There is Warehouse Boom in india as
Rs 45,000 crore would be invested in creating storage facilities across India between 2018 and 2020. Of this, warehousing is expected to be the chunkiest at more than three quarters of the estimated investment. Cold storage, agri storage, and container storage form rest of the pie. Institutional investors are in business. According to Knight Frank, a property consultancy, warehousing investments accounted for around 26 per cent of the total private equity (PE) investments into real estate between January 2014 and January 2018. Sustainable urban development and business space solutions provider Ascendas-Singbridge, and global PEs such as Warburg Pincus and Brookfield Asset Management among others pumped in $3.4 billion (Rs22,100 crore) of institutional capital during this period. The property consultancy added in a report that the "actual size of capital movement would be higher, as these numbers only cover the major investments by organised players".
Indian warehouses, particularly, in the unorganised sector, were not really warehouses - they were godowns.
Many of them are in terrible shape. In monsoons, the roof leaks. When temperatures rise in the summers, it can damage electronic items. The floor quality, the heart of the warehouse because the throughput depends on it, is in poor shape as well.
Concrete or low quality steel godowns are now being replaced by steel structures, which are pre-engineered in factories and then assembled at the location. Modern warehouses are water proof, have good ventilation, and insulation to reduce the temperature inside that make it comfortable for those working. Every inch is covered by CCTV camera to avoid theft. Outside, planned wide roads ensure trucks come in and leave without a traffic jam. Embassy, as its name suggests, is building parks. Similar to a business park, its warehousing park would offer business centres, green areas, sewage systems, truck parking, the electrical infrastructure, ATMs, first aid centre, driver rest areas.
The way India stores is changing, particularly, after GST was enforced in 2017.
Fast moving consumer goods (FMCG) companies, consumer durable and other manufacturing firms are consolidating smaller warehouses across multiple states, set up to be tax efficient, into a few strategic but large ones considering India is now a single tax country.
Logistics companies have tight hugged the opportunity. From managing single company warehouses, they are shifting to a multi-client, multi-product model. The French FM Logistic, for instance, runs 83 warehouses in India. Only one of them, in Bhiwandi near Mumbai, is a multi-client one.Post GST, companies decided on multi-client facility. Larger e-commerce players like Amazon prefer to have dedicated warehouses. But the small e-commerce players can take advantage of our multi-customer facilities because you need huge flexibility and there are peaks, like during Diwali.
As companies consolidate operations in large warehouses, they can cut down on cost. Larger warehouses also lend themselves better to automation, which implies a quicker turnaround.
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 quality 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 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 industry's lingo for better warehouses. 'Grade C' is a godown.
This way india is taking big strides in warehousing activities which will ultimately e a ballistic missiles for the speedier economic growth of india in comparison to any country in the world.So think of the warehousing business and become business tycoons in very small period.
