Vizag's Warehousing Demand Surges 265 per cent, Driven by Sectors
WAREHOUSING & LOGISTICS

Vizag's Warehousing Demand Surges 265 per cent, Driven by Sectors

The warehousing landscape in Andhra Pradesh is undergoing a significant transformation, with fresh hubs emerging in this sector. According to Knight Frank India's India Warehousing Market Report-2023, Visakhapatnam stands out with an impressive 265 per cent growth in warehousing demand during 2022-23. The retail and manufacturing sectors have been pivotal, contributing 35 per cent and 33 per cent respectively to the demand during FY 2023. The total warehousing space in the city has now surpassed 11 lakh square metres during this period.

The Gajuwaka-Auto Nagar cluster represented 29 per cent of the warehousing transactions in 2022-23, while the Madhurawada cluster accounted for a substantial 71 per cent of the volume. The warehousing transactions in Visakhapatnam surged by 265 per cent year-on-year in FY 2023, following a significant 228 per cent YoY growth in FY 2022.

This expansion was largely propelled by heightened demands from the retail, manufacturing, and e-commerce sectors. The market's volume, which was around 3 lakh square metres in FY 2022, escalated to an impressive 11 lakh square metres in the past fiscal year.

Nikhil Bothra, Director of EPACK Prefab, noted that manufacturing has received a boost through the production-linked incentive schemes under the 'Make in India' initiative, thereby leading to an increased storage demand. He further highlighted the consistent growth of the retail and e-commerce industries, particularly in tier 2 and tier 3 cities, driving the need for swift expansion of warehousing capacities. Pre-engineered structures are being increasingly adopted to accommodate this swift demand rise.

Knight Frank India's report underlines that Visakhapatnam's strategic geographical location has historically positioned it as a trade hub, and modern infrastructure developments have further amplified its trade potential. The upcoming greenfield international airport is expected to provide a considerable boost to connectivity, fostering more growth in the region's warehousing sector.




The warehousing landscape in Andhra Pradesh is undergoing a significant transformation, with fresh hubs emerging in this sector. According to Knight Frank India's India Warehousing Market Report-2023, Visakhapatnam stands out with an impressive 265 per cent growth in warehousing demand during 2022-23. The retail and manufacturing sectors have been pivotal, contributing 35 per cent and 33 per cent respectively to the demand during FY 2023. The total warehousing space in the city has now surpassed 11 lakh square metres during this period.The Gajuwaka-Auto Nagar cluster represented 29 per cent of the warehousing transactions in 2022-23, while the Madhurawada cluster accounted for a substantial 71 per cent of the volume. The warehousing transactions in Visakhapatnam surged by 265 per cent year-on-year in FY 2023, following a significant 228 per cent YoY growth in FY 2022.This expansion was largely propelled by heightened demands from the retail, manufacturing, and e-commerce sectors. The market's volume, which was around 3 lakh square metres in FY 2022, escalated to an impressive 11 lakh square metres in the past fiscal year.Nikhil Bothra, Director of EPACK Prefab, noted that manufacturing has received a boost through the production-linked incentive schemes under the 'Make in India' initiative, thereby leading to an increased storage demand. He further highlighted the consistent growth of the retail and e-commerce industries, particularly in tier 2 and tier 3 cities, driving the need for swift expansion of warehousing capacities. Pre-engineered structures are being increasingly adopted to accommodate this swift demand rise.Knight Frank India's report underlines that Visakhapatnam's strategic geographical location has historically positioned it as a trade hub, and modern infrastructure developments have further amplified its trade potential. The upcoming greenfield international airport is expected to provide a considerable boost to connectivity, fostering more growth in the region's warehousing sector.

Next Story
Infrastructure Energy

GAIL to Set Up Bengaluru CBG Plant Under New Concession Pact

GAIL (India) Limited has signed a 20-year concession agreement with the Bengaluru City Municipal Corporation (BBMP) to set up a compressed biogas (CBG) plant in the city. The project, expected to produce around 10 tonnes of CBG daily, will utilise municipal solid waste as feedstock, contributing to clean energy generation and efficient waste management. The CBG produced will be used in GAIL’s City Gas Distribution network to promote cleaner fuel usage. The initiative aligns with the government’s Sustainable Alternative Towards Affordable Transportation (SATAT) scheme and GAIL’s broader ..

Next Story
Infrastructure Energy

Uttarakhand HC Lifts 31-Year Ban on ONGC’s Contractual Hiring

The Uttarakhand High Court has lifted a 31-year-old ban on the Oil and Natural Gas Corporation (ONGC) from hiring contractual workers, a restriction imposed in 1993. The decision enables ONGC’s Dehradun establishment to employ personnel on a contractual basis to meet operational requirements. The long-standing prohibition had limited ONGC’s ability to fill vacancies in its technical and administrative departments, often leading to project delays and higher dependence on outsourcing. With the court’s directive, the public sector enterprise can now proceed with temporary recruitments whil..

Next Story
Infrastructure Energy

JSW Energy’s Utkal Unit Bags 400 MW, 25-Year Power Supply Deal

JSW Energy Limited announced that its subsidiary, JSW Energy (Utkal) Limited, has secured a Letter of Award (LoA) from Karnataka’s Power Company of Karnataka Limited (PCKL) for the supply of 400 MW of electricity for 25 years. The agreement is part of a competitive bidding process for long-term procurement of power to meet the state’s growing energy demand. The 400 MW capacity will be supplied from JSW Energy’s upcoming thermal power project in Odisha. This development strengthens JSW Energy’s presence in the southern market and aligns with its strategy to enhance long-term contracte..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?