Category Archives: Warehousing

Varun Gada, Director, LP Logiscience – A Liladhar Pasoo Company says, “In the post COVID era, the Indian logistics and supply chain sector has emerged as a significant backbone for the Indian economy and continues to be the important step to strengthening India’s position as a global economic power. While disruption through geopolitical stressors, further threatened international trade, India has emerged as a stable trade and business economy, thanks to positive government policies. As the Indian government enhances its focus on infrastructure development and bolstering Indian exports through various schemes, I would like to draw attention to the warehousing and contract logistic sector that has become vital in terms of building global supply chains. Currently, the warehousing sector is looking to accelerate digital adoption, embrace greener practices that match international standards, and drive value added collaborations with the manufacturing sector. In the upcoming budget, a focus on the following aspects will be beneficial for the sector: 1.​Reduction in Steel duty/ prices for industrial warehouse construction would be beneficial as up to 50% of the cost of construction of a warehouse is attributed to steel as a major component. 2.​Enhanced focus on improving the road transport infrastructure which can help decongest the existing warehousing hubs, reduce rentals and unlock better value for land available for warehousing. 3.​The government can additionally consider capital subsidies for the construction of grade-A warehouses in smaller towns. 4.​Better Public-Private Partnerships to setup of multi-modal logistics parks with better connectivity to new expressways. 5.​Reduction in solar panel import duties to help reduce capex investments and a re-look at the tax structure and subsidies for environmentally responsible practices 6.​Easier and attractive loans/ access to funds for tech adoption …

Citing his expectations from the budget, Mahendra Shah, Chairman, and Group Managing Director, V-Trans (India) Ltd said, “In the impending budget, The finance minister can address the challenges faced by the logistics sector in several ways and provide a steadiness between the economic growth priorities and inflation concerns, in an all-encompassing manner. Investments in infrastructure and technology can be given some motivation by offering tax benefits, it will on hand make the operations more effective and bring down the cost, on the other, it will also create employment opportunities. Also, to motivate the logistics players, the government can enhance or introduce rewards for building green infrastructure and practicing sustainable initiative”. Further he added, “The momentum of growth that our country has come to a way post the global pandemic cannot be undermined, the strengthening of the digital ecosystem with various initiatives under NLP, for faster communication and work, enhanced visibility, and transparency is very promising. To catalyze the master plan announced in the previous financial budget, NLP was much awaited by the industry and heard quite applause. We expect this budget to focus on lowering the costs of the logistics industry, especially by implementing the NLP that was launched in 2022, and look forward to seeing some tangible benefits to the industry being passed.”

Gati Ltd. An Allcargo Group company has launched state-of-the-art and tech-enabled surface transhipment centres(STC) in Nagpur, Maharashtra and Guwahati, Assam. The launch of Nagpur and Guwahati STCs is in line with Gati’s plan to set up 12 modern, automated and environmentally friendly STC. The company has plans to launch more STCs in Mumbai, Bengaluru and Hyderabad, as it aims to further strengthen its supply chain and warehousing competencies and networks. Strategically located at Nagpur-Amravati Road, the Nagpur STC is spread over a 50,000 sq. ft. area and has the capacity to efficiently manage short-haul deliveries in west India and long-haul deliveries across the country. Equipped with advanced technologies, the STC offers its customers optimized supply chains, reduced dwell times and on-time deliveries. Designed in compliance with green norms, Nagpur STC is equipped with built-to-suit technology-enabled warehouses of global standards, shop floor automation, an advanced Warehouse Management System, world-class material handling facilities, integrated warehousing and distribution mechanisms and superior safety features. The facility has adequate docks to turn around over 100 trucks a day and has a throughput capacity of over 1800 tonnes per day. With customised solutions, the Nagpur STC will cater to multiple industries including automotive, electrical equipment, apparel, heavy engineering, pharmaceutical, etc. The Nagpur STC adheres to the highest levels of performance and precision for sorting and loading and unloading cargo. Centrally located with congestion-free access to Nagpur-Amravati Highway, other key arterial highways and seamless connectivity into the hinterlands, the Nagpur STC has establishments of major corporates located within the periphery of 10 km. Located at the geographical centre-point of the country, Nagpur has emerged as a busy logistics hub in India. The combined advantage of its geographic …

Godrej & Boyce has announced that its Material Handling business, plans to significantly boost investment in IoT-based technology and data, to enhance customer experience, global footprint and increase market share. The overall intralogistics businesses of Godrej & Boyce include Material Handling solutions, Storage solutions, and intralogistics solutions through a joint venture with Koerber (Godrej Koerber). They have a total turnover of 1800cr, growing at a consistent 12% CAGR, said an official release. The Material Handling division has recently established strategic alliances with tech giants to launch disruptive solutions that are expected to increase customer efficiency. The pilot project has shown an increase of 12-15% in customer efficiency through better utilisation of their assets, monitoring the movement of the assets and monitoring of key performance parameters such as productivity, energy consumption, vehicle performance etc. the release added. Anil Lingayat, Business Head- Godrej Material Handling, Godrej & Boyce said, “The advancement of technology has become a necessity for the intralogistics sector to connect, automate, and analyze the success of operations. Material Handling business has been continuously focusing on digitization and connecting across the value chain. With new connected products, it is going to enhance the customer experience by leveraging the power of IoT, cloud, and analytics”.

FM Logistic, has been awarded an end-to-end National DC contract by global fashion brand, United Colors of Benetton to boost its growth in India, FM Logistic will carry out storage and handling operations spread across 1 Lakh sq. ft. at its owned FM Global certified and LEED Gold certified, Grade-A, Multi-Client Facility (MCF) in Farrukhnagar, Haryana. FM Logistic will not only cater to order preparation for UCB’s owned, franchised outlets and other partners, including E-com across India. FM will deploy plug-and-play comprehensive supply chain and IT solutions that will work seamlessly for B2B2C operations. Additionally, FM Logistic will provide value-added services like labelling, repackaging and manage returns & refurbishments. Considering the seasonal nature of the apparel business, FM Logistic is well-equipped to manage the seasonal peaks (which exist for a major part of the year) through a world-class warehouse management system. “We are committed to delivering to our customers the highest standards of safety, compliance, sustainability, conditions of work, quality and operational excellence at competitive costs, We are very thankful to United Colors of Benetton for their trust and long-term partnership. We are eager to support their rapid growth in the country by deploying our sectoral expertise, efficient solutions and technology along with the best warehousing standards in the country. Thus, enabling them to offer the best quality and a large range of products to their end consumers across various distribution channels from one integrated, state-of-the-art and sustainable order fulfilment setup. We are delighted to partner with United Colors of Benetton to manage their fulfilment operations pan India,” said Alexandre Amine Soufiani, MD – FM Logistic India.

TT Aviation, which started its operation from 2010 in the Customs Bonded Trucking domain, has added Kolkata (CCU) in their network and got the necessary Customs approvals to start Export Bonded Trucking from Kolkata WEF Jan’23. In H2 2022, Kolkata was primarily used for import bonded trucking destination and successfully offloaded 150+ trucks. Kolkata is the 9th station in the network after MAA, HYD, BLR, COK, CJB, BOM, DEL & AMD, which is capable for both import and export bonded trucking activities. With this addition, the freight connectivity from Kolkata has been widened for the trade and it will connect Kolkata to all major metro/non metro air cargo terminals between 72-120 hrs. Size and shape of the cargo will not be a showstopper anymore and at the same time there will not be any commodity restrictions too. The road connectivity from Kolkata will reduce the logistics cost by approx. 10-14% for air cargo.

Nishith Rastogi, Founder and CEO, Locus highlights trends for 2023 in logistics he says, “With the number of deliveries expected to be on the rise, several trends are expected to emerge, including: The rise in omnichannel retail: Omnichannel retailing is a process where businesses integrate all the channels to provide seamless shopping experiences to their consumers. Buying online and picking from stores (BOPIS) is a clear example. As a result, businesses increasingly invest in omnichannel capabilities to improve delivery control, speed, flexibility, and costs. It cuts unnecessary time for the product to move across intermediaries like the brand mother warehouse and makes last-mile logistics more efficient. The growing importance of Sustainability: Rising awareness around the need for sustainable operations has prompted businesses to find new ways to make last-mile fulfillment sustainable and more efficient. One example is how businesses invest in micro-fulfillment centers that are closer to customers to reduce emissions and speed up deliveries. We also expect to see continued investment in electric vehicles, parcel lockers (automated parcel devices that serve as alternate delivery locations for dense delivery zones), and greater adoption of route planning solutions to find the optimal route. That said, sustainability will take many forms going forward. Increasing adoption of technology solutions: Logistics and supply chain experts predicted that after 2022, businesses would move away from survival mode and double down on future growth opportunities. The number of packages that consumers order continues to be on the rise, and investments in logistics technology will give businesses the ability to make quick and informed decisions and differentiate their last-mile fulfillment experience. Studies have shown that by 2024, 50% of supply chain organizations will invest in applications that …

Gubba Cold Storage Pvt Ltd is planning to expand its services PAN India and in April 2023 the company is going to unveil a 6,000 pallets capacity facility with robust shuttle racking infrastructure at Gundlapochampally in Hyderabad, says Kiran Gubba, CEO, Gubba Cold Storage Pvt Ltd. At present, the company has 3 facilities located in Vishakapatnam, Hyderabad and Aurangabad with 5000 pallets & 2500 tons capacity.

Mirae Asset Credit Opportunities Fund has announced acquisition of a Mumbai-based industrial logistics and warehousing asset for Rs 130 crore, marking first such deal under its India-focused foreign institutional funds allocated for high-grade Indian real estate opportunities. Mirae Asset Credit Opportunities Fund, a category II AIF has made its maiden acquisition of a logistics facility, a pre-leased Grade A industrial asset at Bhiwandi, MMR, spread over a 10-acre land in Bhiwandi near Mumbai, the company said in a statement. The industrial property, housed in the 160-acre K-Square Integrated Industrial Park, has been acquired from Prakhhyat Group, it added. “We are also exploring opportunities at office acquisition deals including IT parks, corporate offices besides logistics & industrial space. We continue to be bullish on Indian economy and the real estate sector in India,” said Jun Young Hong, director, Mirae Asset Investment Managers (India) Pvt. Ltd. Mirae Asset Management also operates lending and mutual fund businesses. With a total leasable area of over 3 lakh sq ft, the acquired asset has been rented out to Rhenus Logistics, a global logistics services provider headquartered in Germany with operations across Europe, Asia, and South America.

Industrial and warehousing space witnessed absorption of more than 46 mn sq. ft in 2022 which includes over 36 mn sq. ft from tier I cities and over 10 mn sq. ft from tier II & III cities. India witnessed a fresh supply of 47 mn sq. ft in 2022, of which 34 mn sq. ft was from tier I cities and close to 13 mn sq. ft from tier II & III cities, as per the latest data from International real estate advisory firm, Savills India. The new projects delivered with improved specifications and of high quality environmental, health & safety (EHS) standards. Supply & absorption in tier I cities (2022 vs 2021) 2022 2021 Y-o-Y change Supply (Mn sq. ft) 34.1 36.0 -5.3% Absorption (Mn sq. ft) 36.2 35.1 +3.1% Stock (Mn sq. ft) 300 266 12.8% Vacancy (%) 9.0% 9.4% -40 bps Supply & absorption in tier II & III cities (2022 vs 2021) * 2022 2021 Y-o-Y change Supply (Mn sq. ft) 12.9 8.9 +44.9% Absorption (Mn sq. ft) 10.1 8.6 +17.4% *Tier II & III cities include Coimbatore, Guwahati, Indore, Nagpur, Lucknow, Jaipur, Rajpura, Bhubaneswar, Kochi/Ernakulam, Patna and Hosur, Madurai, Varanasi, Hubli, Ludhiana Among the major cities in India, Delhi NCR led the pack with the highest absorption in 2022 at 16% followed by Mumbai at 14%. Pune and Bengaluru saw absorptions at 13% and 12% respectively, while tier II & tier III cities accounted for 22%. 3PL and e-commerce sectors continued to drive warehousing demand, together accounting for 52% of the total absorption witnessed in 2022, followed by manufacturing sector at 16% and retail sector at 13%. Grade A space accounted 42% of total …