MUMBAI: Haryana is emerging as a new hub for warehousing in the Country, with the unified structure of the goods and services tax putting the spotlight on the State and other areas surrounding the National Capital Region, according to a research report.
GST will bring about a consolidation of warehousing, prompting companies to prune the number of warehouses by keeping larger ones, Crisil Research said in a report.
"The number of warehouses that a consumer durables company could reduce from a typical 25-30 to 10-12 and from 45-50 to 30-35 for an FMCG company," the report said. "The size of warehouses will become bigger, and turn into the socalled big boxes."
As a result, Haryana as a whole stands to gain.
"NCR is expected to see maximum warehousing consolidation as the distance between States is only 250-300 km, which can be catered to from a consolidated hub," said Prasad Koparkar, Senior Director for Crisil Research. "Earlier, warehouses were there in almost every State within NCR to save on tax. Now, Haryana is likely to emerge as a consolidated hub, rather than New Delhi or Ghaziabad in that region."
Haryana was already preferred for warehousing by various companies.