, along with volume growth and resurgence in demand for discretionary items, are driving growth. The FMCG sector grew by 36.9% in the April-June quarter of 2021 despite lockdowns in various parts of the country.

Investment avenues

  • Fast-moving consumer goods (FMCG) sector is India’s fourth-largest sector with household and personal care accounting for 50% of FMCG sales in India. Growing awareness, easier access and changing lifestyles have been the key growth drivers for the sector. The urban segment (accounts for a revenue share of around 55%) is
    the largest contributor to the overall revenue generated by the FMCG sector in India
  • Kerala is a huge demand aggregator for FMCG products backed by high per capita income of the State. This combined with proximity to key markets such as Coimbatore in Tamil Nadu is a promising proposition for FMCG park.

 

Impact On The Economy

The growth of the IT sector has had a substantial impact on Kerala's economy. It has created numerous job opportunities, contributing to reduced unemployment rates. Additionally, the state's IT exports have been steadily increasing, adding to its revenue. As IT companies and startups flourish, they also attract investment, thereby further stimulating the economy.Kerala's IT sector is not just about software services; it has diversified into various niches. Some notable sectors include healthcare IT, cybersecurity, fintech, and e-governance. These niche areas cater to both domestic and international markets, generating revenue and employment opportunities.

rightLeaf

Get to Know Us: Kerala's Investment Destination of Choice.

Exploring Kerala: Your Investment Journey Begins Here

knowUsPic1
KSIDC

Our vision at Invest Kerala is to see the state emerge as a beacon of economic vitality and innovation on both national and global fronts. We aspire to create an environment where every investor's dreams can take root

Read More

Sector: Logistics Location Ernakulam

  • The proposed project is to establish a Cryogenic Warehouse at an area of 10 acres in Puthuvypeen next to the existing LNG terminal. The project has been earmarked using the cold energy available from the regasification process that can be used for
    creation of a zero CO2 emission cold-chain hub. Cryogenic Warehousing proposed is basically for perishable products like vegetables, meat, and fish and also for pharma
    products. The terminal area is situated in the Special Economic Zone (SEZ) of Puthuvypeen near the entrance to Cochin Port.
  • Recycling of waste cold energy from LNG re-gasification to help produce the cryogenic air or nitrogen would serve as an energy vector to displace fossil fuels in cooling would produce value for the LNG terminal operators (value from waste recycling), cryogen producers (increased sales), fleet operators (lower costs) and society (reduced CO2, NOx and PM emissions, health/social costs,post-harvest food and associated losses, infrastructure costs)

Investment avenues

  • A cryogenic warehouse of 5 million cubic meters capacity. A typical LNG terminal re-gasifying 7100 tons of LNG/ day can produce 2,600 tons of liquid nitrogen, enough to provide the cooling for almost 1,100 chilled and frozen refrigerated trucks operating around the clock and peak time cooling (three hours a day) for 7.5 million cubic meters of chilled and frozen buildings. Cochin Port has a 5 MMTPA LNG terminal and Regasification Plant owned by the Petronet LNG Ltd. 10 acres of land adjoining the LNG terminal in Puthuvypeen Port Based SEZ is earmarked for setting up the cold storage on PPP basis.

 

Impact On The Economy

The growth of the IT sector has had a substantial impact on Kerala's economy. It has created numerous job opportunities, contributing to reduced unemployment rates. Additionally, the state's IT exports have been steadily increasing, adding to its revenue. As IT companies and startups flourish, they also attract investment, thereby further stimulating the economy.Kerala's IT sector is not just about software services; it has diversified into various niches. Some notable sectors include healthcare IT, cybersecurity, fintech, and e-governance. These niche areas cater to both domestic and international markets, generating revenue and employment opportunities.

rightLeaf

Get to Know Us: Kerala's Investment Destination of Choice.

Exploring Kerala: Your Investment Journey Begins Here

knowUsPic1
KSIDC

Our vision at Invest Kerala is to see the state emerge as a beacon of economic vitality and innovation on both national and global fronts. We aspire to create an environment where every investor's dreams can take root

Read More

Sector: Logistics Location: Ernakulam

  • Cochin Port Trust (CPT) intends to establish a Multi-modal Logistics Park (MMLP) including Free Trade Warehousing Zone (FTWZ) in conjunction with the existing port facilities and services under the Logistics Efficiency Enhancement Program (LEEP) of the Ministry of Road Transport and Highways (MORTH).
  • Under LEEP, there are also plans to construct Inter-Modal Stations which integrate various transportation modes.
  • The objective of this project is to provide efficient integrated logistics services with dedicated areas in the
    MMLP which would enable freight aggregation, distribution and multi- modal freight movement by providing services such as Warehouse, Cold Storage, and other value-added services.
  • The MMLP is poised to address the issues of an
    unfavourable modal mix, inefficient fleet mix and underdeveloped material handling infrastructure.
  • The proposed MMLP is composed of sub projects - General Warehouse, Cold Storage, Container Freight Station (CFS).
  • A Free Trade Warehousing Zones (FTWZ) is also proposed to be set up in juncture with the MMLP. The FTWZs would improve the logistics infrastructure of the state and facilitate
    and promote cross-border and international trade.

Investment avenues

  • The MMLP project shall be supported by the government for land acquisition. Different operation models like profit sharing, fixed monthly lease rent system etc. with land owners can be worked out.
  • Central Government assistance through the Logistic Efficiency Enhancement Program (LEEP) of Ministry of Road Transport & Highways (MoRTH), will also be explored.
  • The LEEP aims at enhancing freight transportation across the country through infrastructure,procedural and IT interventions. The government is also working to formulate a uniform policy for the development of MMLPs.
  • 100 per cent FDI is permitted to develop FTWZ.. Several countries are expressing their interest in the upcoming FTWZ in order to foster their trade relations with India as they can import
    goods duty-free and warehouse it in the FTWZ, they can re-export these goods
    without paying duty.

 

Impact On The Economy

The growth of the IT sector has had a substantial impact on Kerala's economy. It has created numerous job opportunities, contributing to reduced unemployment rates. Additionally, the state's IT exports have been steadily increasing, adding to its revenue. As IT companies and startups flourish, they also attract investment, thereby further stimulating the economy.Kerala's IT sector is not just about software services; it has diversified into various niches. Some notable sectors include healthcare IT, cybersecurity, fintech, and e-governance. These niche areas cater to both domestic and international markets, generating revenue and employment opportunities.

rightLeaf

Get to Know Us: Kerala's Investment Destination of Choice.

Exploring Kerala: Your Investment Journey Begins Here

knowUsPic1
KSIDC

Our vision at Invest Kerala is to see the state emerge as a beacon of economic vitality and innovation on both national and global fronts. We aspire to create an environment where every investor's dreams can take root

Read More

Sector: Logistics Location: Palakkad

  • Logistics Parks are a key policy initiative of the Government of India to improve the country's logistics sector by lowering overall freight costs, reducing vehicular pollution and congestion, and cutting warehousing costs.
  • The modern logistics park has two main functions, namely, the logistics organization and management functions and rely on the economic development
    function of logistics services.
  • India is being treated as the future hub in the field of logistics all over the globe.The country is keen to offer transportation and logistical service to grow itself asan emerging market place.
  • Kerala Industrial Infrastructure Development Corporation, KINFRA aims at bringing together all the suitable resources available in the state and developing infrastructure to woo the Industrial growth of the state With this in mind, KINFRA is setting up a Logistics hub with warehousing facility. With the Bangalore- Chennai-Kochi Industrial Corridor project coming up the demand for logistic support and warehousing is expected to go up Currently, India’s logistics sector is valued at $160 billion and employs over 22 million people directly. It is expected to grow at a CAGR of 10 per cent to $215 billion by 2022.
    The road logistics market in India is expected to grow at a compounded annual growth rate of 8 per cent in the next five years, to reach USD 330 billion by 2025 The Government of India is also taking significant steps to support the sector and boost its growth in the times to come. The commerce and industry ministry has decided to give a one-time funding of INR 8 million to the sector for building up initial infrastructure and a phase-wise support of INR 33.9 million for four years.

  • A new Logistics Division has been set up in the Department of Commerce to coordinate integrated development of the sector by way of policy changes, improvement in existing procedures,identification of bottlenecks and gaps, and introduction of technology-based interventions There is a lot of investment that the industry is attracting and as a result of the transformations and changes led by these investments, the industry will stimulate job creation.

  • With the Union government deciding to extend the Chennai-Bengaluru industrial corridor to Kochi via Palakkad as part of NICDIT, the demand for logistic support and warehousing is expected to go up. The Logistics Park to be set up in Palakkad, which is the Gateway to Kerala, will lead to optimization of resources and reduction in wastages, which account for a major share in increasing the cost of Indian goods.

Investment avenues

The sector has seen the institutional investment growing from USD 125 million in 2016 to USD 1.8Bn in 2019. Expenditure on investment in logistics, including infrastructure, is expected to touch USD 500 Bn, annually, by 2025. With the commissioning of Vallarpadam Terminal, Kerala has tremendous opportunities in logistics industry especially by establishing free trade warehousing zones. Considering the geographical advantage and the proximity to international maritime routes, Kerala can certainly emerge as the right logistics hub of the southern states.

Impact On The Economy

The growth of the IT sector has had a substantial impact on Kerala's economy. It has created numerous job opportunities, contributing to reduced unemployment rates. Additionally, the state's IT exports have been steadily increasing, adding to its revenue. As IT companies and startups flourish, they also attract investment, thereby further stimulating the economy.Kerala's IT sector is not just about software services; it has diversified into various niches. Some notable sectors include healthcare IT, cybersecurity, fintech, and e-governance. These niche areas cater to both domestic and international markets, generating revenue and employment opportunities.

rightLeaf

Get to Know Us: Kerala's Investment Destination of Choice.

Exploring Kerala: Your Investment Journey Begins Here

knowUsPic1
KSIDC

Our vision at Invest Kerala is to see the state emerge as a beacon of economic vitality and innovation on both national and global fronts. We aspire to create an environment where every investor's dreams can take root

Read More

Sector: Logistics Location: Palakkad

  • The proposed Free Trade Warehousing Zone in Vizhinjam will be developed in lines of a special economic zone, wherein the area under development would be classified as a deemedforeign territory and the units operating within the zone would be given special status and provided various fiscal and non-fiscal benefits.

  • FTWZ will be governed by the SEZ Act 2005 and SEZ Rules. The activities permitted within the zone would be limited to packing, de-stuffing, splitting, and other activities related to storage and logistics.

  • Proposed FTWZ is a 100000 sq. m facility, which will include customized warehouses for food products, electronics, chemicals, textiles etc. along with cold storage facility, controlled humidity warehouses, enhanced transportation facilities and a well-equipped IT-integrated cargo management system

  • 25 acres land is to be earmarked in proximity to Vizhinjam port.
  • 100000 sq. m facility with provision for packaging, re packaging, labelling, relabelling, strapping, refurbishment, crating, carbonisation,fumigation,choking, lashing, tagging, shrink / stretch / bubble wrapping,palletisation, bagging, re-bagging, quality assurance, kitting, de-kitting,sorting assorting, making combination pack, consolidation, agglomeration,washing, cleaning, processing, repairs & maintenance, CKD/SKD assembly, bottling, blending, cutting, polishing,painting, coating, filming, re-sizing, splitting, threading etc.
  • Basic Infrastructure, Counterbalance forklifts, Stackers, Cranes & Grabs,Push carts, Shelves, storage bins,
    electronic scales, cold storage freezers
    and cooler facilities, break bulk,containerized and dry cargo storage

Investment avenues

  • Units in FTWZ SEZ type can explore external commercial borrowing options up to USD 500 million in a year without any maturity restriction through recognized banking channels. Free Trade Warehousing Zones are envisaged to be essential logistics infrastructure to facilitate export-import trade and to root out inefficiencies associated with movement and valued addition of cargo. FTWZ projects are usually developed through a PPP model
  • Under PPP mode, it can be developed either by ‘Build, Own, Operate and Maintain (BOOM) model or Joint Venture. It is proposed that the government shall support developer for land acquisition and implementation of the project
  • Due to growth across diversified industries with marked entry of foreign players leading to investment in logistic/warehouse such as pharma, automobile, retail, agriculture, FMCG etc. FTWZ in Vizhinjam would attract many leading players to utilize its facilities.

Impact On The Economy

The growth of the IT sector has had a substantial impact on Kerala's economy. It has created numerous job opportunities, contributing to reduced unemployment rates. Additionally, the state's IT exports have been steadily increasing, adding to its revenue. As IT companies and startups flourish, they also attract investment, thereby further stimulating the economy.Kerala's IT sector is not just about software services; it has diversified into various niches. Some notable sectors include healthcare IT, cybersecurity, fintech, and e-governance. These niche areas cater to both domestic and international markets, generating revenue and employment opportunities.

rightLeaf

Get to Know Us: Kerala's Investment Destination of Choice.

Exploring Kerala: Your Investment Journey Begins Here

knowUsPic1
KSIDC

Our vision at Invest Kerala is to see the state emerge as a beacon of economic vitality and innovation on both national and global fronts. We aspire to create an environment where every investor's dreams can take root

Read More

Last Updated on: 17 July 2024സന്ദ൪ശകരുടെ എണ്ണം : 3056822