The growth of India’s warehousing space presents numerous opportunities.

Devender Singh Rawat, 
CEO, Green Digital Infrastructure, Lodha

How do you view the current trends in logistics and warehousing market in India?

The Indian logistics and warehousing sector is experiencing phenomenal growth, driven by e-commerce, rising urbanization, and a burgeoning manufacturing sector. At Lodha Industrial and Logistics Park (LILP), we're not just keeping pace; we're leading the way by providing innovative and sustainable solutions for our clients.
As the market matures, we're seeing a trend towards consolidation. Strong players with healthy balance sheets are emerging as leaders and best-in-class warehousing facilities are becoming increasingly sought-after. ESG-focused, world-class warehousing parks, like those offered by LILP, will be in high demand due to their superior infrastructure and ability to meet evolving client needs.
Government initiatives are attracting global players to India, further emphasizing the need for world-class infrastructure. A prime example of this trend is our collaboration with Skechers. They recognized the potential of the Indian market and chose LILP to build India's tallest warehouse.

What are the key factors driving the growth of warehousing and logistics?

Government initiatives: The government’s support is indispensable for the sector’s growth. Initiatives aimed at reducing logistics costs in India and advancing the warehousing sector are commendable. Programs such as the National Logistics Policy (NLP), Multi-Modal Logistics Parks (MMLPs), PM Gati Shakti National Master Plan, dedicated freight corridors, GST, E-Way bills, and the Open Network for Digital Commerce (ONDC), etc are significantly streamlining processes and enhancing transparency.

Sustainability: A significant portion of future investments in Indian warehousing is expected to flow towards companies with strong ESG practices. Global ESG assets exceeded $30 trillion in 2022 and are projected to reach over $40 trillion by 2030*. IGBC Platinum Pre-certified parks, like LILP, are well-positioned to capitalize on this trend. Our vision is to create a net-zero industrial ecosystem with features like solar panels, EV infrastructure, and more. This commitment to sustainability resonates with environmentally conscious companies seeking responsible partners.

Rise of e-com and demand for same-day delivery: The surge in e-commerce is increasing the demand for efficient warehousing solutions to handle high inventory volumes and meet consumer expectations for same-day delivery services. This drives the need for advanced facilities and strategically located in-city distribution centers, like Lodha Logistics Park (LLP) in Kurla.

What are the key modernisations and innovations happening in warehousing facilities? 

World-class warehousing facilities are embracing several innovations to enhance efficiency and sustainability. We consider the following areas to be significant:
Employee wellbeing and safety: Large green spaces, sports amenities, security, and rigorous safety checks are integral to ensuring employee wellbeing and safety. Access to a complete ecosystem where social wellbeing can also be addressed is essential. LILP, Palava is a prime example, providing quick access to a comprehensive residential ecosystem.

Automation and robotics: Automated picking and stacking systems, drones for inventory management, and self-driving vehicles for internal transportation are enhancing efficiency and accuracy.
Warehouse Management Systems (WMS): Advanced software solutions are optimizing space utilization, streamlining workflows, and facilitating real-time inventory tracking.
Sustainability: Eco-friendly construction practices, renewable energy integration, and waste management solutions are becoming increasingly important considerations.

Which are your recently developed warehousing facilities in India and what are their features?   

At LILP, we're dedicated to providing state-of-the-art warehousing solutions. We recently completed India’s tallest warehouse for Skechers’ National Distribution Center, spanning over 600,000 sq ft. Built on a single plinth and rising to 17 meters at the eaves, it is the first Built-to-Suit warehouse in western India to feature both DM1 and FM1 super flat floorings with 9-ton storage loading capacity. This IGBC Platinum Pre-certified facility sets a new standard in warehousing excellence. This project marks the first phase of our strategic partnership to develop a 1.1 million sq ft facility at LILP, Palava. 
Additionally, considering the high demand for in-city warehousing, we are developing Mumbai’s first IGBC Platinum Pre-certified in-city distribution center, Lodha Logistics Park, in the heart of Mumbai-Kurla.

With India’s warehousing space poised to grow, what opportunities do you look forward? What could be the key challenges?

The growth of India’s warehousing space presents numerous opportunities. We anticipate increased demand from e-commerce, quick commerce, and last-mile logistics sectors, driven by rising consumer expectations for rapid deliveries and technological advancements. In-city warehousing space, capable of meeting these demands, holds significant potential. LILP ensures scalable solutions with a hassle-free experience.
However, challenges such as regulatory compliance, land acquisition, and infrastructure development must be addressed. Bridging the talent gap in the logistics sector and ensuring a skilled workforce will be crucial. Additionally, streamlining regulations and facilitating seamless inter-state movement of goods will further enhance logistics efficiency. 

How do you visualize the future of Indian logistics and warehousing sector? What are your expansion plans?

In FY 23, annual warehousing transactions stood at 51.3 million sq ft, with a CAGR (FY 2017-23) of 24%*. Mumbai led the sector with 9.5 million sq ft transactions and a CAGR (FY 2017-23) of 35%*. Hence, we are confident that the future of the Indian logistics and warehousing sector is incredibly promising.
We expect continued consolidation, with strong, well-capitalized players leading the market, offering integrated, end-to-end supply chain solutions to clients.
ESG practices will become increasingly important, giving players with sustainable, IGBC-certified facilities a competitive edge.
Logistics will increasingly rely on automation, AI, and data analytics for enhanced efficiency and cost optimization.
The China Plus One strategy will also create more opportunities for India
Additionally, we see immense potential in Built-to-Suit warehousing solutions tailored to specific industry needs. We are confident that our strategic planning, which includes an omnichannel presence with both suburban and in-city warehousing, will help us effectively navigate these requirements.
At Lodha Industrial and Logistics Park, we plan to expand our footprint by developing two to three more future-ready warehousing parks across India in this FY. Our focus will be on sustainability, technology integration, and customer satisfaction. Lodha’s legacy of delivering world-class infrastructure will continue to guide us as we grow and innovate in this dynamic sector.