Why India’s Warehousing Sector is Attracting Global Investors
In an era of instant gratification, e-commerce and quick commerce have revolutionised the way consumers shop. Business owners, logistics companies, multinational companies and homegrown start-ups have also had to alter their supply chain operational models to make room for rapid deliveries. One of the main changes has been to leverage in-city distribution to reach a largely urban client base.
Finding best-in-class warehousing facilities in metropolitan cities allows businesses to store inventory close to their consumer base and offer quick deliveries to ensure efficient warehouse management. Global investors have also taken notice of India’s growing warehousing industry and are flocking to the market to make the most of the same. In Q2 of 20241 , India’s warehousing sector has garnered investments of $2.5 billion, the majority of which come from foreign investors. Here’s a quick rundown of why international investors are interested in India’s warehousing industry and how the Lodha Industrial and Logistics Park (LILP) in Palava is paving the way for warehousing management.
Last-Mile Delivery Solutions
A primary reason why global investors are interested in India’s warehousing sector is the rapid growth of e-commerce. Since more and more consumers are shopping online, businesses need strategically located manufacturing and warehousing facilities that allow them to execute quick deliveries with a world-class warehouse management system.
LILP Palava is a prime example of warehousing in India, demonstrating how a cleverly located warehouse can help expedite last-mile logistics delivery. LILP is one of the leading warehouses in Mumbai and is well-connected to the city, cutting down on the time and cost of delivery.
Government Initiatives
The Indian Government has also stepped up to the plate and supported the manufacturing sector via various initiatives like the Make in India programme and the National Logistics Policy. With the help of these programmes, the government is aiming to create an environment that attracts investors and facilitates the development of robust infrastructure for manufacturing in India.
For instance, multi-modal parks, automated warehousing and warehouse facilities in Tier-II and Tier- III cities are helping with rapid deliveries. City infrastructure also plays a key role in keeping industrial parks like LILP Palava connected to warehouses in Mumbai and surrounding areas, supported by a robust railway network and airports.
Strategic Location
India is strategically located at the crux of major trade routes and functions as a hub for transportation and logistics across the globe. The government has also leveraged the nation’s geographical location to boost infrastructure, including freight corridors, incentivised policies and logistic parks. Government-sanctioned multi-modal parks are designed to cater to businesses of all sizes, offer warehousing facilities and assist with last-mile delivery. At Lodha, we have used our decades of real estate expertise and launched LILP Palava to expedite deliveries and provide business owners with all the facilities needed to leverage India’s unique position in logistics parks.
Efficient 3PL Warehousing
Third-party logistics or 3PL, provide the experience and expertise needed to manage a complex supply chain in an industrial park. 3PLs can harness the power of cutting-edge technology to increase efficacy while cutting down on costs for a logistics warehouse. Flexible and specific, 3PLs can help a business expand its client base and scale up its logistics warehouse operations. In the first half of 2024, 33% of India’s warehousing sector’s growth was attributed to 3PL.
LILP at Palava is fitted with innovative technology and offers units that work for an array of business sizes and types, creating the perfect environment for 3PLs to operate out of. It ensures the best- integrated logistics experiences and provides the best warehousing in Mumbai compared to warehouse in Navi Mumbai, industrial plots, industrial land for sale, warehouse in Bhiwandi, warehouse in Taloja, warehouse in Kurla and warehouse in Thane, warehouse in Palava and distribution centers in Mumbai.
Tech-Driven Warehousing
Government-led initiatives in India have also focused on adopting automation techniques that can streamline production, reduce error and boost accuracy for warehousing companies. Increased use of automation has also helped companies reduce costs for warehousing and storage and increase customer satisfaction. Automation has been a draw for global investors, and the warehousing industry is no exception.
Industrial parks in India like LILP Palava are integrated with the latest technology and are customisable for further automation, making them an excellent investment for warehouse space owners as well as investors.
India’s industrial warehousing industry is an amalgamation of various positive forces creating lucrative opportunities for domestic and global investors for the supply chain in India. As financial reports from the first half of 2024 show, the sector is likely to experience significant growth. Investors who want to invest responsibly can find plenty of opportunities in India’s warehousing sector. Whether you’re a business owner or investor, when it comes to finding quality warehouses, look no further than LILP Palava – one the best industrial parks in India with IGBC Platinum per- certification. LILP Palava is a sprawling park for warehouses in Mumbai with top-notch warehousing and manufacturing units designed to boost productivity and ensure safety.