|
|
Warehousing sector to become $ 55 bn industry by 2010-11—Report |
|
27/08/2008 |
| The warehousing sector is set to become a $ 55-billion industry by 2010-11 with around 45 million sq. ft of warehousing space expected to be developed in the country in five years.
It will be supplemented by around 110 logistics parks, according to a report by consultancy firm Cushman & Wakefield.
Warehousing activities account for about 20 per cent of the country’s total logistics industry.
The warehousing sector is estimated to grow from $ 20 billion in 2007-08 to about $ 55 billion by 2010-11, registering a growth of 35 to 40 per cent every year.
The entry of global third-party logistics (3PL) players is fast changing the face of the logistics model in the country to more of a strategic function.
"Changing business dynamics and the entry of global 3PL companies has led to the remodelling of the logistics services in India.
"From a mere combination of transportation and storage services, logistics is fast emerging as a strategic function that involves end-to-end solutions that improve efficiencies", the report states.
Around 45 million sq. ft of warehousing space is expected to be developed by various logistics companies.
The logistics and warehousing sector in India, till now, has been highly fragmented and characterised by the presence of numerous companies in the unorganised sector, the report points out.
In 2007, organised players accounted for only 6 per cent of the total $ 100-billion logistics industry in the country, it recalls.
Warehouses now provide additional services like consolidation and breaking up of cargo, packaging, labelling, bar-coding and reverse logistics, the report states. It has emerged as a critical growth driver, leading to large investments by logistics companies for the development of warehouses and logistics parks.
The traditional concept of setting up warehouses near manufacturing facilities and raw material sourcing centres is also undergoing a transformation.
Today, there is an increased trend of relocating warehouses near consumer markets.
Currently, the organised warehousing industry in the country has a capacity of approximately 80 million tonnes, the report adds. |
|
|
print
this page
