Article 2 - Avendus
Article 2 - Avendus
With dynamic transformations taking place in the current markets along with a rapid rise in ecommerce, the Indian industrial warehousing and logistics sector is pregnant with possibilities. The
sector is steadily breaking free from the shackles of remaining unorganized and underdeveloped by
becoming an integral part of the retail value chain.
Demand for Grade A warehousing space has witnessed a phenomenal increase not only across
various major cities, but also Tier-2 and Tier-3 cities as the industry looks forward towards massive
developments. The loophole of demand and supply gap in warehouse space can assuredly be
plugged by numerous investment opportunities that keep germinating everyday.
The "infrastructure-as-a-service" model offers MNC's as well as the Indian SME with easy financing
solutions, ease of entry as well as exit along with common shared facilities. A business-friendly shift
in India's industrial policy propelled by government reforms like 'Make in India', implementation of
GST and ease in state regulations has led analysts project a gargantuan surge in upcoming
investments. This is supplemented by a multifold increase in demand from e-commerce players as
the country meanders through digitalization.
The eagerness of major global long-term asset investors to enter the Indian market and their
objective towards developing Grade A portfolios showcases not only a rise in global partnerships, but
also the enormous potential that is yet to be tapped. Also, the setting up of REITS shall definitely
reinforce the confidence of investors in development, operations as well as exit.