cover story

India betting on
Warehousing
Boom

20 CargoConnect - may 2019

 cover story

Driven by the demand in manufacturing

segment, and need for storage of
raw materials and finished products,
the warehousing industry in India
has evolved significantly. From the
cluster of warehouses outside Delhi to
Bhiwandi and Pune in Maharashtra, to
the Sriperumbudur-Oragadam cluster on
Chennai’s outskirts, to the Jeedimetla-
Medchal cluster near Hyderabad, the race
to secure warehousing space near hubs of
demand is manifesting in corridors of large
and modern warehouses. Even smaller
cities such as Ahmedabad and Pune are
seeing a mushrooming of such facilities.

Upamanyu Borah

may 2019 - CargoConnect 21

 cover story
A bstract
Asia and India in particular, stands out
as areas where warehousing foresees
enormous potential for growth. In fact,
Asia represents one-third of global
Gross Domestic Product (GDP) and is
expected to account for two-thirds of
global growth over the next five years.
Real GDP growth over the last two years
has averaged 7 percent, the highest rate
among the largest economies in the
world.
In India, bold structural reforms,
such as implementation of the Goods
and Services Tax (GST), other govern-
ment policies, setting up of a new Logis-
tics Division have improved processes.
Enormous growth in the E-commerce
segment is adding to the development in
logistics and warehousing sector.
The very first headway made, was
around the government’s decision to
give logistics and warehousing sectors
infrastructure status in 2017. This great-
ly gives a much needed fillip to this
marginalised sector, thereby spawning
interest from some of the biggest play-
ers who are keenly looking to invest in
it. Many of them looking to invest over
2 billion US$ into creating mega ware-
housing spaces in India, as the ware-
housing sector gears up for transition-
ing through a revolutionary phase.
Besides, there are many factors, at
the micro and macro-economic level that
are coming to play, making warehous-
ing an attractive proposition for inves-
tors looking to leverage the significant
tailwinds witnessed around it. In fact,
the growth prospects for warehousing
is so favourable, that as per recent re-
22 CargoConnect - may 2019
The growth prospects
for Warehousing is so
favourable, that as per
recent reports
significant investments
are being made in the
tune of US$ 8 to 9 billion,
for creation of
warehousing facilities
across the country over
the next two years.
ports significant investments are being
made in the tune of US$ 8 to 9 billion, for
creation of warehousing facilities across
the country over the next two years. This
in turn would result in creation of over
20,000 jobs at different levels of specifica-
tion and specialisation.
From the developer’s point of view
the sector seems promising, as very
little adjustments to the physical struc-
ture are needed to transform a ware-
house to a manufacturing space. Hence,
developers are increasingly moving
ahead with speculative spaces to cater
for either need. Also, an interesting
trend that is being witnessed in this
space is that - Ecosystems are being
built around warehouse and the likes,
i.e. residential, hotel, exhibition centre
etc. so that goods can be displayed.
According to ‘India Industrial and
Logistics Market View, H2 2018’, by
CBRE South Asia Pvt Ltd, the overall
space take-up in the logistics and ware-
housing sector crossed 24 mn sq ft in
2018 – an all-time high. Recording a
growth rate of more than 40 per cent
compared to 2017, the report said that
implementation of GST led to far reach-
ing implications on industries, more so
in the warehousing and logistics sector.
Overall in 2018, Mumbai, followed by
NCR, Bangalore and Chennai domi-
nated leasing, accounting for more than
70 per cent of the space take-up. The
second half of 2018 witnessed robust
leasing activity with about 14.3 mn sq ft
of space take up, a 46 per cent increase
on a half-yearly basis. Mumbai domi-
nated leasing activity with a share of
about 21 per cent, followed by Delhi-
NCR (20 per cent) and Chennai (16 per
cent). Greenfield projects or new devel-
opments attracted more than two-third
of these investments followed by 27 per
cent for acquisition of complete projects.
Private equity and venture capital
firm’s interest in warehousing space is
also brisk as indicated by a five-fold
jump in investments in the segment.
Warehousing is attracting foreign play-
ers and there have been multiple initia-
tives associated with large investments
within this segment, clearly underscor-
ing the upcoming trend. With many
players investing, there could be high-
er supply and the rent escalation will
be critical.
 cover story

How
grade a and b warehouses:
how supply increased
in top 8 cities Post-GST

Warehousing
Warehouse space (mn sq ft)
297
pre-GST 246.5
204

is changing
170.3
139.8
85.7 98 113

2014 2015 2016 2017 2018 2019 2020 2021

Source: JLL

Warehouse consolidation,
from multiple facilities to a
few large centres

Institutional Pruned inventory

investors making carrying costs for
Tectonic shift in industry, a beeline for major companies
from fragmented, the sector
unorganised players to
large organised ones

Automation and
smart warehousing Source: Knight Frank
solutions in
operations

More power to the

warehouse, from just
storage to providing
value added services

Projected Investments: Warehousing Figures in ` crore. Source: JLL

overall

warehouse cold storage agri storage container storage

43,000
35,000 4,000 3,500 500
may 2019 - CargoConnect 23
 cover story
actors driving growth
Demand from 3PL,
E-commerce and retail
sectors
These sectors are the largest demand
drivers of warehousing space. The ex-
pansion would also be seen in inland
container depots which offer services
for handling and temporary storage
and warehousing of import and export
laden and empty containers, carried
under customs control. Agriculture
Logistics, cold chain management, etc.
is opening up opportunities for large
warehousing and logistics infrastruc-
ture. A wide range of warehousing in-
frastructure including private, common
warehousing, specialised warehouses,
cold storages and free trade warehous-
ing zones and logistics parks will come
up in the coming years.
“Among sectors, E-commerce, auto
and auto-ancillary, third party logistics
(3PL) companies and retail/FMCG ac-
counted for around 60 per cent of the
absorption in 2018,” points out Yogesh
Shevade, Senior Director, Head – In-
dustrial Transaction, JLL.
“3PL is gaining its momentum due
to infrastructure boost, removal of state
boundaries in terms of state taxes, open-
A wide range of ware-
housing infrastructure
including private,
common warehousing,
specialised warehouses,
cold storages and free
trade warehousing zones
and logistics parks will
come up in the coming
years.
24 CargoConnect - may 2019
ing up multimodal connectiv-
ity and growing urbanisation
escalates future potential of Indian market is also apparent. FMCG and retail
segment is spreading its consumer reach to all
logistics companies. E-com-
merce is emerging as a big
urban centers and also rural areas.
boom for wa rehou si ng
needs due to change in life
style, brand censuses and increasing
internet and smartphone penetration,
not only in major cities but Tier II & III
cities as well, where people have limited
access to brands but keeps high aspira-
tions. Auto sector is growing continu-
ously in the same pace as economy and
increasing income level. As a result, ex-
isting players are planning to optimise/
increase production capacity, launch
new and improved models, and higher
interest from a number of global brands
to capture Indian market is also appar-
ent. FMCG and retail segment is spread-
ing its consumer reach to all urban cen-
ters and also rural areas. National and
international brands are gaining popu-
larity amongst consumers. Increasing
income base with higher disposable in-
come supports high growth potential for
both the segment,” says Shevade.
Absorption by 2018
3PL 26%
E-commerce 14%
Auto & Ancillaries 7%
FMCG/Retail 14%
Others 39%
Yogesh Shevade
Senior Director,
Head – Industrial
Transaction, JLL
Auto sector is growing continuously in the same
pace as economy and increasing income level.
As a result, existing players are planning to
optimise/increase production capacity, launch
new and improved models, and higher interest
from a number of global brands to capture
According to Shaishav Dharia, Re-
gional CEO, Lodha Group, “The biggest
growth driver for increasing demand is
the consistent increase in rural and urban
consumption. Companies are investing
in expanding manufacturing capacity
while also setting up wider distribution
networks across the country. Alongside,
there are large investments in organised
retail and E-commerce space to meet the
broad-based consumer demand, which
has further increased the demand for
Grade A Industrial Real Estate in India.”
Growth across Tier II cities
Industrial growth is going out of cities
and the peripheral locations of Tier I
and II cities are expected to be the
prime beneficiaries of the new wave of
growth in warehousing. These cities are
strategically located to be in proximity
to other major markets and allow trans-
portation to happen to their feeder loca-
tions in less than 6 hours. Further, these
cities provide favorable policies for set
up of businesses and have high manu-
facturing potential.
“The demand is emanating from all
across with mega metros leading the
 cover story
pack. Delhi-NCR, Mumbai and Banga-
lore are at the forefront of it,” states
Sandeep Chadha, Founder & CEO,
Warehouster Capital Advisors India
Pvt Ltd. “We are seeing the mushroom-
ing of the logistics hubs in the peripher-
ies of these key markets. Alongside, Hy-
derabad, Chennai, Pune, Ahmedabad
and Kolkata are adding up to the vol-
ume. These pivotal 8 markets account
for the bulk of the demand with as much
as 80 per cent of the pie. However, with
the economy booming and newer Tier II
cities enforcing their case, we are seeing
a parallel story being written there. Cit-
ies like Lucknow, Jaipur, Coimbatore,
Guwahati and Amritsar are some of the
upcoming destinations,” says Chadha.
Cities that led demand in 2018
share in 2018 share in 2018
26 CargoConnect - may 2019
Ac c o r d i n g t o J a s m i n e
Singh, Senior Executive Di-
rector- Advisory and Transac-
tion Services, India, CBRE
South Asia Pvt Ltd, “Mum-
bai dominated leasing activ-
ity with a share of about 21
per cent, followed by Delhi-
NC R (20 p er c e nt) a nd
Chennai (16 per cent). Del-
h i-NCR, fol lowed by
Mumbai, Bangalore and
Chennai dominated space
take-up, accounting for a
share of almost 74 per cent. In H2 2018,
the overall demand for logistics and
warehousing space was largely con-
centrated in Mumbai (21 per cent),
share in 2018 share in 2018
Shaishav Dharia
Regional CEO,
Lodha Group
Companies are investing in expanding
manufacturing capacity while also setting up
wider distribution networks across the country.
Alongside, there are large investments in
organised retail and E-commerce space to meet
the broad-based consumer demand, which
has further increased the demand for Grade A
Industrial Real Estate in India.
Delhi-NCR (20 per cent) and Chennai
(16 per cent), closely followed by Ban-
galore (15 per cent). Hyderabad and
Kolkata accounted for shares of 14 per
key trend expected
in 2019
  Growth of the sector will be boosted by
government initiatives such as Make in
India and Digital India campaigns.
  Strong leasing momentum is likely to
continue throughtout the year; 3PL and
e-commerce players are expected to drive
demand for logistics space.
  Key factors which are expected to drive
demand across the country: consolidation
and expansion by existing players and
entry of new players.
  Large and better-quality warehouses
are more in demand; leasing trajectory in
tier II and smaller cities likely to pick up.
  Indian logistics players are going
to continue to adopt automation and
robotics to revolutionize their operations.
  In the coming year, foreign
participation in the Indian logistics
market is likely to propel the
development of tech-enhanced
warehouses across the country.
  The sector is likely to observe increased
levels of institutional funding and more
formal sources of capital – prominent
private equity firms and developers are
already indicating interest to acquire
land parcels across various locations.
Source: CBRE India Market Monitor 2018/2019
 cover story
cent and 9 per cent in the overall space
t a ke -up. T he c it ies of P u ne a nd
Ahmedabad collectively held a share
of 5 per cent.
“Mumbai, Delhi-NCR and Bengal-
uru continue to be the most active
transaction markets, and manufactur-
ing locations like Pune, Ahmedabad,
and Chennai are also adding thrust to
the demand,’’ states Rajesh Jaggi, Man-
aging Partner, Real Estate, Everstone
Group. “In addition, Kolkata is quickly
emerging as the next growth cluster, so
are Tier II cities like Ludhiana, Kanpur
and Coimbatore. Warehousing space in
India’s top seven cities is esitimated to
grow from 621 mn sq ft in 2016 to 839
mn sq ft in 2020,” says Jaggi.
Shevade explains, “While Chennai
and Ahmedabad registered significant
demand from the manufacturing sector,
Kolkata emerged as a major logistics hub
due to its consumption and distribution
advantage. Gurgaon NH-8 of NCR re-
gion; Bhiwandi of Mumbai; Chankan
and Telegaon of Pune; Haskote of Ban-
galore; Irrungattukottai, Poonamalle
and Sriperumbudur of Chennai; NH-6
of Kolkata; and Changodar and Bhayla
of Ahmedabad are the few key clusters
having investor’s interest and high
growth potential.”
“Apart from top cities, growing de-
mand observed for warehousing space
from tier II cities like Coimbatore, Gu-
wahati, Lucknow, Jaipur and Ludhiana.
With E-commerce players expanding
28 CargoConnect - may 2019
operations across every nook and
corner of the country, there has
been a corresponding rise in de-
mand for space from these com-
panies in both Tier I & II mar-
kets,” adds Shevade.
Undoubtedly, Bhiwandi,
near Mumbai, is the largest
warehousing market in the
country in terms of the space
for warehouses and attracting
Grade A and B investments. It
is closest to the largest port.
However, the National Capi-
tal Region is becoming a hot-
bed to locate warehouses catering to
North India. The spurt in demand has
led to real estate prices and rentals rising
in some regions, like that on Tauru Road
and in Bhiwandi. The demand for qual-
ity warehouses is far outstripping supply
at the moment. While new warehouses
are coming online nearly every month,
the supply scenario isn’t going to change
Mumbai, Delhi-NCR and
Bengaluru continue
to be the most active
transaction markets, and
manufacturing locations
like Pune, Ahmedabad, and
Chennai are also adding
thrust to the demand.
anytime soon. According to industry
watchers, it could take nearly two years
for the market to be flooded with enough
‘Grade A’ and ‘Grade B’ stock, the indus-
try’s lingo for better warehouses.
According to Dharia, “Industrial
real estate segment in India has largely
been unorganised and lead to formation
of informal clusters around larger Gov-
ernment industrial parks or at vantage
locations in the erstwhile tax regime to
optimise local levies such as Octroi.”
Dharia adds, “Demand has now shifted
to strategic locations with good infra-
Sandeep Chadha
Founder & CEO,
Warehouster
Capital Advisors
India Pvt Ltd
GST for one, has not only made One-Nation,
One-Tax dream possible, it has catapulted
the sector towards greater consolidation and
enhanced throughput. The scale to minimise
costs and to enhance profits is now available.
Similarly, industry status to the logistics sector
has made possible the smooth inflow of foreign
institutional money. Ease to access in money
allows superior state-of-the-art facilities in line
with the global standards.
structure and connectivity for serving
major consumption markets. Supply for
such locations, especially in land
starved cities like Mumbai is quite con-
strained and companies are willing to
pay a significant premium to have their
presence close to the key markets.
Mumbai is also favourable for those
operating a global supply chain, due to
its status as the prime gateway port and
airport for the country.”
Impact of Government policies
The commitment of the government
towards integrated development of the
logistics sector through policy amend-
ments, infrastructural development, tax
reforms and technology adoption is
certainly helping deliver desirable re-
sults. Further, it will enhance trade
competitiveness, create jobs, shoot up
India’s performance in global rankings
and pave the way for the country to
become a logistics hub.
Shevade expresses, “Policy interven-
tion both from central/state front is an-
other driver to push investment attrac-
tion for investors. GST, Real Estate In-
vestment Trust (REIT), Electronic Way
Bill (E-way bill) and Automated Toll fa-
cility are the major pillars towards sus-
tainable investment into the sector.”
“The upcoming Industrial Policy,
Aviation Cargo Policy, dedicated and
focused team for the country’s logistic
requirements would help to build inves-
tor’s confidence. Various government
measures have been taken up to
 cover story
promote investments in the field of
warehousing by modifying policies in
order to ease land acquisition and also
make land available for logistics under
the newly formed logistics policies of
various states; monetisation plan
through unlocking various government
lands, like those belonging to port, rail-
ways and highway authorities, through
independent implementing agencies,”
says Shevade.
Singh expresses that the key initia-
tives by the government to reshape the
industry include the single uniform tax,
which has reduced price differences
between states and tax liabilities across
India. Sigh says, “The new structure has
provided an advantage to companies as
they can now make their decisions on
supply chain management freely and
solely based on operational efficiency.
Further, the GST system, through its
provision of the E-way bill has brought
down check-posts at state borders, en-
abling faster and seamless movement of
goods between states.”
Further, Singh adds, “Another critical
30 CargoConnect - may 2019
initiative, which aims at providing
integrated logistics network, in-
cludes dedicated freight corridors
spread across 15 states for faster
movement of freight and develop-
ment of 35 logistics parks to cut
transportation costs and enable
swifter movement.”
According to Chadha, “The
government has implemented
several key policy measures
which have oiled the indus-
trial and warehousing asset
class towards momentum
and on a growth trajectory. GST for one,
has not only made One-Nation, One-Tax
dream possible, it has catapulted the sector
towards greater consolidation and en-
hanced throughput. The scale to minimise
costs and to enhance profits is now avail-
able. Similarly, industry status to the logis-
tics sector has made possible the smooth
inflow of foreign institutional money. Ease
to access in money allows superior state-
of-the-art facilities in line with the global
standards.”
Dharia believes that the Make in
India initiative has set the direction for
attracting large scale manufacturing for
catering to the Indian market. “The fo-
cus has been on both, import substitu-
tion as can be seen for mobile phones,
but also for increasing the capacity in
existing domains such as FMCG, auto-
mobiles, pharmaceuticals, etc. Backend
changes in the processes have also led to
overall increase in ‘Ease of Doing Busi-
ness’ rankings for India, which has
boosted investor’s confidence. It is an
Various government
measures have been
taken up to promote
investments in the field
of warehousing by
modifying policies in
order to ease land
acquisition and also
making land available
for logistics.
Rajesh Jaggi
Managing Partner,
Real Estate,
Everstone Group
Indian economy will need an efficient and fairly
vast network of warehouses and logistics
facilities. Being the market leader in Grade A
warehouses, we are very positive about the
sector. IndoSpace has taken its total commitment
to India to well above US$ 3.2 billion and we plan
to build a pipeline of 120 million sq ft of modern
logistics infrastructure to support the growth and
modernisation of India’s supply chain.
ongoing exercise and we are confident
that the improving business environ-
ment will add further momentum to the
investments and new capacity develop-
ments across sectors,” explains Dharia.
Role of Technology
Warehouses are not just about storage
anymore. They function as fulfilment
centres, distribution centres, return
centres, and at times as showrooms.
Supply chain processes are under im-
mense pressure to efficiently and ef-
fectively meet the growing demand
within a stipulated time and cost. If the
right product does not reach the right
customer within the prescribed time
then the company not just loses busi-
ness but also reputation. As a result,
warehouse floors are always under high
pressure. It is therefore imperative to
improvise on functional, technological
as well as warehouse development as-
pects to efficiently handle these addi-
tional functions.
Today’s warehouses need fewer op-
eratives and hence, fewer line manag-
ers, because certain labour-reducing
technologies have either made labour
more efficient or eliminated it altogeth-
er. Technologies such as Warehouse
Management System (WMS), Scanning
Technologies, Voice Technologies and
warehouse automation are gaining
prominence.
India’s warehousing technology
market is growing steadily, with the
upswing in demand from the thriving
logistics, retail and manufacturing sec-
 cover story
tors, as well as government promotion.
As the booming manufacturing and
retail sectors are the main users of these
technologies, sustained demand from
these areas is ensured. For instance,
Wal-Mart made it mandatory for its
suppliers to deploy RFID. The growth
of India as a major sourcing nation for
the world’s leading retailers is also
ramping up demand. Until recently, the
logistics industry was highly unorgan-
ised, comprising predominantly me-
dium and small-sized LSPs. However,
the trend is changing with the increase
in the number of organised LSPs and
improvement in the services offered by
them through 3PLs and 4PLs. To obtain
the cutting edge in the market, logistics
and dedicated warehousing companies
are adopting these technologies to im-
prove warehousing and supply chain
management. This enables them to
achieve maximum warehousing effi-
ciency.
The Special Economic Zones (SEZs)
established by the government for auto
manufacturers, usually close to the
ports, to cater to the growing demand
in the automobile sector, provide manu-
facturers with dedicated as well as
shared-user facilities wherein, two or
more manufacturers share the ware-
housing services in order to cut down
their supply chain costs. This has also
increased the need for the use of mod-
ern technology such as RFID and WMS
to track the goods in the warehouses.
Amazon who is a known master at
automat ion, repor tedly has over
1,00,000 robots installed in warehouses
across the world. In India, it uses auto-
mation to measure operational effi-
ciency and improve customer experi-
ence. Akhil Saxena, Vice President,
Asia Operations at Amazon.in says
that whenever a new product enters its
warehouses, it goes through a cubiscan
process that helps record its dimensions
and details- height, length, width,
weight. “This insight is what enables a
packing associate use the right box to
pack the product. It also prompts him
when there is a product that is fragile,
and needs special packaging,” says
Saxena.
32 CargoConnect - may 2019
In one of the company’s fulfilment
centres in Delhi, it has a 1.2 km long
conveyor belt with colour based auto-
matic sorting. Automation such as
this is possible in larger warehouses.
With the newer crop of Grade A
stock coming online, automation is
only headed north.
Today, material handling
equipment is available on rent.
Things like this make the cost of
automation cheaper. “Lot of op-
timisation will happen in la-
bour because larger warehous-
es can use more automation. It
would reduce manpower re-
quirements significantly going for-
ward,” asserts Saxena. “A one lakh sq ft
warehouse now would have around
200-250 people. The number can vary
depending on the type of goods being
handled. Even partial automation can
bring down manpower requirements by
20-25 per cent,” adds Saxena.
3PL companies, such as Mahindra
Logistics, have therefore invested in
WMS and Transport Management Sys-
tem (TMS) that provide visibility of
goods shipped and its lifecycle, from
FMCG companies to distributors. The
use of fleet management software (pro-
India’s warehousing
technology market is
growing steadily, with
the upswing in demand
from the thriving
logistics, retail and
manufacturing
sectors, as well as
government
promotion.
Jasmine Singh
Senior Executive
Director- Advisory
and Transaction
Services, India, CBRE South Asia Pvt Ltd
In H2 2018, the overall demand for logistics and
warehousing space was largely concentrated in
Mumbai (21 per cent), Delhi-NCR (20 per cent)
and Chennai (16 per cent), closely followed by
Bangalore (15 per cent). Hyderabad and Kolkata
accounted for shares of 14 per cent and 9 per
cent in the overall space take-up. The cities of
Pune and Ahmedabad collectively held a share of
5 per cent.
vides live tracking of goods), RFID sys-
tems for inventory identification and
automated pallet storage is growing
quickly, as is the number of start-ups
aimed at bridging the technology gap,
CBRE states in a report.
Certainly, new trends are shaping
the 3PL sector, says Sushil Rathi, Chief
Operating Officer, Mahindra Logistics
Limited. “The industry is moving to-
wards technology led innovations,
which is resulting in better visibility
and transparency. It is also moving
from a cost plus model to a variable
pricing model. Today, customers are
increasingly looking at end-to-end of-
ferings from warehousing, to second-
ary distribution,” states Rathi.
“The Indian market for warehouse
automation is projected to grow at a
CAGR of 10-12 per cent to touch $3.49
billion by 2020. The widespread deploy-
ment of IoT would revolutionise opera-
tions by creating smart warehouses
that improve supply chain efficiencies,”
points out Singh.
 cover story

Akhil Saxena
Vice President, Sushil Rathi
Asia Operations, COO, Mahindra
Amazon.in Logistics Ltd

Lot of optimisation will happen in labour because
larger warehouses can use more automation.
It would reduce manpower requirements
significantly going forward. A one lakh sq
ft warehouse now would have around 200-
250 people. The number can vary depending
on the type of goods being handled. Even
partial automation can bring down manpower
requirements by 20-25 per cent.
New trends are shaping the 3PL sector. The
industry is moving towards technology led
innovations, which is resulting in better visibility
and transparency. It is also moving from a cost
plus model to a variable pricing model. Today,
customers are increasingly looking at end-to-
end offerings from warehousing, to secondary
distribution.

uture Outlook Shevade asserts, “Indian Economy

We have already witnessed a great deal
of investments during 2018 and this
trend is only likely to gain momentum
going forward. An anticipated increase
in demand from manufacturing com-
panies will spur supply of quality
warehousing, which is likely to lead to
emergence of new warehousing hubs as
well as expansion of the existing hubs.
An improving domestic economy and
legislative reforms have been encourag-
ing an increasing number of foreign
firms to establish their manufacturing
bases in India. Warehousing and food
storage service providers have ex-
pressed particular interest in serving
the growing industry needs of the
country. The entry of multiple global
brands may help raise the existing tech-
nological know-how in the field here to
global standards, and create more em-
ployment opportunities in the sector.
Undoubtedly, Bhiwandi, near Mumbai, is the
largest warehousing market in the country
in terms of the space for warehouses and
attracting Grade A and B investments. It is
closest to the largest port.
is now shaping up as one of most fa-
voured investment destination for in-
vestors. The perception of Indian con-
sumers along with sustainable GDP
growth exhibits internal strength of the
economy, and suppliers are taking up
necessary measures to reach door step
of consumers within reasonable time
and also control in-transit deterioration
of product quality. As a result, ware-
housing is gaining its due importance
in the overall logistics chain and prod-
uct supply chains. To achieve the objec-
tives, warehousing space requires qual-
ity with maximum standards on mate-
rial handling facilities along with
safety and security at the right location,
providing hassle-free passage to its
consumers with minimum time loss.”
“Governing laws are the determi-
nant in development plan for every
developer, as it is the driver for efficient
material/vehicle handling, inclusive of
volumetric storage space with ensuring
adequate storage environment. Though
India has not reached the peak of full
automation, the future potential is not
far. Innovation in material handling
and storage environment is at the door
steps and about to enter. The proposal
to set up a separate department for
Fisheries and an integrated approach
for all perishable products in process-
ing, preservation, packaging and main-
tenance will help in consolidating the
cold chain and temperature controlled
warehouses across the country. This
will result in transforming the frag-
mented, unorganised segment into an
organised one,” observes Shevade.
Chadha says, “The fundamentals
are strong and augurs for a well-laid-out
growth realm. The demand is steady
and is growing; the supply is catching
up and is heading towards more glob-
ally compliant facilities. So for both, near
as well as long term, we can expect the
momentum to continue. The onus then
lies in meeting the customer’s demand,
in adopting technology and prudence in
selecting the logistics hubs to be invest-
ed into. The key markets of NCR, Mum-
bai and Bengaluru will continue to hold
sway. At the same time, up and coming
cities needs to be nurtured to accom-
modate the burgeoning demand.”
“Indian economy will need an effi-
cient and fairly vast network of ware-
houses and logistics facilities. Being the
market leader in Grade A warehouses,
we are very positive about the sector,”
says Jaggi. IndoSpace has taken its total
commitment to India to well above US$
3.2 billion and we plan to build a pipe-
line of 120 million sq ft of modern logis-
tics infrastructure to support the
growth and modernisation of India’s
supply chain.
Dharia says that they have seen con-
sistent investments coming to the Grade
A developments in major markets over
the last few years and this trend is likely
to continue in the coming years. “From
our perspective, we are looking to lever-
age the overall ecosystem in Palava, its
location within MMR and proximity to
the port and airport by providing the
best platform for companies looking to
set up their large scale facilities in Mum-
bai,” states Dharia.

34 CargoConnect - may 2019