Logistics & Supply Chain - #SectorUpdates
Foreign companies are making a beeline to India to tap the fast growing warehousing market. Major multinational logistics companies have announced plans for launching operations in India. In FY 20, the warehousing market was valued at Rs 1,050 billion. In terms, of space requirement, it stood at 265 million sq ft in FY21. The total revenue is projected to reach Rs 2,243.79 billion in 2026, expanding at a CAGR of 10.90 percent. The space requirement is expected to reach 483 million sq. ft. in 2026, expanding at a CAGR of 12.77 percent. Reasons for foreign companies attracted to the warehousing sector can be attributed to e-commerce boom, rising investor interest owing to favourable market dynamics and Government initiatives such as ‘Make in India’, implementation of GST and accordance of infrastructure status to the sector, have propelled the growth of India’s industrial and warehousing space.