Costly transportation, land acquisition hurdles are key challenges in warehousing sector, says Sandeep Chadha, Founder & CEO, Warehouster. To address these, development of MMLPs is crucial. Simplifying land acquisition procedures, involving seamless coordination between governments, can expedite infra development, he adds.
Ritika Arora Bhola
How do you see the Indian warehousing and logistics sector in the near future?
Our vision is to contribute to the growth of the warehousing industry by expanding our presence. Currently, the logistics sector in India is growing at a rate of 40 to 42 million square feet annually. We anticipate this figure to reach about 60 million square feet in the next three to four years. Out of this growth, we aim to capture 10 to 15 per cent. With this expansion, we aim to address the shortage of Grade-A warehousing space in India, optimising space utilisation and reducing costs. As warehousing evolves into a strategic hub, we foresee it catering to consumers and playing a vital role for manufacturing organisations, FMCG companies, and e-commerce players.
Will huge investment to build MMLPs will streamline growth. How much emphasis is put on improving multimodal connectivity?
Initiatives such as NLP, PMGS, and Make in India are pivotal in fostering development and streamlining growth in the sector. By integrating various modes of transportation through MMLPs, these initiatives aim to enhance efficiency and reduce logistics costs, aligning with global trends where logistics expenditure is lower as a percentage of the GDP. Emphasis on improving multimodal connectivity will bolster these efforts, enabling rapid cost-effective logistics operations across India.
How vital is cargo security in the sector? What kind of initiatives have been taken?
Cargo security is paramount to safeguard assets and maintain operational integrity. Our approach involves implementing comprehensive security measures such as satellite monitoring, CCTV surveillance, robust boundary walls with electric wires, RFID technology, and boom barriers. Warehouster adheres strictly to all these protocols. Cargo theft in India accounts for 2 to 4 per cent of overall losses across the industry. In order to avoid revenue loss, it is crucial to implement stringent security measures. Both government bodies and private players are involved in ensuring compliance with well-defined security policies to protect assets within logistics parks and warehouses.
What are the challenges in the warehousing sector?
Several challenges persist in the sector, such as expensive transportation, land acquisition hurdles, and complex approval processes. To address transportation costs, the development of MMLPs is crucial. Simplifying land acquisition procedures, involving seamless coordination between state and central governments, can expedite infrastructure development. Streamlining approval processes through a single-window clearance system would enhance efficiency and attract investment.
What is crucial to your mind to succeed in the coming years?
Determination is paramount for success in the coming years. Maintaining a focus on our goals, particularly in reducing overall logistics costs in India, is essential. By taking steps in the right direction, we anticipate tangible results that will drive growth and sustainability in the warehousing sector.
Share your upcoming projects and growth strategies?
We are focused on developing 9 million square feet of warehousing space over the next three to five years. These projects span across eight logistic parks located in Chennai, Bangalore, Hosur, and Madurai. Our growth strategy emphasises collaboration with institutions and authorities to ensure seamless integration and advancement of logistics infrastructure in India.
How important is collaboration in today’s times to boost growth?
Collaboration is indispensable for fostering growth in today’s dynamic landscape. By partnering with authorities, industry peers, and institutions, we can synergize efforts towards accelerated growth. Given the industry’s multifaceted nature, collaboration facilitates the exchange of ideas, resources, and expertise, propelling us towards collective success.
