STRONG DEMAND FOR GRADE A WAREHOUSING

Abhijit Malkani, CEO, ESR India gives insights on future innovations in logistics and more

How do you view the current logistics and warehousing market trends in India?

The Indian logistics and warehousing market is thriving, driven by the country's manufacturing ambitions and consumption growth. ESR India sees strong demand in Maharashtra and Tamil Nadu, particularly from international and domestic companies in electronics, automobiles, and renewable energy sectors, partly due to PLI schemes. While e-commerce and retail expansion has slightly slowed post-pandemic, the 3PL segment continues to grow as companies outsource operations. This trend reflects India's evolving industrial landscape and the strategic importance of well-located, efficient logistics infrastructure.

What are the key factors driving the growth of warehousing and logistics?

The growth of warehousing and logistics in India is driven by a combination of economic expansion, government initiatives like 'Make in India' and PLI schemes, consumption growth, and improved infrastructure. Foreign investment in manufacturing and retail, coupled with GST implementation, has simplified interstate commerce. The adoption of advanced supply chain technologies, the increasing demand for 3PL services, and the focus on cost optimisation further fuel this growth. New industrial clusters, rising quality standards, and shifting towards organised retail and omnichannel distribution strategies are also crucial factors. These elements collectively create a robust demand for modern, strategically located facilities, reshaping India's logistics landscape.

What are the key modernisations and innovations happening in warehousing facilities?