Warehousing to attract around Rs 45,000 crore of investment in next 3 years

Posted by Daily Shipping Times on 02-04-2018        Tweet

MUMBAI: Around Rs 45,000 crore will be invested in creating storage facilities across India between 2018 to 2020.

Of the total Rs 45,000 crore, warehousing will attract the highest investment of over Rs 35,000 crore, mostly for retail and consumer goods, stated a report released by real estate services firm JLL India. Whereas, cold storage and agricultural warehousing will see approximately Rs 7,500 crore, and container storage would be attracting approximately Rs 500 crore during the same period.

“The report estimates that the prime beneficiaries of the new wave of growth in warehousing will be the peripheral locations of tier 1 and tier 2 cities. This investment comes at the back of the fact that nearly Rs 10,000 crore was invested in 2017,” read the report.

Commenting on the report, Ramesh Nair, CEO and Country Head, JLL India said, “Warehouse and logistics is one of the biggest growth areas that has emerged in recent times. We have seen Rs 125,000 crore invested through private equity in warehousing space since 2014. While it made up approximately 10% of total PE investment in 2017, the share is expected to grow claiming larger share of investment.”

According to the report, the top favourable locations for major warehousing in India are Surat, Kanpur, Lucknow, Ranchi, Madurai, Coimbatore, Ludhaina, Ambala, Tiruchirapalli, Nashik and Jaipur.

“Amongst the Tier 2 cities, these cities have shown strong growth characteristics that will allow them to emerge as warehousing hubs in a hub and spoke model. These cities are strategically located to be in proximity to other major markets and allow transportation to happen to their feeder locations in less than six hours. Further, these cities provide favourable policies for set up of businesses and have high manufacturing potential,” read JLL India’s report.