Increasing Investment Propelling Expansion in Warehouse Industry

Increasing demand of warehouses in India is encouraging domestic and foreign investments, says RNCOS in its latest report.

Indian Warehousing Industry is experiencing a thrust owing to rise in e-commerce followed by increasing share of organised retail sector in the country. Due to increasing usage of improved technology in supply chain operations, the organized retail industry has become cost efficient. Further, Indian Warehousing market is witnessing tremendous growth owing to surge in the investments made by Indian and Foreign investors. Due to such investments, Indian Warehousing Industry is expected to grow at a CAGR of around 10% during the forecasted period of 2017-2020.

The report “Booming Warehouse Sector in India Outlook 2020” highlights various initiatives driving the industry such as increasing investment, infrastructural development and government initiatives.

For instance, GST implementation is expected to have a strong impact on the manufacturing firm, supply chain and distribution channel. Further real estate players are entering the Warehousing Industry pinning their hopes on the implementation of GST, e-commerce industry and a spurt in manufacturing on account of the Make in India campaign.

India is one of the fastest growing economies in the world after China and has witnessed higher FDI flows with increasing presence of multi-national companies. The warehousing players in India have been expanding their business owing to increasing demand of warehouses. For instance, KWE India, the Indian subsidiary of Kintetsu World Express, has set up a Good Distribution Process (GDP) warehouse at the Hyderabad airport for handling pharmaceutical logistics. Further, increasing private and foreign investments in infrastructure are also driving the warehousing industry.

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