Post pandemic, what are the trends shaping the warehousing sector in India?
The Covid-19 pandemic has accelerated the pace of digital transformation across industries, including the warehousing sector in India. Some of the trends shaping the warehousing sector in India post-pandemic are the pandemic has led to a surge in online shopping, which has resulted in a greater demand for e-commerce warehousing. This trend is likely to continue as more consumers shift to online shopping. With social distancing and safety protocols in place, there has been an increased adoption of automation and robotics in warehouses. This trend is likely to continue as it improves efficiency, reduces costs and minimizes the risk of transmission of viruses. There is a growing trend towards setting up smaller, decentralized warehouses or micro-warehouses in urban areas, closer to the end-consumer. This enables faster delivery times and reduces transportation costs. The use of technologies such as IoT, AI, and Big Data analytics is increasing in the warehousing sector. These technologies enable real-time tracking of inventory, better demand forecasting, and optimization of warehouse operations. Environmental sustainability is becoming an important consideration in the warehousing sector. Companies are adopting green practices such as using renewable energy sources, implementing rainwater harvesting, and waste management systems.
How has your organization performed in the last three years?
Our organization has been performing well over the last three years. We have been able to achieve our goals and objectives consistently and have been growing steadily. Our customers are satisfied with our services, and we have been able to deliver quality projects on time and within budget. We have also been able to maintain a strong financial position and have invested in new technologies and innovations to improve our services further
Which are the major warehousing projects you have completed in FY2022-23?
In FY2022-23, the major warehousing projects we have completed include Hosur park with Phase 1(41.87 acres approximately), Phase 3 (23.66 acres approximately) and phase 4 (7 acres), Hoskote park (11.22 acres approximately), and Cochin (21.31 acres approximately) which is under construction. These are all Grade A Built to suit building.
What are the value-added services you provide to your clients?
At Avigna, we understand that our clients' needs go beyond just constructing buildings. We offer a range of value-added services that cater to our clients' unique requirements. These services include site selection and analysis, design, construction financing, facility management. Additionally, we also offer customization services to our clients, where we tailor the design and construction of the warehouse to meet their specific needs as per maximum space optimization and operationally suited. Our team of experts works closely with clients to ensure that the final product aligns with their vision and requirements. By providing these value-added services, we aim to ensure that our clients have a hassle-free experience and achieve their desired outcomes efficiently.
What are the challenges faced by the warehousing sector in India?
The warehousing sector in India faces several challenges. The warehousing industry in India is plagued by a lack of adequate infrastructure. This includes poor connectivity, insufficient power supply, and inadequate transportation facilities, which make it difficult to efficiently move goods from one place to another. The sector also lacks proper supply chain management. This can lead to poor inventory management, inefficient material handling, and higher costs. Since, the Indian warehousing sector is highly fragmented, with a large number of small and unorganized players, it has lead to lack of standardization in processes and services, which can result in quality and service issues. The warehousing sector in India is highly regulated, with complex rules and regulations governing the industry, which has lead to delays and increased costs for warehousing companies. The warehousing industry in India faces a shortage of skilled labour, because o it there is lower productivity and higher costs for warehousing companies. The cost of real estate in India is relatively high, which can make it difficult for warehousing companies to operate profitably. Addressing these challenges can help the warehousing sector in India to achieve its full potential and support the country's growing economy.
Which are the sectors that will drive the growth of the warehousing sector in FY2023-24?
The warehousing sector in India is expected to grow rapidly in FY2023-24, driven by several sectors. Some of the sectors that are expected to drive the growth of the warehousing sector in India in FY2023-24 are the e-commerce industry has been growing rapidly in India, and it is expected to continue to do so in FY2023-24. The e-commerce sector requires efficient and effective warehousing and logistics infrastructure to support its growth. The organized retail sector is expected to continue to grow in FY2023-24, which will drive the demand for warehousing and logistics infrastructure. The consumer goods sector, which includes FMCG, is another major driver of the warehousing sector. The sector is expected to grow steadily in FY2023-24, which will increase the demand for warehousing and logistics infrastructure. The pharmaceuticals sector is another major driver of the warehousing sector. The sector requires specialized warehousing and logistics infrastructure, which is expected to grow in demand in FY2023-24. The manufacturing sector, including automotive and engineering, is expected to grow in FY2023-24, which will drive the demand for warehousing and logistics infrastructure. Overall, the growth of these sectors is expected to drive the demand for warehousing and logistics infrastructure in India, making it an attractive investment opportunity for investors and developers.
Which sector will contribute the maximum revenue for your organization in FY2023-24?
The e-commerce sector is one of the fastest-growing sectors in the warehousing and logistics industry. The rise of online shopping has led to increased demand for warehousing and distribution facilities to store and transport goods. Therefore, Avigna may see significant revenue from constructing warehouses and fulfillment centres for e-commerce companies. Another potential sector for Avigna to focus on is cold storage warehousing, which is in high demand due to the growth of online grocery delivery and the need for temperature-controlled storage and transportation of food products. Other sectors that may contribute to Avigna's revenue could include pharmaceuticals, automotive, and aerospace, all of which require specialized warehousing facilities. Ultimately, Avigna's revenue will depend on various factors, including market conditions, competition, and its ability to deliver high-quality and cost-effective warehousing solutions to clients.
How can the government assist in the growth of the warehousing sector? What are the policy and regulatory tweaks needed?
The government can play a vital role in the growth of the warehousing sector by introducing policies and regulatory frameworks that create a favorable business environment for warehousing companies. Some of the policy and regulatory tweaks that can help are the government can invest in building modern infrastructure, such as highways, railways, airports, and ports, to improve connectivity and facilitate the smooth movement of goods across the country. The government can streamline regulations related to land acquisition, construction permits, and licensing to make it easier for warehousing companies to set up facilities and operate their business. The government can provide tax incentives, such as exemptions or reductions in Goods and Services Tax (GST) and other taxes, to attract warehousing companies to set up their facilities in less-developed regions.
The government can introduce a single-window clearance system for obtaining necessary permits and licenses, reducing bureaucratic delays and making the process more efficient. The government can invest in skill development programs to improve the quality of the workforce in the warehousing sector, which can boost efficiency and productivity. The government can encourage the adoption of advanced technologies, such as warehouse automation, Internet of Things (IoT), and Artificial Intelligence (AI), to increase efficiency and productivity in the warehousing sector. Overall, the government can assist in the growth of the warehousing sector by creating a conducive business environment through supportive policies and regulations. By doing so, the warehousing sector can contribute to the country's economic growth and development.
Can you please share with us the latest trends and technological developments going on in the warehousing sector in India?
Some of the latest trends and technological developments taking place in the warehousing sector are the use of automation and robotics is increasing in the warehousing sector in India, with companies implementing automated storage and retrieval systems, automated guided vehicles, and robotic picking and packing systems to increase efficiency and reduce labor costs. Warehousing companies are using IoT devices to improve warehouse management and monitor the movement of goods in real-time. IoT devices can track the location, condition, and temperature of goods, providing real-time data and insights that can help companies optimize their operations.
Artificial Intelligence (AI) is being used in the warehousing sector to optimize supply chain management, reduce inventory costs, and improve warehouse operations. AI algorithms can analyze data to predict demand, optimize inventory levels, and improve the accuracy of order fulfillment. Warehousing companies are exploring the use of drones and autonomous vehicles for the movement of goods within the warehouse and for last-mile delivery. This can reduce delivery times and improve the efficiency of warehouse operations. There is a growing focus on sustainability in the warehousing sector, with companies adopting eco-friendly practices such as the use of solar power, rainwater harvesting, and waste management practices to reduce their carbon footprint. Augmented Reality (AR) is being used in the warehousing sector to improve warehouse operations by providing visual aids for order picking and packing. AR technology can display information about the location of items and the quantity of items to be picked, improving accuracy and reducing errors. Overall, these technological advancements and trends are transforming the warehousing sector in India, making it more efficient, cost-effective, and sustainable.