Considering India’s high rate of food spoilage, the country is seeing an increased interest from private equity firms in investing in agri-logistics and cold storage systems. In the past three years private equity firms have invested US$151.55 million in 11 companies according to Venture Intelligence, with Sohan Lal Commodity receiving the largest investment of US$33 million. At least 40% of all fruits and vegetables in India are lost to spoilage between the grower and the consumer due to lack of storage and infrastructure and there are currently 8-10 additional companies seeking funds to close this gap. As large-scale, organized retailers make inroads into India and imports of fruits and vegetables accelerate, cold chain storage and logistical companies are seeing profits grow. Private equity firms are looking to gain an early advantage as the capital-starved and fragmented segment advances towards corporatization and consolidation.
To receive relevant news stories with summaries provided by GAI Research & Insight, subscribe to Global AgDevelopments, our free bi-weekly enhanced eNews service