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India's warehousing sector is experiencing a rise, fuelled by the booming e-commerce industry and growing demand for efficient logistics (estimated in the billions). This shift is creating opportunities for specialised facilities and attracting significant investment from both domestic and global players.
The rapid rise of e-commerce, with India now boasting one of the world's fastest-growing online retail markets, has fundamentally changed consumer expectations. Customers now demand fast and reliable delivery, placing a premium on efficient logistics infrastructure. To meet these demands, companies are increasingly seeking specialised warehousing solutions. These include "build-to-suit" (BTS) warehouses designed for specific needs, urban fulfilment centers located close to population centers to facilitate faster last-mile deliveries, and warehouses strategically positioned in tier-II cities and towns to cater to expanding markets.
Recognising the potential in this sector, major investors are flocking to the Indian warehousing market. Global players like Blackstone, which is looking to more than double its warehousing portfolio in India to 100 million square feet from the current 40 million sq. ft in the next 3-5 years, and LOGOS are partnering with domestic firms like Welspun One and Hiranandani Group to develop modern warehousing facilities. This influx of investment, exceeding INR 8,000 crore according to Welspun One, is expected to further accelerate growth and provide companies with a wider range of high-quality warehousing options.
Beyond catering to e-commerce, modern warehousing offers several benefits for businesses. The standardised construction methods for Grade-A warehouses allow for faster and more cost-effective development compared to other commercial real estate projects, with construction timelines typically ranging from nine to twelve months. Additionally, these facilities are designed with operational efficiency in mind, minimising delays and streamlining logistics processes, ultimately reducing risk for businesses.
The Indian warehousing sector is poised for continued growth, driven by the e-commerce boom and the increasing focus on supply chain optimisation. As companies strive to meet customer demands and stay competitive, the need for specialised and strategically located warehousing solutions will only intensify. Welspun One Logistics Parks (WOLP) alone is looking to potentially create an aggregate portfolio of over 16-18 million sq. ft over the next 4-5 years. This trend is expected to create exciting new opportunities for investors, developers, and businesses alike, shaping the future of efficient and customer-centric logistics in India.
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