Mumbai: An Emerging Warehousing Market in India
As a business owner, you must oversee the running of your operations and ensure your enterprise not only stays afloat but reaps adequate returns. Warehousing is a key element of any successful commercial venture. Over the last few decades, warehousing in India and manufacturing in India have been relegated to all major cities. Such locations provide space and are a cost-effective option for businesses. However, today the tides are changing. With multinational companies and start-ups taking over the market and e-commerce at an all-time high, consumer demands have changed. Consumers now want quick deliveries without shelling out too much money. Is it possible for business owners to meet consumer demands while making a profit? An easy answer to these problems is to warehouse in Mumbai or major cities in India.
Talking about Mumbai, it has quickly emerged as a key urban warehousing market that can transform the way you run your operations. Let’s explore the warehousing market this city offers to businesses and manufacturing o.
Why Warehousing in Mumbai is the Way to Go?
Often touted as the city of dreams, this city is a land of opportunity and warehousing is no exception. While looking for spaces where you can store inventory, here’s why it should be at the top of your list:
Strategic Location & Connectivity
Due to its location close to the Arabian Sea, it functions as a major port city. If your business relies on imports from overseas, warehousing in Mumbai could help stock inventory easily. Additionally, it is also a bustling metropolis featuring a robust public transport network. Whether you need to transport finished goods by rail or air, this city ensures a smooth process. The same goes for sourcing raw materials, too. You can import raw materials from far-flung reaches of the country to Mumbai without having to arrange for transport.
While a logistics warehouse in remote areas might be cost-effective, you have to shell out extra capital to ship or transport items to and from the location. You also need to provide accommodation for the staff. In a densely populated city like this metropolis, you can hire locally to manage expenses. Lastly, having a warehouse in Mumbai makes it easier to meet customer demand. If your client base is in the city itself, you can cut down on delivery time and cost drastically. If you have a pan-India clientele, you can ship items quickly from this city ensuring an optimised supply chain.
High-Yield Investment Opportunities
Even purchasing a warehousing unit is an investment in industrial parks. Ideally, you want any investment you make to fetch returns in the future. While opting for a warehousing unit in a remote location may seem like the more economical option, it can hamper your returns in the long run. In the future, when you want to resell or lease the property, you may find it challenging to optimise warehouse management. Additionally, if the area has not undergone significant development, you will not be able to resell it for a price higher than your buying price. Similarly, rental yields may also fall on the lower end of the spectrum.
Considering a logistics warehouse investment from a long-term perspective, Mumbai’s real estate market offers significant potential for substantial returns. As the financial capital of the country with a large and growing population, its real estate sector is ripe with opportunities. Purchasing warehouses in Mumbai positions you to resell them more easily in the future. With the city’s ongoing development and top-tier infrastructure, you can be confident in finding buyers and achieving a profitable sale. Although there’s no guarantee when it comes to industrial real estate and logistics parks, the chances of earning returns increase when you invest in a city like this. The city provides warehouse in Navi Mumbai, industrial plots, industrial land for sale, warehouse in Bhiwandi, warehouse in Taloja, warehouse in Kurla, warehouse in Thane, warehouse in Palava and distribution centres in Mumbai.
Mumbai, along with NCR (National Capital Region), holds the top spot for warehousing space transactions in India during FY 231 when it comes to top logistics parks in India. In a recent report2, Mumbai received $1.5 billion in warehousing-related private equity investments in the first half of 2024 signalling a strong momentum for industrial parks in India as well.
Government Projects
Apart from the location and investment prospects, this city of dreams is a beneficiary of plenty of Government-funded infrastructure projects that make running a business out of the city easier than imagined. While the Mumbai Metro will streamline in-city distribution, the Mumbai Trans-Harbour Sea Link will connect commercial hubs in the heart of the city to Navi Mumbai. Navi Mumbai will also become home to an international airport and an aerotropolis that will make shipping goods internationally a breeze.
Infrastructure like the Virar-Alibaug Multimodal Corridor (MMC), Jawaharlal Nehru Port (JNPT) – the largest container port in India and Delhi-Mumbai Industrial Corridor (DMIC) will further enhance the connectivity. Hence, it becomes the ultimate choice for the best industrial parks in India for warehousing companies to ensure integrated logistics and an efficient supply chain in India.
Additionally, projects like the Coastal Road, Goregaon Mulund Link Road and Airoli-Katai Tunnel Road will also help reduce traffic and commute times across the city. The Mumbai-Ahmedabad Bullet Train Corridor will connect Mumbai, Pune and Ahmedabad. The 650 km rail line will begin in BKC, a commercial hub and comprise various stations along its stretch. The corridor is likely to benefit micro-markets along the way and will make traversing the landscape easier for commercial purposes and industrial park developers in India.
From easy in-city distribution to pan-India shipping, warehouses in Mumbai can allow you to do it all while adding value to your warehousing and storage portfolio. If you want to harness all Mumbai industrial development has to offer in terms of warehousing, look no further than Lodha Industrial and Logistics Park, Palava – Mumbai’s leading IGBC Platinum Pre-Certified ecosystem for world-class warehouse business in India.