Warehousing space set for a significant boom

Visakhapatnam: Following a significant boom in the warehousing sector, e-commerce companies have hired 10.76 lakh sqft storage space in Hyderabad region comprising AP and Telangana states and the locations include tier I, II and III cities such as Hyderabad, Visakhapatnam, Vijayawada, Nandikotkur and Sarangapur.

Sharing statistics with The Hans India, the Regional Head (AP, TS) of Central Warehousing Corporation, Commander Ajay Zadoo, says that the requirement for storage of food grains and agricultural commodities has seen an apparent rise in recent times. "Setting up of irrigation facilities and associated crop yields has resulted in a sharp rise for storage space demand. In 2021-22, CWC hired 1.2 crore sqft capacity of storage space for 60 lakh fully-pressed cotton bales of Cotton Corporation of India," Zadoo said during his visit to the city.

With the capacity and infrastructure building plans approved for e-commerce, manufacturing industry and food grains at Medak and Renigunta to the tune of 3.8 lakh sqft, and e-commerce companies looking for every reachable pin code, Zadoo asserts that the storage business is poised to witness a sizeable growth in 2022-23.

But for the Covid-induced setbacks, the warehousing sector is expected to witness a sustained growth, fuelled by e-commerce companies and catering to the customers directly by closing the last-mile delivery gap. "This has resulted in a substantial rise in demand for warehousing in commercial areas, residential landscapes apart from making inroads into tier II and III cities. Given the priority accorded to safety and hygiene norms, the demand for grade-A warehousing would continue to catch-up," observes the Regional Head of the CWC-AP and Telangana.

As significant investments were witnessed in the last five years from global funds and private equity players, partnering with local developers and logistic players, it has given a fillip to the warehousing industry in terms of the much-needed capital influx and augmented infrastructure. "Apparently, the cold storage has been identified as a thrust area to minimise post-harvest loss of horticulture products like fruits and vegetables. The infrastructure development projects such as Mega Food Parks and cold chains are being planned for both processing and storage of perishable commodities. This sector could see a big boost in near future," elaborates Commander Zadoo.

Working in tandem with the roadmap laid by the Government of India for the achievement of Sustainable Development Goals (SDGs), CWC has ushered in digitalisation in a big way. "The Warehouse Management System (WMS) was launched across all warehouses. The storage of food grains is being undertaken with minimal losses in transportation and handling. Also, the food grains are being stored scientifically in the warehouses with regular prophylactic activities to bring down damage caused due to pests," he says.

In addition, continuous training is imparted to farmers for safe and scientific storage of their stock post harvest. "In 2021-22, 60,000 farmers were trained as a part of the FESS programme. Further, the farmers are also encouraged to avail benefits of eNWRs (electronic negotiable warehouse receipts) and regular sessions are organised to connect them with the participating banks for facilitating stock financing and trading," adds Zadoo.