The logistics industry in India is changing rapidly, for 278 billion AUD. Several industries are being liberalized by the Government. There is an upgrade of road and rail networks. Goods corridors are under construction. Operators of the supply chain are radically upgrading warehouse standards, systems, and design.
This insight looks at opportunities for smart warehousing specialists from Australia as Indian logistic companies expand their infrastructure and upgrade.
Smart devices energy-efficient solutions for warehouse design and construction automation and containerization. Electronic trade, cold storage, and grade A drive storage demand standards in India The future logistics sector in India is likely to be characterized by intelligent warehousing.
India’s logistics sector is expected to outweigh GDP growth by 20% over the next decade, the Asia Development Bank (ADB) states.
In India’s warehousing sector, rapid growth in Indian logistics drives change. In India, there was estimated growth in the number of “grade A” warehouses in the COVID-19 pandemic by 25 percent per year.
But the Grade A warehousing is still in deficiency. The main drivers of demand are:
• Increasing e-commerce supply chain distribution requirements demand cold storage of agri-food and medicinal products
• Demand for agri-food and health products cold-storage storage
• Supplier chain operators to modern Grade A storage facilities
• Increased demand for domestic supply chains in cities of Tier 2
• Enterprises that want their supply chain to de-risk and increase inventory stock.
Australian intelligent warehouse specialists’ opportunities
As Indian companies modernize warehouse infrastructure and operations, there are several openings for Australian smart warehouse experts. Technology, design, and operations include:
Super grids, electricity management, digital wearables, bionic improvements, 3D printing, Wallpaper designing, warehouse management, smart containerization, smart logistics robots, automated driving, ISPs, big data, logistics blockchain, IoT, augmented reality electronic billing, smart marketplaces.
Intelligent warehousing can also be a market of high investment growth. Intelligent storage is the key to increasing labor productivity
India recognizes that e-commerce needs to be different in terms of Grade A warehousing.
Modernization or redesigns include new labor-productivity equipment and devices, digital signature management, and automatic e-billing.
In a Technology Conference organized by DHL in Singapore in 2019, Vice-President and Chief Innovation Officer DHL Asia-Pacific Mei Yee Pang said it was unlikely to replace humans with robots in India.
Investment in the warehouse is a good investment vehicle.
The developers and investors in the warehousing industry have become separate stakeholders. While the US profit is estimated at 1.5ppt above warehouse space, Indian yields are reported to be comparable or higher. The US trade office space yields are expected.
The industry is also affected by changes in the rules on foreign investment in India. In 2017, ‘infrastructure’ status was granted to warehousing. That means that FDI can now represent up to 100 percent of the value of warehousing assets.
Government initiatives trigger logistics improvements throughout India
Investment in new logistics infrastructures and systems has been stimulated by national and state policy changes. For example – Multimodal Logistics Parks of the Indian Government (MMLP), A new warehousing policy in the NCR around Delhi, India The MMLP is the Government of India’s key policy initiative. By quoting MMLPs in 35 locations across the country, the Government wants to reduce logistic costs in India.
The ADB anticipates that MMLP policy will facilitate the aggregation and distribution of freight, multimodal freight transportation, integrated storage and storage, support for technology, and value-added services. MMLP in the Indian logistics sector should thrive in line with rapid growth that is projected to grow at 20% faster than economic growth.
How to find a partner in the logistics sector of India
Typically, Australian exporters enter the Indian market through local partners. In India, businesses are linked and are usually built on contacts that have already existed. A local partner can provide market information with up-to-date information. A partner will also provide insights into the business and financial risk of guaranteed performance.
Australia’s logistics partners can help Australia find appropriate partners in India. Trade networks throughout India can help generate insights while traveling is unpractical.
Founded logistics companies can also help to identify intelligent storage opportunities.
Several Australian logistics firms, including Linfox, Toll Logistics, and LOGOS India, were already operating in India. In India, the Container Corporation of India is the main state- owned logistics company. Companies in the private sector are Welspun, Mahindra Group, GATI, Central Warehousing, Indian Transportation Corporation, and Snowman.