IL & FS – Design of Food Distribution Networks in India

IL-FSInfrastructure Leasing & Financial Services Limited (IL&FS) is one of India’s leading infrastructure development andfinance companies. The organisation has focused on the commercialisation and development of infrastructure projects and the creation of value added financial services.

Project Overview

Whilst India has some of the largest populations in the major cities in the world, the infrastructure to supply the vast quantities of food needed is not well developed. Supply chains are long, involving many small producers, consolidators, agents, transport operators, markets, wholesalers and small retailers. As a consequence food products are handled many times before reaching the consumers. The small scale of the operations and use of open markets also reduces the opportunities to handle the foods in the optimum environments through the use of chill chains. These issues typically lead to a deterioration in the quality of the products and waste. These problems also contribute to more expensive products as a result of the multiple margins in the supply chain.

The scope of the project was for The Logistics Business to advise the Indian organisation IL & FS (Infrastructure, Leasing and Financial Services ) and the Indian Government where and how to develop a Strategic Distribution Centre that will form the last leg in the supply chain for food based products delivered from a range of small to medium producers around India.  The facility is likely to be situated near cities and conurbations for facilitating distribution and movement of processed and fresh foods for final consumption. The work included :-

  • Modelling the supply chain and local infrastructure
  • Analysing the consumption patterns in the Indian market
  • Sizing the facility against consumption figures for the target population
  • Identifying suitable sites for the development
  • Designing the multi-temperature, multi-user facilities
  • Developing the business case with IL&FS

The facilities are anticipated to be developed either by individual developers or under a Public Private Partnership basis in the public domain.