India On the Cusp of Smart Warehousing

Industry Outlook Team

In an interaction with Industry Outlook, Anshul Singhal, Managing Director, Welspun One Logistics Parks shares his views on the current evolution of warehousing in India, and how with adoption of new technologies, the industry is moving towards smart warehousing.

How do you see the evolution of warehousing during the current times? What are the major factors driving its demand?
In a post-COVID-19 world where businesses consciously navigate an uncertain new normal, the Warehousing and Logistics sector has emerged as one of the fastest, most strategic real estate asset class. When it comes to an increased demand, warehousing has become critical for the smooth functioning of online grocers and other e-commerce businesses that now service an unprecedented 3-5x rise in demand for essentials online. With retail moving from offline to online, warehousing in India stands as an obvious beneficiary.

The expected increase in demand can be envisioned for Grade A warehousing, which can be attributed to the implementation of stringent health and safety regulations, the need for high-operational efficiency and better provisions of infrastructure and amenities for the people working in warehouses, especially now in the post-pandemic world.

Why are Grade A warehouses becoming the need of the hour for supply chain and logistics? How are they bringing about the expected ROI?
With the global dynamics changing post-COVID-19, India is seeing rising demand and opportunities for scale. In the last 3-4 years, Grade A warehouses have already been preferred by organizations owing to high quality efficiency and global standards. Furthermore, post-pandemic, the booming e-commerce market and a robust demand for essential goods to be available online, have bolstered the demand for Grade A warehousing facilities across the Indian subcontinent.

COVID-19 has thus accelerated both the scope and the pace of e-commerce adoption and growth, which can only be fulfilled by virtue of excellent Modern / Grade A warehousing that offers compliance, human safety, hygiene and enable automation and social distancing.
To bring about expected ROI, Grade A warehouses can contribute immensely:

a. Bigger global e-commerce players expect certain international standards of warehousing, closest to which is Grade A warehousing in India.

b. In a post-COVID-19 world, hygiene, safety and regulatory compliance like firefighting systems will be paramount for warehousing employees’ health and will be a primary concern for the end consumer as well, making Grade A warehouses a necessity.

c. The additional floor load, storage heights, sufficient parking, seamless movement are some of the basic reasons which have a positive impact on the overall operational efficiency of these parks. In the near future, trends like IoT and automation will pave the way for a new dimension in operational efficiency. These will only be possible in Modern warehouses.

d. Warehouses and amenities in Grade A parks are built to last, accompanied with regular maintenance. The initial built quality that a Grade A warehouse provides is extremely important as cost of repairs always turn out very expensive and disrupt operations.

e. A key feature of Grade A warehouses are the environment-friendly measures taken to incorporate sustainability in the day-to-day operations. A green belt creation along the perimeter of the facility, along with provisions for rainwater harvesting, waste handling and recycling of STP treated water for landscaping are common environment sustainability measures taken which will gain further prominence in the post-COVID-19 era.

f. Lastly, the Grade A parks are 100% compliant to local and statutory regulations, which in itself significantly mitigates operational risks.

Please tell us about the Grade A warehousing park launched by Welspun One. How well is it equipped to cater to the varying demands of players from e-commerce, 3PL, FMCG, and pharma sectors?
Our 110-acre, 900-cr maiden project in Bhiwandi is designed to global standards and Green Building Certification requirements, and is positioned to become a key asset in the hub of Mumbai’s warehousing market. Our project is acclaimed to be one of India’s first logistics parks that is equipped for COVID-19. Features like park management and maintenance on a tech-enabled platform, IoT driven traffic management system to minimize travel distance and trucks with RFID tags to predetermine directions and docking will be integrated within the park. Provisions will be made for various utility services like a healthcare centre, 24/7 surveillance, fire prevention and firefighting equipment, resting areas for drivers, LED lighting, low-maintenance roof with skylight and ample parking space for heavy as well as personal vehicles.

Other COVID-19 ready park features include contactless verification for entry/exit of people and vehicles, mandatory health declaration on an app, ultraviolet disinfection, and other automated safety and hygiene checks.

E-commerce players require high throughput with maximum efficiency and scale to expand to cater to customers’ requirements continually. There also is a need for a high level of automation which our park provides. Our 110-acre park also allows for large footprints, which is not easy in a location like Bhiwandi. Ample number of docks and parking are additional features that make the park amenable for e-commerce and 3PL players.

FMCG companies need high cubic utilization for storage and have month end plus seasonal throughput volume spikes. Our building and park design caters to high cube storage and quick dock TATs with adequate truck parking for peak volumes which keeps efficiencies high to reduce the total cost of operations. Our park in Bhiwandi will also be 100 percent compliant, fulfilling all statutory obligations, allowing for high standards of safety, health and environmental sustainability; to suit our customers’ needs and increase their competitive advantage.

How do you see the viability of the adoption of robotics in the Indian warehousing industry?
The current pandemic and social distancing norms will further thrust the use of automation and robotics. Smart warehouses will become an obvious choice going forward as they seamlessly integrate technology with operations. A smart warehouse is essentially made up of several interconnected technologies all used to run the warehouse more effectively. This includes robotics, RFID, IOT or AI. Customers globally are using these to substantially reduce time and costs towards delivery. We, in India, are at the cusp of adopting these smart warehousing measures. With increased consumption growth, demand for lower delivery times and higher labor costs, this trend is gaining prominence in the country.