The document discusses the Indian warehousing and logistics industry. It provides an overview of key statistics on the size and state of the industry in India. Some of the major challenges facing the industry are lack of transportation infrastructure, lack of IT usage, fragmented market, shortage of skilled labor, and lack of standardization. The industry is driven by demand from various sectors such as consumption, manufacturing, agriculture, and exports/imports. The document outlines the different segments of the warehousing industry such as industrial/retail, liquid storage, cold storage, and container handling. It also profiles some of the major players in the industry.

1. MAM600
Submitted to: Submitted by:
Dr. Devendra Kumar Madhuri Muniyal(41417)

2. Introduction
 Logistics industry connects the Production centres to Consumption
markets.
 Warehousing sector constitutes only 15-35% of the total logistics cost,
but it plays an important role in smooth functioning of Supply Chain
Network.
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3. Scenario of Indian Logistics
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Parameters India US
Logistics Performance Index
2014, LPI
Score3.08
Rank 54/160
Score 3.92
Rank 9/160
Logistics Cost as % of GDP 13% 8.5%
Different sectors share of the
Logistic Cost :
Transportation
Warehousing
Others
63
29
8
67
22
3
Major Industries Driving the
Logistics Sector
Auto components,
Pharmaceuticals,
Cement, Textiles
Food processing
beverages, e-commerce
Major Challenges Loss during
transportation.
High Employee Cost
*Source: World Bank Database

4. Transportation Infrastructure in
India
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Investment(USD in Bn)
Roadways
Railways
Sea Port
Air Port
Power
140
291.2
102.9
31.6
14

5.  The size of the Indian warehousing
industry (across commodities and
modes) is pegged at about INR560
billion (excluding inventory carrying
costs, which amount to another
~INR4,340 billion).
 The industry is growing at over 10%
annually.
 Multiple business models exist within the
warehousing industry.
 The key segments can be represented
as:
1. Industrial/Retail warehousing: 55%
share
2. CFS/ICD: ~14% share
3. Agri warehousing: 15% share
4. Cold stores: ~16% share
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Current warehouse industry size with sub segments in FY13
Source: EY Analysis, Crisil Report on Warehousing
Storage & Warehousing

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9. Demand Drivers in Warehousing &
Logistics Industry
 CONSUMPTION-lED DEMAND
• Per capita income - Growth of 10.4% in 2013-14
• Boomimg e-commerce industry
• E-commerce industry to reach USD 20 billion to USD 25 billion by 2017
• The fast-moving consumer goods (FMCG) market is also gaining traction
 MANUFACTURING-lED DEMAND
• Indian manufacturing GDP is approximately 15% of the total and stood at INR
8.6 trillion in 2013–14
• The manufacturing sector is growing at a compound annual growth rate
(CAGR) of 7.3% since the past nine years
• The "Make in India" initiative is expected to boost the manufacturing sector to
10% growth
• The manufacturing sector spends 2-20% of its revenue on logistics
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10.  AGRICUlTURE-BASED DEMAND
• India is the second largest producer of vegetables and fruits after China
• Because of the lack of infrastructure and broken cold chain, more than
30% of agri-produce is lost in fields post harvesting
• According to a report by KPMG and the Associated Chambers of
Commerce and Industry of India (ASSOCHAM), there is a shortage of
more than 10 million tonnes of cold storage for agri-produce in India
 EXIM-BASED DEMAND
• In 2013-14, all major and non-major Indian Ports in India, as listed by Indian
Ports Association (IPA) handled about 972 Million Metric Tonnes (MMT)
cargo.
• EXIM cargo is expected to increase to 2,800 MMT by 2020
• Containers handling is growing at about 11% CAGR
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11. Issues & Challenges in Indian
Warehousing Industry
 Transport Infrastructure
 Information Technology
 Fragmented Market
 Lack of trained Manpower
 Lack of Standardization
 Land Availability
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12. Warehousing Segments
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Types Of Warehouses Key Features Major Players
Industrial/Retail Warehousing Driven by high retail demand and
consumer appetite. Currently on
most promising growth trajectory
FedEx, DHL, Kuehne+Nagel,
Safexpress, Continental
Warehousing, Indo Arya,
Allcargo, Nippon Express
Liquid Storage Mainly refers to the storage of
liquid bulk such as crude,
petroleum products, chemical and
edible oil
IMC Ltd., Vopak India, Indian Oil
Tanking, Kesar Terminal, Ganesh
Benzoplast, Aegis Logistics,
Sealord.
Agri Warehousing Targeted to store ag. Goods with
larger shelf life
FCI, CWC, SWC and other
government agencies apart from
private players like Adani Agri
Logistics, Star Agriwarehousing,
Shree Shubham Logistics, Ruchi
Infrastructure, Guru Warehousing,
Para
Cold Storage Storage of perishable goods Gati Kausar, Snowman, Cold
Star, ColdEx, Kelvin Cold Chain,
RadhaKrishna Foodland, MJ
Logistics, Dev Bhumi Cold Chain
Container Storage Primary targeting export/import
& container handling
Container Corporation of India
(CONCOR), APM Terminals,
Arshiya, AllCargo

13. Retail Warehousing
 Industrial/ Retail Warehousing contribute ~50% of the total
Warehousing Industry in India.
 Industrial/Retail warehousing has a market size of
~INR310 billion in FY13,
 Growing at a CAGR of 10%–12% over the last few years.
 Out of this, almost 50% space in 2014 was driven by e-
retail.
 The emerging e-retail segment took up ~1.7 million sq. ft.
of warehousing space across Mumbai, Chennai,
Bangalore and the Delhi National Capital Region in 2014.
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14.  Industry is expected to spend USD
1 billion to USD 2 billion on
warehousing and logistics
functions in the next two to three
years to reduce distribution cost,
faster delivery and increase
market coverage. •
 The e-retailing market has grown
at a CAGR of 57% from 2009-14.
 Major e-retail markets that require
efficient logistics- COD, Free
Delivery, Returns/Exchange,
Insurance Cover, Existing
Concerns,
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15. Liquid Storage
 The terms liquid storage mainly refers to the storage of liquid
bulk such as crude, petroleum products, chemical and edible
oil.
 Tank farms facilitate a modal shift by providing intermediate
storage facility for liquid bulk cargo before these are taken to
processing plants
 IMC and Indian Oil Tanking (IOTL) are the largest tank farm
operators in India.
 The Liquid Storage Industry is expected to grow at a CAGR of
~4-5%
 Customers
• POL: oil marketing companies, industrial units
• Chemical: industrial units across all segments such as textile,
pharmaceutical, agriculture, FMCG and paper
• Edible oil: edible oil refining companies
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16. Indian Molasses Company
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 Incorporated in 1935, primarily for import/export of molasses.
 Market leader in 3rd party bulk liquid storage in India.
 Active presence in 14 leading major ports on the west and east
coast of India with 22 terminals
 Track record of over 75 years in bulk liquid storage
 Existing total capacity of over 1 million KL
 First Company in India to handle Bitumen imports in bulk (at Haldia)
 Terminals conforming to statutory norms and equipped with built in
safety features. High quality and SHE (Safety, Health &
Environment) standards committed to customer satisfaction by
exceeding their expectations

17. Cold Chain Infrastructure
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•Cold storage sector in India is highly fragmented.
•One-Third of the total Cold Storages have less than 1000 MMT
•Organized players only share 8-10% of market size.

18. Government has made a Plan allocation of INR 786 Crore
in the 12th five-year plan for implementation of Scheme of
Cold Chain, Value Addition and Preservation Infrastructure*
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*Source:Response to Lok Sabha Question# 352 dated 25th Nov, 2014)

19. Continued…
 Indian Cold Chain industry is
expected to grow at a CAGR
of~28%
 There are more than 3,500
companies in the whole value
system
 Organized players contribute only
~8%-10% of the cold chain industry
market
 Most equipment in use is outdated
and single commodity based
 Thereby, presenting a great
opportunity for foreign companies
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20. Container Handling & Storage
 CFS/ICD accounts for ~14% of total warehousing market in India
 Net worth of~125Bn USD in 2015.
 The Container traffic at major ports has almost doubled in the past
5-6 years.
 Containerized cargo traffic is growing at 12-15% CAGR in India and
it has grown dynamically in recent years across all ports with JNPT
topping the list.
 There are as many as 247 listed container terminals in India. Most
of these are CFSs located closer to the port.
 The Government run Container Corporation of India (CONCOR)
continues to be the largest player operating 48 terminals which
handle EXIM cargo, while 14 others handle domestic traffic only.
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21. Agri Warehousing in India
 India's food grain production was 252.68 MT in
2014-15.
 India incurs post harvest losses in fruits and
vegetables worth 2 lakh crores/year due to lack
of storage and processing facilities.
 Approx 10MMT of food grain lost every year.
 Around 90% of the warehousing market is
Unorganized.
 Out of 10% Organized Market: The PSU,s
accounts for around 70% of Agri-warehousing
capacity.
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22.  Premiere Warehousing Agency in India.
 Established in 1957
 Storage capacity:11.59mt
 National presence:18 Regional Offices
 Total number of warehouses: 465
 Total Number of employees:5658
 Its is governed by The Warehousing Corporation
Act, 1962 & CWC Regulations, 1965
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23. Services by CWC
 Storage
 ICD/CFS services
 Bond Facility
 Air Cargo Operations
 Container Train Operations
 Pest Control Services
 Farmer’s Extension Services
 Intermediate godown
 Integrated Check Post Terminal
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24. State Warehousing
Corporations
1. Andhra Pradesh
2. Assam
3. Bihar
4. Chhattisgarh
5. Gujarat
6. Haryana
7. Karnataka
8. Kerala
9. Madhya Pradesh
10. Maharashtra
11. Meghalaya
12. Orissa
13. Punjab
14. Rajasthan
15. Tamil Nadu
16. Uttar Pradesh
17. West Bengal
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25. Food Corporation of India
 Government owned Corporation established in 1965
 Headquarters: New Delhi, India
 The largest Supply Chain Management in India
 5 zonal offices, 24 regional offices & 1451 warehouses.
 Every year FCI purchases 15-20% of India’s Wheat output & 12-
15% of rice output at MSP
 It supplies food grain to PDS
 It is governed by the Ministry of Consumer Affairs, Food and
Public Distribution and Ministry of Agriculture.
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26. Star Agri warehousing and Collateral
Management Limited
 Founded in 2006
 Asia’s leading post harvest solutions company with
global ambitions.
 First year turnover-2.84 crores(2007-08)
 Current turnover-160 crores(2014-15)
 Holds commodities worth INR 75 billion across over
200 collateral management locations.
 Employees 1500 people.
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27. Continued…
 800+ warehouses across 16 states and over
1.5 million tonnes of warehousing capacity.
 direct relationships with more than 100,000
farmers across India
 Services: Warehousing, Collateral
Management, Procurement, Testing Labs,
Logistics, Private Mandi, Agri exports &
other value added services
 Some of the empanelled banks & financial
institutions in collateral management with
Star Agri are:
Axis Bank, Dena Bank, IDBI Bank, Central
Bank of India, Allahabad Bank, HDFC
Bank, Kotak Mahindra, Reliance Capital,
SBI etc.
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28. National Bulk Handling
Corporation Pvt. Ltd.
 One of India's leading provider of integrated
commodity and collateral management services
 Successfully managed assets worth Rs 78,000
crores for 51 banks
 1500 warehouses across 59 cities and 23 states
 3.2 million metric tonnes agri commodities under
management.
 It has 42 functional QA labs and 200-plus mobile
labs for quality testing of around 160 agri-
commodities
 Pest management services across 14 states
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29. NBHC Milestones
 Only such service provider in India to have three ISO
accreditations and the prestigious membership of the UK-
based GAFTA.
 NBHC wins SCM Pro Best Warehouse for Agri
Commodity
 NBHC signs MoU with UCO Bank, Corporation Bank for
Strategic Collaboration in Commodity Management
 It has launched a Whistle Blower Policy to ensure working
on ethical and moral grounds.
 Surpass cumulative AUM of Rs 71,900 cr with funding of
Rs 50,400
 CII Scale Special Award for Innovation under their
National Award for Supply Chain &
Logistics Excellence
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30. Government Policies &
Regulations
1. Warehousing Development Regulation
Act 2007 (WDRA Act
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31. 2. Free Trade and Warehousing Zone
(FTWZ)
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32. Impact of Goods & Service Tax(GST) on Warehousing Industry
Goods and Services Tax (GST) is a multi-stage tax on domestic
consumption charged on all taxable supplies of goods and
services in India except those that are specifically exempted.
How is it going to do it?
• Dual GST model is proposed:
central GST (CGST) to be governed by the central authority and
state GST (SGST) by state-level authorities.
• Integrated GST (IGST) will be levied by the Centre on all
interstate transactions, which will be CGST + SGST.
• Cross-utilisation of tax credit will not be allowed between CGST
and SGST except in interstate transactions where IGST is
applicable.
The anticipated implementation of the GST from April 1, 2016
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34. Foreign & Private Equity Investments in
Logistics & Warehousing Industry
In 2011
 Warburg Pincus invested in
Continental Warehousing
Corporation (Nhava Seva)
Limited- INR 625 Crores
 Standard Chartered Private Equity
invested in Redington India- INR
365 Crores
 Fidelity Growth Partners invested
in Transpole Logistic- INR 81
Crores
 Infrastructure India Holdings
Fund llC invested in Aegis
Logistics- INR 68 Crores
 Tara India Fund III invested in
JICS Logistic- INR 40 Crore
In 2012
 OPIC invested in IndoSpace
Logistics Parks Ltd- INR 625
Crore
 Everstone Capital invested in AS
Cargo-INR 277 Crores
 KKR invested in TVS Logistics
Services- INR 242 Crores
 New Silk Route (NSR) invested in
VRL Logistics- INR 206 Crores
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35. Continued…
In 2013
 Everstone Capital invested in
Transpole Logistics-INR 220
Crores
In 2015
 Warburg Pincus to invest in
Ecom Express-INR 813 Crores
 Warburg Pincus to invest in
Embassy group-INR 625 Crores
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Source: JLL India Pvt. Ltd.

36. Emerging Trends in
Warehousing Industry.
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37. THANK YOU.
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