India is seeing the rise of modern warehouses from the traditional godowns
From aligning upcoming projects with the government’s infrastructure plan to understanding the needs of the various industries from e-commerce and third-party logistics to FMCG and retail, the warehousing industry needs experienced developers who are able to find the right balance between rentals per square foot and profitability, says Darshan Govindaraju, Director, Vaishnavi Group.
After witnessing an inflow of scores of landowners-turned-developers and new operators in the warehousing space for more than half a decade, the warehousing landscape is now becoming a playground for serious players. This comes on the back of surging land prices and unavailability of prime land parcels coupled with increasing competition, clearing the path for serious and seasoned developers with professional experience of managing this emerging sector. This assumes significance as the cost of logistics in India is 13 per cent to the GDP as compared to 8 per cent globally and an interplay of policy initiatives by governments and close coordination by the industry is necessary to sustain growth and expansion of the industry.