Logistics and warehousing sector in India: Check out teh big numbers and cities involved

Logistics and warehousing segment of the economy plays a critical role, but it is definitely not one that gets much attention from the public. However, the segment is definitely grabbing the attention of those who are interested in investing. 

"Logistics and warehousing sector is consequently upgrading to higher levels of organisation. This shift is visible in various small Grade B and C warehouses converting into large Grade A warehouses equipped with modern facilities - a transformation which has attracted PE entities from US, Canada and Singapore to pump in funds into the sector," Anarock Capital MD and CEO Shobhit Agarwal said.

Check out the power points:

1. Nearly USD 1.1 billion of private equity has been pumped during the last two years

2. Indian logistics and warehousing sector is set to grow. A JLL survey projected the industry to grow at USD 215 billion by 2020.

3. A Knight Frank report said that total warehousing space is estimated grow at a CAGR of five per cent in the next five years to 922 million sqft by 2024.

4. JLL stated structural reforms including the awarding of infrastructure status and the implementation of GST, have bolstered the demand for logistics and warehousing space in the country.

5. Property consultant Anarock noted that e-commerce activity has caused a corresponding rise in demand logistics and warehousing, in both tier I and II markets.

6. The maximum interest is in the southern cities of Bengaluru, Chennai and Hyderabad. Mumbai and Pune follow.

7. "With January-March period of 2019 already witnessing 8.4 million sqft of property absorption, it is expected to clock around 38 million sqft by end of 2019," JLL said.

8. In the first quarter of 2019 private equity players pumped in nearly USD 200 million with LOGOS India investing nearly USD 100 million into Casagrand Distripark in Chennai, Morgan Stanley Real Estate pumping nearly USD 50 million in KSH Infra in Pune and Embassy Industrial Parks investing around USD 50 million in DRA Projects in Bengaluru.

JLL's CEO and Country Head Ramesh Nair said that sectors such as 3PL/logistics, engineering, auto and ancillary, e-commerce, FMCG, retail and telecom and white goods have remained the biggest demand drivers.