Grade A warehousing demand to grow at 12.5 pc in India till FY30: Report

Grade A warehousing demand to grow at 12.5 pc in India till FY30: ReportJune 21, 2024New Delhi, June 21 (IANS) The demand for Grade A warehousing stock will grow at a Compounded Annual Growth Rate (CAGR) of 12.5 per cent in India until FY30, a new report said on Friday.According to the global professional services firm Alvarez & Marsal (A&M), India is witnessing an emergence of high-quality warehousing infrastructure, recognising warehouses as vital components in delivering exceptional customer experiences.At present, up to 70 per cent of Grade A demand comes from Delhi-NCR, Mumbai, Bengaluru, Chennai and Pune.”The evolution of warehousing in India from simple ‘godowns’ to sophisticated logistics hubs signals a new era of efficiency and resilience in supply chain management,” said Manish Saigal, A&M India Managing Director and Business Transformation Services Practice Co-Leader.”Warehouses no longer serve as a mere storage facility, but rather as multifunctional logistic hubs integral to the seamless functioning of the supply chain and a superior choice for businesses aiming to optimise operations,” he added.Sectors which are mainly driving the warehousing demand are retail, third-party logistics (3PL) and e-commerce.As per the report, these sectors are projected to contribute about 80 per cent of the total demand for Grade A warehousing over the next five years.Further, the report mentioned that with advanced storage solutions and temperature-controlled environments, these warehouses are well-positioned to cater to the growing needs of various industries, contributing to the overall growth and efficiency of India’s logistics ecosystem.–IANSshs/radhttps://ians.in/detail/grade-a-warehousing-demand-to-grow-at-125-pc-in-india-till-fy30-report–20240621150305/