Category Archives: Warehousing

Bangalore International Airport Ltd (BIAL) has signed a contract with Air India SATS Airport Services (AISATS) to design, build, finance, operate and maintain a greenfield Logistics Park at the Airport for a period of 15 years, shares Satyaki Raghunath, Chief Strategy and Development Officer, Bangalore International Airport (BIAL). The upcoming logistics park will be developed across ~ 8.0 acres of land. It will be a world-class warehousing facility comprising of a general warehouse, bonded warehouse, consolidation centre, cold-storage facility, office spaces and other amenities such as a Bank / ATM facility, a business centre, a cafeteria etc. AISATS will also provide value-added services including manpower and equipment rentals on an hourly or pay-per-use basis for loading/offloading, labelling, packaging, bulk-breaking. The development of the Logistics Park will support the exporters, importers, and freight forwarders by creating an efficient warehousing centre with value-added services for the air cargo community. In line with the Gati Shakti Plan, BLR Cargo will also be enhancing its cargo capacity from 715,000 MTPA to 1 Million MTPA by the end of this decade.

Gati Ltd., an Allcargo Group company has added 1000 Pin codes to its direct delivery coverage network, increasing its direct coverage by 25 percent. With Gati’s unmatched transportation, warehousing and service delivery capabilities, businesses now can scale up their operations effectively and sustainably across the country. Leveraging Gati’s direct connectivity to the Pin codes, businesses can bolster their supply efficiency with faster, safer, and cost-effective movements. With the expansion of direct delivery to 5140 PIN codes, customers can now benefit from better transit time, reliability and can scale their businesses to a much wider network. Commenting on the development, Pirojshaw Sarkari, Managing Director and Chief Executive Officer of Gati Ltd. said, “With 1000 more direct delivery Pin codes, we have further enhanced the reach of our direct delivery network across the country. This shall be a continuous endeavour at Gati to give fast and direct access to its customers. By building a robust network, we are not only driving efficiencies for large enterprises but also strengthening small and medium-sized businesses, thus contributing to economic growth.”

In its India Warehousing Market Report-2023, Knight Frank India stated that Vijayawada recorded warehousing transaction volume of 1 million square feet in financial year 2023-24 with a year-on-year growth of 22%. The city saw a significant growth from prominent Third Party Logistics (3PL) firms like Delhivery and ProConnect as well as traction from major e-commerce players like Ajio and Flipkart. Knight Frank said Vijayawada was home to several businesses such as oil and chemicals, packaged food, automotive, and spare parts, and that e-Commerce made the largest contribution accounting for 62% of the total demand. At 22% of the market, the 3PL industry had the second highest share followed by the manufacturing sector’s 10%. The rents for Vijayawada warehousing facilities range between ₹194 and ₹258 per square metre per month (₹18-24/sq ft/month) in prominent locations. Rents of Grade-A warehousing facilities such as those taken up by Flipkart and Reliance range from ₹226 to ₹258/sq m/month (₹21-24/sq ft/month) while rents for Grade-B warehouses stood in the range of ₹194 to ₹226/sq m/month (₹18-21/sq ft/month). Due to potential rise in demand from online vendors, and 3PL providers in Vijayawada market, the need for warehouse facilities is expected to rise further in near future, the report said.

TVS Industrial & Logistics Parks (TVS ILP) partnered with Nestlé to establish a customized warehouse in Coimbatore. This collaboration not only marks a significant milestone for TVS ILP but also underscores their commitment to delivering tailored solutions and expanding their footprint in the region.The completion of this project, marked by the handover of the facility on June 14th, 2023, represents in the timely collaboration between TVS ILP and Nestlé. Notably, the construction of the warehouse was completed within an impressive timeframe of 4.5 months. The stand-alone building, encompassing an impressive area of 1.31L square feet, has been thoughtfully designed to meet Nestlé’s specific requirements, enhancing their supply chain capabilities in the region. Located conveniently along the Palladam-Cochin Road, in the Sulur area, the facility enjoys excellent connectivity and is strategically positioned within the Sulur Warehousing Cluster. This prime location will provide Nestlé with a competitive advantage in serving customers in the surrounding areas and capturing the lucrative South market.

Falcon Autotech has announced the launch of “NEO – An ASRS to revolutionize the warehousing landscape by offering businesses unparalleled efficiency, enhanced productivity, and streamlined inventory management for order fulfilment and piece-picking operations. A game-changer in the warehousing industry, NEO is leveraging robotics, artificial intelligence, and advanced sensors to automate goods’ storage and retrieval processes. Comprising five key components NEObots, NEOgrid, NEObins, NEOit and NEOstations, the ASRS system enables storing and retrieving goods in an overlaid grid within the four walls of the warehouse without complex engineering. It is adaptive and can be deployed quickly and cost-effectively compared to traditional material handling systems. NEO’s standout features include 3D movement wherein the bots can move freely in all three X, Y, and Z dimensions to reach their targeted bins eliminating the need for any lifts or conveyor system. NEO’s modular structure also provides the freedom to grow as your company grows. Based on the requirement, companies can add more robots or bins to cater to growing demands. In its decoupled system, any bot can enter any aisle, access any bin, and reach any workstation, making NEO the most flexible goods-to-person system. It also sets new standards for efficiency in warehousing operations by automating tasks such as retrieval and sorting, leading to faster order fulfilment and increasing picker productivity by 4-5X.

V-Trans launched new-age tech-driven solution, “Complexity Simplified with Solution Design” designed to streamline and optimize supply chain operations. This is launched to provide unprecedented control, efficiency, and real-time visibility to clients. Commenting on this, Jay Shah, Head – Solution Design said, “V-Trans’ relentless focus on innovation and technology has propelled the company to stay ahead of the competition. This latest offering reaffirms their commitment to providing best-in-class solutions that empower clients in an ever-evolving business landscape. By investing in the logistics sector and continuously driving advancements, V-Trans aims to deliver even more transformative solutions in the years to come”.

The rising trend of Grade A development continued to gain momentum in FY 2023 with developers increasingly focusing on higher grade park development compliant to contemporary norms and the higher throughput requirements of businesses today, said Knight Frank’s latest India Warehousing and Market Report 2023. In addition to the emerging focus on sustainable development, there is an increasing need for improving the aesthetics of these warehousing parks and enabling a better working environment. 59% of the supply coming online in FY 2023 across the eight primary markets was in Grade A properties compared to 55% in FY 2022. Six out of the eight markets have seen the share of grade A stock increase in FY 2023 compared to the previous year.

TVS Industrial & Logistics Parks (TVS ILP), part of TVS Mobility Group, has plans to invest $1 billion in developing 20 million square feet of infrastructure in 20 different warehousing parks in the country in the next three to four years. TVS ILP already has 11 logistics parks in Tamil Nadu, Maharashtra, Odisha, Andhra Pradesh and Rajasthan with a cumulative space availability of 10 million sq. ft. The company currently has a 35 clients from across segments viz. FMCG, FMCD, 3PLS (third party logistics in supply chain management), CDE (Consumer Durables and Electronics), e-commerce, automotive and manufacturing.

GMR group has divested its 8.18 lakh square feet warehousing facility at the Hyderabad Airport to ILP Core Ventures I PTE Limited for Rs 188.1 crore. GMR Hyderabad International Airport Limited (GHIAL), a step-down subsidiary of GMR Airports Infrastructure Limited, has signed the definitive agreements and closed the transaction with ILP Core Ventures I PTE Ltd, it said in a statement. ILP Core Ventures I PTE Ltd is a step-down subsidiary of Indospace Core PTE Ltd. This divestment of the warehousing facility was concluded by means of divestment of a 100 per cent equity stake of GMR Hyderabad Airport Assets Limited (GHAAL), a subsidiary of GHIAL and a special purpose vehicle (SPV) that owned this warehouse facility, the group said. Post the conclusion of the transactions, GHAAL would cease to be a subsidiary of GHIAL, it added. The resulting cash flows from the deal will help in deploying capital in expansion facilities and other growth opportunities at the Hyderabad Airport Land Development portfolio, the statement said.

Blackstone Group is betting big on warehousing and logistics development in India with plans to expand its warehousing portfolio in the country by 2.5 times to 100 million sq ft from current 40 million sq ft in the next 3-5 years. The decision is taken owing to the rising consumption led by demographics, ecommerce penetration and supporting regulatory initiatives by the government. The group will be furthering its logistics portfolio through its existing joint ventures and partnerships and will also be forging new alliances for the same.