India has the potential to rise up to becoming a global trade centre

- Hemant Prabhu

COO, Greenbase Industrial and Logistics Parks

How is the logistics and warehousing sector progressing in the country? How is the demand growing for warehousing and logistics space?

The global disruptions in the wake of geopolitical upheaval and Covid pandemic have re-instilled the significance to strengthen the fragile supply chain systems in India. The One China policy has nudged the Indian Government to take lead in developing India as a leading global manufacturing hub. The key initiatives like Make in India and Performance-Linked Incentive (PLI) scheme are devised to attract the right investment and give impetus to logistics and warehousing players in India. With the exponential growth accorded in e-commerce sector, demand for more warehouses and logistics centres is on high pedestal. 

Also, growth of this sector is an outcome of rising GDP, growth in the food processing industry and soaring exports. Thus, demand for efficient logistics services will garner traction to become more competitive globally. The growth of the logistics sector can lead to higher GDP share with nearly 8-10 per cent annually. 

Government has proposed setting up multimodal logistics parks and GatiShakti cargo terminals. How will these propel the market growth?

Infrastructure is the backbone of any flourishing economy. The Government of India aspires to become the fastest growing economy of the world which has led to great impetus to infrastructure development. Progressive initiatives like Gati Shakti and Multimodal Logistics Parks are designed to raise investments, generate employment, and build last mile connectivity across length and breadth of the country. Multimodal parks being set up at strategic location can become the growth fulcrum.

How is the warehousing and logistics market picking up in the post-Covid scenario?

Covid pandemic has exposed fragility in the supply chain distribution and there is a need to build robust modern logistic models. The demand for exports, e-commerce, agri products, heavy engineering, and auto ancillary has fuelled demand for warehousing in India. The pandemic has led to quick digital adoption, rise in hub-and-spoke model, end-to-end delivery, click-to-delivery model, and growth of 3PLs have underpinned the criticality of location.

What kind of growth are you looking for in the coming years?

Greenbase is a Hiranandani Industrial and Logistics Parks-platform forayed into key markets like Navi Mumbai, Chennai and Talegaon. The company is actively catering to the demand across emerging markets like Noida, West Bengal, Gujarat, Nashik and Bangalore for expanding its footprints. The company is extremely focused and bullish on India's growth story with rising GDP and morphing into the next global hub. 

 What is your market outlook on the logistics & warehousing sector?

 Real estate sector has witnessed the rise of emerging asset classes like warehousing and logistics platforms. The huge influx of foreign institutional and PE funding display the optimistic growth story and market sentiments. India has the potential to rise up to becoming a global trade centre.

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