India’s strength has always been in numbers. Everything is in masses. With 1.3 billion inhabitants in India, both the opportunities and challenges that come along with it are huge.
The green revolution helped India to achieve self-sufficiency in basic food items. The white revolution made India – a milk-deficient nation – the largest milk producer in the world. All this was achieved not merely by mass production, but through production by the masses.
Yet all this comes at a high price. India wastes approximately 30% of its produce for want of suitable facilities in storage and transportation. The country does not have adequate systems and procedures to run an organized cold chain for food products. This offers supply chain solution providers such as Mohebi Logistics great opportunities but also presents them with considerable infrastructure challenges.
For Ben Jacob George, Executive Director at Mohebi Logistics and himself of Indian origin, it’s an ideal fit. “Essentially there are two prime requisites for succeeding in India: you have to impose a highly methodical and proven mode of operation; and in parallel you have to adapt rapidly so that you stay in control when market conditions change. In both these respects, we have a strong track record.”
Why choose India?
India is living through exciting times. It is poised to be the fifth largest consumer market by 2025 – a ten-point jump from present levels. This is rapidly creating a vast middle class of 600 million with their own aspirations and demands for products and services.
India’ s GDP grew an average of 6-7% in the last two decades and is estimated to continue this trend for the next 10 years. The second major factor affecting the surge of consumption will come from population growth. This will give India a demographic profile that consists mainly of youths and a large labor force. The dependency ratio will decrease well below 50%, increasing the overall income and expanding the consumer market.
Enter the multinational brands
India has now allowed multinational brands to set up and operate both in food and consumer segments. However these brands need to protect their brand integrity, ensuring that quality and freshness are preserved all the way to the end consumer. This requires the attention of a logistics company specializing in FMCG products to safeguard the brand’s ingredients, benefits and features.
Mohebi Logistics’ initiative
Mohebi Logistics has already started its operations in India with multi-national clients. The company has decided to expand its operations there, using its years of exposure and experience of global brands and their best practices to serve multi-nationals now penetrating the Indian market. Mohebi Logistics understands the language of multi-nationals, their needs, dynamics and goals.
Over the next five to seven years, Mohebi Logistics plans to create world-class logistics facilities in different corridors of India. These initiatives will provide environmentally friendly multi-temperature storage and delivery facilities with the latest technology to support the operation, management function and useful reports to the clients.
“The retail food environment in India is undergoing a transformation as people grasp the pressing need to greatly diminish the vast amount of wastage that’s going on. We’re going to be a central catalyst in spurring that change.” summarizes CEO Mohammed Mohebi”.