How Various Industries Are Getting Affected By Growth In Logistics

Global warehouse developers have their eyes fixed on India as it is considered a manufacturing hub for most international players.  The main reason for this stark rise in demand is because of the increase in domestic consumption and cost-effective outsourcing. Over the last few years, automotive, retail, pharmaceutical, and agricultural industries have gained tremendous traction. Logistics parks in India are getting quickly filled as investors and developers are taking a keen interest in investing in this area.  

Let’s see what opportunities lay in the future of Indian warehouse industry. 

The Automobile Industry 

The sales of automobiles in our country have increased amazingly in the past few years and it has attracted several foreign investors as well. The reason why the automobile industry is growing faster than any other industry is because foreign players are specifically showing interest in it.  With the increase of importance in efficient logistics and just In Time (JIT) services, the evolution has never been so fast. For the part of logistics operations, the leading players in the industry are specifically using 2PL and 3PL. We are also expecting a boom in the emergence of 4PL services that will enable the industry players to create a perfect blend of in-house and outsourced service components to manage supply chains. The government is also playing an important part in boosting this sector by establishing Special Economic Zones (SEZs). Warehouse space in Chennai is lately getting a lot of attraction from foreign players due to the facilities provided by the government in these regions. 

Retail Industry 

For multinationals and private equities, Indian retail market has always been the most attractive destinations. The reason behind it is increasing urbanization, disposable incomes, and favorable demographics. Most of the existing players are planning for large expansions and new players are also looking forward to taking advantage of organized Indian retail market. There has been a rise in industrial investment in manufacturing and IT near Chennai and Bangalore. The demand for modern warehouse space in south India is also increasing, it is expected that the retail market is going to get a big boom in the coming years, especially in Chennai and Bangalore. The global players are realizing the importance of rising demand for modern warehouses in India and they are looking for a partnership with domestic real-estate companies.   

Not just urban areas but rural areas are also attracting global retailers. Although, rural areas do not have well-developed infrastructure but global retailers are keen on establishing their base over there as they will be getting the opportunity to invest in cold storages and customized warehouses that are near to the farms.  

The Pharmaceutical Industry 

The economic downturn did not affect the pharmaceutical industry much. In order to support the growth of the pharmaceutical industry, the investors should make sure that logistics operation and integrated supply chain work in an organized fashion.  Many pharmaceutical industries preferably outsource logistics from 3PLs due to lower operating costs and supply chain efficiency.  Moreover, customers are also looking forward to outsourcing their logistics operations from logistics service providers, which means more consolidation and integration of logistics is likely to happen in the future.  

Pharmaceutical products are temperature sensitive and they require highly reliable and safe places for storage. The Indian pharmacy industry is eyeing for global goals. Hence, they need to maintain high-level cold-chain management practices to maintain competitiveness in the market.  

The Agriculture Industry 

Agriculture is one of the main occupations of India and the largest economic sector as well.  The economic downturn also affected the agriculture industry severely but now the scenario has very much changed. The government and private entities are taking a special interest in developing this sector. In order to develop this sector, the investors have to deal with several challenges such as supply chain inefficiencies, heavy losses on commodity and lack of proper storage. The supply chain activities in our country are handled by state-run CWC and FCI or some other unorganized sectors. The current scenario of this industry has pretty much changed with the entry of private and multinational retailers into the market.