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Danfoss India focussing on refrigeration to up capacity of cold chains

Danfoss India – one of the industry leaders, which specialises in climate-energy efficient solutions and a 100 per cent subsidiary of the Denmark-based Danfoss Group – is now sharpening its focus in the area of refrigeration and air-conditioning controls to drive capacity augmentation in cold chain, cold storage units and refrigerated transportation in the country.

Danfoss is now looking at cluster-based cold chain models in India to rejuvenate the refrigerated supply chain management. The company’s energy-efficient technologies in industrial refrigeration, controls, freezers, chillers and condensing units has made a difference in the last few years to those original equipment manufacturers (OEMs) opting for its cost-saving solutions in the food retail, cold chain supply and food processing industries.

Now, Danfoss has chipped in to team up with the state governments, beginning with Tamil Nadu, where it has invested $100 million to set up a first-of-its-kind platinum-rated green building to house its research and development (R&D) and manufacturing facility at Oragadam, Chennai, which will be commissioned in mid-2014, with a manpower strengthen of 1,200.

This would take the total number of personnel in India to 1,900. Chennai would be Danfoss India’s headquarters. It is also working with the Tamil Nadu Banana Federation to reduce the post-harvest wastage.

It has opened a training centre, where all its energy efficient solutions are demonstrated to potential customers to validate specifications, provide hand-on exposure to industry entrants and engage students from universities on the opportunities in the agriculture industry. It has also set up a centre of excellence in cold chain in a college.

“India is the biggest opportunity to drive our energy-efficient solutions in the cold chain sector, and we are betting big on India, because it also the largest producers in milk and among the biggest in fruit and vegetables,” Ravichandran Purushothaman, president, Danfoss India, and member, the Confederation of Indian Industries' (CII) National Task Force on Cold Chain Development, told F&B News.

“A cold chain can reduce wastage and increase farmer earnings. There is no doubt that the cluster-based approach to cold chain is the key to India’s agriculture development. In fact, the cluster concept is connected to consumption,” he added.

“Like for instance, the Srini Food Park in Chittoor district in Andhra Pradesh is seen as an efficient network to take advantage of the value chain. It will enhance earnings of the farming community, prevent post-harvest losses and the creation of a cold chain network is an opportunity to build a brand to widen the food processing opportunities in the country,” he added.

In order to prevent post-harvest losses, the government needs to set up more cold storage units. There is no dearth for funds going by the grants like the National Horticulture Mission.

The Indian food processing capacity will remain underutilised, with a shortfall of both single and multi-commodity cold storage facilities.

“To set up a 500-tonne cold storage unit needs an investment of Rs 12 crore, of which Rs 1.5 crore is the power cost. We have customised the refrigerator, air-conditioning component and controls to suit Indian conditions,” said Danfoss India's president.

Annually, Indian food – valued at Rs 44,000 crore – goes waste due to lack of adequate storage infrastructure. Almost 40 per cent of the horticulture produce perishes for want of cold chain facilities. The reality in India is that only 8-9 per cent of its perishables flow through controlled temperature chains against 35 per cent in China, 60-80 per cent in Europe and 40 per cent in Thailand.

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