Increase in International Trade Coupled with Rise in Domestic Consumption Expected to Drive the Warehousing Market in India: Ken Research


A warehouse is a business building for storage of goods. It protects the goods, which are damage through heat, dust, wind, and moisture. Some of the key features include holding of goods, dispatch the shipment & good to storage, operate an information system, receiving of goods, marshall the shipments, pick goods and identification of goods etc. The warehousing operations include activities such as inbound activities, outbound activities, and process activities. Inbound activities are defined by receiving and put away operations. Outbound activities are defined by packing and shipping operations. Additionally, process activities are defined by order picking, replenishment, and stock rotation operations.

The warehouse is categorized into public warehouses, state warehouses, manufacturer warehouses, wholesale warehouses, and bonded warehouses. The public warehouse is managed by private persons for rentingintention. The wholesale warehouse is controlled or managed by the wholesaler for storing goods and bonded warehouse is located at the borders and managed by the customs authority.

According to study, “Warehousing Market in India (2018-2023)” some of the major companies that are currently working in the warehousing market in India are Container Corporation of India Ltd., Mahindra Logistics Ltd., DHL Express (India) Pvt. Ltd., Transport Corporation of India Ltd., JICS Logistics Ltd., Central Warehousing Corporation, Gati Ltd., Jayem Warehousing Pvt. Ltd., Spear Logistics Pvt. Ltd., Shalimar Warehousing Corporation.

On the basis of commodity stored type, the warehousing market is segmented into specialty warehouses, general warehouses, and refrigerated warehouses. On the basis of the sector, the market is segmented into agricultural warehouses and industrial warehouses. On the basis of infrastructure type, the market is segmented into lower stratum, middle stratum, and higher stratum. Additionally, on the basis of technology advancement, the market is segmented into cloud computing, internet of things (IoT), big data analytics, advanced imagers, and robotics & automation.

Warehouse storage has some of the prime advantages which include reduced investment risk, conservation of capital, cost effectiveness, high productivity, and efficient flow of materials, reduce stock holdings and provide buffer storage functions etc.

The market of the warehouse is mainly driven increasing international trade. Rising domestic consumption, growth in containerization & international trade, increasing private & foreign investments in infrastructure, growing manufacturing activity, the emergence of organized retail in the country and easing of government regulations are increasing significantly which led to the growth of the market. Some government initiatives are the National Policy on Handling, Free Trade Warehousing Zones (FTWZs), Warehousing Regulation & Development Act (WRDA) and Dedicated Freight Corridor, which are responsible for building warehousing capacity in the country.

Moreover, some disadvantages such as high initial cost and administrative problems further make warehouse operation a difficult one. Some of the major challenges include low capital and operating efficiencies (lower utilization and poor throughput or unit space), limited value addition specific to the user industry, lack of alignment of capacity with cargo flows, improper level of automation, limited capacity (and ability) for handling multi-modal interfaces, lack of the appropriate scale and quality of warehousing infrastructure and improper measurement of total logistics costs by end users.

The warehousing market is growing at over 10% every year, in the country. In upcoming years, it is estimated that this market will be grown increasingly due to growth in e-commerce. The warehousing market is estimated to reach INR 3,179 Billion by 2023, at a CAGR of 13.6% during 2018-2023.

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Ankur Gupta, Head Marketing & Communications



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