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f+h Intralogistics 5/2016

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f+h Intralogistics 5/2016


GLOBAL BUSINESS 3. Manufacturing-led demand: The manufacturing sector spends nearly 2-20 % of its revenue on logistics depending on corresponding industry. But with the manufacturing sector growing at a compound annual growth rate of 7.3 % and further expected to grow even faster, the demand for logistics and warehousing service is set to grow at a massive rate. With policies like “Make in India” further providing a big boost to the manufacturing sector, the logistics, distribution and supply chain management experts can find themselves in an extremely sweet spot. 4. Agriculture-based demand: India is the second largest producer of vegetables and fruits, due to lack of infrastructure and fragmented cold chains, more than 20 % of agri-produce are damaged before reaching the consumer. According to a report by the Associated Chambers of Commerce and Industry of India (ASSO- CHAM), there is a shortage of more than 10 million tons of cold storage for agri-produce in India. 5. Export – Import (EXIM) based demand: In 2015, all major and non-major ports in India handled about 1050 Million metric tonnes of cargo. EXIM cargo is expected to increase to 2,800 MMT by 2020. Container handling is growing at about 11 %, creating huge demands for the entire eco-system of port related logistics. Logistics hubs and clusters The primary logistics hubs in India based on three major factors: n Proximity to the sea: The locations are strategic being in proximity to sea ports which can cater to the Export- Import (EXIM) trade generated through the major seaports in India. n Proximity to consumption hubs: These locations are able to cater to about 60 % of Indian demand within 12-hour drive time. n Facilitator-led locations: These locations have highlevel requirement of skilled manpower, support from government policies, infrastructure availability and presence of warehouse stock. Based on these factors and their significant contributions to the Indian economy, eight top cities including Ahmedabad, Bangalore, Chennai, Delhi NCR, Hyderabad, Kolkata, Mumbai and Pune can be considered as the country’s primary warehousing and logistic hubs. These eight hubs put together have a cumulative supply of organized warehouses to the tune of 97 million square feet in 2015, recording a remarkable 21 % annual growth rate between from 2010-15. With majority of the companies now realigning their supply chain networks, the market for warehouse spaces is expected to go northward in 2017 to around 120 million square feet. Ahmedabad: is home to several manufacturing sectors, including pharmaceutical and automobile and its components. A moderately large consumer market itself and a growing manufacturing base have made Ahmedabad one of the warehousing hubs in India. Ahmedabad’s connectivity to and location in the Delhi- Mumbai Industrial Corridor (DMIC) has given an impetus to the warehousing sector. Mumbai: The two busiest ports of India, JNPT and Mumbai port are major demand generators. The JNPT area has evolved as a major warehousing location in Mumbai because of its proximity to the port and availability of large expanse of land. Multiple free trade warehousing zones (FTWZs) are present here. Warehousing locations in Bhiwandi, Mankoli and Padgha along National and State Highway can be considered as the most vibrant and largest warehousing areas in Mumbai. Major supply of top class warehouses is available in this area, with the presence of FMCG and e-commerce companies. According to some statistics, the city offers more than 23 million square feet of warehousing space. Pune: Pune, just 160 kms from Mumbai, is also a huge manufacturing base from automobiles to machinery and equipment, food and beverage etc. The large consumer bases in Mumbai – Pune region and affordable land prices (compared to Mumbai) have helped Pune become a major warehousing location. The Chakan – Talegaon area in Pune, due to its proximity to large-scale manufacturing units and easy connectivity with Mumbai, as well as the presence of large organized warehousing parks has helped positioned Chakan – Talegaon as the prime warehousing area of the city. Pune has the presence of players such as Mahindra Logistics, Nippon, Bosch. Nagar Road and Shirwal are the two other warehousing corridors in Pune, with the presence of major occupiers in FMCG, engineering, auto accessories etc. After the implementation of the GST, cities like Belgaum, Kolhapur, Indore, Jaipur, Nagpur, Raipur, Patna and Ranchi are set to emerge as important warehousing locations. International trade fair: CeMAT India 2016 When the world’s fastest growing large economy summons, there is ample reason to pay attention to it. This December that is exactly what the global as well as India’s heavyweights in the field of logistics and supply chain will do to drive themselves to the next level. On 1 st of December with the arrival of a pleasant winter season in Mumbai, the curtains will rise at the CeMAT India – one of the most comprehensive industrial trade fair in the country. The location of the trade fair in the city of Mumbai, the economic capital of the country suits perfectly well for all the stakeholders in this sector. The Ahmedabad-Mumbai-Pune belt is one of the most highly industrialized regions in the country. It is also a huge consumer market with 30-35 % of India’s consumer market share. This international exhibition focusing on the logistics and supply chain sector in the heart of India’s most promising region proves to be an excellent opportunity to broaden the customer base, to promote new products and equipment, new innovations and services that add value to the entire logistics chain. This international event is sure to attract decision makers from diverse industry sectors and is the ideal place to catch a glimpse of latest trends and technologies in Materials Handling / Intralogistics, Storage Systems, Warehousing and Logistic Services. For global as well as domestic players it is vital to understand the perspective about Indian customer’s requirements and necessities. CeMAT India provides a unique opportunity to gather this market intelligence and also to demonstrate their presence in the Indian market. For companies in the logistics and supply chain sector who are hunting for fresh markets to drive their growth, CeMAT-India offers an unparalleled access to the Indian market with high growth prospects for immediate as well as long term. This international trade fair attracts visitors from all parts of the country creating a great chance to strengthen relations with their existing customers and also find local distributors and sales partners. Photograph: Fotolia f+h Intralogistics 5/2016

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