Cold Chain Logistics Steering India into a Global Pharma Hub

India’s express delivery industry has evolved significantly, with a strong emphasis on the indispensable role of the cold chain in the secure and efficient distribution of pharmaceuticals. The substantial growth in the pharmaceutical transportation domain in recent years signifies the importance of cold chain services in ensuring the timely delivery of life-saving drugs.

As a dominant leader in the global pharmaceutical arena, India has been instrumental in shaping the future of express delivery,  particularly, the cold chain’s role in transporting temperature-sensitive medicines. As the world’s largest supplier of generic drugs, India’s pharmaceutical industry leads the charge in revolutionising express delivery, prioritising secure and efficient pharmaceutical distribution.

India: A Pharmaceutical Powerhouse 

India has become a pharmaceutical giant, supplying 20% of the world’s generic drugs and fulfilling 50% of global vaccine demand during the pandemic. This impressive growth is fueled by relentless technological innovation, substantial logistics investments, and a valuation of $50 billion, poised to reach $65 billion by 2024 and a staggering $120 billion by 2030.

The Indian cold chain market, essential for the biopharmaceutical industry, is expected to experience an impressive 14.72% CAGR, rising from Rs 1,814.9 billion in 2022 to Rs 3,637.4 billion by 2027. India’s extensive cold chain storage capacity, competitive manufacturing costs, and government initiatives solidify its position as the world’s third-largest pharmaceutical hub, aligning with the projected $440 billion global biopharma cold chain market by 2024.

Major Contributor to the Express Delivery 

Owing to rising global demand, pharmaceuticals have emerged as major contributors to India’s express delivery sector. In FY 2019-20, when combined with pharma, healthcare and chemicals, these sectors collectively constituted a substantial 14% share of B2B surface express delivery services, underlining their substantial impact and growing importance within the industry. 

Boasting a 10% market share in the Indian express delivery industry, TCI Express ensures the seamless delivery of pharmaceuticals amid the remarkable growth of the pharmaceutical sector via surface, air, and rail networks. With its unique asset-light approach, the company meets the surging need for temperature-sensitive cold chain logistics, especially in the pharmaceutical field. Notably, in 2021, it partnered with the Ministry of Health and Family Welfare to transport over 20 lakh COVID-19 vaccine doses nationwide. 

Innovations Reshaping Cold Chain Logistics

Cutting-edge technologies like remote temperature monitoring, GPS tracking, IoT, and robotics are revamping pharmaceutical cold chain logistics. These innovations enhance automation, visibility, and inventory management through predictive analytics and RFID tags. Achieving a 100% efficient cold supply chain requires strategic tech adoption, including big data and AI for precise shipment planning.

Being a vanguard of innovation, TCI Express has emerged as a frontrunner in the pharmaceutical cold chain delivery sector. With an extensive fleet of temperature-controlled vehicles equipped with GPS and tracer technology, it ensures real-time temperature and location tracking, maintaining temperatures within the range of +2 to -8 degrees Celsius.

Infrastructural Reforms

India’s express delivery has received a substantial boost from infrastructure development, especially in the pharma cold chain logistics sector. The government’s PM Gati Shakti National Master Plan places a strong emphasis on efficient and cost-effective logistics, with noteworthy initiatives such as multimodal logistic parks, dedicated freight corridors, and state-of-the-art cold storage facilities. Additionally, the establishment of 40 air cargo ports and the modernisation of 30 airports with advanced cold storage infrastructure are set to further enhance the nation’s export capabilities.

To capitalise on India’s infrastructure growth, TCI Express strategically invests in temperature-controlled fleets and warehousing. This enhanced its delivery network, spanning over 50,000 pick-up points, 60,000 delivery locations, and 73+ air gateways. 

Alongside its advanced tracking capabilities, the firm provides versatile delivery solutions, including Full Truck Load (FTL) and Milk Run services, tailored to diverse requirements, with vehicle capacities spanning from 1 to 18 tonnes.

Automation and Digital Transformation

The cold chain delivery industry is experiencing a profound transformation driven by the seamless integration of automation and digitalization throughout its entire value chain, with a notable impact on the pharmaceutical sector. Incorporating automated sorting solutions and digitalization leads to streamlined operations, increased transparency, and improved overall visibility throughout the supply chain.”

At the forefront of technological evolution, TCI Express has unveiled India’s first and largest fully-automated B2B ‘GIGA Sorting Centre’ in Gurugram. This facility significantly enhances pharmaceutical product transport efficiency, ensuring quicker, more accurate deliveries while reducing unloading, sorting, and loading times by 40%. An integrated digital platform covers bookings, e-DWBs, automated MIS, e-PODs, e-invoicing, and temperature monitoring.

Embracing Sustainable Practices
Pharmaceutical cold chain delivery is actively pursuing sustainability by addressing energy-intensive operations. Innovations such as fuel-free thermal storage, eco-friendly materials, and recyclable packaging contribute to reducing environmental impact. Recognising the need for a sustainable cold chain to combat climate effects, the industry is exploring energy-efficient solutions, encompassing improved insulation, electric vehicles, ammonia refrigerants, and CNG-powered trailers.

TCI Express has taken proactive steps towards sustainability by integrating CNG BS-6 and CNG vehicles into its operations. Furthermore, the company has installed substantial solar panel capacities, amounting to 600 kWp in Gurugram and 280 kWp in Pune. These initiatives have resulted in the prestigious LEED Gold rating for its Gurugram facility, marking the company’s recognition for its dedication to sustainability. TCI Express is now exploring the possibility of further commitment by transitioning to an electric vehicle fleet