MUMBAI : As a consequence of the nation’s steady focus on giving an impetus to manufacturing and exports, along with global macroeconomic situations catalysing diversification of business supply chains, India’s logistics parks and warehousing sector is witnessing a tremendous upswing in demand. This growth, not restricted to metros, but encompassing several tier-2 and tier-3 towns, brings to the fore a number of industrial clusters and consumption centres that are becoming integral for seamless movement of goods and products across the country. In a vantage position to leverage this are leading global logistics players like Allcargo Group that have achieved remarkable progress in the construction, set up, operations, and managing of Grade-A warehouses and state-of-the-art logistics parks facilities across the country.
Reports from CREDAI and Anarock indicate that India’s demand for Grade-A warehousing is estimated to touch 223 million square feet in the next three years. Currently, the total Grade-A warehousing area leased in just the top seven cities of India is about 160 million square feet. Further, according to a study from Knight & Frank, the warehousing transactions across eight primary markets (NCR, Mumbai, Pune, Bengaluru, Chennai, Hyderabad, Kolkata, and Ahmedabad), are expected to grow at a CAGR of 19% over FY21- 26. Warehousing and effective supply chain management will play a key role in helping India reach its goal of becoming a USD 5 trillion economy.
It is here that market leaders like Allcargo Group have the potential and opportunity to drive progress, not only with world-class warehousing facilities, but also their expertise across diverse other logistics verticals including International Supply Chain, Express Distribution, CFS-ICD, Contract Logistics, and others, to provide integrated, customized solutions.
Having leased over 5 million square feet of Grade-A warehouses to marquee customers across India in just the past few years, the logistics giant is already looking at an upcoming 8 million square feet of warehouses and logistics parks spread across Gurgaon, Mumbai, Bengaluru, Hosur, Hyderabad, Kolkata, Patna, Lucknow, and more.
With continued policy support from the Government which includes infrastructure status to the logistics sector, permitting 100% FDI in warehousing and storage, and implementation of GST, the sector has attracted decent investments. Allcargo Group too, has acquired 300 acres of land to expand its nationwide warehousing footprint. This development of Grade-A warehouses and logistics parks would be carried out through its group company Transindia Realty, which would be established owing to the strategic demerger of Allcargo Logistics.
The growth in warehousing is slated to be spearheaded by 3PL players, followed by e-commerce, manufacturing, automotive, consumer electronics, etc. Well adept to cater to logistics requirements of all these sectors, Allcargo Group has strategically invested in built-to-suit logistics parks that offer close connectivity to industrial hubs and transport routes, are built in compliance with international engineering and construction standards and incorporate sustainable construction practices for resource optimization. With fully and semi-automated solutions that enhance human capital with technology, and flexible business models of dedicated or shared user solutions for warehousing and transportation, logistics major is indeed transforming the sector.
Be it the facility at Farrukh Nagar, Haryana which connects to all major national highways, or those in Pune, Nagpur, and Mumbai, that minimize transit times and offer line-haul movements without congestions, each one is equipped with a host of services that customers would require. RCC roads, 24x7 electricity and water supply, public transport connectivity, security, weighbridge, streetlights, dormitory and play area, medical centres, parking, are just few of the many amenities that enable safe and seamless cargo movements and storage for customers.
Today, more than ever, the conversations around green warehousing and sustainable logistics are getting stronger by the day. Customers, investors, regulators, and multiple stakeholders are closely monitoring and seeking clarifications on the environmental impact of logistics activities. In keeping with its stance of always being a proactive and responsible citizen, and taking a strategic approach to ESG, Allcargo Group has built its Grade-A warehouses and logistics parks to minimize energy consumption and conserve resources to the maximum extent possible.
Solar panels for green energy have been set up at Farrukh Nagar and Malur, and rainwater charging pits, wastewater management, etc. help save water and use it mindfully.
In addition to the obvious benefits of such facilities for business and economy, what cannot be denied is the impact they have on social welfare and lives of communities in and around the vicinity. Allcargo Group, for example, provides direct and indirect employment to over 5000 individuals, just through its facility at Malur, Bengaluru. The Group also provides employment to a number of women (20% of the workforce) across its different locations, thus enabling their empowerment and well-being.
Bearing testimony to Allcargo Group’s significant forward strides in the warehousing and logistics parks sector are the Platinum Rating by Indian Green Building Council (IGBC) for its warehouse at Malur and recent recognition of its facility at Jhajjar being awarded as the ‘Best Industrial & Logistics Park of 2022’ at the Realty Conclave and Excellence Awards 2022 (North).
Backed by strong governance and leadership, along with a relentless focus on lending support to initiatives like the National Logistics Policy and PM Gati Shakti National Master Plan that aspire to take the global competitiveness of India’s logistics sector to the next level, market leaders like Allcargo Group certainly set a notable example for the industry.