Indian industrial and warehousing sector to see investment inflow of $3.6 billion
With the increase in the investment, it is important that platforms and business opportunities are created for the industry players to come together to connect, network and close deals. India Warehousing Show is India’s established platform, which brings the industry in its full dimension, gathering all facets of logistics, warehouse infrastructure, material handling, storage, automation and supply chain. Scroll down to learn more about factors driving increase in the investment in the warehousing sector!
Indian industrial and warehousing sector is expected to see an investment inflow of $3.6 billion, which is likely to touch $7 billion by 2021. This growth is mainly due to factor such as the rise in the demand for larger facilities from e-commerce companies as the sector is becoming more organised. Moreover, the transformation is brought about by government initiatives, global trade dynamics, an influx of technology and evolving consumption patterns. Further, occupier preferences are changing that is driving the increase in the investor interest.
“Occupiers mulling large contiguous warehouse leases, especially in the e-commerce and 3PL sectors, should look at select micromarkets in Mumbai and Pune that offer a good mix of industrial and multi-purpose warehouses. Bengaluru should also be explored as it offers seamless transfer of goods between states, benefitting from the removal of state-level taxes”, said Sankey Prasad, Managing Director and Chairman at Colliers International India.
The industrial and warehousing sector in India has attracted significant investor interest since 2017 led by robust demand from e-commerce and other consumer-led occupiers.
The new JV to create more jobs in logistics and warehousing!
The country is going through economic slowdown nonetheless, there are few sectors that are faring. Logistics and warehousing are one such sectors that are doing significantly well. Moreover, with the recent joint venture of global equity firm Blackstone Group Inc with Greenbase, a Hiranandani group firm there is going to be an increase in the development of warehousing and logistics parks across the country. This marks the entry of Blackstone, a US-based company, into the Indian warehousing and logistics sector.
The equal joint venture plans to invest ₹2500 crore to develop around 12 million sqft of industrial and warehousing assets across the country in three to four years, said Niranjan Hiranandani, founder and managing director, Hiranandani Group.
“We have a very bullish view on the economy in the long term. Logistics and warehousing will be one of the major beneficiaries of this growth. The joint venture’s investment will also contribute to economic growth as well as employment generation in the relevant locations," Hiranandani said.
Start-ups may get boost from government’s National Logistics Policy
The announcement will be welcomed by logistics start-ups, given its integral role in the movement of goods and services.
With the arrival of the new budget and the current economic status of the country, many changes are anticipated to boost growth. One of the sector expected to benefit are the Logistics start-ups after a budget proposal to create a single window e-logistics marketplace under the government’s National Logistics Policy.
The draft National Logistics Policy, which aims to promote seamless movement of goods across the country and reduce high transaction costs, was published last year and primarily focuses on generating jobs and making the country’s micro, small and medium enterprises more competitive.
“Inter alia, it will clarify the roles of the Union government, state governments and key regulators,” Finance Minister Nirmala Sitharaman said while presenting the Budget.
“Implementation of the National Logistics Policy will surely position India as a prominent global logistics player, ensuring a boost in trade and enabling market access expansion across sectors,” said Pushkar Singh, chief executive of tech logistics start-up, LetsTransport
This announcement will be welcomed by logistics start-ups, given its critical role in the movement of goods and services.
Read more… https://tech.economictimes.indiatimes.com/news/startups/startups-may-get-boost-from-govts-national-logistics-policy/73847090
Guwahati airport plans to get its own perishable cargo centre
To cater to the growing demand of cold chain solutions for perishable products, appropriate measures are being taken by the government. The recent step is being taken by Airports Authority of India (AAI) and its cargo subsidiary AAICLAS to open its perishable cargo centre at Lokapriya Gopinath Bordoloi International Airport, Guwahati which is being built by Assam Industrial Development Corporation (AIDC).
A team of AAI, AAICLAS and AIDC and officials from State Government visited the site which is near its completion of the cargo centre last week. The team was led by Sanjeev Jindal, Regional Executive Director, AAI; Ramesh Kumar, Airport Director, LGBI Airport.
Airports Authority of India had leased 4050 sq. mt. of land to AIDC for a period of seven years for establishing Center for Perishable Cargo at Guwahati airport with a capacity to handle 10,000 MT of perishable cargo with a Nominal Licence Fees of Rs.1/per annum with No Royalty, vide Ministry of Civil Aviation, Government of India directives with approval of Cabinet.