February 27 2021: The warehousing segment under the logistics sector has witnessed a phenomenal run in the past few years. Warehousing has witnessed investments from private equity, real estate players, and other new entrants, who have invested large sums in this segment.
A report from business advisory group, Praxis highlights a detailed perspective on the key warehousing trends and emerging opportunities as the economy is rebounding from the COVID-19 crisis. Further we have also assessed the top 7 verticals which have pushed this warehousing growth which Include Ecommerce, Retail, Manufacturing and Engineering, FMCG, FMCD, Pharmaceuticals and Auto & Auto-ancillary. We have also assessed the growth trajectory in each of these verticals by 2025.
In its analysis of the warehousing space, Praxis analyzed key warehousing trends and emerging opportunities as the economy is rebounding from the COVID-19 crisis.
In India pre COVID – Grade A and B warehouse grew at 18% CAGR over FY18-20; Post COVID – Recovery witnessed in terms of labor availability and order fulfillment time.
- Going ahead, Ecommerce and Retail Segments are expected to push Grade A and Grade B warehousing demand in India with 25%+ CAGR over FY18-25.
- Ecommerce, FMCG, Retail verticals, would witness significant growth ranging from 2.5 to 4x from current levels. • FMCG warehousing stock is expected to grow from ~17M sqft in FY20 to 44M sqft in FY25, growing at 2.5x;
- Ecommerce warehousing stock is expected to grow from ~56M sqft in FY20 to ~227M sqft in FY25; a 4x growth;
- Retail warehousing stock is expected to grow from ~60M sqft in FY20 to ~205M sqft in FY25, about 3.5x growth.
- FMCG, FMCD, Retail and Pharmaceuticals have great potential for investment opportunities like automation in warehouse operations, racking optimization & growth of full-stack logistics.
Access full report here