Welspun One Logistics Parks (WOLP) has come out with a report which projects an increase of 10% in Y-O-Y demand for Grade A facilities to a new total of 35% to meet additional unmet demands, as opposed to the earlier predicted industry demand of 25%.
“ Warehousing has overnight become the backbone for online grocers and other e-commerce businesses who struggle to service an unprecedented 3-5x rise in demand for essentials and are under pressure to scale operations following a massive fundraising. “At one end of the spectrum, the rising consumption of the 300 MM growing middle class serves as a key contributor to domestic demand, whereas at the other end, robust storage systems for agricultural produce (in terms of cold storage to meet basic needs) adds to create an expedited demand for quality warehousing across the country,” the report said.
Pointing at Corona led disruptions in the market, the report indicates warehouses becoming a much safer bet for investors. “ With clouds of uncertainty looming over previous investments made in co-working spaces, hospitality and retail, investors will look at re-allocating capital into the more promising warehousing industry… A possible re-allocation of the white-collared workforce to Tier 2 & 3 cities which would become the new epicentres of growth, leading to a possible shift in consumption centres and logistic distribution patterns,” the report underlined.