80% of Indian warehouses to incorporate automation by 2030, report

16 Oct 2023 CW Team

Grade A warehouses represent cutting-edge infrastructure equipped with high-quality storage, assembly, and distribution facilities. The surge in e-commerce, marked by increased consumer demand for swift deliveries and rising land prices, underscores the necessity for warehouse automation. The report categorises automation maturity on a scale from Level 0 (manual operations) to Level 4 (end-to-end automation). Currently, most warehouses in India fall within Levels 0 to 2, indicating varying degrees of automation implementation.

According to Manish Saigal, Managing Director at Alvarez & Marsal, adopting automation technologies requires a careful assessment of associated costs and benefits to ensure economic viability. While automation enhances efficiency and minimises errors and theft, organisations must align their chosen technologies with strategic goals and operational needs.

However, the adoption of automation in the Indian warehousing sector presents challenges. India's labour-intensive market necessitates time and investment in developing a robust automation ecosystem, including local service providers, cost-effective technology tools, competitive differentiation, and on-going maintenance and technical support. The financial feasibility of certain automation technologies is also limited by the existing size of warehouses in India. Additionally, long payback periods for automation solutions clash with the shorter lease terms typically offered by third-party logistics providers, creating financial obstacles for potential adopters.

The move towards automation aligns with the National Logistics Policy's objectives, which aim to reduce the country's logistics costs from 13-14% of the GDP to single digits. Ultimately, the integration of automation in the warehousing sector is a crucial step toward enhancing efficiency and meeting the evolving demands of the modern market.

As the demand for warehouse facilities in the country continues to rise, there is a growing trend towards automation in the infrastructure sector, driven by the need to enhance efficiency and reduce logistics costs. A report from business advisory firm Alvarez & Marsal reveals that over 80% of Indian warehouses are expected to incorporate some level of automation by 2030. This shift is particularly evident in Grade A warehouses, which are anticipated to expand at a compound annual growth rate of 12.5%, reaching approximately 324 million square feet by 2027-28. Grade A warehouses represent cutting-edge infrastructure equipped with high-quality storage, assembly, and distribution facilities. The surge in e-commerce, marked by increased consumer demand for swift deliveries and rising land prices, underscores the necessity for warehouse automation. The report categorises automation maturity on a scale from Level 0 (manual operations) to Level 4 (end-to-end automation). Currently, most warehouses in India fall within Levels 0 to 2, indicating varying degrees of automation implementation. According to Manish Saigal, Managing Director at Alvarez & Marsal, adopting automation technologies requires a careful assessment of associated costs and benefits to ensure economic viability. While automation enhances efficiency and minimises errors and theft, organisations must align their chosen technologies with strategic goals and operational needs. However, the adoption of automation in the Indian warehousing sector presents challenges. India's labour-intensive market necessitates time and investment in developing a robust automation ecosystem, including local service providers, cost-effective technology tools, competitive differentiation, and on-going maintenance and technical support. The financial feasibility of certain automation technologies is also limited by the existing size of warehouses in India. Additionally, long payback periods for automation solutions clash with the shorter lease terms typically offered by third-party logistics providers, creating financial obstacles for potential adopters. The move towards automation aligns with the National Logistics Policy's objectives, which aim to reduce the country's logistics costs from 13-14% of the GDP to single digits. Ultimately, the integration of automation in the warehousing sector is a crucial step toward enhancing efficiency and meeting the evolving demands of the modern market.

Equipment

12 Dec 2025

Schwing Stetter India Unveils New Innovations at Excon 2025

Schwing Stetter India unveiled more than 20 new machines at Excon 2025, marking one of its most significant showcases and introducing several India-first technologies to the construction equipment sector. The company launched the country’s first 56-metre boom pump designed and manufactured in India, the first fully electric truck mixer, the first CNG mixer variant and the first hybrid boom pump. Executives said the launch portfolio was engineered to support India’s move toward faster, greener and more vertically oriented infrastructure through advanced engineering, clean-energy solutions a..

Infrastructure Energy

12 Dec 2025

SEPC Resolves Hindustan Copper Dispute, Wins Rs 725 Mn Order

Engineering, procurement and construction firm SEPC Ltd has recently settled a dispute with Hindustan Copper Ltd (HCL) and secured a mining infrastructure order valued at Rs 725 million from the state-owned company. SEPC informed the stock exchanges that it has executed a settlement deed with HCL, bringing closure to all inter-se claims and counterclaims arising from arbitration proceedings. As part of the settlement, SEPC will receive Rs 304.5 million as full and final payment, marking the resolution of all pending disputes between the two entities. The company also stated that Hindustan Co..

Infrastructure Energy

12 Dec 2025

20% Ethanol Blending Cuts India’s CO2 Emissions by 73.6 Mn Tonnes

Union Road Transport and Highways Minister Nitin Gadkari recently said that India has reduced carbon dioxide emissions by 73.6 million metric tonnes due to the adoption of 20 per cent ethanol blending in petrol. He made the statement while replying to supplementary questions during the Question Hour in the Lok Sabha. Describing ethanol as a green fuel, the minister said it plays a key role in reducing pollution while also supporting higher incomes for farmers. He underlined that ethanol blending contributes both to environmental sustainability and rural economic growth. Nitin Gadkari also po..