subject: Strategies That Can Bring Success For Warehousing Market [print this page] Warehousing Warehousing
Organised warehousing players, apart from their basic function, have been increasingly providing value-added services such as packaging, labelling, inventory management and reverse logistics. ( http://www.bharatbook.com/detail.asp?id=149830&rt=Warehousing.html )
Warehousing players operate mostly on the ownership model wherein promoters own the property. However, a few entities instead of directly purchasing land and developing facility prefer to take it on lease for reducing capital intensity of the business.
Warehousing business has high operating leverage with over 70 per cent of the costs being fixed in nature. Hence, profitability is acutely vulnerable to changes in utilisation levels and varies across players.
Market size and structure
This Research estimates market size of the warehousing industry as in March 2009 at Rs 250-300 billion, with size of the industrial and agricultural warehousing segment (excluding temperature controlled warehousing) in the range of Rs 220-260 billion and Rs 30-40 billion, respectively.
Warehousing industry has grown at a CAGR of 8-10 per cent per annum. Industrial warehousing and agricultural warehousing have grown at the rate of 9-11 per cent and 3.5-4.5 per cent per annum, respectively.
Several factors like growth in external trade, growth across major industry segments such as automobile, pharmaceutical, fast moving consumer goods (FMCG) and the emergence of organised retail have favourably impacted growth of the warehousing industry.
Over the past few years, large companies in India have been shifting focus from couriers and cargo segments to logistics and supply chain; from being freight forwarders to integrated logistics player. Competition has increased due to entry of new players including global third party logistics players.
In spite of bargaining power of buyers being high, warehouses providing value-added services are able to charge a premium.
For more information kindly visit : http://www.bharatbook.com/detail.asp?id=149830&rt=Warehousing.html
Related Reports
Research Report on Chinese Warehousing Industry, 2010-2011
