WAREHOUSE INDUSTRY GROWTH

Dr.D.Sathish Kumar, Professor, SIMS

            The Warehousing industry in the country is expected to grow at 13 to 15% in the medium term; these are by the impact of growth in FMCG, Manufacturing, Retail Industry, E-Commerce etc. The domestic warehousing industry grew from Rs 56000 crores in 2013 & Rs77000 crores in 2017. The warehouse is fragmented and most warehouses are having less than 10000 Sq feet, Almost 90% of the warehouse space is controlled by unorganised players. Modern warehouse capacity is concentrated in the country’s top six cities like Mumbai, Chennai, Bengaluru, Ahmedabad, pune, with Hyderabad and Kolkata, these factors like quality of infrastructure and availability of labour remains with these cities.

            Domestic industrial warehousing segment is expected to grow due to expected increase in global demand, growth in manufacturing activities and expansion in international trade etc. The demand for agriculture warehouse is expected to grow moderately on account of high base and expected normal monsoons. Integrated models, end-user industries are expected to growth of cold chain segment. Significant demand is also increasing from Vegetables, fruits and Pharmaceutical industries.  Scope for Logistics and Warehousing are promising.