+
A report on India’s warehousing industry: CARE Ratings
WAREHOUSING & LOGISTICS

A report on India’s warehousing industry: CARE Ratings

With growth in the Indian economy and changing business perspectives, the scope of the logistics industry has broadened from rudimentary transportation of goods to include end-to-end supply chain solutions including warehousing and express delivery. The logistics value chain comprises transportation, storage, and value-added service. A CARE Ratings report on India’s warehousing industry marks how it is divided and how it is growing.

The warehousing segment has evolved from providing not only custody for goods but also offering value-added services such as sorting, packing, blending and processing. With the evolution of an organised retail sector, modern warehouses for the storage of perishable goods have become indispensable. North America is the largest geographic region accounting for nearly 28% of the global market.

Warehousing constitutes only 15%-35% of the total logistics costs but its importance is significant with respect to the role it plays in the smooth functioning of supply chain networks.



Domestic Scenario. The domestic warehousing market is highly fragmented with most of the warehouses having an area less than 10,000 sq ft. Approximately 90% of the warehousing space in the country is controlled by unorganised players, which manage small-sized warehouses with limited mechanisation. Fragmented warehousing footprint results in higher average inventory holding, in addition to resulting in higher storage and handling losses, driven by lower level of mechanisation. But lately, the sector has been attracting investments from international players which is propelling the formalisation of the sector. With respect to the regulatory ecosystem, many state governments are announcing dedicated logistics sector policies.

Read the full report here.

Image source

With growth in the Indian economy and changing business perspectives, the scope of the logistics industry has broadened from rudimentary transportation of goods to include end-to-end supply chain solutions including warehousing and express delivery. The logistics value chain comprises transportation, storage, and value-added service. A CARE Ratings report on India’s warehousing industry marks how it is divided and how it is growing. The warehousing segment has evolved from providing not only custody for goods but also offering value-added services such as sorting, packing, blending and processing. With the evolution of an organised retail sector, modern warehouses for the storage of perishable goods have become indispensable. North America is the largest geographic region accounting for nearly 28% of the global market. Warehousing constitutes only 15%-35% of the total logistics costs but its importance is significant with respect to the role it plays in the smooth functioning of supply chain networks. Domestic Scenario. The domestic warehousing market is highly fragmented with most of the warehouses having an area less than 10,000 sq ft. Approximately 90% of the warehousing space in the country is controlled by unorganised players, which manage small-sized warehouses with limited mechanisation. Fragmented warehousing footprint results in higher average inventory holding, in addition to resulting in higher storage and handling losses, driven by lower level of mechanisation. But lately, the sector has been attracting investments from international players which is propelling the formalisation of the sector. With respect to the regulatory ecosystem, many state governments are announcing dedicated logistics sector policies. Read the full report here. Image source

Next Story
Real Estate

Shriram Properties Launches ‘Codename: The One’ in Bengaluru

Shriram Properties (SPL), a leading real estate developer focused on the mid-market and mid-premium segments, has announced the launch of its latest residential project under the banner “Codename: The One” in Bengaluru’s Electronic City corridor. This feature-rich gated community will offer 340 spacious 2- and 3-BHK residences, with a total saleable area of approximately 5 lakh square feet and an estimated revenue potential of over Rs 3.5 billion. The project is expected to be developed over a span of more than three years.  Strategically located near the Bommasandra Metro stat..

Next Story
Resources

India Warehousing Show 2025 Closes with Strong Global Presence

The 14th edition of the India Warehousing Show (IWS) 2025 concluded successfully at Yashobhoomi (IICC), Dwarka, drawing participation from over 300 exhibitors across 15 countries and welcoming 15,000+ visitors. Recognised as India’s leading platform for warehousing and logistics excellence, IWS 2025 offered a comprehensive display of cutting-edge automation, sustainable warehousing solutions, and next-gen supply chain technologies. The show was inaugurated by Shri Pankaj Kumar, Joint Secretary – Logistics, DPIIT, Ministry of Commerce and Industry, Government of India. In his opening a..

Next Story
Equipment

MHIET Launches 450kW Gas Cogeneration System with H₂ Co-Firing

Mitsubishi Heavy Industries Engine & Turbocharger (MHIET), part of the Mitsubishi Heavy Industries Group, has launched a new 450kW gas cogeneration system, the SGP M450, jointly developed with Toho Gas Co.,. The system supports hydrogen co-firing at up to 15 vol per cent, with no loss in performance or reliability.  The system is currently available in the Japanese market, and has been developed from the existing GS6R2 city gas engine platform. Key modifications were made to the fuel gas and engine control systems to enable hydrogen co-firing.   Verified through de..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?