NDR Warehousing's network spans 21+ Industrial Parks across India

“The growing demand for tech-enabled operations and the widespread adoption of cutting-edge technology have rendered Grade A warehouses highly agile, enabling them to effectively adapt to the ever-evolving requirements of businesses and customers.”

Daljit Singh, Marketing Director, NDR InvIT Managers

Challenges
Building warehouses in Tier 2 and 3 cities or upgrading existing ones presents unique challenges. Firstly, infrastructure development, while improving, may lag behind Tier 1 cities, resulting in accessibility and transportation bottlenecks. Land acquisition can be tricky, as it requires navigating local regulations and addressing potential community concerns. The availability of skilled labour, although growing, may not match Tier 1 cities, impacting workforce management.

Furthermore, adapting to local regulations, which can vary significantly, requires a nuanced approach. Overcoming these challenges requires strategic planning and a keen understanding of the local dynamics.

Growth potential
The growth potential of Grade A warehouses in Tier 2 and 3 cities is significant. The rise of e-commerce, the outsourcing trend to 3PL firms, favourable government policies, and the demand for tech-enabled solutions are driving growth. These cities are emerging as key nodes in the supply chain, given their proximity to emerging markets and lower land costs. As businesses expand beyond Tier 1 cities to cater to growing demands, the demand for Grade A warehousing facilities will surge, offering efficient, compliant, and technologically advanced solutions.

What is fuelling demand?
Several factors are fuelling the demand for Grade A warehouses in India. The proliferation of e-commerce necessitates large, modern storage spaces to accommodate extensive inventories. The rise of third-party logistics providers drives the need for Grade A warehouses to facilitate last-mile deliveries. Favourable government policies such as 'Make in India', support the manufacturing sector's demand for advanced, tailored warehousing solutions. Furthermore, the demand for tech-enabled operations and the adoption of cutting-edge technology have made Grade A warehouses more agile, meeting the evolving needs of businesses and customers.

Government policies governing warehouse sector
The Indian government has introduced a series of policies and initiatives aimed at boosting the warehouse sector. The Goods and Services Tax (GST) has simplified the tax structure, reduced transit times, and streamlined logistics operations. Initiatives such as 'Make in India' and 'Digital India' are encouraging businesses to expand their operations into Tier-2 and Tier-3 cities. This expansion is contributing to the growth and demand for warehousing facilities in these regions.

The introduction of the National Logistics Policy is another significant step, with the goal of reducing logistics costs and enhancing infrastructure. These efforts are being complemented by state-level logistics policies, creating a comprehensive and favourable environment for the warehousing sector. Additionally, the Ministry of Road Transport and Highways is actively investing in road infrastructure, with the aim of improving accessibility. Collectively, these policies and investments are creating a conducive business environment that promotes increased investment and growth in the warehousing sector, ultimately benefiting the Indian economy as a whole.

NDR warehouses
NDR warehousing boasts a portfolio of more than 14 million sq.ft with 50+ warehouses and 21+ industrial parks. Our warehouses are strategically located across India, including Haryana, Delhi, West Bengal, Tamil Nadu, Karnataka, Puducherry, Maharashtra, and Goa. The company has 6 million sq.ft of upcoming projects in the pipeline.