The storage sector obtains an investment of Rs 25,000 cr since 2017; the figure can touch Rs 49,500 cr by 2021
New Delhi, December 2 () The country's storage sector has attracted an investment of Rs 25.4 billion since 2017 and the inflow is likely to reach Rs 49.5 billion in 2021 due to the strong demand for logistics space by part of e-commerce companies, according to the global property consultant. Colliers
The industrial and storage sector in India has attracted significant interest from investors since 2017, led by strong demand from e-commerce and other consumer-led occupants, he said.
The sector has attracted the interest of multiple large institutional investors since 2017, with investment inflows of Rs 254 billion (USD 3.6 billion), which means a large group of capital available for investment in this sector. We project that the inflow of investments will probably touch Rs 495 billion (USD 7 billion) by 2021 as existing participants expand their portfolio and new players enter the market, said the consultant.
Colliers noted that this sector in the past was characterized by fragmented sheds and falls, but is now being organized due to the demand for larger facilities by e-commerce companies.
The occupants who analyze large leases of adjoining warehouses, especially in the e-commerce and 3PL (third-party logistics) sectors, should analyze select micro markets in Mumbai and Pune that offer a good combination of industrial and multi-purpose warehouses.
Bengaluru must also be explored, as it offers a smooth transfer of goods between states, benefiting from the elimination of taxes at the state level, said managing director and president of Colliers International India, Sankey Prasad.
On the factors that drive industrial and storage demand, Colliers said the sector is benefiting from government policy initiatives such as the implementation of the goods and services tax (GST) and the Make in India program, as well as trade dynamics global and evolving consumption patterns.
The initiatives increased the growth and participation of the private sector in a sector that was not well regulated, he added. Colliers has operations in 68 countries with an employee force of 14,000. In 2018, corporate revenues were USD 2.8 billion (USD 3.3 billion, including affiliates), with more than USD 26 billion in assets under management. MJH HRS