Warehousing sector plays a vital role in matching the demand and supply of goods and products across different industries.The warehousing sector in India has showed up in a big way and is estimated to grow further at a rate of 21% CAGR year on year. India’s total warehouse space is expected to expand and reach double its current size to 247 million sq. ft by 2020. One may witness the highest investment (Rs. 35000 crores) in this category out of all in the next 3 years which will prove to be a turnaround in its progress. The warehousing industry in India will grow to USD 215 billion by 2020. The sector is expected to attract investment worth USD 500 billion by the year 2025.
Perspective has changed from the old days when warehouse was treated as an additional and unnecessary cost. Today warehousing has become quintessential for the whole supply chain system and is being looked at in a different light. With evolution of e-commerce business and growth of Indian economy, the consumer base is expanding and consumers are willing to try new products across all product categories including retail, food and electronics. With the rising consumption, faster delivery times, improved taxation and a better transport system, the warehousing industry is expected to cross one milestone after the other in years to come.
Warehousing industry however has been and continues to be accompanied by many risks owing to the huge pile up of stocks that it is liable towards. The most dreaded risks are that of fire and natural disasters, each of which might also lead to third party liability and claims. The sector is also risked by tight delivery schedules, business interruption, legal risks, employment and retention challenges, and various others.
