172@29@17@249!~!172@29@0@53!~!|news|business|real-estate|over-110-mn-sq-ft-grade-a-warehousing-stock-in-india-report-5934321.html!~!news|moneycontrol|com!~!|controller|infinite_scroll_article.php!~!is_mobile=false
Moneycontrol
FREE virtual training session on Passive Income Secrets: October 24 and 25, 2020, 10am to 1pm. Register Now!
Last Updated : | Source: Moneycontrol.com

Over 110 mn sq ft Grade A warehousing stock in India: Report

3PL and e-commerce the largest warehousing occupiers; almost 75,000 acres industrial areas coming up across India

Representative image
Representative image

There are over 110 mn sq ft of Grade A warehousing stock available across the country. Most of it in the top eight cities and third-party logistics and e-commerce are the largest occupiers of warehousing space.

There is also a massive opportunity for Grade A warehousing development in the smaller cities amidst rising demand.

The emerging tier 2 and 3 hubs include Ludhiana, Ambala, Lucknow, Siliguri, Guwahati, Bhubaneshwar, Vishakhapatnam, Vijaywada, Coimbatore, Kochi, Nagpur, Indore, Jaipur and Dholera, a new report  ‘Indian Industrial & Logistics – Gearing Up a Global Manufacturing Hub’ by US-based Binswanger Commercial Real Estate Services and ANAROCK Group said.

Close

Around 3,400 industrial clusters over 4.6 lakh hectares in India have only a 25 percent vacancy. As many as 10 industrial regions across India country drive manufacturing growth, the report said.

COVID-19 Vaccine

Frequently Asked Questions

View more
How does a vaccine work?

A vaccine works by mimicking a natural infection. A vaccine not only induces immune response to protect people from any future COVID-19 infection, but also helps quickly build herd immunity to put an end to the pandemic. Herd immunity occurs when a sufficient percentage of a population becomes immune to a disease, making the spread of disease from person to person unlikely. The good news is that SARS-CoV-2 virus has been fairly stable, which increases the viability of a vaccine.

How many types of vaccines are there?

There are broadly four types of vaccine — one, a vaccine based on the whole virus (this could be either inactivated, or an attenuated [weakened] virus vaccine); two, a non-replicating viral vector vaccine that uses a benign virus as vector that carries the antigen of SARS-CoV; three, nucleic-acid vaccines that have genetic material like DNA and RNA of antigens like spike protein given to a person, helping human cells decode genetic material and produce the vaccine; and four, protein subunit vaccine wherein the recombinant proteins of SARS-COV-2 along with an adjuvant (booster) is given as a vaccine.

What does it take to develop a vaccine of this kind?

Vaccine development is a long, complex process. Unlike drugs that are given to people with a diseased, vaccines are given to healthy people and also vulnerable sections such as children, pregnant women and the elderly. So rigorous tests are compulsory. History says that the fastest time it took to develop a vaccine is five years, but it usually takes double or sometimes triple that time.

View more
Show

There are around 75,000 acres of industrial areas planned across India’s top cities, including Dholera-SIR at Ahmedabad (22,734 acres), Pharma City (19,333 acres), and Zaheerabad NIMZ (12,635 acres) at Hyderabad, among others.

The report also highlights that nearly 7 bn dollar worth platforms have been created for the warehousing sector since 2015. Over 2 billion dollars in PE investments have been infused in the industrial and logistics sector between 2017 and Q1 2020. Investors are upbeat in this sector and are working closely with developers to identify warehousing investment opportunities.

“COVID-19 has exposed the challenges of consolidation within the warehousing sector. The market is expected to de-centralize to mitigate future disruption, ensure business continuity and ease operations. To contain costs and maintain social distancing norms, automation will become a major focus area,” said Jeff Binwanger, managing partner, Binswanger International.

E-commerce will also flourish in the post-COVID-19 era, giving an edge to online businesses which will eventually boost new warehousing demand - particularly multi-level warehouses within city limits, he said.

The current government has created a fertile arena for growth, with the total approvals needed to set up a warehouse in India reducing from 33 in 2015 to 15 by 2019-end.

Likewise, the time taken to construct a warehouse has reduced to 3.5 months from the previous 6 months during the same period. Meanwhile, India’s high logistics cost – at 14 percent of its GDP - is still better than China’s 15 percent.
First Published on Oct 7, 2020 06:35 pm
Sections