Warehousing awaits $ 7-bn capacity addition

Buoyed by the recently conferred infrastructure status to logistics and warehousing sector that makes easier loan access for financing, players engaged in the segment have targeted a staggering investment worth $ 7 billion to build and own new warehouses across the country. The targeted funds are likely to be spent on warehouses, fulfillment centres and logistics parks in the near future. Apollo Logisolutions, which currently has 30 warehouses across India, is planning to build three to four warehouses spanning 250,000 sqft at an investment of Rs.18-20 crore each, said Vice-Chairman Raaja Kanwar. According to managing director of the Indian unit of FM Logistic, a €1 billion, French company, Gautam Dembla, the company is planning to start 6-7 new multi-client facilities (MCF) across major consumption centres in India. Logistics players in India have typically followed an asset-light model under which they lease warehouses instead of owning them. But the recent infrastructure status encouraged them to chart out plans of having a mix of owned and leased warehouses.