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Logistics

Warehousing is hotter than ever. But supply is struggling to keep up. Blame old irritants.

A sudden inflow of money into the sector can do little to solve familiar problems around land acquisition.
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taslima-khan1
26 Aug 2019 6 Mins Read 1 comments
An Amazon warehouse in New Delhi Getty Images
An Amazon warehouse in New Delhi
Zero in 2015 and 2016. USD1.1 billion between Q1 FY17 and Q1 FY19. India’s logistics and warehousing sector is living through a Cinderella moment, with investments flooding in at an unprecedented pace. Demand for bigger, better organised warehouses is spiking, reeling in local players as well as global private-equity (PE) moneybags. The reason for much of this
in 2017. Industry insiders say thanks to such hectic activity, vacancy levels in Grade A warehouses across the country has fallen to only 6%-7%. In other words, of every 100 sq ft of ready space, only 6 sq ft-7 sq ft is left to be occupied. Cinderella’s charmed life is wearing thin. ( Graphics by Mohammad Arshad)
Zero in 2015 and 2016. USD1.1 billion between Q1 FY17 and Q1 FY19. India’s logistics and warehousing sector is living through a Cinderella moment, with investments flooding in at an unprecedented pace. Demand for bigger, better organised warehouses is spiking, reeling in local players as well as global private-equity (PE) moneybags. The reason for much of this in 2017. Industry insiders say thanks to such hectic activity, vacancy levels in Grade A warehouses across the country has fallen to only 6%-7%. In other words, of every 100 sq ft of ready space, only 6 sq ft-7 sq ft is left to be occupied. Cinderella’s charmed life is wearing thin. ( Graphics by Mohammad Arshad)

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