Category Archives: Warehousing

Redefining logistics to explore new business opportunities, India Warehousing Show (IWS), concluded on a suuccessful note with an overwhelming response from the visitors from the industry. Happening after a forceful break of two years due to pandemic, it is more than India’s leading exhibition on logistics and supply chain. India Warehousing Show in this edition offered all its participants an enriching business platform with a wider networking opportunity. The show offered a unique platform to find insights, seek relevant information, explore advanced technologies, network and generate valuable contacts, all under one roof. The event showcased highlights of the business calendar for the entire Supply Chain industry in India in the Logistics & Transportation industry.

Welspun One Logistics Parks (WOLP), announced that it has acquired 40 acres of land, located on the Malur-Hosur road, to set up a large-scale warehousing facility. With a development potential of ~1 million square feet and a total project cost of INR 300 Cr, the facility will service the Bengaluru Metropolitan region’s (BMR’s) industrial and warehousing demand for space. Bengaluru has historically been a warehousing supply starved market with limited institutional developer presence in the Grade A space; however, demand has witnessed a significant uptick on the back of the post COVID E-Commerce boom. As per research estimates by various International Property Consultants (IPCs), demand for both warehousing and industrial space in Bengaluru is expected to be ~15-20 million square feet over the next 3 years. This acquisition comes at an opportune time giving WOLP an early mover advantage while helping the firm capitalize on the shifting customer preference towards Grade A warehouses.

Mahindra Logistics (MLL) and LOGOS have announced a long-term lease agreement for 1.4 million square feet (mmsf) of warehouse facilities at the LOGOS Luhari Logistics Estate in Delhi-NCR. The transaction represents India’s largest warehousing facility in a single park. Under the agreement, LOGOS will develop three Grade-A warehouses totaling 1.4 mmsf for MLL at the LOGOS Luhari Logistics Estate. The first 0.5mmsf warehouse, which was completed in mid-2021, is fully operational and the other two warehouses are currently under development with delivery in late 2021 and early 2022 respectively. The new warehouses will be an important part of MLL’s Pan-India network of multi-client facilities that manage the fulfillment and distribution of its clients’ services within the e-commerce, consumer and engineering industries. The facilities are designed in line with MLL’s sustainability standards, including Liquid Discharge Management and Renewable Energy and Waste Management requirements and state-of-the-art automation. MLL will employ over 2,500 employees and third-party associates across these facilities.

The covid-19 pandemic brought a paradigm shift in consumer behavior from offline to online shopping leading to increased activity in sectors like e-commerce and third-party logistics, in turn leading to increased logistics and storage requirements in urban settings which is expected to take the warehousing stock in India to 380 million sq ft by 2024, according to JLL report. The total stock of Grade A and B warehousing space in the top 8 cities increased at a CAGR of 16% from 2018 to September 2021. “Growth in the supply of Grade A spaces over the years is due to high demand for spaces with high specifications, citing increased inclination for high-grade structures and introduction of new players in the market. The Indian market has now firmly established itself for a more predominant position in Grade A space as opposed to Grade B spaces,” said Yogesh Shevade, Head, logistics and industrial, India, JLL

Landmark Capital, managing real estate investments through SEBI registered alternative investment funds (AIFs) and managed accounts, announced the launch of Landmark Warehousing & Logistics Fund. The fund is targeting a corpus of INR 500 crores, including a green-shoe option of INR 200 crores. Landmark Capital presents avenues to invest in the warehousing and industrial space in India. This is a unique opportunity presented by the changing landscape of logistics industry in India due to regulatory changes like GST, infrastructure development, and rise of digital platforms to buy goods and services. The fund is launched with an objective to generate superior risk-adjusted returns by investing in high-quality Grade-A warehousing and logistics opportunities. Landmark Capital is focusing on non-speculative built-to-suit assets and diversification across geographies to ensure effective risk mitigation. The fund’s deal pipeline accounts for over 400 acres of land with marquee names as potential anchor tenants.

IndoSpace announced its partnership with KSH infra to develop a portfolio of grade A warehousing and logistics parks over the next five years across the country. To develop these assets spread over 10million sq. ft., IndoSpace will be investing Rs 1,000 crore in this new alliance. The primary focus of the joint venture will be the tier I premium micro-markets including Pune, Mumbai, Delhi-National Capital Region (NCR), and Bangalore. In this venture, KSH Infra will take the responsibility of identifying and developing the assets and will also be co-investing in the assets along with IndoSpace. “The demand for warehousing and logistics space is high and the opportunity is enormous. As a market leader in this space, we are always looking to support India’s growth by enhancing our reach. With an established partner like KSH Infra, we are confident of tapping into the market potential,” said, Rajesh Jaggi, Vice Chairman, Real Estate, Everstone Group.

Adani Ports and Special Economic Zone Ltd (APSEZ) is expected to buy as much as 10 million square feet (sq ft) of warehousing assets every year as India’s largest private port operator bets on the e-commerce boom to raise capacity 150 times to 60 million sq ft by 2026 from the current 8 lakh sq ft. Adani Logistics Ltd, a unit of APSEZ, will use a mix of organic and inorganic opportunities to sail into a dominant position in the segment. The conglomerate led by Gautam Adani plans to add 30 million sq ft through greenfield development of warehouses leveraging its existing land parcels of 1,850 acres across top 20 cities in India, while about 30 million sq ft (16 per cent of Grade A market capacity) will be added through acquisition of strategic assets in the top 20 markets.

Kawasaki Kisen Kaisha (K Line) announced that its group company in Thailand, Bangkok Cold Storage Service (BCS) and K Line Container Service Thailand (KCST) will establish new warehouses in Bang Na district near Bangkok. Currently, BCS is operating two freezing and refrigerating warehouses in two locations, where are Thepharak district and Bang Na district, and KCST is operating ten dry warehouses in three locations where are Bang Na district, Amata City Chonburi district and Bangpra district. Both BCS and KCST have been operating warehouse businesses for more than 30 years in Thailand. K Line said that this decision has been taken to support the expanding distribution demand in Thailand and the diverse needs of its customers.

SSI SCHAEFER and Tee Yih Jia Food Manufacturing Pte Ltd., are set to launch Singapore’s largest automated rack-clad high bay warehouse storage facility in Q1 2022 at Tee Yih Jia’s new $450 million production facility in Senoko – the “Tee Yih Jia Food Hub”. The upcoming Tee Yih Jia facility consists of three warehouses — two cold rooms and one ambient temperature dry store — and features rack clad high bay warehouse with an automated storage and retrieval system (ASRS) which allows the automated placement and retrieval of high-volume loads from TYJ’s storage locations. Spanning more than 100,000 pallet positions of frozen storage racks, TYJ’s food factory and warehouse storage facility sits on a land area of 40,000 m². It is installed with 15 SSI EXYZ cranes which is estimated to be able to move up to 300 pallets per hour with automation technology. This cooperation comes as warehouse automation booms across the Asia-Pacific region. The APAC automated storage and retrieval systems (ASRS) market is forecast to grow at a CAGR of about 10% between 2021 and 2026. This growth is prominent in the food and beverage (F&B) industry, as companies recognize the advantages provided by ASRS systems and increase focus towards market adoption.

CEVA Logistics has further cemented its role as a leading player in the Southeast Asia wine and spirits sector after winning a three-year contract with Diageo to handle warehousing and value-added services in the Philippines. Diageo is one of the world’s largest alcoholic beverage producers, and the new deal builds on an existing relationship between the companies over the last two years with CEVA responsible for handling Diageo’s air and ocean import brokerage requirements. The contract further positions CEVA Logistics as the only 3PL serving the Top 3 global wine and spirits companies with transport and warehousing services in the Philippines. Under the terms of the contract, Diageo will become one of the first clients at the soon-to-be-completed CEVA Logistics Ruhale Taguig warehouse in southeast Manila. CEVA will manage full distribution center operations for Diageo’s range of products, including a temperature-controlled section for domestic distribution throughout the Philippines. CEVA will also provide tax stamping and labelling of more than four million bottles each year. With its extensive experience of operating with leading players across the beverage industry, CEVA will deliver full transparency to the customer to enable improved monitoring of the entire operation through its warehouse management software which will be integrated with Diageo’s enterprise resource planning platform.