WAREHOUSE

Industrial/Retail warehousing has a market size of ~INR310 billion in FY13, and it has been growing at a CAGR of 10%–12% over the last few years. Demand for industrial warehousing space is estimated to have grown from around 420 million sq. ft. in FY11 to 475 million sq. ft. in FY13, at a CAGR of 6%. Retail, food, engineering goods, chemicals, electronic and telecom, pharmaceutical and automobiles are the major industrial consumers of warehousing in India. Among these, engineering goods, and the IT, electronics and telecommunication sectors (which have been growing at a CAGR of 8%–9% during 2010–13) are expected to lead warehousing demand.

The warehousing industry is dominated by unorganized players, accounting for ~85% of the market.

Modern warehousing (organized players) accounts for only 15% share; nevertheless, this segment is growing at a CAGR of 25%–30%, and it is expected to account for a 30% share by 2015. The share of organized warehousing is set to increase from 62 million sq. ft. in FY10 to 178 million sq. ft. in FY15. Sufficient research and analysis has been carried out on subsegments within industrial/retail warehousing. However, an emerging sub-segment — liquid warehousing (tank farms) — has not received due attention. This publication, therefore, has a dedicated sub-section for this segment.