The Power of Three
31 Dec 2019 Editorial Team
The warehousing sector has witnessed an upward trend due to a conducive
environment, explains RAJESH JAGGI
Booming e-commerce,
online retail and
manufacturing industries
have fostered the
expeditious growth of the
warehousing and logistics sector
in India. As the economy evolves,
methodical and sophisticated
systems are being put together
to facilitate the fluid movement
of goods as well as their efficient
storage. In 2018, we witnessed
a 22 per cent year-on-year
growth in the total stock of Grade A
and B warehousing in the top eight
cities at 169 million sq ft, compared
to 138 million sq ft in 2017.
Absorption too showed unparalleled growth in 2018 – 60 per cent year-on-year growth from 20 million sq ft in 2017 to around 32 million sq ft in 2018. This has led to massive investments in the sector. According to estimates made by JLL, the logistics and warehousing sector in India is expected toattract $10 billion investments over the next five years.
Another industry report reveals that private equity (PE) funds have invested in an excess of $1.1 billion in the sector between the first quarter of 201