In 2021, warehousing & logistics sector expected to grow 35%
Difficult times give rise to innovative ideas unknown to mankind before. The current pandemic situation has certainly created quite a massive disruption in the supply chain worldwide. However, with significant rise in e-commerce, new investments along with technological innovations coming into play, warehousing and logistics sector is expected to witness a surge in growth in 2021.
According to reports, warehousing and logistics sector could be among the fastest to recover from the COVID-19 crisis, citing an expected increase in domestic demand and possibility of global firms shifting manufacturing to India to de-risk supply chains as reasons.
The Welspun One Logistics Parks (WOLP) report estimates that the warehousing and logistics industry will grow at 35% in 2021 compared with the earlier industry demand forecast of 25%.
The transition of retail to online and larger inventory levels by e-commerce players will accelerate the warehousing demand further. The resulting impact will be felt substantially in demand for inner-city logistics and cold chain facilities,” Welspun One Logistics Park managing director Anshul Singhal said, adding that the firm is in talks to raise capital to expand its business across the country.
The segment is also expected to attract a large pool of capital with fund managers looking at warehousing and industrial real estate as a safer, resilient and scalable asset class for their investors.