Leap forward Indian Warehousing: June 2018 - JLL
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Indian Warehousing: The evolutionary leap forward June 2018
With advancements in technology, India’s logistics industry is undergoing rapid
evolution and paving an encouraging path for what lies ahead.
Logistics 4.0 embarks on newer tech enablers such as sensors, augmented reality and
the Internet of Things (IOT). Robotics and Analytics are enabling warehousing facilities
to adapt to significant changes in the environment and their business as well as tackle
tasks efficiently, while working with people.
Indian logistics is experiencing a myriad of changes and is gradually improving its
positioning as seen in the latest Logistics Performance Index (LPI), wherein India’s
rank has jumped by impressive 19 positions to reach the 35th rank.
The Indian Government’s increasing thrust on core infrastructure is eminent from
the all-time high allocation of funds (INR 5.97 trillion) in Budget 2018-19. This is poised
to exponentially impact the transport and logistics sector.
This white paper aims to showcase India’s position in this logistics evolution. It gives
a snapshot of current trend and market dynamics which will boost growth and
pave the way for the future. It covers in detail, aspects such as various infrastructure
initiatives, government policies and aspirations of developers and tenants within the
logistics sector.
I am confident you will find this an interesting read.
Best regards,
Ramesh Nair
CEO & Country Head
JLL India
ramesh.nair@ap.jll.com
2 Indian Warehousing: The evolutionary leap forward
CONTENTS
Preface
Evolution of Logistic Industry 4
India’s position in Logistics Evolution 6
Policy Boosters 7
Infrastructure Booster 12
Tenant Aspirations 14
Developer Aspirations 15
Indian Warehousing market Update 17
Emerging Warehousing Locations 19
Way Forward 22
Indian Warehousing: The evolutionary leap forward 3
Logistics 1.0
(late 18C to early 19C)
Mechanization of Transport
Steam engine based transportation enabled longer
distances, faster processes and more products
Logistics 4.0 Logistics 2.0
(early 21C to Present) (early 19C to mid 20C)
Evolution
Smart Logistics Automation of
IoT and services handling system
adapted to aspects Electric power and
of smart factory,
smart warehouses, of Logistic mass production
enabled global
smart products
and services Industry resource planning,
automatic
focusing on warehouse
cyber, physical processes, and
and AI centralized
technology transport
modes
Logistics 3.0
(mid 20C to late 20C)
Logistics Management Systems
Computing system for integration of autonomous
inventory management, autonomous forklift
and warehouse processes
4 Indian Warehousing: The evolutionary leap forward
Logistics 4.0 Supply Chain Adaptations
Logistics
Supply Chain Logistics 4.0 – Major
Global resource planning Technological
and controlling
Components
1
In bound Logistics
Networking (IoT) Autonomous inventory
management
2
Warehouse Management Data Analysis
Automated Warehouse
Network
3
Intralogistics
Locating (RTLS) Auto forklift and machine
production
4
Outbound logistics
Automatic Delivery Sensing (CPS
Management
5
Logistics Routing
Identification
Real time routing and
(RFID Systems) navigation
6
Indian Warehousing: The evolutionary leap forward 5
India’s position
in Logistics
Evolution
India is in the early stages
of Logistics evolution and is
showing tremendous potential
Indian Logistics
for development which can be
evolution
seen in its improvement in LPI falls between
India jumped 19 places in LPI Logistics 2.0 to
Logistics 3.0
ranking from Rank 54 in 2014
to Rank 35 in 2016
LOGISTIC 1.0 LOGISTIC 2.0 LOGISTIC 3.0 LOGISTIC 4.0
The advancement in technologies
and infrastructure, along with Key Boosters for
Tenant &
Government’s support through policy Infrastructure India’s Logistics
Policy Booster Developer
Booster
initiatives is paving way for positive Aspirations Evolution
improvements and boosting growth
for the logistics sector in India.
Disclaimer: India’s positioning w.r.t the evolution of the logistics is based on JLL perceptions
Source: The Logistics Performance Index and its Indicators. Washington, DC: The World Bank
6 Indian Warehousing: The evolutionary leap forward
Policy Boosters Logistics sector to get credit on long term
basis at competitive rates
Indian logistics
• Access to funds as External Commercial Borrowings (ECB)
sector being • Access to long tenure funds from insurance and pension funds
granted • Borrow from India Infrastructure Financing Company Ltd (IIFCL)
infrastructure
Multi-modal Logistics Park: minimum investment of INR 50 crores
status and minimum area of 10 acres
Cold Chain Facility: minimum investment of INR 15 crores
and minimum area of 20,000 sq.ft.
Warehousing Facilities: minimum
investment of INR 25 crores and
minimum area of 100,000 sq.ft.
With warehousing being granted infrastructure status, the availability of longer tenure financing
facilities at reduced cost of debt will support the development of much-needed, large-scale
logistics parks in the country.
The increase in funding is helping logistic companies focus on integrating new technologies,
improve inter-modal transportation, and bring in more automation in logistics management.
This will result in an efficient and fairly vast network of warehouses & logistics facilities that will
trigger growth opportunities for the entire warehousing industry and the country.
RAJESH JAGGI
Managing Partner - Real Estate at Everstone Group
The transport and logistics sector has always stood the test of time and now that the category
has acquired the status of ‘infrastructure’, the country is about to witness heights of landmark
growth. Categories like warehousing facility and cold chain facility have achieved their ‘much
longed for’ definition. The changed mindsets will have positive implications, making industrial
and logistics sector one of ‘investor’s ambitious favorites.
ANSHUL SINGHAL
CEO - Industrial Real Estate, Embassy Industrial Parks
Indian Warehousing: The evolutionary leap forward 7
Establishment
of Logistics
division
Policy changes
The Logistics division in the Department of
Commerce was created on 7th July 2017
The primary mandate of this division is to
Improvement Gaps and
develop an Action Plan for the integrated Identification of
in existing introduction of
bottlenecks
development of the logistics sector in procedures technology
India, by addressing the following heads -
Logistics sector to get credit on long term basis at competitive rates from financial institution
and access to funds as External Commercial Borrowings (ECB), as well as access long
tenure funds from insurance and pension funds and borrow from India Infrastructure
Financing Company Ltd (IIFCL). This is bound to boost the growth of Logistics sector.
ABHIJIT MALKANI
CO-CEO - ESR ADVISORS INDIA
Hub and Spoke to Rule
Impact of Impact: Organizations will now be able to explore a different distribution
GST on model from the traditional carrying and forwarding (C&F) distributor-
Warehousing based models. Growing demand for Larger Hubs / Regional Distribution
Centre as well as Smaller ‘Spoke’ warehouses
Consolidation
Impact: Post GST, the focus would shift on efficiency rather than tax
saving through smaller warehouses. Companies to re-structure their
warehousing portfolio to bring in larger and ‘supply –chain’ efficient
warehouses, typically built to their specific warehouse requirements
Quicker Supply
Impact: State-border check points for scrutiny and location based tax
compliance, which accounts for almost 60% of a truck’s transit time, can
hugely reduce, thus quicker supply.
8 Indian Warehousing: The evolutionary leap forward
Efficient and Larger Warehouses More Organized Logistics Players
Impact: Efficient warehouse management Impact: Existing organized warehousing
is expected to boost the sector as the developers can expect significant
warehouses are expected to have ‘economies increase in demand. More organized
of scale’ thus increasing Per Cubic Metre players are expected to enter the sector.
storage efficiency of warehouses.
Larger Investments Reduced cost to customers
Impact: Warehousing developers
Impact: Reduction in tax cascading may
investing in larger logistic parks and
lead to lower cost of production and
buying land at strategic locations.
distribution which can be eventually
passed on to the consumers.
The tenants have become ambitious and are thinking of consolidating in fewer locations to
service more efficiently. They are desiring for larger floor plates, enhanced specifications in
terms of FM2 flooring and an increased clear height of about 12-14 metres. They are going for
a hub and spoke model on a regional basis. On a national level, they are scaling up multiple
key locations to occupy the space in strategically placed clusters. This augurs well with the
industry. The traction this industry is drawing post GST is significant and has resulted in an
elated occupiers’ sentiment. It suits tenants to consolidate their locations and integrate the
processes therein.
SANDEEP CHADHA
CEO -All Cargo Logistics & Industrial Parks
Consolidation of logistics infrastructure requirements are widespread post GST, which
led to implementation of systems and processes to improve efficiency, resulting in
improvement of service level and reduction of overall logistics cost.
ALOKE BHUNIYA
CEO - Ascendas Firstspace
Post GST Implementation tenant requirements have changed. Tenants are demanding
knowledge on network modeling to reconfigure their supply chain and compliant
infrastructure.
MEHUL SHAH
CEO - LOGOS INDIA
Indian Warehousing: The evolutionary leap forward 9
Multi Modal Multi-Modal Logistics Parks (MMLPs) are a key policy initiative of the Government of
India to improve the country’s logistics efficiency and its international competitiveness
Logistics Park under the Logistics Efficiency Enhancement Program (LEEP)
MMLP are freight-handling facilities Benefits
with various modes of transport
access.
Intermodal Reduced Warehousing
MMLP serve the functionalities of freight inventory cost
freight aggregation and distribution, movement holding costs reduction
storage and warehousing,
multimodal freight transportation
and value added services. Transport Reduced
cost freight
reduction transport lead
Phase 1: 15 Multimodal Logistic Parks times
with an investment of
INR 33,000 crores
through PPP mode.
Key Players/ Operators
These would cover about of 40%
the total road freight movement in
the country.
Souce: IndiaOnTheGo. (n.d.). Logistic Parks in India; Terminal
Network. (n.d.). Retrieved from Concor India:
http://www.concorindia.com/map.asp State
Governments
10 Indian Warehousing: The evolutionary leap forwardJAMMU
NORTH PUNJAB
(Amritsar, Jalandhar,
Gurdaspur)
SOLAN
Multi Modal Logistics Park
SOUTH PUNJAB CHANDIGARH
(Ludhiana, Patiala ,Sangrur) AMBALA DEHRADUN
BHATINDA AHMEDGARH PANTNAGAR
NCR DELHI SOUTH PUNJAB
HISAR (Ludhiana, Patiala ,Sangrur)
KATHUWAS
JAIPUR
KANDLA
(Kandla port,
KOTA GUWAHATI
Bhuj)
PATNA
SUNDARGARH
INDORE BHOPAL KOLKATA
TIHI
RAJKOT JHARSUGUDA
VARNAMA
VALSAD RAIPUR
NASIK NAGPUR JAGATSINGHPUR
NORTH GUJARAT NAYA RAIPUR
(Ahmedabad, MUMBAI
Vadodara)
HYDERABAD
PUNE VISAKHAPATNAM
SOUTH GUJARAT NAGULAPALLE
(Surat, Bharuch)
VIJAYAWADA
MUMBAI PANAJI
(Mumbai, Mumbai
Suburbs, JNPT,
Mumbai Port, Thane,
Raigad)
BENGALURU
EXISTING MMLP
CHENNAI
PHASE 1 (15 LOCATIONS)
COIMBATORE PHASE 2 (PRIORITIZED LOCATIONS)
KOCHI
Indian Warehousing: The evolutionary leap forward 11Rail Road
DEDICATED FREIGHT CORRIDOR BHARATMALA
Ministry of Railways is developing Western Dedicated Its main focus is on development of roads to optimize
Freight Corridor (WDFC) and Eastern Dedicated efficiency of traffic movement across the country by bridging
Freight Corridor (EDFC) to decrease freight transit the infrastructure gap.
time substantially
It will cover- economic corridors, inter corridors, feeder roads,
(WDFC) (EDFC) proposed ring roads, logistic parks, international connectivity
1504 1856 road, port connectivity roads, coastal roads and expressways.
Total length (km) (Dadri to (Khurja to
JNPT) Bhaupur)
Projected completion Sep-20 Dec-20 Investment NH linkage Phase I: Phase I to be
Size: INR to 550 24,800 implemented
Land acquired 98.80% 97.1%*
800,000 crore districts KMS to be over 2017-18
Sanctioned cost
81,459 (approx.) developed to 2021-22
of project (INR crore)
(*with the exception of Sonnagar- Dankuni section in EDFC where only 67% of land
has been acquired)
Infrastructure Booster
WATER
RAIL ROAD AIRPORT MARITIME
PORTS
Airport Water / Maritime / Ports
Civil Aviation Policy 2016 aims at: SAGARMALA
Make India 3rd largest civil aviation market by The Logistics Sector will invariably receive a boost under
2022 the Port let developments under Sagarmala, which are as
follows:
Increase cargo volumes to 10 million tonnes i.e.
by 4 times by 2027 Around 116 initiatives were identified across 12 major
ports to unlock more than 100 MTPA capacity just
Enhancing ease of doing business through
through efficiency improvement.
simplified procedures, deregulation and
e-governance 6 new major ports are planned which will bring in
significant capacity expansion
Promote ‘Make In India’ in Civil Aviation Sector
Source: India, G. o. (n.d.). Port Modernization & New Port Development. Retrieved from Ministry of Shipping: http://sagarmala.gov.in/project/port-modernization-new-port-development#; India, G. o. (n.d.).
Bharatmala Pariyojana. Retrieved from National Portal of India: https://www.india.gov.in/spotlight/bharatmala-pariyojana-stepping-stone-towards-new-india; Dedicated Freight Corridor Corporation of India Ltd.
(n.d.). Retrieved from http://dfccil.gov.in/dfccil_app/Project_Phasing; Indian Aviation Industry. (n.d.). Retrieved from Indian Brand Equity Foundation: https://www.ibef.org/industry/indian-aviation.aspx
12 Indian Warehousing: The evolutionary leap forwardSRINAGAR
AMRITSAR
LUDHIANA
DADRI
KANDLA
KOLKATA
HALDIA
PORBANDAR
TAJPUR
PARADIP OUTER HARBOUR
VADHAVAN
PARADIP
MUMBAI
JNPT VISAKHAPATNAM
MACHILIPATNAM
MORMUGAO
BELEKERI
NMPT
ENNORE
CHENNAI
EDFC
BANGALORE WDFC
Major ports
KOCHI Proposed Greenfield ports
CUDDALORE
End-points of industrial corridor/ DFC
TUTICORIN North South Corridor - National Highway
Amritsar-Kolkata Industrial Corridor
Delhi-Mumbai Industrial Corridor
ENAYAM Bengaluru-Mumbai economic corridor
Chennai-Bengaluru Industrial Corridor
Bengaluru-Kolkata Industrial Corridor
KANYAKUMARI East West Corridor – National Highway
Indian Warehousing: The evolutionary leap forward 13What tenants can look What tenants can look
forward to forward to
Last mile delivery is having a huge impact on Tenants are looking for technological solutions for
logistics sector, wherein it is providing a wide achieving greater efficiency and optimization in the
range of products to its consumers along with warehouse, as follows:
the option of same or next day delivery
Digitalization and Network Collaboration to enable
efficient capacity planning and demand forecasting for
warehousing
Application of automation in the use of physical robots
that replicate manual tasks
Last Mile Delivery Automation
Last mile is a term Logistics sector is seeing a
used in supply chain unprecedented change due
management and to the advent of digitization and
transportation planning to automation. With its implementation
describe the movement of being precision and process
goods from a fulfilment driven, high quality
centre to their final warehouses will
destination provide the necessary
solution.
Consolidation of Space Transportation
related change
Implementation of GST has
had a positive effect on Indian Government’s increasing
warehousing activities in thrust on core infrastructure
India due to diminishing sector is poised to improve
state boundaries and has the transport and logistics
made way for cost and sector (e.g. railways, roads &
operationally efficient highways, maritime, civil
Hub & Spoke Model aviation etc.)
of warehousing
What tenants can look What tenants can look
forward to forward to
Tenants are looking forwards to Post Dedicated Freight Corridor (DFC) completion and
shifting from low quality redundant commissioning, large volume of cargo can easily be transported via
warehouses to big box, good quality rail and the logistics sector is bound to experience high demand in
Grade A warehouse. future across storage spaces connected to railway facilities
Sagarmala initiative is going to promote port led development to
enhance transportation through coastal shipping. Additionally,
the Inland waterways has a vision to connect major logistic nodes
through transportation through rivers.
14 Indian Warehousing: The evolutionary leap forwardDeveloper Aspirations India invests around 10% of its GDP in infrastructure,
which is significantly more than other developing
Impact of Initiatives and countries. Large infrastructure projects like DFC, DMIC,
‘Infrastructure Status’ on Sagarmala, Bharatmala is bound to impact the growth
Logistics Sector of industrial and logistics sector in the long run
These government policies and initiatives in Infrastructure
will take India into the Global league inviting the Global
players to invest more in India and making the Indian
players to improve to compete in international standards in
the long run.
SHOUVIK MANDAL
Assistant Director, Finance - Apeejay Surrendra Group
Development of infrastructure is an excellent opportunity
for the industrial and logistics sector, however to effectively
capitalize on the opportunity the sector needs to modernize
its systems & processes, invest in manpower and ensure ALOKE BHUNIYA
regulatory compliance. We expect significant capital CEO - Ascendas
investment across all of these opportunities, leading to a Firstspace
more efficient logistics performance and higher capital inflow
in manufacturing.
Infrastructure status to this industry has paved the way for institutional players to
invest in this promising sector. Funding has become easier and there is renewed
interest from incumbents as well as players from across the spectrum.
Lending rates have gone down paving way for greater liquidity in the sector. It will
help bringing in international standards and would result in setting up of well-
defined logistics clusters throughout the country.
SANDEEP CHADHA
CEO -All Cargo Logistics & Industrial Parks
Indian Warehousing: The evolutionary leap forward 15Adoption of global Focus on the adoption of best practices in design and construction and promote
sustainable and self-sustaining ecosystem
best practices Focus on the use of automation and robotics, and supply chain management systems
to increase management efficiencies in warehousing
Globally, the use of automation, robotics and supply chain management
systems to increase management efficiencies in warehousing, is on the rise.
Drones and self-driving vehicles are being introduced in warehouses to RAJESH JAGGI
support seamless operations; also robots are being introduced to help in Managing Partner - Real
managing and sorting of warehouse inventory, leading to increase in output. Estate at Everstone Group
We expect India to soon adopt smart warehouse technologies for achieving
innovation in storage, inventory management and improved tracking.
This space has essentially been dominated by standalone non institutional grade properties.
There is a significant depth of global logistics operators in the market and the best global
practises are being imbedded into the operations of the country’s leading logistic operators,
MEHUL SHAH this necessitates the development of institutional product on a standalone as well as on a
CEO - LOGOS park level basis. Some of the key specifications include FM global compliant standards,
INDIA warehouse design & simulation for internal, product with sustainable long term build
quality, improvised truck turnaround time within the park, support the users with the fit-out
infrastructure and bring the expertise in supporting fit-out infrastructure.
REIT listings will help provide liquidity to developers who
REIT listing ANSHUL SINGHAL
could partially exit from assets or a group of assets, whilst
retaining some holding. They will enable the participation of
for Logistics CEO - Industrial Real
Estate, Embassy
small retail investors in the growth of logistics asset class.
REIT will provide an opportunity for the income yielding
assets class Industrial Parks asset class to get organized and institutionalized. Any
regulation in favor of public good is generally desired.
16 Indian Warehousing: The evolutionary leap forwardIndian
Warehousing 140
million sq ft
Warehousing Stock 2017
For Grade A and Grade B
for 8 Primary Locations
market Update
37.16
40 19% 20%
Top 8 Cities 18%
35
- Grade A
Warehouse Space (mn sq ft)
16%
and Grade B 30 14% 28.04 16%
15.02 14%
Warehouse 25 30.88 14% 11% 12%
11%
Stock & 20 18.63 23.34 9% 10%
Vacancy, 13.79 11%
10% 7% 11.24 8%
2017 15 10.60 9% 6% 6%
11.60 6%
6.04 5%
10 4% 5.24 8.70
8.00 4%
5 4.42 2%
6.27 8.03 8.98 8.55 2%
4.70 3.69 3.60
0 0.66 2.54 0%
NCR DELHI BENGALURU PUNE MUMBAI CHENNAI AHMEDABAD KOLKATA HYDERABAD
Grade A Grade B Vacancy (%) Grade A Vacancy (%) Grade B
Top national players
Top 8 Cities - Grade A and Grade B Warehouse Stock Projections*
2017 - 2019 is expected to see
Hike in the supply of Grade A Stock Stabilisation in the Supply Market
substantial increase in the supply
Stock has substantially increased Grade A and Grade B Stock is
post-GST lementation expected to stabilise in 2020-2021
of warehouse stock owing to
the implementation of the GST
which will have a positive effect
15% CAGR (2014-16) 21% CAGR (2017-19) 20% CAGR (2020-21) on warehousing activities in
India due to diminishing state
Pre - GST Implementation Post - GST Implementation
boundaries
297
300.0
Warehouse Space (mn sq ft)
247
250.0 Implementation of GST has made
204
200.0 170 180 way for cost and operationally
154
150.0 140 efficient Hub & Spoke Model of
113 131
98 112 warehousing and has shifted the
100.0 86 97
71 80 end user demand and developer
50.0 63 93 117
58 73 supply from inefficient, low
23 27 33 43
0.0
2014 2015 2016 2017 2018* 2019* 2020* 2021* quality redundant warehouses to
Grade A Grade B 2017 - GST is Implemented large box, good quality Grade A
warehouse
Note: It does not take into consideration Grade-C, the stock owned by government, ICD, FTWZ and captive warehousing stock by manufacturing
companies that are within or beyond their premises. The warehouse stock and absorption data of the year 2017 have been estimated
The Future projections of stock for Grade A and Grade B space is done taking into consideration future supply of projects and market conditions in
each cities.. The Projections are cumulative total stock.
Indian Warehousing: The evolutionary leap forward 17Emerging Warehousing
Locations
While the top eight cities are witnessing fabulous growth; GST
implementation has taken away the state barrier in storage.
Going forward, location would be a major selection criteria
irrespective of state. And as a result, tier - II cities are coming
into focus. JLL has identified select cites other than the
top eight and evaluated their potential to become the next
growth centre of logistics.
LUDHIANA & AMBALA
CHANDIGARH
DEHRADUN
NCR DELHI
JAIPUR
LUCKNOW & KANPUR SILIGURI
JODHPUR
GUWAHATI
GWALIOR
PATNA
AHMEDABAD BHOPAL
KOLKATA
INDORE RANCHI
SURAT
RAIPUR
NASIK NAGPUR
BHUBANESWAR
AURANGABAD
MUMBAI
HYDERABAD
PUNE VISAKHAPATNAM
VIJAYAWADA
BELGAUM
GOA
TIRUPATI
8 Primary Cities and
BENGALURU CHENNAI 30 Major Emerging Cities
MANGALORE
COIMBATORE 8 PRIMARY CITIES 30 MAJOR EMERGING CITIES
KOCHI
Source: JLL Internal Research
TIRUCHIRAPPALLI
MADURAI
TUTICORIN
18 Indian Warehousing: The evolutionary leap forwardMethodology
adopted
Parameters taken
into consideration
Population of Road Road Distance
the city Connectivity from Port
Presence of Airport Manufacturing Potential Number of Consumer Price Index (CPI)
in the City IEMs filed for Industrial Workers
Human Development Ease of Doing 6 Hours Distribution
Index (HDI) Business Potential
6 Hours Distribution Potential and Composite Logistics Score Index
3.05
Surat
2.85
2.65
Better Warehouse - Conducive
2.45 Nasik Favorable Locations
Tirupati
Composite Score Index
Coimbatore
Vijayawada Jaipur
2.25 Ranchi
Goa Indore Madurai
Bhopal
Jodhpur Raipur Vapi Ludhiana & Ambala
2.05 Visakhapatnam Indore Kochi Kanpur & Lucknow
Tiruchirappalli
Mangalore Gwalior
1.85
Bhubaneswar Chandigarh
Belgaum Aurangabad
1.65
Guwahati
Patna
Dehradun
1.45
Siliguri
1.25
0 20 40 60 80 100 120 140 160 180
6 Hours Distribution Potential (Million Persons)
Increasing population catered
Source: JLL Internal Research
Disclaimer: Composite Score index is based on various qualitative and quantitative parameters and Distribution Coverage potential is based on the derivation of population catered / serviced for distribution is
arrived from a software based om distances from respective city center covered by existing road network with an assumption of avg. achievable travel speed depending upon the different types of road (40kms/hrs
for NH and Expressways and 30 km/h SH and other district roads).
Indian Warehousing: The evolutionary leap forward 19Investment Warehousing and logistics have emerged as one of the biggest growth areas in recent
times. We have seen Rs 15,000 crore private equity investments in warehousing space since
outlook 2014. While it made up around 10% of total private equity investment in 2017, the share
is now expected to grow further claiming larger share of investment. India’s logistics and
Select Foreign & PE
warehousing sector is rapidly transitioning through a revolutionary phase.
Investments in Indian
Logistics Sector
INVESTOR INVESTEE INVESTMENT
(INR CRORES) Year INVESTOR INVESTEE INVESTMENT
(INR CRORES)
KKR TVS Logistics 242 2012 New Silk Route VRL Logistics 206
Everstone
Capital
Transpole
Logistics 220 2014 Everstone
Capital
AS Cargo 277
Warburg
Pincus
Embassy
Group 1750 2015 Warburg
Pincus
Ecom Express 850
Warburg
Pincus
Stellar Value
Chain 850 2016 Everstone
Capital
Shree Kailash
Logistics 200
IndoSpac Macquire + Logos + Assetz
CPPIB 3,200* 2,800
Ivanhoe’
Ascendas Arshiya 534 Turnit Capital FWS Undisclosed
2017 Mahindra Life
Ascendas FirstSpace 3,800 IFC 600
Space
More than 10,000 Crore invested in 2017 Alibaba XPRESSBEES 224
Morgan
Stanley
KSH Undisclosed 2018 Proprium
Musaddilal
Projects 335
50,000 India is set to witness investments close to Rs 50,000 crore for creation of warehousing facilities across
the country between 2018 and 2020. Various categories of warehousing are expected to create around
crore to be 20,000 jobs to during these three years at different levels of specification and specialization. This
invested by 2020 investment comes on the back of the fact that nearly Rs 10,000 crore was invested in 2017
Disclaimer: Information provided above is collated by JLL from various sources. JLL has not verified the investments proposed herein and do not take any responsibility on its authenticity.
* 3 stage deals totalling $ 1.3 Bn with $500 Mn. (Rs. 3,200) invested in JV IndoSpace Core, $700 million for buying additional industrial and logistics parks and an additional $100 Mn. Investment in IndoSpace Fund III
20 Indian Warehousing: The evolutionary leap forwardNew Start ups
in the Logistics
Sector
A number of start-ups are coming up to support and fill the gaps in the existing fragmented and
unorganized Indian logistics industry. These start-ups cater to the demands of the specialized
deliveries including last mile distribution or reverse logistics and use technology to provide
services like tracking and fleet visualization, route optimization, real-time driver tracking, etc.
Leap India 4tigo ElasticRun
Category Freighting Solutions Freighting Solutions Last Mile Delivery
Location & Year of
Mumbai, 2013 Bengaluru, 2015 Pune, 2016
Incorporation
Funding $23 million $12 million $9 million
returnable packaging technology platform for network aggregation of
and pooling of fleet owners, drivers, transport and logistic
Focal Area equipment, transfer of brokers and companies vendors and space
goods to find best modes providers
and rates
LogiNext Fareye Shadowfax
Category Enterprise Solutions Enterprise Solutions Hyperlocal
Location & Year of
Mumbai, 2014 New Delhi, 2013 Bengaluru, 2015
Incorporation
Funding $10.5 million $3.5 million $8.8 million
solves last mile delivery
cloud-based issues by scheduling
optimization of delivery geo-based tracking,
and dispatch jobs location-based rider
Focal Area routes and resource for companies, real allocation
utilization time analysis of
performance
Indian Warehousing: The evolutionary leap forward 21Way Forward
Present India Indian Logistics evolution falls between
Logistics 2.0 and 3.0
Government’s support through policy initiatives like establishment
of Logistics division, granting Logistics an ‘infrastructure status’,
implementation of GST and establishment of MMLPs; is paving way for
Policy Booster positive improvements and boosting the growth of the logistics industry
Key boosters paving way for
India’s Logistics evolution
Indian Government’s increasing thrust on core infrastructure sector as
seen in projects DFC, DMIC, Sagarmala, Bharatmala; is bound to impact
Infrastructure
the growth of industrial and logistics sector in the long run
Booster
Tenants and developers aspirations in the sector are bound to expedite
the evolution of Logistics sector. They are looking forward to various
Tenant &
Developer upcoming changes like consolidation of spaces to upgradation of
Aspirations warehouse design, automation, last mile delivery and much more.
Future India Towards Logistics 4.0 - Smart Warehouse
Smart Warehouse is the adoption of automation & interconnected technologies wherein goods are handled with
minimum human intervention to boost productivity, efficiency & speed through the logistic supply chain.
Technology
Applications in
Real-time
Smart Warehouse Robots Sensors Drones Augmented Inventory
Reality software
22 Indian Warehousing: The evolutionary leap forwardAbout JLL’s Industrial Services
351
transactions
118+
Services nearly
43
consulting work
concluded Cities in India
delivered
27.60+
million sq ft built
1,487+
acres of land
Team of
39
up area transacted transacted personnel in
8 cities
Our Core Services
Business Location Land Acquisition / Project / Equity partner
Feasibility & Market Study
Advisory Disposal Search
Business Plan & Entry Supply Chain Consulting Lease Acquisitions Individual Asset & Portfolio
Strategy Formulation – Ready Built & BTS Acquisition/ Disposal
*Numbers as on December, 2018
Indian Warehousing: The evolutionary leap forward 23Contacts
For business enquiries, contact
N Srinivas Yogesh Shevade Chandranath Dey
Managing Director Senior Vice President & Senior Vice President &
Industrial Services, JLL India Head Industrial Transaction, JLL India Head Industrial Consulting, JLL India
srinivas.n@ap.jll.com yogesh.shevade@ap.jll.com chandranath.dey@ap.jll.com
+91 98454 45495 +91 96197 11280 +91 90999 71598
Author Support Team
Ishita Kachru Shweta Bhupatiraju Shristy Singh Sujash Bera
Senior Executive Intern, Executive Manager
Industrial Services Industrial Services Industrial Services Industrial Services
Special Acknowledgement
Abhijit Malkani, Aloke Bhuniya Anshul Singhal Rajesh Jaggi
CO-CEO - ESR ADVISORS CEO - ASCENDAS CEO - INDUSTRIAL MANAGING PARTNER -
INDIA FIRSTSPACE REAL ESTATE, EMBASSY REAL ESTATE AT
INDUSTRIAL PARKS EVERSTONE GROUP
Sandeep Chadha Shouvik Mandal Mehul Shah
CEO - ALL CARGO ASSISTANT DIRECTOR, CEO - LOGOS INDIA
LOGISTICS & INDUSTRIAL FINANCE - APEEJAY
PARKS SURRENDRA GROUP
About JLL
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. A Fortune 500 company, JLL helps
real estate owners, occupiers and investors achieve their business ambitions. In 2016, JLL had revenue of $6.8 billion and fee revenue of $5.8 billion
and, on behalf of clients, managed 4.4 billion square feet, or 409 million square meters, and completed sales acquisitions and finance transactions of
approximately $145 billion. At the end of the second quarter of 2017, JLL had nearly 300 corporate offices, operations in over 80 countries and a global
workforce of nearly 80,000. As of June 30, 2017, LaSalle Investment Management had $57.6 billion of real estate under asset management. JLL is the
brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit www.jll.com
JLL has over 50 years of experience in Asia Pacific, with 36,800 employees operating in 95 offices in 16 countries across the region. The firm won the
‘World’s Best’ and ‘Best in Asia Pacific’ International Property Consultancy at the International Property Awards in 2016 and was named number one
real estate investment advisory firm in Asia Pacific for the sixth consecutive year by Real Capital Analytics and ranked among Fortune Magazine’s
World’s Most Admired Companies list third year in a row. www.ap.jll.com
About JLL, India
JLL is India’s premier and largest professional services firm specializing in real estate. With estimated revenue for FY 2017-18 expected to be ~INR
3,200 crores, the firm is growing from strength to strength in India for over the past 20 years. JLL has an extensive geographic footprint across 10
cities (Ahmedabad, Delhi, Mumbai, Bengaluru, Pune, Chennai, Hyderabad, Kolkata, Kochi and Coimbatore) and a staff strength of over 9,500. The
firm provides investors, developers, local corporates and multinational companies with a comprehensive range of services. This includes research,
strategic advisory and consultancy, capital markets, transaction management, project and development services, integrated facilities management,
property and asset management. These services cover various asset classes such as commercial, residential, industrial, retail, warehouse and
logistics, hospitality, healthcare, senior living and education.
JLL was recognised as one of the Best Places to Work in India 2017 in the annual survey of ‘India’s Best Companies to Work For’ – a joint study
conducted by Great Place to Work® and The Economic Times. The firm has also been acknowledged as ‘Property Consultant of the Decade’ at the
10th CNBC-Awaaz Real Estate Awards 2015 and the Best Property Consultancy in India at the International Property Awards Asia Pacific 2016-17.
For further information, please visit www.jll.co.in
Jones Lang LaSalle Property Consultant (India) Pvt Limited © 2018. All rights reserved. All information contained herein is from sources deemed reliable; however, no
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