Thursday, July 10, 2025
  • Home
  • About us
  • Privacy policy
  • Advertise with us
  • Contact us
Fii News Logo
No Result
View All Result
  • Tenders
  • Projects
  • Markets
  • Manufacturing
  • Investment
  • Technology
  • Exports
Newsletter
  • Tenders
  • Projects
  • Markets
  • Manufacturing
  • Investment
  • Technology
  • Exports
Fiinews
No Result
View All Result
Home Investment

CAGR: ~13.57% for warehousing market 2020-24

Fiinews by Fiinews
May 23, 2020
in Investment
Reading Time: 4 mins read
A A
0
Transport Corp of India
0
SHARES
10
VIEWS
LinkedinShare on Twitter

0:00

Rs.691bn investment expected in 4-5 years

The Indian warehousing market is expanding at a CAGR of ~13.57% during the 2020-2024, said a report on ResearchAndMarkets on 21 May 2020.

The market is set to grow in value Rs.1,501.2 billion in 2019 and is expected to reach Rs.2,821.1 billion by 2024, said the “Warehousing Market in India 2020”.

The warehousing and logistics sector in India is projected to attract of nearly Rs.691 billion investment over the next 4-5 years, after the implementation of the Goods & Services Act and the attainment of its infrastructure status.

The warehousing sector in the country has witnessed extensive participation from developers, as well as institutional investors, who have invested more than Rs.470 billion since 2014 till May 2019, with an average investment of Rs.19 billion per deal.

The growth in the warehousing market in India is also largely being driven by the rise in international business. Entry of numerous foreign as well as domestic industries in the country and establishment of manufacturing plants have generated greater export opportunities, which in turn has fuelled the demand for warehousing spaces across the country.

However, Lack of infrastructure is one of the biggest hurdles in the warehousing market in India. India has the lowest warehouse capacity with modern facilities when compared to the rest of the world Additionally, poor road conditions, bad connectivity, inability to handle high traffic density and insufficient air and sea port capacities contribute to the increased cost per transaction in the country’s logistics sector

Traditionally ranked among one of the overlooked sectors in logistics, warehouses today have developed into sophisticated stockrooms with advanced state-of-the-art facilities like real-time tracking mechanisms in India, the report pointed out.

Various initiatives taken by the Indian government have been driving the country’s warehousing market towards growth, but investors had started taking cognizance of the sector much before the implementation of these reforms like granting infrastructure status to the logistics industry including warehousing.

The warehousing market in India accounts for approximately 25% of the total logistics cost.

Market Insights

The warehousing market is sub divided into four industrial segments namely industrial or retail warehousing, container freight station or inland container depot (CFS/ICD), agricultural warehousing and cold storage. Among these segments, agricultural warehousing is expected to witness the highest growth rate of ~17.87% in terms of revenue, during the 2019-2024 forecast period.

The agricultural warehousing market was valued at INR 145.82 billion in 2019 and is expected to reach INR 365.75 billion by the end of 2024. As of 2019, India has a total agri warehousing capacity of around 91 million metric tonnes with majority of the capacity being owned by state agencies. Growing need of proper storage of fruits and vegetables in the country is fuelling the demand of agri-warehousing in the country.

Currently, India’s total warehousing capacity is estimated to be 160 million tonnes, according to the report.

Around 30% of this capacity is managed by the private sector, and the rest is divided between FCI (Food Corporation of India), CWC (Central Warehousing Corporation), SWC (State Warehousing Corporation), state agencies and the co-operative sector.

Warehousing Clusters Across Major Indian Cities

Around 60% of the modern warehousing capacity in India is concentrated in the top six cities of Ahmedabad, Kolkata, Bangalore, Chennai, Mumbai, and National Capital Region (NCR). Warehousing spaces of organized players across eight major cities in India experienced a year-on-year growth rate of ~77% in 2017 to reach 46.2 million square feet in 2018.

3PL, e-Commerce, Fast Moving Consumer Durable (FMCD), Fast Moving Consumer Good (FMCG), Manufacturing and Retail industries are the major adopters of organized warehousing spaces in the country. Among these the 3PL and e-Commerce players continued to be the biggest adopters of organized warehousing spaces in 2018.

The growth in the Indian e-Commerce industry is fuelling the demand as well as the development of the logistics and warehousing sector of the country.

E-retailers are now more aggressively looking forward to opening up warehouses in tier I and tier II cities as well as collaborating with well-known logistics service providers across the country to be able to maintain a minimal delivery cost.

In Kolkata, the annual transaction volumes of warehousing space reached 4.7 million square feet in 2018 from 1.6 million square feet in 2017, experiencing a massive 191% year-on-year growth in total leasing. Dankuni and suburbs, National Highway-16, Taratala-Maheshtala, and Madhyamgram-Barasat are the four major warehousing clusters in Kolkata.

Requirement of warehousing space by 3PL players and the e-commerce sector led to the increase in demand for warehousing space in the city in 2018. Flipkart, Amazon, Delhivery, Diamond Beverages Pvt. Ltd., Stellar and Phillips occupy a major portion of the total warehousing space available in the city.

Competition Analysis

The Indian warehousing industry is highly fragmented with several unorganized players operating in the market. Organized players in the industry account for only 10% of the total market, whereas around 90% of the warehousing space in the country is controlled by unorganized players who manage small-sized warehouses with less/no mechanization.

Major players operating in the warehousing market in India are Container Corporation of India Ltd, Gati Ltd, Mahindra Logistics Ltd, Transport Corporation of India Ltd, DHL Express (India) Pvt Ltd, Spear Logistics Pvt Ltd, Jayem Warehousing Pvt Ltd, Gati Ltd, Central Warehousing Corporation, IndoSpace Development Management Pvt Ltd and Shalimar Warehousing Corporation. fiinews.com

Tags: ResearchAndMarkets
ShareTweetShare

Related Posts

IVCA
Investment

Invest: India requires $150-$200bn for renewables

by Fiinews
July 10, 2025
0
25

Mumbai to host Renewable Energy Summit 2025 India will require another US$150-US$200 billion investments for renewables over the next five...

Veeda Lifesciences Logo
Investment

Invest: Veeda to leverage Mango AI capabilities

by Fiinews
July 9, 2025
0
12

Dr Misra integrating LLM-GenAI into Querent™ for efficiencies Veeda Lifesciences, a global contract research organization (CRO) from Ahmedabad, is investing...

IPA

Invest: Serendipity Space raises pre-seed round

July 5, 2025
17
Indian Steel Association

Invest: India needs $200bn for expansion of mills

July 4, 2025
19
PIB

Invest: PSBs told to strengthen credit to MSMEs

June 29, 2025
17
PIB

Invest: Minister wants further development of IFSCS

June 28, 2025
21
SBI YONO

POPULAR NEWS

  • Cristina Dnv

    Projects: Indian yards set to build green ships, says DNV expert

    0 shares
    Share 0 Tweet 0
  • Market: Indian-origin UGF scales heritage consumer brands globally

    0 shares
    Share 0 Tweet 0
  • Technologies: Royal Diamond sponsors aerspace Industries’ drones in UAE

    0 shares
    Share 0 Tweet 0
  • Investments: Foreign investors see India as long-term destination for fund placings

    0 shares
    Share 0 Tweet 0
  • Markets: Blue Dart maintains positive outlook on India

    0 shares
    Share 0 Tweet 0

Fiinews.com features through news articles on business opportunities in the Indian market for the benefits of foreigners. It is also a platform for international businesses to showcase through elaborate articles on their products & services to the Indian consumers and corporations exploiting industrialisation of the country.

7Clicks Media is a Singapore based Media & PR company offering over 100,000
impressions via our targeted communication strategy.

It is led by editor-in-chief Gurdip Singh who has worked over 45 years reporting on
Asian businesses.

Recent News

  • Tech: ansrsource-ANSR to reshape talent across India
  • Tech: Infogain launches GCC solutions in India
  • Market: Sai Parenterals goes global
  • Export: Rs.20lcr potential for Indian agriculture supplies
  • Project: Nistar delivered to Indian navy

Pages

  • About US
  • ADVERTISE ON FIINEWS.COM
  • CONTACT US
  • EVENTS
  • FII-NEWS.COM PDF ARCHIVE
  • Home
  • News
  • PRIVACY POLICY

Subscribe to Newsletter

  • About
  • Advertise
  • Careers
  • Contact us

© 2024 FIINEWS - Design and developed by 7clicksmedia.

No Result
View All Result
  • Tenders
  • Projects
  • Markets
  • Manufacturing
  • Investment
  • Technology
  • Exports

© 2024 FIINEWS - Design and developed by 7clicksmedia.