We have introduced major innovations in its operations to meet the surging demands.

Athul B Birani, Chief Commercial Officer, KSH Logistics

How do you view the progress of Indian warehousing and logistics sector in the past couple of years?

For the past couple of years, the Indian warehousing and logistics sector has grown significantly. Companies increasingly recognize the benefits of outsourcing supply chain operations to third-party logistics (3PL) or contract logistics companies. This shift has resulted in a transformation of the supply chain from being perceived as a cost centre to becoming a profit centre. The industry has witnessed a notable acceleration in the adoption of technology and automation, leading to improved efficiency and effectiveness in operations. Additionally, the Indian Government's introduction of the National Logistics Policy has further catalysed advancements in the logistics sector, with the aim of making it globally competitive.

How is technology playing a key role in the modernization of logistics/warehousing operations in the country?

Technology has played an important role in the modernisation of India's logistics and warehousing operations. Significant advancements include the integration of robots, automation, and AI to enhance efficiency and productivity. The adoption of IoT devices and sensors has facilitated improved inventory monitoring and real-time visibility of the supply chain. Furthermore, the integration of Warehouse Management Systems (WMS) and Transportation Management Systems (TMS) has streamlined operations. Another noteworthy development is the focus on constructing green warehouses that incorporate sustainable technologies like solar power, rainwater harvesting, and waste management systems. Additionally, there is a growing trend of utilising electric vehicles (EVs) for transportation purposes, further contributing to the modernisation of the logistics sector.

What is your take on the new Logistics Policy as a catalyst of growth?

The National Logistics Policy (NLP) has been regarded as a significant catalyst for the growth of the logistics sector in the country. It acts as a mantra for the logistics fraternity and is also a guide on how to move towards improving efficiency and reducing cost while reaching global standards. The inclusion of an e-handbook on warehousing standards is expected to promote consistency and the adoption of best practices across different warehouses. Moreover, the policy's emphasis on skill development and human resource enhancement is poised to benefit the industry by fostering a capable workforce. Notably, the policy is focused on gender equality and is expected to play an important role in ensuring the successful implementation of the NLP.

What are the key challenges faced by the sector in spite of the progressive steps from the government? What is the way forward?

Despite the proactive measures taken by the government, there are some significant challenges faced by the logistics industry. The industry needs to work on rising rental prices, fuel costs, and infrastructure expenses, which have substantially increased operational expenses. To solve this, there should have an incentive-based system in place where those who build warehouses are rewarded and tenants get the space at a much lower per square foot charge. Additionally, the government should incentivise investments in automation and for warehouses that integrate such technologies. On the banking front, interest rates at the moment are very high. It is essential to reduce the interest rates on capex investments to encourage growth and development within the sector.

Being a labour-intensive industry, logistics requires a skilled workforce. While the Skill Council tries to upgrade the skill sets of human resources, there is a need for dedicated training institutes to educate workers on the latest technologies and promote R&D and innovation. Moreover, fostering diversity within the workforce and creating equal opportunities for women and individuals of the third gender is crucial for the industry's progress.

What are the major innovations from the company in its operations to meet the growing demands in the logistics/warehousing market?

KSH is expanding multi-client warehouse facilities across the country. This expansion will provide our customers with greater flexibility, cost advantages, and enhanced technological support, ensuring that we can effectively meet the growing demands of the industry.

We have introduced major innovations in its operations to meet the surging demands. We have prioritised the integration of new technologies and placed a strong emphasis on customer-centric approaches, aiming to deliver a seamless and personalised experience. Significant investments have been made in optimising last-mile delivery processes, resulting in improved efficiency and cost reduction.

Environmental consciousness is a key focus for us, and we have taken steps to minimise our carbon footprint. This includes our efforts to optimise packaging solutions, reduce waste, and adopt sustainable practices throughout our operations.

What are your major plans to enhance operations in future?

We intend to increase our growth by 30-50 per cent over the next five years. To accomplish this, we have a strategic plan that involves expanding our multi-client warehouse facilities across the country, strengthening our standalone warehousing operation, and enhancing our transportation services.

In line with our growth strategy, we have identified new business opportunities in the automotive and industrial sectors, particularly in Bangalore and Delhi NCR. To cater to these opportunities, we will establish new MCFs in these locations. Additionally, we recognise the importance of environmental sustainability and are expanding our fleet of EVs to support our clients in meeting their ESG goals.

Furthermore, we are heavily investing in warehouse automation and advanced technological tools. These investments will enable us to streamline operations, enhance efficiency, and offer a wide range of consultative services to our clients. Our goal is to cater to a significant share of the regional market, and we are developing solution-based approaches to address space-related challenges and optimise supply chain efficiencies.

How do you visualise the growth of Indian logistics sector?

The Indian logistics sector is poised for significant growth as specialised logistics providers offering comprehensive supply chain solutions have emerged. This trend has resulted in increased efficiency throughout the industry. Furthermore, the sector is projected to see significant developments and innovations as warehouse businesses adjust to meet the market's changing expectations.

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