Concentration on developing the warehouses needs to be increased
Logistics plays the role of a key artery connecting production centres with consumer markets. However surprisingly in India real estate make up, logistics and warehousing still remains a relatively under invested area. However the industry experts mention that the entire supply chain equilibrium can be disturbed if there is a disruption in the functioning of warehouses.
Even more important, the neglect of this vital wing has led to unintended consequences like vast losses in transportation, distribution and storage of goods. If the warehouses are well equipped to store the goods properly till it reaches the retailers, then wastage can be minimised and profit margins can be improved.
Resultantly, as compared to the advanced countries, India’s warehousing sector remains at a relatively primitive stage. The size of the Indian warehousing industry, across commodities and modes, is estimated at about Rs 56,000 crore.
The latest Knight Frank India’s first-ever India Logistics and Warehousing Report, 2014, which was launched recently has given some facts and figures about this sector. Some evidence of what prospects lay in store for this crucial sector is reflected in this report.
The report focuses on the existing warehousing sector dynamics, insights on upcoming demand and investors’ returns along with providing a definitive view on the country’s warehousing market.
Since the e-commerce segment saw a huge boom in the last few years, demand for warehouses is bound to increase. Even the retail sector, FMCG, consumer durables etc. is seeing a positive trend in the market and all of them will not be able to see a good balance sheet unless a robust mechanism of warehouse maze is developed.
Source- Financial Chronicle
consumer durables, FMCG, Indian warehousing industry, Knight Frank India, logistics, Logistics and Warehousing Report, retail sector
