We will continue to develop our capabilities as we gain more information and experience.

Amitabh Singh

Chief Growth Officer, Stellar Value Chain Solutions

How do you view the current scenario in the Indian warehousing and logistics sector?

According to a recent research report, India's warehousing market is expected to reach Rs 2,872.10 billion by 2027, expanding at a CAGR of ~15.64% during 2022-2027. The logistics sector in India is driving the demand from the major players among the e-commerce, automotive and consumer durables industry. The industry has progressed from a transportation and storage-focused activity to a specialised function that now encompasses end-to-end product planning and management, value-added services for last-mile delivery, predictive planning, and analytics, among other things. Moreover, the government is planning to reduce the logistics and supply chain cost in India from 13-14% to 8-10% of the GDP as per industry standards. The recently implemented National Logistics Policy intends to reduce India's logistics costs from the double digits of GDP to the single digits by 2030. Due to such initiative, the sector is well-positioned for long-term growth and presents exciting opportunities for investors and businesses.

What are the emerging trends in the logistics sector? How are the supply chain management solutions empowering the warehousing and logistics operations in India?

We have observed several emerging trends that are reshaping the logistics sector. The rapid advancement of technology continues to revolutionise the way we handle supply chain operations. From AI-driven route optimisation and real-time tracking to autonomous vehicles, logistics companies are leveraging cutting-edge solutions to enhance efficiency and customer experience. Also, sustainability has become a top priority. Eco-friendly practices such as green packaging, electric vehicles, and renewable energy adoption, are gaining traction as companies strive to reduce their carbon footprint. Besides, the industry is witnessing adoption of digitalisation and contactless delivery, ushering in a new era of contactless logistics. These trends present both challenges and opportunities for the industry, urging logistics providers to adapt and innovate to thrive in this dynamic landscape.

The transformative impact of supply chain management on warehousing and logistics operations in India with cutting-edge technologies have revolutionised the sector by enhancing efficiency, streamlining processes, and boosting overall productivity. Integration of artificial intelligence and machine learning algorithms has optimised inventory management, leading to an impressive 20% reduction in inventory holding costs. With these revolutionary advancements, supply chain management solutions are undoubtedly empowering India's warehousing and logistics sector, driving its growth and competitiveness on both national and global scales.

How is the new Logistics Policy providing a positive impact on the growth of the logistics sector?

We have witnessed a remarkable surge in investments and operational efficiencies within the logistics sector owing to the National Logistics Policy. The policy's focus on infrastructure development, technology adoption, and easing regulatory constraints has been instrumental in fostering a conducive environment for businesses to thrive. With the introduction of innovative schemes and incentives, we have witnessed a surge in FDIs and signalling a renewed interest from international players. This growth has not only generated numerous employment opportunities, but has also bolstered the overall economic landscape, making India a more attractive destination for logistics and supply chain investments on the global stage. It can be stated that India is poised to experience a significant maritime revolution over the course of the next few years.

What are the major innovations and solutions offered by the company for the logistics/warehousing players?

Clients are looking at flexible and scalable tech-enabled supply chain solutions at a reduced cost and this has resulted in their requirement of complaint large Grade A warehouses which can cater to shared spaces and infra. Stellar was a pioneer in creating built-to-suit Grade A facilities across 21 consumption markets and we currently operate almost 16 mn sq ft of Grade A warehousing. We cater to supply chain requirements of companies across consumer, auto & e-commerce space and we have witnessed a growing requirement for Grade A warehouses across Tier 1 & Tier 2 cities.

Grade A warehouse results in reduction of storage cost. While the overall rent for Grade A warehouse is higher, there is substantial saving in the per pallet rental because of the higher cubic capacity utilisation. Customer expectations have also changed in recent years, mostly influenced by delivery speeds of e-commerce companies, from weekly delivery to next day to same day to 10 mins. With the reducing time to market, companies are trying to get as close to the customers as possible, resulting in growth of fulfilment centres and dark stores. A fulfillment centre (FC) is a warehousing facility where inventory is received, put away, and stored until it's ordered. When the fulfillment centre receives an order, we pick, pack and ship the product to the end customer. We at Stellar are also working with multiple companies to deploy EVs for our logistics services.

What is the strategy of the company to stay competitive in its segment? What are the future plans of the company to enhance its operations?

Stellar was established with the intention of unleashing value in the Indian economy by modernising the country's supply chain and accelerating economic growth. We continue to be faithful to our vision and are moving forward with the goal of expanding to 50 million sq ft of contemporary warehouse space spread across 70 logistics parks with a distribution capability to support our endeavour. We have a positive view and will continue to develop our capabilities as we gain more information and experience.

What is your vision on Indian logistics and warehousing sector?

I envision a transformative and thriving Indian logistics and warehousing sector by the year 2030. The rapid pace of technological advancements, coupled with government-led initiatives and private sector investments, will drive remarkable growth. With the implementation of cutting-edge technologies like artificial intelligence, blockchain, and IoT, logistics operations will become highly efficient, bolstering supply chain visibility and reducing lead times. The integration of electric and autonomous vehicles will revolutionise last-mile delivery, minimising carbon emissions and enhancing sustainability efforts. India's logistics and warehousing sector will be a key enabler in enhancing trade competitiveness, attracting global businesses, and becoming a vital component in the country's economic growth story.

At Stellar Value Chain, Think Big is part of our DNA. Additionally, we are committed to building bigger and better infrastructure, upgrading and acquiring newer technology, better vehicles, low-code programming, an ecosystem of partnerships, and EV and solar energy. Last but not least, young, trained human capital from engineering backgrounds are associated with the organisation's future vision.

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