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“By 2030, cold chain will be as mainstream as a supply chain”
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Monday, 27 February, 2023, 08 : 00 AM [IST]
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 Tessol, a globally recognised Indian cold chain solution provider, aims to solve the last mile distribution problem in India. Last mile distribution of temperature-sensitive products is a huge challenge in India and other developing economies because of the lack of reliable options and the high cost incurred on cold chain transport. The company aims to address this problem by making the last mile cold chain accessible and viable for all.
The brand is already setting the global benchmark by providing innovative solutions to various pharmaceutical, retail, and food delivery markets for the perishable food delivery market.
Rajat Gupta, founder and CEO of Tessol, shares his views on cold chain technology solutions in India in 2030, current scenario of cold chain space, last mile distribution problem, and more, in an email interview with Kimberley Almeida. Excerpts:
What are your predictions for sustainable cold chain technology solutions in India in 2030?
The cold chain market is expected to reach $1 trillion by 2030, and a lot will have changed by then. Today, cold chain is considered to solve the logistics problem. However, by 2030 cold chain will be as mainstream as a supply chain and integral to product design and delivery. Food manufacturing organisations are focusing on increasing production to meet the demand. In the near to long term, manufacturers will use the cold chain to improve the product's shelf life through better storage and reduce food wastage rather than putting too much pressure on production. The consumer demand for last-mile delivery will only increase, and cold chains offer a significant opportunity for manufacturers, 5PLs, and the entire ecosystem to be the fulfillment partners.
How would you describe the current scenario of cold chain space associated with food and beverage industry?
The cold chain market, globally, is on a hyper-growth path. Recent reports say that the cold chain market is expected to reach $340 bn by 2025, and the good news is that APAC, specifically the Indian market, is leading the growth. Everyone from manufacturers to distributors to wholesalers to retailers and consumers needs a cold chain solution. The cloud kitchens have pushed the delivery partners and e-commerce players too to adopt cold chain solutions. APAC / India tops the list in modernising cold chain technologies, Government support, and an increase in the export of food and beverages. India is the fastest-growing country in terms of value. A country whose base is agriculture, and a growing population of young people must lead the trend.
Tell us about the brand’s journey in the Indian market since its launch in 2013.
As a pioneer in sustainable cold chain solutions, we’ve had a phenomenal journey so far. Our goals since the day one haven’t changed and we are aggressively working towards them. These goals are ambitious and exciting for the entire team – Reduce food wastage, improve the sustainability levels of the cold chain, enable our clients to reach to farther places, sustain the quality of the food as long as possible. In a nutshell our journey is to make the cold chain viable, reliable and sustainable for our customers and the end-consumers.
I think we just got started as an industry, and there is a lot more to achieve. What we have done so far in terms of saving food wastage, saving 1000 litre of fuel/annum, saving 2.6 MT CO2 emissions/vehicle, and saving 60% of operational costs is just the beginning. This shows the potential, and there is so much more to accomplish. For example, globally, $940 bn is the economic loss per year due to food wastage. 8-10% of global greenhouse gas emissions are associated with food that is not consumed. Now you see the problem size. Cold chain might not be able to save the entire thing, but we, along with our partners and the ecosystem members, are all set to conquer this mountain.
How are tech-enabled services transforming the industry?
We have a different view on technology and its usage. For us, if the technology is not sustainable it is not on our radar. All the technology we use is viable, reliable and sustainable. Some of the technologies are harming the cold chain industry and the food quality itself. We are keeping ourselves away from that and are focusing on technologies, such as Phase Change Materials (PCM) and Hybrid Active Cooling Systems. I think true transformation happens when sustainable technologies are leveraged more.
These newer technologies are helping in significantly reducing the food wastage and enabling the manufacturers reach places that they couldn’t have imagined in the past. Of course, this is also giving an opportunity to increase exports as the food is safe for several days. The ability to retain the integrity of the product is encouraging the manufacturers to innovate more and design unique food forms. E.g., ice creams and chocolates in shapes that attract the children.
Eventually, the sustainable cold chain technologies are playing an important role in setting new customer experience standards.
How does the company aim to solve the last mile distribution problem in India?
The last-mile distribution cannot be solved by one company. It needs an ecosystem approach to understand and solve the challenge. We are working with several cloud kitchens, quick commerce companies and distributors who are willing to invest in the logistics. Our company is the technology provider, who is enabling that the food reaches the consumer with minimal wastage and retaining the integrity of the product. Our solutions, such as indiWRAP are designed for the last-mile delivery and F&B companies are leveraging this successfully to deliver millions of ice creams and chocolates. Similarly, our hybrid active cooling systems are enabling the retailers to store and transport products that have varied temperature needs in just one truck.
What kind of service does the company offer to brands and distributors?
We engineer sustainable cold chain technology solutions to ensure that the product stays fresh and reaches the maximum number of consumers with minimal wastage, carbon footprint, and operating costs. Our cold chain solutions are used for several applications, such as ice cream, pharma, dairy, bakery, fruits, horticulture, confectionery, FnV and so on. The image gives a complete picture of our offerings to brands, distributors, retailers, quick commerce companies.
Secondary Distribution Solutions: Our solutions, unlike conventional solutions, are independent of the vehicle engine and, therefore, even with high traffic and multiple drops, provide desired temperatures across the -25OC to +25OC range. Engine independence also helps lower operating costs by up to 60% and reduces the risk of product damage due to engine breakdown.
Tertiary Distribution Solutions: Tertiary distribution involves smaller deliveries and shipping to multiple points. The probability of maintaining the complete cold chain decreases in tertiary deliveries. Our proprietary solutions use active and passive PCM (Phase Change Material) to ensure reliable temperature maintenance.
Home Delivery Solutions: Home delivery and last mile solutions involve delivering retail cold chain products (milk, vaccines, ice cream, frozen food) at homes or establishments. These micro deliveries, ranging from one kg to 50 kg, have unique challenges regarding the speed of delivery and temperature maintenance. Using PCM technology, the company has developed cartridge freezers that can freeze cartridges across different temperature ranges. These cartridges, when put in insulated boxes, can hold temperatures for 10 to 12 hours, thereby ensuring home deliveries.
The solutions are powered by our products, such as
• PlugnChill: PlugnChill is a plug-and-play technology that runs on proprietary thermal batteries and chargers.
• Swap: The Swap range enables cold chain to be maintained towards the end of the supply chain and is intended for capacities less than 1 tonne to a 5 litre box.
• TAMsys: Real-time wireless-based temperature monitoring platform that gives you 100% visibility and control over temperature management across your cold chain.
Be it full truck or home-delivery, our precise cold chain solutions protect your product delivery at crucial stages and improve your business bottom line. We are the only solution providers, in India, that provide end-to-end cold chain technology solutions that are 100% sustainable, reliable and viable for all package sizes.
What type of innovative solutions does the company provide to pharmaceutical, retail, and food delivery markets for perishable items? What are the challenges faced by the brand in emerging markets and avenues?
There is a wide spread acceptance of our solutions and the philosophy. However, the biggest challenge is in terms of transitioning to the newer way of doing this and sacrificing the age-old usage of dry ice. We don’t recommend the usage of dry ice as it is harmful to the product, user and even the logistics personnel. We spend a majority of time in building that awareness. Once that bridge is crossed, the solutions speak for themselves and the impact is for everyone to experience.
What was your last fiscal like, what are you expecting?
We had one of the best years during our journey and are expecting to match the same pace as the awareness and need for sustainable cold chain solutions are rising. The consumption of perishable food and beverages is at an all-time high and every player in the ecosystem is aggressively investing in the cold chain solutions.
What are the company’s long-term goals for sustainability?
Our ultimate goal is to make the entire cold chain sustainable much lesser than the acceptable levels. This means that we need to work along with the customers and partners. We have collaborated with our partners and customers to set targets, such as Co2 reduction, GHG emission reduction, food wastage reduction, zero plastic usage to ensure that we steadily move towards achieving that larger goal of 100% sustainability.
What are the company’s plans on future collaborations and expansion?
Sustainability can never be a business and hence we treat every member of the cold chain ecosystem as our partner. We need to reduce food wastage and improve sustainability standards together. This is not a one company’s fight. We have partnered with several brands, distributors, quick commerce companies, and logistics companies to ensure that the end consumer gets the right product with high quality. We keep looking to forge such partnerships in the future and rapidly expand. Our goal is to say that there’s a contribution from us in every bit you take.
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