Over 15 tier-2 cities witness surge in warehousing demand
WAREHOUSING & LOGISTICS

Over 15 tier-2 cities witness surge in warehousing demand

Tier-2 cities in India are experiencing greater warehousing absorption with big companies, including Amazon, Flipkart, Reliance, Udaan, among others.

Third-party logistics firms are taking large warehousing spaces to scale up operations to meet consumer needs.

Over 15 small cities like Lucknow, Raipur, Vadodara and Bhopal are witnessing greater warehousing demand since the beginning of the Covid-19 pandemic. According to the industry experts, these cities are experiencing around 100,000 to 200,000 sq ft deals, compared to 25,000 to 50,000 sq ft deals earlier.

In the next five years, the e-commerce segment may take up to 98 million sq ft, with 165% growth from 2017-2021. Some private equity funds are also looking to invest in secondary cities in India.

ESR and Indospace are stepping into investment in industrial and warehousing space in smaller cities across the country. CEO of ESR India, Abhijit Malkani, said there is a huge interest from institutional funds to invest in the warehousing and logistics sector in the country. The demand is also higher from the side of the e-commerce and third-party logistics industry.

CapitaLand again launched its logistic investment fund of Rs 2,250 crore to grow India's logistics sector. CEO of Ascendas-Firstspace, Aloke Bhuniya, said that the second fund would help to increase the geographical footprint of the company, as it is looking at tier-2 cities and their size would depend on the demand. The smaller towns in the country would have to be controlled by the nearest metro hubs.

Chandranath Dey, head, operations, and business development of logistics and industries of Jones Lang LaSalle Inc.

(JLL) India, said that the fund would expand capital in Kolkata, Jaipur, Guwahati, Coimbatore and Lucknow. As the customer demand grows, consumption in tier-3 and tier-2 cities are increasing due to disposable income, affordability and aspirations.

Image Source


  Also read: E-commerce boom to boost warehousing in India

Tier-2 cities in India are experiencing greater warehousing absorption with big companies, including Amazon, Flipkart, Reliance, Udaan, among others. Third-party logistics firms are taking large warehousing spaces to scale up operations to meet consumer needs. Over 15 small cities like Lucknow, Raipur, Vadodara and Bhopal are witnessing greater warehousing demand since the beginning of the Covid-19 pandemic. According to the industry experts, these cities are experiencing around 100,000 to 200,000 sq ft deals, compared to 25,000 to 50,000 sq ft deals earlier. In the next five years, the e-commerce segment may take up to 98 million sq ft, with 165% growth from 2017-2021. Some private equity funds are also looking to invest in secondary cities in India. ESR and Indospace are stepping into investment in industrial and warehousing space in smaller cities across the country. CEO of ESR India, Abhijit Malkani, said there is a huge interest from institutional funds to invest in the warehousing and logistics sector in the country. The demand is also higher from the side of the e-commerce and third-party logistics industry. CapitaLand again launched its logistic investment fund of Rs 2,250 crore to grow India's logistics sector. CEO of Ascendas-Firstspace, Aloke Bhuniya, said that the second fund would help to increase the geographical footprint of the company, as it is looking at tier-2 cities and their size would depend on the demand. The smaller towns in the country would have to be controlled by the nearest metro hubs. Chandranath Dey, head, operations, and business development of logistics and industries of Jones Lang LaSalle Inc. (JLL) India, said that the fund would expand capital in Kolkata, Jaipur, Guwahati, Coimbatore and Lucknow. As the customer demand grows, consumption in tier-3 and tier-2 cities are increasing due to disposable income, affordability and aspirations. Image Source  Also read: E-commerce boom to boost warehousing in India

Next Story
Equipment

Handling concrete better

Efficiently handling the transportation and placement of concrete is essential to help maintain the quality of construction, meet project timelines by minimising downtimes, and reduce costs – by 5 to 15 per cent, according to Sandeep Jain, Director, Arkade Developers. CW explores what the efficient handling of concrete entails.Select wellFirst, a word on choosing the right equipment, such as a mixer with a capacity aligned to the volume required onsite, from Vaibhav Kulkarni, Concrete Expert. “An overly large mixer will increase the idle time (and cost), while one that ..

Next Story
Real Estate

Elevated floors!

Raised access flooring, also called false flooring, is a less common interiors feature than false ceilings, but it has as many uses – if not more.A raised floor is a modular panel installed above the structural floor. The space beneath the raised flooring is typically used to accommodate utilities such as electrical cables, plumbing and HVAC systems. And so, raised flooring is usually associated with buildings with heavy cabling and precise air distribution needs, such as data centres.That said, CW interacted with designers and architects and discovered that false flooring can come in handy ..

Next Story
Infrastructure Urban

The Variation Challenge

A variation or change in scope clause is defined in construction contracts to take care of situations arising from change in the defined scope of work. Such changes may arise due to factors such as additions or deletions in the scope of work, modifications in the type, grade or specifications of materials, alterations in specifications or drawings, and acts or omissions of other contractors. Further, ineffective planning, inadequate investigations or surveys and requests from the employer or those within the project’s area of influence can contribute to changes in the scope of work. Ext..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?