CARGOCONNECT JULY2024 - Flipbook - Page 29
COVERSTORY
WAREHOUSING ADVANCES
Rather than conventional
fixed infrastructure, FWS
pioneers agile and modular
warehousing solutions that
can swiftly adapt to evolving
market dynamics. This
includes pop-up warehouses
for seasonal peaks and ondemand storage solutions for
short-term inventory spikes,
ensuring flexibility without
compromising efficiency. FWS
promotes vertical integration
by incorporating multi-storey
warehouses within logistics
parks. FWS extends its focus
beyond business confines
to encompass the broader
community and ecosystem.
Warehousing facilities are
designed with community
well-being in mind, featuring
green spaces, sustainable
transportation options, and
social amenities.
Vikas Yadav
Director, Future Warehouse
Solutions (FWS)
“This proactive approach extends to
the monitoring and maintenance of roofs
and building structures. We conduct timely
repairs to ensure our parks can withstand
weather conditions without compromising the
quality and safety of goods and equipment.”
“In addition, our warehouses are
equipped with drainage and recycling
systems to e昀케ciently manage waste. This
not only keeps the premises clean, free of
water accumulation, and hazard-free but also
minimises environmental impact, aligning
with our commitment to sustainability.”
Reiterating the same thoughts and actions,
Vikas underscores the factor of Continuous
Improvement, where they prioritise ongoing
upgrades and maintenance of existing logistics
parks to consistently meet and exceed Grade A
standards. This includes regular inspections,
repairs, and enhancements to infrastructure
like lighting, HVAC systems, loading docks,
and security measures.
He also points out Expansion e昀昀orts,
highlighting their active expansion of Grade
A logistics parks in strategic locations to
Furthermore, he highlights their commitment to Customer Service excellence,
ensuring client satisfaction and retention
through responsive support and proactive
issue resolution.
Lastly, Vikas discusses Sustainability
Initiatives, integrating sustainable design
principles, renewable energy sources, and
eco-friendly initiatives into their logistics
parks to support client sustainability goals
and bolster brand reputation.
The Rise of REITs: Unlocking
Grade A Potential
Within the real-estate sector, warehousing
has proven to be exceptionally resilient.
Currently, warehouse developers in India
are focussing on consolidating their holdings
and not selling strata boxes, anticipating
a future trend towards large institutional
ownership of warehousing assets, potentially
leading to the introduction of warehousing
Real-Estate Investment Trusts (REITs).
According to a latest report by global
professional services firm Alvarez &
Marsal (A&M), the demand for Grade
A warehousing stock will grow at a
Compounded Annual Growth Rate (CAGR)
of 12.5 per cent in India until FY30. At
present, up to 70 per cent of Grade A
demand comes from Delhi-NCR, Mumbai,
Bengaluru, Chennai and Pune, the report
indicates. Sectors such as retail, 3PL and
e-commerce are projected to contribute
about 80 per cent of the total demand for
Grade A warehousing over the next five
years, as per the report.
meet increasing demand. This involves
identifying new sites, acquiring land, and
constructing state-of-the-art facilities tailored to the speci昀椀c needs of e-commerce
and 3PL companies.
Additionally, Vikas mentions Customisation, where they o昀昀er 昀氀exibility in facility
design and layout to accommodate diverse
client requirements. This includes options
for temperature-controlled storage, highclearance racking systems, and advanced
security features, ensuring alignment with
tenant needs.
He also briefs on Partnerships with
leading technology providers, logistics 昀椀rms,
and industry experts to stay at the forefront
of innovation and best practices. These collaborations enable them to leverage external
expertise and resources to enhance the value
proposition of their Grade A properties.
It is anticipated that warehousing REITs
could grow at twice the rate of other asset
classes, driven by factors such as long-term
leases typically ranging from 7 to 15 years,
and the commitment of high-quality tenants who heavily invest in the warehouse
infrastructure, enhancing stability over time.
Investors have increasingly recognised
warehousing as a stable asset compared to
commercial real-estate, owing to longer
lock-in periods and higher investment exposure. The anticipation is that warehousing
REITs will provide investors with a reliable
stream of rental income, making them an
attractive investment option. Moreover,
warehousing REITs have the potential to
benefit the overall real-estate sector in
India by attracting institutional capital,
improving transparency, and promoting
best practices in property management.
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