Join the WOOB Community TODAY!
Register Now!
Friday, October 30, 2020

“Deliveries are happening directly from warehouses to homes,” says Shobhit Agarwal, MD & CEO of Anarock Capital

Warehouses have come a long way from their ancestors – godowns. 

“Godowns were these dilapidated buildings which were imprinted in the popular imagination through Bollywood where the local Seth with a black market motive, used to store his grains or where the climax of the movies used to take place. The pillars of godowns were used to tie hostages and its floors were used for car and bike fight sequences,” reminisced Pavan Choudary (Author, CEO and Public Intellectual).

Since then, warehousing has changed dramatically, gathering momentum in the last 5-7 years and is now in one of the most exciting stages of its evolution. It is also among the few sectors of the economy which has stood resilient from the Covid onslaught. 

Changing online behaviour and dead spaces

- Advertisement -

Post Covid, the consumer behaviour has changed and a significant population is now shopping online. “Deliveries, instead of from warehouses to shops to customers, are now happening directly from warehouses to customers. That’s changing a lot of things,” Shobhit Agarwal, MD & CEO of Anarock Capital said.

“Demand has built up for in-city warehouses to process deliveries in 2-3 hours. Since such facilities were not readily available, companies have taken over dark spaces or dead spaces in malls. In future, this demand will be fulfilled by multi-tier houses and people have already secured land for it.” Agarwal said.

Demand from light manufacturers

“I see demand coming in for warehouses from light manufacturers. Since most of these manufacturers cause less pollution and are allowed to work near residential areas, they are preferring locations closer to cities, in business and science parks instead of hardcore industrial locations. Transportation too is changing – from railways to trucks, which is also leading to more demand for warehouses from these manufacturers,” Agarwal shared. 

Product is the problem 

Agarwal is of the view that getting capital for warehousing is not a constraint, the product is. This is because unlike cities which have some semblance of where we can do residential, commercial etc, the highways are free for all. Every second kilometer, we can put a warehouse and there are some users who are not differentiating the efficient use of the product vs non-efficient use. He also mentioned that fragmented land holding was another problem. 

- Advertisment -

Latest News

Leading business collaborative Platform for FMCG, Trace One is leveraging its extensive industry reach with Trace One Marketplace

The pressure on both retailers and CPG firms to meet the constantly changing needs of a demanding consumer base has never been...

Principles of Great Packaging Design.

“Jo dikhta hai woh bikta hai” (What is visible, sells) goes the popular adage. Packaging design’s primary job is to make the...

Safety concerns, ease of online buying to keep Mumbai shoppers away from stores in festive season

Concerns about safety amidst the Covid-19 pandemic along with better pricing and ease of return and refund on buying online may keep...

BigBasket bets on in-house segments, plans to expand private label cart

With demand for private labels seeing a surge on its platform, online grocery BigBasket is betting big on the in-house segment with...

“Our focus is to be an omnichannel retailer,” says Shashwat Goenka, Sector Head (FMCG & Retail), RP – Sanjiv Goenka Group

Spencer’s, the oldest modern retail brand in India, is the pioneer in hypermarkets in India, having introduced the first one in 2001....

Marico logs volume growth, notices revival in consumer demand in Sept quarter

FMCG major Marico said it has witnessed a partial revival in the consumer sentiment in the second quarter of the current fiscal...

Five things on consumption shift during covid

As India moved to prevent the spread of Covid-19 with a lockdown late March, household budgets and consumer behaviour have since shifted....

Festival season sales: Over 50% consumers to shop online, says survey

About 51% of consumers doing festive shopping this year will use e-commerce sites and apps as their primary channel, a sizable change...

Amazon Great Indian Festival to bring cheer to small & medium businesses

Amazon India shared a host of opportunities for small and medium businesses (SMBs) during the annual festive event ‘Great Indian Festival’ starting...

MaxWholesale gears up for the festive season; to launch extensive gifting ranges and streamline fulfillment for partner stores

India’s festive season is just around the corner. This makes it a crucial time for FMCG brands and kirana stores to manage...