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Warehousing & logistics sector to grow at 35% in 2021: Report

By Sobia Khan, ET Bureau
Last Updated: May 13, 2020, 08.06 AM IST

The warehousing and logistics asset class could be among the fastest to recover from the coronavirus crisis, a
report says, citing an expected increase in domestic demand and possibility of global firms shifting
manufacturing to India to de-risk supply chains as reasons.

The Welspun One Logistics Parks (WOLP) report estimates that the warehousing and logistics industry will grow at
35% in 2021 compared with the earlier industry demand forecast of 25%.

“The transition of retail to online and larger inventory levels by ecommerce players will speed up the
warehousing demand further. The resulting impact will be felt substantially in demand for inner-city logistics
and cold chain facilities,” Welspun One Logistics Park managing director Anshul Singhal said, adding that the firm
is in talks to raise capital to expand its business across the country.

The segment is also expected to attract a large pool of capital with fund managers looking at warehousing and
industrial real estate as a safer, resilient and scalable asset class for their investors.

According to the report, unlike other real estate asset classes, the warehousing sector is fully prepared and
mature to be able to scale and take advantage of the increase in demand due policy initiatives like GST,
infrastructure status and 100% FDI approvals.

The year 2019 also saw larger funds and developers evaluating regional developments having strong tenant
profile with a combination of land and stabilised assets.

Global funds like Blackstone, ESR and Morgan Stanley are some of the firms that invested in a combination of
platform or project level deal.

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