Presentation

By
Central Warehousing Corporation

on
Performance
of

MEMORANDUM OF UNDERSTANDING (MoU)

Chandigarh 16th June, 2012

 Established under Agricultural Produce
(Development & Warehousing)
Corporations Act, 1956 later repealed
& replaced by Warehousing
Corporations Act, 1962.

 Schedule ‘A’ Mini Ratna Category-I PSU.

 Has a wide network of 448 warehouses

with 115.09 Lakh metric tonne storage
capacity. An ISO 9001:2008, ISO
14001:2004 & OHSAS 18001:2007
certified organization.
To emerge as a leading market facilitator by providing
integrated warehousing infrastructure and other
logistics services, supporting India’s growing economy
with emphasis on stakeholder satisfaction.
 To acquire, build and run warehouses in
India and abroad for storage of agricultural
inputs and produce and other notified
commodities.
 To provide facilities for Handling &
Transportation of stocks to and from
warehouses.
 To create infrastructure facilities for EXIM
trade.
 To act as agent of
Government/Companies/Body Corporates for
the purpose of purchase, sale, storage,
distribution of stocks.
 To provide Disinfestation and Pest Control
services outside its warehouses.
Storage:
• Scientific storage and handling services for more than 400 commodities include
Agricultural produce, Industrial raw-materials, finished goods and variety of
hygroscopic and perishable items.
• Scientific Storage Facilities for more than 200 commodities including hygroscopic
and perishable items through network of 436 warehouses in India with its 3,631
trained personnel.
• Import and Export Warehousing facilities at its 30 Container Freight Stations in ports
and inland stations.
• Bonded Warehousing facilities .
• Disinfestation services.
• Handling, Transportation & Storage of ISO Containers.

5
 Services at ICD / CFS
Exports Imports

Movement of Import
Receipt of export cargo containers from the
port
In-House customs De-stuffing of LCL and
examination FCL containers

Export cargo
Customs Examination
aggregation and storage

Preshipment
Disinfestation of Bonded Warehousing
containers as well as of facilities
export cargo.

Cargo stuffing under

6
custom supervision
Bonding Facility

• CWC operates 66 Custom Bonded Warehouses with a total operated

capacity of nearly 0.42 million Mts. The concept of custom Bonded
Warehousing has been promoted with a view to facilitate deferred
payment of custom duty to encourage entrepreneurs and export oriented
units to carry out their operations with least investment.
• These bonded Warehouses are located all over the country at places well -
connected with the port towns for smooth movement of goods to and
from the discharge points.

7
Air Cargo Complex
• Ambitious expansion of CWC over the years has also brought CWC in the
operation of Aircargo Complexes which is a major step towards providing
complete services as a multi-modal transport operator.
•
Presently, CWC is operating 3 Aircargo Complexes at the International
Airports of Amritsar, Goa, Singanallur and Virugambakkam besides
managing the accompanied/mishandled cargo warehouse at Indira Gandhi
International Airport at New Delhi.

8
Container Train Operations

• With a category-I licence from the Indian Railways for running container
trains on pan India basis, CWC is presently operating container
trains transporting EXIM containers between Loni (Delhi) - J.N.Port
(Navi Mumbai) and Loni - Mundra. CWC runs about 300 trains in these
sectors and handles about 26,000 TEUs annually. It is also operating
Container Rail Terminals at Loni and Kalamboli (Navi Mumbai ) on PPP
model.
• These terminals are also being used by other train operators as common
user facility.

9
Integrated Check Post Terminal

CWC is operating an integrated truck terminal for providing support services

to the import/export trade with Bangladesh through land route at
Petrapole (West Bengal) on the Indo-Bangladesh border, the terminal, spread
over an area of 17.08 acre & Attari (Punjab) on the Indo-Pak border both the
facility has space for truck parking, weighment, storage, customs examination,
etc.

10
 Disinfestation and Pest Control Services
Govt. of India, vide notification dated 23rd March 1968,
entrusted additional responsibility to
CWC to undertake Pest Control Services beyond its warehouses. Central
Warehousing Corporation is ISO Certified under QMS , EMS & OHSAS .
Segments of Pest Control Services:-
Dis -infestation Services –
Fumigation Services –
Anti-termite Treatment -
Weed & Vector Management –
Disinfection –
Port Area Operations & fumigation activities :-
Under the accreditation of NSPM-11/12 and NSPM-
22 ,the Corporation is catering to quarantine treatments at the major
port areas

11
Farmers Extension Service Scheme
In order to educate the farmers on scientific storage of foodgrains and post
harvest loss minimization,CWC introduced its Farmers Extension Service Scheme
in 1978-79 wherein the technical staff posted at its warehouses visit the
adjoining villages and train the farmers on Post Harvest Technology. The scheme
is presently in operation through 305 rural based warehouses.

Further, to encourage the farmers and motivate them to avail public

warehousing facilities, CWC offers a rebate of 30% on its storage charges for
the farmers’ stocks. A Warehouse Receipt, which is a negotiable instrument, is
issued to the farmers, who can obtain institutional credit on pledge of the
Warehouse Receipt and thus avoid distress sale.

12
 CAPITAL STRUCTURE OF CWC

6 RECOGNISED ASSOCIATIONS
721 COOPERATIVE SOCIETIES& COMPANIES DEALING IN
AGRICULTURAL PRODUCE OR
INSURANCE COMPANIES 0.23% ANY NOTIFIED COMMODITY
0.01%
OTHER SCHEDULED BANKS 7.02%

16.05%

CENTRAL GOVERNMENT
55.02%

STATE BANK OF INDIA

21.67%
NUMBER OF WAREHOUSES - 435 (370 owned)
OPERATIONAL CAPACITY - 101.85 LAKH MT
(77 LAKH MT owned)

%AGE UTILISATION - 91 %

NUMBER OF BONDED WAREHOUSES - 46

CAPACITY - 2.40 LAKH MT

TEMP./ HUMIDITY CONTROLLED WAREHOUSES -3 (Amritsar, Vashi,

Virugambakkam)

CAPACITY - 2419 MT
 REGION-WISE NUMBER OF WAREHOUSES

CHANDIGARH (26)
DELHI (20)
PANCHKULA (26)

JAIPUR (28) LUCKNOW

(44) GUWAHATI
PATNA (20) (11)
BHOPAL
AMMEDABAD (27) (27)
KOLKATA (26)
RAIPUR (14)
BHUBANESWAR (20)
MUMBAI (37)

HYDERABAD (43)

BANGALORE (28)

CHENNAI
KOCHI (12) (26)
 NETWORK OF CWC CFSs/ICDs

SAHARANPUR
LONI
oPATPARGANJ
NOIDA

KANPUR
MUNDRA
GANDHIDHAM
KANDLAADALAJ
PORT KOLKATA
o VADODARA
VAPI
PIPAVAV WALUJ
NASIK
KALAMBOLI
D. NODE
.
PUNE
LOGISTIC PARK D’NODE
DISTRICPARK VISAKHAPATNAM
IMPEX PARK

KUKATPALLY

PANAMBUR WHITEFIELD
MADHAVARAM

SINGANALLUR VIRUGAMBAKKAM

TUTICORIN
Summary of the capacity created during last 5 years
CWC (in LMT)
Other
Year Total Grand Total
Other Organisation *
Under PEG
Depositors

2017-18 0.10 0.19 0.29 0.20 0.49

2016-17 0.17 0.78 0.95 0.11 1.06

2015-16 0.71 0.91 1.62 0.00 1.62

2014-15 0.95 0.84 1.79 0.11 1.90

2013-14 0.70 1.33 2.03 0.18 2.21

*Odisha State Warehousing Corporation, Primary Agricultural Cooperative Societies

(PACs) in Odisha State and Kribhco Ltd.
17
REGION-WISE CAPACITY UTILISATION
(AS ON 31ST MARCH, 2018)
Region No. of Capacity Region No. of Capacity
W/H In Lakh W/H In Lakh MT
MT

Hyderabad 43 14.26 Panchkula 26 4.68

Mumbai 37 13.31 Bangalore 28 4.49

Lucknow 44 9.07 Delhi 20 3.93

Kolkata 26 7.68 Bhubaneswar 20 3.26

Chandigarh 26 7.55 Raipur 14 2.83

Chennai 26 6.71 Patna 20 1.83

Ahmedabad 27 6.42 Kochi 12 2.76

Bhopal 27 5.92 Guwahati 11 1.29

Total 435 101.45

Jaipur 28 5.46
18
 Commodity wise Breakup of Gross Utilisation

Year FCI FG Non-FCIwise

Commodity TotalBreakup
Fertilizer Bonded/C
of Gross Other Total
Utilisation
FG FG FS/ICD s
(Figs. in Lakh MT)

2012-13 45.40 11.35 56.75 3.12 15.18 19.86 94.91

2013-14 42.58 9.96 52.54 2.87 14.07 21.28 90.76

2014-15 36.29 12.71 49.00 1.54 13.22 21.63 85.39

2015-16 29.84 13.25 43.09 2.50 13.13 33.10 91.82

2016-17 27.50 13.21 40.71 3.45 11.12 18.99 74.27

2017-18 38.26 18.55 44.81 2.42 10.07 21.44 91.74

19
 Indian Warehousing Scenario

 Logistics and warehousing plays an indispensable role in the transportation of

goods across the country. A warehouse is a fundamental part of business
infrastructure and is one of the key enablers in the global supply chain. It is
the fulcrum for procurement, manufacturing and distribution services which
collectively build robust economies.
 Logistics cost in India accounts for 13-17% of the Gross Domestic Product
(GDP) which is nearly double (6-9%) the logistics cost to GDP ratio in
developed countries such as the US, Hong Kong and France. Much of the
higher cost could be attributed to absence of efficient intermodal and
multimodal transport systems

20
 MAKE IN INDIA
SOME OF THE KEY MEASURES TO PROMOTE 'MAKE IN INDIA' ARE AS
FOLLOWS:

 Streamlining processes and reducing the time required for various approvals and
licenses.
 Implemented e-governance.
 The archaic labour laws that were preventing industries from hiring large number
of workers have been repealed and reframed, making them more business friendly.
 The validity period for industrial licenses has been extended to 7 years from 3
years thereby reducing the need for frequent renewals.
 The documents required for import and export has been reduced from 11 to 3.
 For something as crucial as electricity supply, the connection that earlier had to
be provided within a maximum time frame of 180 days has been reduced to a
maximum of 15 days.
 New laws under the Indian Bankruptcy Code have been enacted making it easier to
wind up business in a timely manner in case of business failure.

21
 THE GOODS AND SERVICES TAX (GST)

 The Goods and Services Tax, touted as the biggest tax

reform in the history of independent India became a reality
in 2017. This tax replaced a plethora of central level taxes
(i.e. excise duty, countervailing duty and service tax) and
state level taxes (Value-Added Tax, Octroi and entry tax,
local body tax, luxury tax, etc.), which meant that the
same product was sold at different prices in different
states. The web of state and central level taxes made the
inter-state trading of goods in India as cumbersome as
exporting them to another country. Many businesses were
of the opinion that in some segments, the exports of goods
were seamless for the latter.
 In the pre-GST era travel time between Delhi– Chennai, was
around 5–6
days; post-GST, it has come down to 3–4 days.
 Trucks are able to cover longer distances every day with an
improved turnaround time ensuring that the transporters
can carry out their business with a smaller fleet.

22
POST GST WAREHOUSE CONSOLIDATION LEADING TO INCREASED PROFITABILITY

 The companies would now be able to maintain pre-GST Service Levels through
lower inventory levels on account of faster movement of goods and higher
efficiency at the warehouse level, thereby, reducing the overall firm level
inventory. The inventory carrying cost is the most significant consideration for
the planning of supply chain for any organisation.
 Warehouse consolidation cases have witnessed up to 30% reduction in
inventory levels leading to over 40% increase in inventory turnover thereby
leading to increased profitability.
 Outsourcing of the logistics activity has become the next logical stage of
evolution for most sectors especially as taxes have been rationalized across
the country and the Input Tax Credit can be availed across product and service
lines. The warehousing industry will undergo a major evolutionary leap in the
next 5-8 years, much like airports where design, compliance, costs and value
added services will dictate survival and growth. There will be significant
consolidation of warehouses by companies in the consumption space and this
will see the development of large modern technology based warehousing
operations with much higher productivities and the rapid conversion of
unorganised godowns to modern 3PL Logistics.

23
 INFRASTRUCTURE STATUS TO
WAREHOUSING AND LOGISTICS
 100% foreign direct investment (FDI) in the storage and warehousing sector
under the automatic route has been permitted since several years.

 Government has accorded infrastructure status to the logistics industry. This

decision will enable companies in the logistics and warehousing sector to
access funds at lower cost, longer tenure and enhanced limits.

 The government has defined “logistics infrastructure” to include a multimodal

logistics park comprising an Inland Container Depot (ICD) with a minimum
investment of INR 50 crore and minimum area of 10 acres, cold chain facility
with a minimum investment of INR 15 crore and minimum area of 20,000 sq ft
and/or a warehousing facility with a minimum investment of INR 25 crore and
minimum area of 100,000 sq ft. Institutional players will not invest in
unorganised and small warehouses; they generally invest or set up large
warehouses and huge logistics parks. Currently, the new facilities that are
being built by institutional players are generally of large sizes, bigger than the
minimum requirements as specified above and hence, they would stand to
benefit from the infrastructure status. 24
INCREASING INSTITUTIONAL INVESTOR INTEREST

 Investors had started taking cognizance of the

opportunities in this sector much before the government
could implement the reforms such as implementation of
GST and granting infrastructure status to logistics
industry including warehousing. The past few years have
witnessed massive participation from institutional
investors. Some of them have purchased ready assets,
whereas others are investing in a mix of ready and
Greenfield assets.

 Warehousing investment accounted for around 26% of

the total private equity (PE) investments into real estate
during January 2014 – January 2018. Around USD 3.4
billion (INR 22,100 crore) of institutional capital has
flown into this sector during this period. The actual size
of capital movement would be higher, as these numbers
only cover the major investments by organised players.
New developments or greenfield projects accounted for
67% of the total investments followed by 27% for
acquisition of complete projects.
25
A few facts :
 India is the world’s largest producer of milk & second-largest grower of
rice, wheat, fruit and vegetables. But processing of these currently stands
at just 10% of total agriculture produce. India loses crops of Rs.92,651
crore per year, during & post harvesting, for want of adequate cold chain
(CAT, PCC, frozen & Chiller, ripening plants) facilities, food processing &
storage capacity. Losses are 34% for F&V (fruit & vegetable), 22% for
cereal & 20% for livestock .
 India needs 1500 million square feet warehousing by 2020.
 There is 40% shortage of warehouses.
 Hardly 10% of agriculture produce are scientifically stored in warehouses.
CWC has 100 Lakh Metric Ton operational capacity warehouses, i.e. about
60 million square feet.
 CWC storage space utilization is about 75%.

26
 Opportunity & Outlook for CWC & Warehousing at large:
 India is the 5th largest consumer market of the world.
 GOI is giving big push to agriculture sector : Cold chain and food processing. Food grain
produced in five to seven states and consumed all over India, • Apple produced in four states
and consumed all over India • Sea & rivers fishes, fisheries are in localised states but consumed
all over • Animal meat, a big export item,
 Manufacturing & heavy Industries offer huge market for backward & forward warehouse
logistics
 Many industry is moving from bagged to bulk supply.
 Many industries are shifting to eastern state & ports (Pit-head theory)
 Growth in transport infrastructure (DFC, NHAI, HSRC, Ports, Airport): Planned logistic hubs:
Highway(35), Railway(30), Port(14), Cargo handling Airport (25)
 Act East policy of India
 WDRA policy
 Many PSUs & major industry are concentrating in their core production. They are looking for
total logistics option through 3PL to 4 PL.
 GOI is making all efforts to reduce its logistics cost through infrastructure support & regulations
 Now, it is turn of CWC to tune itself to provide logistics at origin and destination ends for: -
storage & distribution. - Backward & Forward integration.
 CWC will capitalize on these developments and meet the growing economic need of India.
 Contd…. 27
Multiple business models exist, within the warehousing
industry .
 The key segments can be represented as:

Industrial/Retail / consumer warehousing:

accounts for ~55% of the total market
CFS/ICD:
accounts of ~ 14% share
Agriculture produce warehousing:
accounts for ~15% share •
Cold stores: a
accounts for ~16% share
CWC/SWC can and must play big role in providing warehousing facility for
agriculture produce and cold chain segments. • CWC operate in the lowest
leg of supply chain. It must leverage other transport infrastructures and
industrial set up to maximize storage space utilization and rotation and
attract low an high value goods as well.
28
PLAN FOR CREATION OF STORAGE CAPACITY IN 2018-19

SL. No. Centre Capacity in MT Total Capacity

(in MT)
For FCI (for agriculture produce) For Other depositors (for
under PEG agriculture produce)/
Industrial)
(A) CWC own godown

Gujrat

1. Shahalam, 10600 10600

Ahmedabad
Maharashtra

1. CFS 20000 20000

Kalamboli (Industrial)
Kerala

1. Kakkancherry 5000 5000

2. Kanjikode 5000 5000

(Pallakad)
3. Kunnamthan 2600 2600
am
4. Kannur 6350 6350

29
SL. No. Centre Total Capacity
(in MT)
For FCI (for agriculture For Other depositors (for
produce) agriculture produce)/
under PEG Industrial)
Telangana

1. Adilabad 10000 10000

Karnataka

1. Hubli-II 10000 10000

TOTA 69550 69550

L (A)
(A) For Other organisations i.e. OSWC

Odisha

1. Sakhigopal 2500

2. Angul 5000

TOTAL 7500
(B)
GRAND TOTAL
(A+B) 77050

30
Central warehouses with modern technology

• Pre-fab godowns for industrial warehousing

• Pre-painted Poly Coated Galvalume Sheets in

place of asbestos sheets
Central warehouses with modern technology
 Translucent sheets for better illumination

 Turbo Ventilators on roof for better aeration and cooling

effect
Central warehouses with modern technology
 Self-supporting trussless roofing

 Temperature & Humidity Control godowns at Amritsar on pilot

basis
Green Warehouse at Chhindwara

34
Green Warehouse at Chhindwara

35
INTEGRATED LOGISTICS
PARKs IS THE FUTURE

GLIMPSE OF AN INITIATIVE………….

36
 CWC Facility at Kalamboli-LOGISTICS PARK

CWC at Kalamboli
Rail Linked warehouse

9 Ha
Equipped with modern
handling equipment for
industrial goods

Private freight terminal

Plan to set up modern bulk

cement warehousing
terminal
Handling Other Cargo
 New opportunities
High Growth Area - Mumbai /Navi Mumbai
 Mumbai and Navi Mumbai region is
growing rapidly with on-going and
proposed Mega infra projects
 Navi Mumbai International Airport
 2 new Metro Lines
 22.5km Mumbai Trans Harbour Link
 Mumbai Urban Transport Project
 Several Mega Flyovers
 Sixth line on the Mumbai Central-
Borivli route
 Dedicated freight corridor
• Mega Projects will require
huge steel and bulk cement
• State of art logistics infra is
needed to cater this
requirement of steel and bulk
cement.
• CWC wants to play the key
role to serve this demand
with state of art logistics
infra
• At our Kalamboli Warehousing
complex we identified
opportunity for storage of
bulk cement .
Current practice in cement logistics

Bag Handling in open at Railway siding and warehouse creates pollution

Labour intensive Low level of Automation

This shall be eliminated with our

proposed facility
CWC Proposal – Bulk Cement Storage
Key highlights of facility
CWC intend to establish a state of art
storage facility for cement
From this facility, distribution of cement
in bulkers and bags to Navi Mumbai
region / sub-urbs of Mumbai
Facility will help in providing quality bulk
cement required for infrastructure
growth for fast growing city of Mumbai /
Navi Mumbai
Facility will also help in reducing
pollution foot print as mode of primary
transportation of bulk cement will be
shifted from Road to Rail & will
eliminate bag handling at rail sidings
Storage silos for 10,000 Ton of
bulk cement (RCC silos)
Receiving bulk cement from
Cement Plants by rail in
standard BCCW wagon meant
for carrying loose cement.
Unloading and storing at
proposed facility and
Distribution of cement from
silos, in bulkers
Facility shall also required
infrastructure for unloading of
bulk wagons and loading
arrangement for bulkers.
CWC will use one side for
warehousing & train handling
(containers, automobiles,
fertilizer).
Details of the Proposed Set-up
Proposed State of art infrastructure layout

Proposed Bulk
Cement Storage
Facility

Side of proposed
set up (left of
existing siding) Existing
Warehouses
Proposed State of art infrastructure layout

Cement
Unloading and
Storage facility

Rail Track
for Bulk
Rake
Weighbridge

Entrance
 Proposed State of art infrastructure layout

Silos for storage

of bulk cement

Bulk Cement
Wagon rake -
BCCW

Distribution in
“Bags” for
cement

Distribution in
“bulkers” for
bulk cement
Shown picture is 3D pictorial
representation of proposed site,
however is indicative for reference
 Proposed State of art infrastructure layout
Bag Packaging Cement Storage
Facility in RCC Silos

Unloading station
for BCCW wagons

Bulk Cement
Trucks

Bag Cement
Truck Loading
 Proposed State of art infrastructure layout

Elevator BCCW Wagon used for bulk

(carries cement cement
from pit to
Storage storage silo)

Silo
Rail Track

Bulker

• BCCW rakes
• Gravity unloading
Pit below • Pit required below the railway
Elevator Pit track line
Width : 7 Meter
width : 6.3 Meter • Approved in Cement
Depth : 11.6
and depth : 6
Meter
Meter
Packaging : Bag Loading Facility
Proposed at CWC- Kalamboli
Bulk Loading Facility_Proposed
Proposed at PFT- Kalamboli
 Key points related to proposed facility

 Facility is only storage and distribution facility for cement and no

manufacturing and processing involved in this process
 No hazardous activity or material is involved in this process
 No raw material is required for this activity

 Finished product (i.e. Cement) shall be received in bulk, will only be

stored in facility and then shall be distributed in bulk as well as by
packaging

 Zero Water Discharge facility

 No water is required in the process of storage and distribution of cement
Environment Aspect
Key points related to proposed facility
Zero Emission facility : Advanced pollution
control measures
There is no process which involves emissions in
environment
Facility will be equipped with state of art
pollution control equipment's like Bag filters
(dust collectors) at all transfer points (10 nos
high capacity bag filters) to ensure zero dust
emission in bulk and bag loading process

Green Cover for Environment friendliness

Facility shall have green cover to the extent of
> 2000 m2 & more than 2000 trees are planned
for plantation across facility
 Benefits through CWC facility
Current practice in cement industry Vs CWC proposal
Current practice in cement industry CWC Proposed facility at Kalamboli

Bag Transport by road/rail from Cement Plant Bulk cement moves by closed containers
leads to pollution on the road or rail head ( BCCW Rake ) . No dust , no pollution

Storage and handling of cement bags at No warehouse required. Cement stores in state
warehouse create dust of art silo

Bulk cement loaded from silo to road bulkers .

Manual handling of cement bags is unsafe
Automated loading without any dust

Cement bags cut and stored at building site Automated packers for bag packing and truck
creates dust and pollution loading without any dust
 Challenges:

 DPD/DPE-Reducing role of CFSs

 Increasing No. of Ports- Greater tendency
towards getting containers released at Port
 Rising Competition- Over capacity-Price war
 Labour Issues
 Export-Import imbalance
 Increasing prices of land.
 Government of India has already taken to promote
warehousing in India, there are few more areas that
need to be looked into to augment the impact of
reforms:
 Creation of exclusive Warehousing Promotion
Zones:

 Create logistics and warehousing policies

separate from industrial promotion policies:

 Allocation of areas exclusively for warehousing

within Industrial Parks:

 Setting up of Skill Augmentation Centres:

CENTRAL WAREHOUSING CORPORATION
(A Government of India Undertaking)

Warehousing For Everyone

THANK YOU