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Warehousing trends in India September 19, 2007

Posted by Ramnath Rangaswamy in Business, Emerging Markets, India, Indian Economy, Logistics.
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untitled4.jpg CST [ Central Sales Tax] being withdrawn would lead to consolidation of warehouses at a few strategic locations in India.

With CST in place, it is cheaper to have a warehouse [ C&Fs/ Depots] in each state than pay 4% CST to ship across federal state boundaries. With CST going away, it is no longer pertinent to have a warehouse [ C&Fs/ Depots] in each state. Warehouses would get consolidated at a few places in India. Hence the trend towards large warehouses which would come up at few strategic locations in India.

Bhiwandi, NCR, Chennai, Howrah, Nagpur, Indore are the places which would see the biggest growth in warehousing.

As warehouses get larger they would also get more sophisticated. With warehouses becoming larger the processes, infrastructure and technology has to be more sophisticated.

Location of pallets and products/stocks
Because the warehouse is larger, the location of each pallet or stock is important. If a pallet’s location is not known it would be difficult to locate it in the warehouse. It is akin to finding a pin a haystack. [ I can vouch for this based on my own personal painful exeperience] For this racks and pallets spots should be marked. The WMS [ warehouse Management System] should specify the location. The warehouse crew should confirm the location by scanning the barcode.

Sufficient loading/unloading docks
There should be sufficient loading and unloading docks for the vehicles. Because the warehouse would be catering to a larger hinterland. [ as the depots in each state would have been eliminated] the number of trucks loading and unloading materials/ products/stocks would be high. And the truck movements would peak towards month end, quarter-end. During design of the warehouse adequate docks should be provided.

Adequate Staging Area
Similarly, adequate staging area for incoming stocks and outgoing picked stocks should be provided. With a view to maximize earnings, warehouse owners/operators, maximize the amount of racks while giving minimum space for staging. Warehouse operators/owners do not give adequate importance and consideration to the staging area.
In my experience, I have seen staging area becoming the bottleneck in warehouse operations. In fact bottleneck is a mild word; the correct word would be lock jam. Incoming stocks cannot be moved into storage because stocks to be invoiced have not been moved out because the staging area is full. The only way out of this lock jam is to stop operations for a day or two to sort the mess out.

System access from anywhere in the warehouse
Systems will have to be installed in the warehouse so that PCs distributed throughout the warehouse can access the main computer on which the WMS runs. In a small warehouse, the warehouse supervisor would have walked to the computer centre or office and got the information. In a large warehouse this would lead to a waste of time.

Warehouse layout
The layout of the warehouse should minimize the material movement, optimize the warehouse resources [ docks, staging area] and meet the business needs. In a large warehouse meticulous planning of the storage of materials becomes important. Fast movings and heavy goods should be close to the docks, slow moving stocks on the top racks and extra inventory on the top racks and away from the dock doors. Since the warehouses would be storing material from different companies, there should be no cross movement of goods.

Customization Facility
The warehouse should have a customization/ repacking area so that stickering, bundle packing can be done. Warehouses should have this facility, as it is logistically simple and cheaper than transporting the material to be customized to another facility and handling the material additional times.

Reliable transportation
Since goods have to be delivered to customers over longer distances, efficient and reliable transportation is a pre-requisite for the move to larger warehouses, in light of the CST being eliminated, being successful.

For customers and clients, making the move to the post-VAT mega warehouses, my advice would be;

  1. Do a network modelling and optimization before finalizing the mega warehouses
  2. Ensure the warehouse has scope to accommodate the growth in your business for the next 5 years
  3. The warehouse should have adequate picking area and docks
  4. Not more than 85% of the warehouse should be occupied
  5. There should be no union for loading/unloading staff
  6. Warehouse should operate 24 hours and 7 days a week

For the complete story click on the link.CST phaseout and warehouse boom

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Comments»

1. Vivek Mehta - October 18, 2007

Sir

I am very pleased with this article and it is rather thought provoking.
I wonder,post CST eliination, what impact will the union of sub warehouses in to a “mega” warehouse a strategic locations, have on the transportation costs, now that geographically greater distances will have to be covered from fewer locations?

Is it a feasible option from a cost perspective?

2. streamlinesupplychain - October 20, 2007

Hello Vivek! Very pertinent question.

Once mega warehouse come into existence and depots/ RDCs are eliminated, transportation costs could increase or decrease. Whether the costs increase or decrease depends on; the old distribution structure [ when depots/RDCs existed] and the new distribution structure [ with mega warehouses and no depots/RDCs].

That is the reason, doing a complete network analysis for the post-VAT scenario and establishing the mega warehouses at the right place is very important!
It is important to do a network analysis and modelling because;

1. ~70% of the cost of the supply chain gets committed when the physical infrastructure and location is finalized.
2. There is no cookie-cutter approach to this issue. No one solution which will fit all companies; the supply chain structure for each company will be different depending on demand points, cost of transportation, cost of inventory and need for responsiveness.

Looking at the transportation network, transportation costs could increase or decrease.
Why transportation costs could Increase:
LTL transported over longer distances: As smaller loads [ LTL, Less than Truck Load] are transported from the mega-warehouse to distributors/retailers. When depots existed, a Full Truck Load [ FTL] would transport the goods to a depot. From the depot it would travel, a shorter distance, to the distributor/retailer as a LTL.

Why transportation costs could Decrease:
No Backtracking: Let me explain this with an example; assume you have a Plant in say, Bhopal. The mega DC is in Delhi. So products are sent from Bhopal to Delhi.The truck passes close to Gwalior, Jhansi, Mathura and Agra on it’s way to Delhi From Delhi, they are sent back to Agra, Mathura, Jhansi and Gwalior, exactly the route they travelled on their way from the Plant to the mega-warehouse.

Two examples from my experience. We had a plant in Johor Baru and a DC in Kuala Lumpur. The stocks would come to the DC at Kuala Lumpur and then backtrack to our distributor at Johor Baru after invoicing. Our distributor at Johor Baru was located 5 kms away from our Plant. So the products would travel 850kms to cover 5kms!!

Similarly, in the North, our trucks carrying products from our Plant in Bangkok, would pass Ipoh and come to the DC at Kuala Lumpur. The stocks would then get invoiced and backtrack to Ipoh from Kuala Lumpur.

Areas can be served based on distance rather than State boundaries: Let me explain, this too, with an example. In NCR [ National Capital Region] companies have at least 3 depots; one in Faridabad for Haryana, one in Ghaziabad for West UP and one for Delhi. With CST going away, companies would have only mega warehouse serving areas around NCR and places as far away as Alwar, Rewari, Meerut etc. Another example, this one from the South; Hosur, on the outskirts of Bangalore is in Tamilnadu. Yet it is serviced by a depot in Coimbatore or Chennai [ which are Tamilnadu state], ~400kms away rather than from Bangalore [ which is in Karnataka state] 40kms away!!! With VAT going away, Hosur would be rightly serviced from Bangalore [ if a mega warehouse is established in Bangalore]

Hope this helps.

3. mayank - October 30, 2007

I would like to add here that backtracking is a limitation of the way one choose to operate through the so called DCs. I think the distribution systems and strategy should be designed such that for all fast moving goods the b ack tracking is avoided by direct dispatches from plants to Distributors. I agree that flexibility is essential to manage costs.

4. streamlinesupplychain - November 13, 2007

Hello! Yes, I agree with you that backtracking of fast moving goods should be avoided.

5. Jigna - March 27, 2008

Hi!!

I am an Investment Bank and doing a research on Logistics sector. would like to know more about warehousing and rules governing warehousing in India. Can you explain me how do warehosue owners charge their client. What is the efficient utilization rate for a warehouse? Also, does usually a CFS owner even own a warehouse in his CFS.

About me, we are the interrmediates who help company raise funds. Hence, trying to know more and more about Logistics sector. If you can please guide me

6. streamlinesupplychain - March 30, 2008

Hello! To answer your questions;
– Warehouse owners charge their client on a Rupees/sqft basis.
– Usually about 50% to 60% of a warehouse is used for storage. The balance space goes for offices, aisles, loading/unloading space.
– A CFS owner may own a warehouse. In fact, it is preferable if a CFS owner has a warehouse attached. If a container has to be de-stuffed and the material/ stock has to be warehoused, then having a warehouse in the CFS is good.
Hope this helps. Thanks.

7. Abhishek kumar - April 29, 2008

I need information about all warehouse spread in india and neature of warehouses and which company hold on.

8. Rahul - May 26, 2008

Sir..!!
I just need some information on Demand-Supply gap of warehouses in East India,especially which connects haldia&kolkata ports. I hope the answer to this includes the data regarding the cargo being handled at all warehouses.

9. Guru - July 16, 2008

Hii

I am doing some research on logistics sector focusing on warehousing. Wanted to understand the current rates going in major locations like Bhiwandi, NCR etc. Also wanted to understand the estimated of the transportation market as compared to the warehousing market in India.

ankur - September 21, 2009

In Bhiwandi its Rs 20/sqft
In NCR it is Rs 15/sqft

10. Logistics - July 16, 2008

Hii

I am doing some research on logistics sector focusing on warehousing. Wanted to understand a few questions like:
Key players in Warehousing in India
Overall demand and supply of Warehousing space in India
Current rates going in major locations like Bhiwandi, NCR etc. Estimate of the transportation market size as compared to the warehousing market in India.

11. jacinta - September 5, 2008

I am new in this business I have a warehouse of 20,000 sq feet at
vasai looking for people to store their goods can you please help me

12. sundeepreddy - September 16, 2008

dear jigna…

i am working on a proposal to build a mega warehousing / distribution centre in south india…i m looking for a lead for private equity.. coul u please pass on your details..
regards
sundeep

ankur - September 21, 2009

can i know at which location are you planning to build the warehouse.May be I can help you.

13. streamlinesupplychain - September 26, 2008

Hello Mahesh!

If you want to build a warehouse build a world-class warehouse of 100000 sqft or bigger. Offer state of the art facilities, office space, good security, dock levelers,5- 6 high racking, container storage yard etc. Locate the warehouse close to the industrial areas or major highways. You will get good customers and good rates.

If you are going to build another 20000-30000 sqft shed, forget it. It is a losing proposition.

Hope this helps.

Ramnath

14. streamlinesupplychain - September 26, 2008

Hello Sundeep! I do not have any contacts in the private equity space. Ramnath

15. Deepanjan - October 31, 2008

Hi !
Deepanjan this side. I am doing a research on the acceptability of ‘Self Storage’ concept in India.
Wanted to know what all opprtunities do this sector holds for a company to start up ‘Self Storage’ facilities in India. What are growth prospect for such a company?
On the other side, who could be my prospective customer, my profitable clients? What are the various needs such customer may have?
Please help !

streamlinesupplychain - December 14, 2008

Hello Deepanjan! My friend Srivathsa Yajaman (srivathsa_yajaman@yahoo.com) has done extensive research on warehousing in India. He can give you details of the best warehousing locations in India, optimum sizes, details of facilities that should be provided and clients. You can get in touch with him. Regards, Ramnath

16. Avigat Agrawal - April 3, 2009

Hi i am residing in indore and want to open a warehouse in FMCG and not commodities. I also want to tie-up with FMCG manufacturers.
How to go about it plz help me.

ankur - September 21, 2009

If you need any help.You can get back to me.

17. pvsubrahmanyam - December 2, 2009

I understand Kakinada -Visakhapatnam region is being developed as petro chemical corridor.What is the potential for setting up ware house either at Visakhapatnam or Kakinda or along the national high way.can you suggest sources who can be reached to do preliminary project profile
thanks
pvsubrahmanyam

18. Ramnath Rangaswamy - December 6, 2009

Dear Subrahmanyam,
Visakhapatnam has a great potential for world-class warehouses. It is the busiest port but does not have matching warehouse facilities.
I can suggest Srivathsa Yajaman srivathsa_yajaman@yahoo.com who has can help you choose the site and design the warehouse.
Regards,
Ramnath

19. Justin - February 4, 2010

Hey guys..
Im working on a project on container consolidation.
Can any one give me an approximate cost of warehousing of 1CMB of parts in Mumbai. Approxmiate cost of part is 0.88$(USD)

Its purely for accademic purposes.
Help would be appreciated.

20. m m awasthi - February 15, 2010

hi !

i am in ready-to-use stationery industry. would like to know if there are any specific warehousing needs for a stationery mega warehouse and most ideal locations for a zonewise megawarehouse set up !

thanks

21. Ramnath Rangaswamy - February 21, 2010

Hello!
The warehousing principles would be the same. The only specific input I can I have is to have good fire extinguishing systems since a lot of paper would be stored.
Similarly, ideal location for a mega warehouse would be close to the demand centres.
For more details you can contact Srivathsa at yajaman.s@streamlinesupplychain.com
Regards,
Ramnath

22. Anirudh Saraf - March 20, 2010

Hello!!
I am researching on logistics industry. I would like to know the cost of constructing a warehouse in Rs/sq ft and also if the warehouse can be leased… if yes!! then at what rate… I want the data for Delhi/NCR region….

m m awasthi - March 20, 2010

NCR SPACE COST VERY HIGH. IDEALLY, KUNDLI(HARYANA) JUST TOUCHING DELHI BORDER IS GETTING DEVELOPED AS AN IDEAL WAREHOUSING AREA AND ADDED ADVANTAGE IS THE EXPRESSWAY FROM KUNDLI UNDERWAY. SO COST OF CONSTRUCTION PER SQ FT WILL LARGELY DEPEND UPON LAND COST. LEASING OF WAREHOUSE HERE COULD BE A GOOD IDEA FOR MEGA WAREHOUSING. ONLY DRAWBACK IS AN EXPORT AND IMPORT ROAD PERMIT BY HARYANA STATE GOVT FOR GOODS MOVEMENT IN AND OUT OF HARYANA BUT THEN WE HAVE ALL MAJOR AUTOMOBILE UNITS WORKING AT GURGAON UNDER THE SAME ARRANGEMENT E.G. MARUTI, HERO HONDA TO NAME FEW.

REGDS

AWASTHI

23. Jambulingam - April 4, 2010

I want data on warehousing opportunities in Mumbai – How many players- present market share of big player – growth prospects – plus and minus of setting up logistics – I want statistics

24. NUPUR - May 6, 2010

HI,
I am doing a research on waehousing market in India wanted to know the following
cost overview of warehouse space for main regions : Mumbai (Bhiwandi or similar), Delhi (Faridabad or similar), Kolkata, Goa, Bangalore, Chennai etc.
main providers of warehouse space.
annual cost of blue / white collar warehouse personnel.

25. Anindya Gupta - May 24, 2010

1.I am looking at your statement “Bhiwandi, NCR, Chennai, Howrah, Nagpur, Indore are the places which would see the biggest growth in warehousing.” Since this post has been in 2007,has their been any change in the the way your network model.How have places like Bahragora , Zirakpur etc come up.

2.Warehouse Space Initiatives: I empathize with you on the staging space issue .Need to understand as to is their any calculation that you have come across in terms of calculating cross docking space .Is their any model where time based cross docking space model will be used or is used somewhere? For example I have Nestle and LG in the same warehouse who would use this space at diffrent times for their planned movements?

3.Technology Wise: How far are scientific picking methods working out in tandem with slotting in our country. To a great extent I believe the existing infrastructre may not be supportive of all that is proposed to be practiced in terms of Track and trace.Primarily
a) No clear ROI identified
b) Layout not congenial to high end solutions like RF etc
c) Barcoding limitations are understood
d) Absence of EDI infrastructure with LSPs
e) Absence of trained personnel .

4.Your points on Reliable Transportaion
“Not more than 85% of the warehouse should be occupied
There should be no union for loading/unloading staff ”

This will be a pipe dream for most of the Indian Companies till internal discipline is visonary in nature.Unions will not go as abuses will have to be addressed but yet yes , may be a Task Resoure Management or Labor scheduling system needs to institutionalised through out the organization and the same measured as metrics .Looks Taylorean but will atleast be transparent.

26. M M AWASTHI - May 24, 2010

NO DOUBT, ZIRAKPUR HAS EMERGED A MAJOR WAREHOUSING CENTRE BUT THE INFRASTRUCTURE IS STILL VERY POOR. METTLED ROADS, POWER SHORTAGE, SECURITY ARE STILL CHALLENGES FOR THE PUNJAB GOVERNMENT. SECONDLY, ECONOMIC PACKAGE FOR HIMACHAL GOVT FOR EXEMPTIONS IS ALSO NOT PERMANENT OR WOULD REMAIN SAME FOR THE TIMES TO COME. DUE TO BADDI, HIMACHAL PRADESH, GETTING DEVELOPED AS A MAJOR INDUSTRIAL AREA AFTER THE ECONOMIC PACKAGE, ZIRAKPUR WAS IDENTIFIED BY COMPANIES, MAINLY PHARMA, FOR WAREHOUSING OPERATIONS.

Ramnath Rangaswamy - July 4, 2010

Hello! Yes, Zirakpur is surviving because of Baddi.

27. diky - June 14, 2010

Diky,
After gst implimentation how a state can calculate its revenew. Forms like F and C may be continue then how can gst fairly implimented.
Any advice

28. sameer - July 30, 2010

i want to build 100 m .tone warehouse near nashik so i want to know which type of warehouse demand
in industry and how much space required what type of standard should kept which is better in concrete
or pre-engineered building and what type of goods storage required

please help me

Ramnath Rangaswamy - August 8, 2010

Dear Sameer,
The type of warehouse that you want to build will depend on the type of goods that have to be stored in the warehouse. The type of goods would be stored will depend on the goods produced in Nashik ( grapes, wines etc.).
Whatever the goods to be stored, the warehouse should meet certain standards , designs and specifications to be considered a good warehouse.
Let me know if you require any further help and information in setting up your warehouse.

29. sameer - July 30, 2010

sir
i want to build 100 metric ton.near nashik ware house so which type of goods can stored and demand and which type of warehouse should build and what type of standard should kept
concrete or pre- engineered building so plz help me

30. Aman Garg - August 2, 2010

i am planning to build a warehouse in rudarpur.

please advise what should be the minimum investment to be committed. and the type of warehouse to be constructed in the area. i am new to the industry. found this post helpfull

Ramnath Rangaswamy - August 8, 2010

Dear Aman,
Rudrapur will require warehouses to store finished products manufactured in Rudrapur or raw materials required for products to be manufactured in Rudrapur.
The warehouse can be designed and constructed to meet the demand for warehousing space in Rudrapur.
Let me know if you need further help.

31. M M AWASTHI - August 2, 2010

RUDERPUR IS NOW A PREFERRED LOCATION SINCE THERE IS SPECIAL TAX PACKAGE TO UTTRAKHAND. WITHDRAWAL OF SPECIAL TAX PACKAGE IS BEING TALKED. IF IT HAPPENS, IT COULD LEAD TO DROP IN BUSINESS.

32. megha - August 4, 2010

i am planning to set up a warehouse in Alwar(Rajasthan)
Please advice me about the amount of investment required, financial support given by Government of India and whether it would be profitable to move in this field or not?

Ramnath Rangaswamy - August 8, 2010

The amount of investment will depend on the size of the warehouse and facilities that you will provide. Government does not give any special financial aid to construct warehouses. The profitability will depend on the demand for warehousing space in Alwar and the rate for warehosuing space in Alwar.
Let me know if you need further help.

33. Singh SK - September 10, 2010

Hi,

There is a requirement of around 1000 to 10000 acre baren land for an environment friendly FMCG industry nearby (within 100 KM) developed & developing base port (within next two years) area for erecting their plant, warehouses & managing their huge imports volume approx 3000 Teus / Month.

Big size plots are preferred with ample amount of water availabilty.

34. sharad - October 4, 2010

Hello,
I have my own free land (Approx. 10,000 Sq Yard) on NH-2 in Agra.
I am planning to build & lease warehouse for long period, but I would like to construct it according to customer demand.
Unfortunately, I am unable to find any contact with warehouse agents/brokers. Please do let me know any agent/broker which can help me out to let warehouse.
Regards
sharad

35. Anil Palkar - January 5, 2011

Dear Sir,

We are one of the largest developers of warehousing and industrial facilities in India, offering construction of warehouses and industrial parks.

If any plans to develop your business in India, please feel free to call us. For more details the broucher attached.

Awaiting for your positive reply.

Regards
Anil Palkar
Manager – Marketing & Sales.
Indian Logistics Group of Companies.
5th Floor, Modi House, Eastern Express Highway,
Thane (W). 400602.
Tel No. 25444351 / 25420368, 9768113999

venkatkonarao - January 19, 2011

hi anil,

We are a leading 3pl company in Andhra Pradesh.
We are building warehouses in different parts of AP.We would like to know the cost of building warehouse per sq.ft on a levelled agricultural land.

Thanks&Regards
Venkat

36. Akhilesh Dhar - February 8, 2011

Its a wonderful forum for SCM professionals …

Ramnath Rangaswamy - March 11, 2011

Dear Akhilesh…Thank you!

37. Reshma Doshi - February 13, 2011

Hi

My knowledge on this industry is limited. i am looking at gaining some insights of setinga warehosue near Palghar. What are the potentials?

38. Ajay MODY - March 14, 2011

The content is so authentic that the investor will really be happy to understand the nuts and bolts of SCM

39. prasanna - March 18, 2011

hi,
we are built rail side warehouse in karnataka nr. HUBLI NH-4 .
wht are the keys points that we should keep in mind in terms of :-
1) construction
2) storage
3) design
4) cost the client.
pls guide me . And is it potentials.?

40. prasanna kulkarni - March 18, 2011

hi,
we are built rail side warehouse in karnataka nr. HUBLI NH-4 .
wht are the keys points that we should keep in mind in terms of :-
1) construction
2) storage
3) desig of warehouse
4) cost the client.
pls guide me . And is it potentials.?

41. prasanna kulkarni - March 28, 2011

Is there any demand in karnataka ,maharashtra ,Goa junction border .

And also ur view on rail side warehouse.

42. sudeep - April 15, 2011

i have 4 acres land at jamsola(near bahragora)200 mtrs away from NH.(orissa,jharkhand and West bengal border).but i am unable to invest a large amount.if any one intersted to build warehouse kindly contact me.

sudeep Narayan patra
snpatro_2000@rediffmail.com

43. Pawan Beriwal - May 7, 2011

We are planning to bulit one whare house in bharaghora we request people with land and experince in building whare house to contact us :

KIRAN GROUP
23A, Netaji Subhas Road
FORTUNA TOWER
6th Floor, Room # 35
Kolkata – 700001 (India)
Phone + 91 32 22102649; 40056649
Fax + 91 33 28611067; 22302892
Mobile +91 9433079848
Email kiranlimited@gmail.com

44. A Kumar - May 22, 2011

We looking for a professional warehosuing service for our decor and gift items company. The warehousing facility should take care of custom clearance, warehousing, electronic tagging of goods, dispatch of goods to retail stores and end customers.

Can anyone recommend a good company?

45. vijay jain - June 19, 2011

i am planning to set up a warehouse in Alwar(Rajasthan)
Please advice me about the amount of investment required, financial support given by Government of India and whether it would be profitable to move in this field or not?
thanks & regards
v.jain

46. KALYANASUNDARAM RAJA - September 14, 2011

Dear Ramnath Rangaswamy,

I have been approached by a group of locals from Bhivandi, Thane Dist., Maharashtra for Joint Development of Warehouses on their 25 Acre land. I have checked their bonafides & am satisfied. More & more Godowns are under construction in BHIVANDI all the time. In such a scenario, will it be a good business to get into. Which will be an appropriate model of warehouse that will have demand. Can you please guide me. Thanks.

K S Raja

Ramnath Rangaswamy - October 16, 2011

Dear Mr Raja,

Bhivandi will always have a demand for warehousing, being so close to Mumbai and accessible from Pune, Nasik etc.

My advice would be to build a modern warehouse, instead of a godown. You can go in for pre-engineered warehouses. Have covered loading docks, have adequate truck parking area, have a facility to put up racks, have space for office in your warehouse and you will see a big demand for your warehouse and can command a premium.

Please feel free to contact me at ramnath.rangaswamy@gmail.com for any further details or help.

My apologies for this late response.

Regards,

Ramnath

Kalyanasundaram Raja - October 16, 2011

Dear Ramnath Rangaswamy,

Thanks a lot for your reply & words of encouragement.
I will keep you posted of developments at my end.
Wishing you a Happy Deepavali.

Regards
Kalyanasundaram Raja

47. Global Logistics - September 18, 2011

India is the future of warehouse-distribution center and Logistics technology, now many big company aim to invest in India because ths high performance of Indian ^^

48. 3PL - September 18, 2011

Excellent data for the people who interest in warehouse like me, +1 for your great post . Thank you very much

Ramnath Rangaswamy - October 16, 2011

@ 3rdpartlogistics – Thank you for your kind words.

49. Sujin Kurup - October 24, 2011

Dear Sir,

I’ve noticed that most of the discussions about warehousing has been focused on the northern front of the country.

I have over 2.5 acres (approx 108900 sq ft) of land around 1 km off the main road in Thiruvalla, Pathanamthitta, Kerala. My Location is centrally located between Thrivandrum and Cochin (100km to either locations).

I have over 70 Lakhs rupees in seed money. My basically have 3 questions for you :-

1. Would this be a prime spot to build a warehouse? (specifically for fmcg companies)
2. Should i focus to build the standard 40000sq ft warehouses, or build a mega warehouse in the entire 100,000sqft space available?
3. For either options of the above question, how would i reach the corporations on the availability of such a service in south kerala?

Hoping for a speedy reply 🙂

Cheers
Sujin Kurup
sujinsk@gmail.com

50. Shivaji - March 1, 2012

Sujin .
You need to plan properly before building a warehouse .. Ideally for a 2.5 acres of land which is 1lak sq ft .. Ideally u should dedicate a minimum of 40k sq ft of land for Parking . Only then you can make a effecient warehouse . you should also target to have one entry and 1 exit . In case you want to optimise the use of space then would suggest have racks in the warehouse which will help you use more than 2 to 3 times ( depending on the Rack tiers ) of your warehouse floor space ( keeping in mind the isle space wastage ) .

51. vipin rathi - March 10, 2012

i am planning to set up a warehouse in either in Bhopal Or In Raipur
Please advice me about the amount of investment required, financial support given by Government of India and whether it would be profitable to move in this field or not?
thanks & regards
vipin Rathi

Ramnath Rangaswamy - March 14, 2012

Dear Vipin,

What is the motivation and reason for setting up a warehouse? Do you have land? Or do you see this as a big opportunity?

The investment required would be dependent on land cost (I do not have an idea of the cost of the land and hence am unable to give you an objective answer about the profitability). Cost of construction is nearly similar across India. The payback period (profitability) depends on the rentals in Bhopal or Raipur.

If you can provide me the answers to my queries, I can give you a more concrete answer.

Regards,

Ramnath

52. Sharan - April 13, 2012

Hi,

I have a land of 2 acre in Gulbarga, Karnataka industrial area beside the highway . Planning to build a warehouse. The important products here are the green grams (Dal) and cotton. Please suggest me what kind of warehouse is needed for the above mentioned products. What would be the cost/sqft.

Thanks,
Sharan

53. Anil Thukral - April 30, 2012

Hi,
We are looking at setting up of a Mega Warehouse Incl Cold Starage at Gurgaon – Request for information which can be of help including Consultants.

54. kuldeep singh - June 2, 2012

Hi Dear,
I am planning for development of warehouse in kota, Rajasthan. I have factory plot of size, approx 90*250 feet. I would like you to advice and provide me with approx cost of construction, what kind of warehouse will be suitable. i am currently living in states (US) and willing to invest. Main question is if i can find company/organization which could rent this warehouse. If requirement of land is more then i do have 30 acre of farm land approx 25 km from city.
Please reach me via email

Rohit Nyati - September 17, 2012

Hello Mr. Kuldeep,
If you are serious about the warehousing business, then you may contact me at my email or cell.
I am into this business since 6 years in Bundi Rajasthan and we own and we do lease out same.

Regards

Rohit Nyati
B.Tech, IIT Bombay
+91-9892890209

55. Sangeeta - June 20, 2012

Very informative post!

I have few questions, hope you can help here:

1. For a warehouse, what is a requirement of water and electricity. Is this required 24*7?
2. Is there a list of warehouse available for a particular area?
3. What is a low cost construction design for a warehouse

Thnx!

56. Romi - July 14, 2012

Hello Every One We have 20,000 sq ft warehouse available with ample space for truck movement at Mumbai Pune Road near Expressway and 23 Km from JNPT for further details please contact at 9820571844/9821290362

57. Piyush Goyal - July 29, 2012

Dear Sir,

I have approx 100000 sq ft of land around 1.5 km off the main road in Ujhani, Bareilly, U.P. My Location is centrally located between Delhi and Lucknow approx.150km to either locations.

I have basically 2 questions for you :-

1. Would this be a prime spot to build a warehouse?
2. what will be the construction cost for setting up 40000 Sq Ft warehouse.

Hoping for a speedy reply

Cheers
Piyush Goyal
piyush_gl@yahoo.co.in

58. Alok Kothari - September 23, 2012

We would like to use our existing land (~30 acres) on NH6 near Nagpur for building warehouse zone. Looking for answers to following questions:
– Current and post GST warehouse capacity near Nagpur
– There is a lot but confusing information around subsidy for warehouse zone. Any authentic link on this would be appreciated.
– Availability of vendors for project management and execution for modern warehousing space of upto 0.5 M sqft
– Any ballpark estimate of cost (assuming land is free) would also be welcome.

Thanks,

59. Chetan Vyas - October 21, 2012

WHAT ABOUT NH79 FROM BHILWARA TO INDORE.IS IT GOOD PLACE TO BUILT WAREHOUSE FOR FOOD GRAINS.

Any one from same area having warehouse ?

60. Navneet Daga - January 13, 2013

Hi,
I have 3 Acre of land available in Hoshangabad Dist (MP) just 400 mts from NH (20 km from 2nd /3rd biggest Railway Junction,100 Km from Bhopal and 250 Km from Nagpur).

I am interested in warehousing business and trying to understand how it functions. There are already lot of warehouses in and around this area but since its one of the largest Wheat and Dal producing belt there is need for more. Also got to know that the State Govt. / Central Govt. have leased quite a few of them due to limited storage capacity available with them.

Can you please suggest and guide me on the following:
– Cost of Building a warehouse in /sq.ft terms
– Cost of building a cold storage in /sq.ft terms
– Typical Seed capital required and ROI period
– How to find right PE/Funding partner

Thanks!
Navneet


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