Warehousing gets investment of Rs 25K cr since 2017; may touch Rs 49,500 cr by 2021

New Delhi: The country's warehousing sector has attracted an investment of Rs 25,400 crore since 2017 and the inflow is likely to reach Rs 49,500 crore by 2021 on robust demand for logistics space by e-commerce companies, according to global property consultant Colliers.

The industrial and warehousing sector in India has attracted significant investor interest since 2017 led by robust demand from e-commerce and other consumer-led occupiers, it said.

"The sector has attracted interest from multiple large institutional investors since 2017, with investment inflows of Rs 254 billion ($3.6 billion), signifying a large pool of capital available for investment in this sector. We project the investment inflow is likely to touch Rs 495 billion ($7 billion) by 2021 as existing participants expand their portfolio and new players enter the market," the consultant said.

Colliers noted that this sector in the past has been characterised by fragmented sheds and godowns but now, it is becoming organised because of demand for larger facilities from e-commerce companies.

"Occupiers mulling large contiguous warehouse leases, especially in the e-commerce and 3PL (third-party logistics) sectors, should look at select micromarkets in Mumbai and Pune that offer a good mix of industrial and multi-purpose warehouses.

"Bengaluru should also be explored as it offers seamless transfer of goods between states, benefitting from the removal of state-level taxes," said Colliers International India Managing Director and Chairman Sankey Prasad.