What led Laxmi Nivasam Developers to foray into the logistics space, and how do you plan to grow this vertical?
With the advent of online shopping, demand for warehousing has gone up exponentially. According to a JLL report, there would be an increase in national warehousing demand from 200 million sqft to 500 million sqft by 2025. This gap was noticed early on by our team, so we have decided to capitalise on this opportunity with Laxmi Logistics.
We have invested approx. Rs 150 crore in setting up the Laxmi Logistics Park which will have 6.75 lakh sq. ft of warehousing space across 30 acres land. The Park will offer a one-stop solution for top companies like Flipkart, Amazon, P&G etc. We are now looking to expand our warehouse facilities in three cities: Chitoor (Andhra Pradesh), Sadhashivpet (Telangana), and Lucknow (Uttar Pradesh). This will lead to 1200 job opportunities for the local youth in and around these cities.
Investors looking for passive income can consider commercial rental opportunities in the Park. Investors can also purchase a 40-sq-yard land in the Park for Rs 5.24 lakhs and can expect 8-12 percent monthly rental yield as return on investment (RoI). Our properties are lavish and affordable and we will spread aggressively across India. Within the next couple of years, we are confident of making Laxmi Logistics one of India’s leading logistics entity with a global presence. We also plan to venture into education, the private transport sector, and the hospital industry.
What new technologies will the company have in its warehousing units?
We will be constructing Class-A warehouses equipped with the latest technologies, which will include security and climate control systems, fire safety mechanisms, and high-speed internet for fast and smooth operations and handling of goods.
We are looking into standardizing and automating procedures to ensure maximum safety and productivity. Obviously, automation is the future of warehousing and we are also looking into employing drones and co-bots. We are also exploring the feasibility of solar panels in our warehousing units to promote green energy.
How is India’s Logistics and Warehouse sector evolving?
Logistics industry is an integral part of the Indian economy with a direct impact on national and international trade. The sector has seen massive advancements after the launch of the National Logistics Policy (NLP). With a total investment of Rs 75,000 crore, India can expect exponential growth in this sector that promotes last and first mile connectivity for ports and industries.
There is a huge demand for warehousing in India, which requires about 300 million sqft of warehousing space by 2025. The Finance Minister in this budget has allocated around Rs 10 lakh crore to infrastructure spending in this sector. India is growing at a rapid pace, producing goods faster than ever; hence demand for quality warehousing is growing.