Transport Corporation of India (TCI) has sold 20% in it’s cold chain business to Japan’s Mitsui for Rs 63.5 crore.
Key points to note –
- Cold chain business is run through TCI’s subsidiary TCI Cold Chain Solutions Ltd (TCI CCS).
- TCI CCS provides integrated cold chain logistics services in India, with a focus on temperature-controlled storage and transportation, for major local and global companies across various industries that include fresh food supply, pharmaceuticals, chemicals, and quick service restaurants (QSR), etc. The Company offers primary distribution of products from plant to warehouse, and secondary distribution from its warehouse and distribution centres to the retailers.
- TCI aims to spend more than $10 million over the next three years in the cold chain business.
- TCI and MItsui have been known to each other for more than 2 decades. In 1999, they had jointly founded Transystem Logistics International Pvt Ltd., a logistics company targeted towards India’s automotive sector with ‘just in time delivery’ of the automobile components and service parts.
Cold chain business has been and is expected to continue to see significant growth due to increasing demand from various segments e.g., processed foods, vegetables, pharma etc. The partnership with Mitsui is a step in right direction and the business should benefit from their global expertise.