Warehousing Industry in India

 

 

 

Traditionally being one of the most overlooked sectors in logistics, the warehousing industry has advanced multifold today. Designed with sophisticated stockrooms with advanced state-of-the-art facilities, warehouse layouts have changed dramatically since the industrial revolution. Depending on the infrastructure, this market in India can be classified into the following:

•    Lower Stratum: Conventional storerooms - bolstered cement concrete construction that can be utilized only for storage.

•    Middle Stratum: Godowns having pre-engineered structures

•    Higher Stratum: Huge warehouses that are used for storage and refurbished for implementing several supply chain functions.

Market Insights

The warehousing industry in India values nearly 25% of the total logistics expense. Several cities, including Siliguri, Bhubaneshwar, Vishakapatnam, Lucknow, Nagpur, Ludhiana, Rajpura, Guwahati, and Coimbatore have gained prominence in terms of warehouse growth.

In 2019, the warehousing industry was valued at Rs. 1501.27 Bn, and by 2024, it is expected to reach Rs.2821.10 Bn. This market is further divided into four industrial segments:

•  Industrial or retail warehousing

•  Inland container depot or freight station or

•  Agricultural warehousing

•  Cold Storage

Among the above segments, the highest growth rate is witnesses in agricultural warehousing. The growing need for appropriate storage of vegetables and fruits in the country is enticing agri-warehousing.Import and export cargo are the key drivers of the warehousing segment. With an increase in global trade over the last decade, there has been a positive impact on the warehousing industry. The other upcoming growth drivers, such as healthcare, telecommunications, information technology, and organized retail, also have created a strong demand for storage facilities.

Future of the Warehousing Industry

Holistically, the warehousing and industrial sectors will be taking a significant evolutionary upsurge in the next 4-6 years. Extensive up-gradation in the services by the comprehensive, state-of-the-art technology-based storing laborers may also arise as a trend. This sector has gained maturity. Even the upcoming and meager developers have begun rendering characteristic specifications and foundation as a conventional offering.