Warehousing Market in India 2012

Growth in organized retail and increasing manufacturing activities in India are the key demand generators for warehousing space in India. Presence of extremely affordable and desirable e-Commerce options is also driving the warehousing demand. Further, the growth in international trade is providing huge impetus to the growth in warehousing market. Rising containerized cargo traffic which leads to the growth in CFSs and ICDs adds on to the growth in warehousing sector. Rising income and consumption levels along with increased demand from farmers will further fuel growth of warehouses in India.

The report begins with an introduction section, projecting the evolution of Warehousing Market in India. It then shows the position of warehousing in the logistics market followed by the value chain of the warehousing market. Subsequently, the roles, activities and integration of warehousing market in India has been pointed out.

Market overview section provides a brief snapshot of the Warehousing Market. To begin with, it shows the structure & share of different segments of warehousing market in India. Then it highlights warehousing market share in total logistics cost followed by the share of warehousing segments by space & value. This section then projects the market size of the warehousing market in India, demonstrating the forecasted growth over the period 2010 - 2016. The section also includes warehousing demand from major sectors in India over the period 2010 - 2013. A comparison in the agri-warehousing capacity expansion over the period 2000 2010 has also been shown. Further, the current state of market and state of infrastructure and resources has been discussed. A comparative analysis of the warehousing market in India, China and USA has been shown in this section.

Warehouse Classification section deals with the different types of warehouses based on ownership & usage.

Business Models section deals with the two primary business models based on operators preferences. It also shows the shift towards owned warehousing model. Further, the benefits of warehouses are also pointed out in this section.

Establishment Criteria section includes key requirements for building warehouses, major buying criteria, and critical success factors in the warehousing market. Further the factors influencing warehouse locations are pointed out followed by showing the location preference for warehousing and major warehouse hubs in India. Different types of hubs are then classified showing the warehousing attractiveness in Indian cities.

Drivers & challenges section in the report provides a comprehensive set of factors which boosts and hinders the growth in the market. An analysis of the section brings forth the key drivers fueling growth in the market including rapid growth in organized retail & major industry segments, growth in e-commerce, growth in international trade, growth in containerization, rising domestic consumption, and increased demand from farmers. While the challenges identified comprises of strategic challenges such as inadequate physical infrastructure, lack of land availability, highly unorganized and fragmented market, lack of standardization, complex tax regime, lack of power supply & increasing cost, and high costs in warehousing and operational challenges such as supply chain inefficiency, lack of skilled manpower, inefficient material handling, and lack of IT penetration.

Government initiative section emphasizes on the key initiatives taken by the government for the improvement of the warehousing sector. It includes National Policy on Handling, Storage and Transportation, Shift to GST tax regime, Warehousing Act, private investment in logistics parks and FTWZs, Infrastructural developments, and development of the Dedicated Freight Corridor. Further, this section d