XPS Ltd, a subsidiary of Transport Corporation of India, engaged in providing logistics to perishable commodities, is developing a temperature controlled packaging unit for the food processing industry.
The company is focussed on West Bengal, as part of its strategy to develop business from the food processing industry. Further, the company was weighing diversification options by setting up cold warehouse chains in the country.
Chander Agarwal, head of new ventures at XPS, said the internal research and development for the development of temperature controlled packaging unit was in the final stage. "It would be ready by the middle of next year," he said.
Terming the product as a breakthrough technology for transportation of perishable commodities, he said that small quantities of special food or pharma items could be send in air cargo through the new packaging material.
Agarwal explained that with the new packaging technology, XPS would be able to serve the retail segment.
"Kolkata is a big market for sweets and we feel that the temperature controlled packaging unit will be a real hit in the city. Lots of people want to send sweets to their relatives in other parts of the countries and overseas so the new packaging concept will help them," he added.
Commenting on the bulk business Agarwal said that XPS had already initiated discussions with dairy companies based in West Bengal for a tie-up.
The XPS service was targeted at perishable commodities like the dairy industry, confectioneries, pharmacy, fruits and vegetables, fast foods.
Agarwal pointed out that the size of the cold chain market could well exceed Rs 10,000 crore (Rs 100 billion) mark shortly.
XPS was one of the few companies that provided this service. The company owned 40 trucks with temperature control system and was planning to acquire more.
"XPS is planning to invest Rs 75 crore (Rs 750 million) in a period of three years for expanding our fleet and diversification of business. Besides the cold warehouse chain, XPS was planning to start a courier business shortly," he said.
