siliconindia | | July 201919DECODING THE GROWTH FACTORS DRIVING TRANSFORMATION OF WAREHOUSING IN INDIABy Aditya Vazirani, Founder Director, Robinsons Global Logisticsarehousing is an import-ant component of the Logistic value chain and plays a significant role in quality storage of goods and merchandise during the varied stages of transportation. Until a few decades ago, warehouses were mere `holding' areas, housed in dingy or dilapidated buildings with poor light or ventilation facilities. Since then, warehousing as a sector in India has evolved many folds, with the formerly low-grade godowns be-ing increasingly replaced by pre-en-gineered structures that are insulated, ventilated and climate-proof with round the clock surveillance and stan-dard quality and safety procedures. Traditionally one of the most ignored sectors in logistics, warehouses to-day have developed into sophisti-cated stockrooms with advanced, real-time tracking mechanisms and other state-of-the-art facilities, which have been instrumental in shaping the modern economy. The Indian warehousing industry was estimated to be worth Rs.561 billion (excluding inventory carry-ing costs, which amount to anoth-er ~Rs.4,340 billion) in 2017 and is estimated to grow at 9.5 percent CAGR to reach Rs.968 billion by 2024. Riding high on structured re-forms wave, including the recent infrastructure status granted to logis-tics, and the implementation of GST, Indian warehousing and logistics sector is estimated to attract near-ly $10 billion investments over the next four-five years. With addition of around 200 million sq. ft. warehous-ing space across India, total supply is expected to nearly double by 2022, estimated JLL India. It accounts for ~five percent of the Indian logistics market (excluding inventory carry-ing costs, which amount to another ~ 30 percent).Indian Warehouse Market: Growth DriversApart from conventional storing ser-vices, warehouses in India are now equipped to provide value-added ser-vices like consolidation and break-ing-up of cargo, packaging, labelling, bar coding, reverse logistics, kitting As a CEO of company, Aditya directs the team towards a quicker and holistic growth in the field of dry & temperature controlled warehousing in India and drives design thinking & innovation with the employees to render out-of-the-box ideas in order to enhance customer satisfaction and more efficient processes.Leveraging the fast evolving trade, infrastructure, technology, and human resources, warehousing can soon become the backbone of the logistics and modern trade in IndiaWCXO INSIGHTS
< Page 9 | Page 11 >