• In light of the monetary stimulus and policy reforms announced by the Finance Minister recently, Anshul Singhal, MD of Welspun One Logistics Park’s shares his perspective on the same and how warehousing will impact the economy. 

INDIA, MUMBAI, 23 MAY, 2020 (GPN): Mr. Anshul Singhal (Managing Director – Welspun One Logistics Parks) says “The COVID-19 pandemic has taken the world through unprecedented times and changed the way we have been doing businesses. Getting our economy on track is of prime importance. Our Prime Minister has mentioned that the supply chain is one of the five pillars India is standing on currently. The much-needed booster shots to agri-logistics and storage is a great move aimed at empowering businesses to create storage facilities that will improve the overall food supply chain. The 1 lakh crore agriculture fund announced for farm gate infrastructure will not only enable a faster movement of goods but also help in price stabilization. Further, the Ease of Doing Business Reforms will fuel up growth in the Warehousing and Logistics sector, with India already being seen as a good option for setting up manufacturing units”.

Furthermore in conjunction, also sharing a research paper by Welspun One on how warehousing will emerge as the most crucial lifeline for India’s growth over the next 10-year horizon.

Industry sources prospect the Warehousing and Logistics sector to be one of the fastest, most strategic asset classes to recover from this pandemic, attributed to the sharp increase in domestic demand and a possible major manufacturing shift, making India ‘the preferred destination’ for global manufacturers. Warehousing in India, hence, stands as an obvious beneficiary, thanks in part to rapid acceleration of e-commerce demands as well as the accelerated behaviour shift of its commercial business ecosystem that has urgently pivoted to expand a footprint online, simply in order to survive.

Welspun One Logistics Parks (WOLP) has recognized the need to delve deeper via a research paper (attached) on the warehousing sector to highlight potential growth prospects and future forecasts for a post-COVID-19 India. WOLP’s analysis offers an in-depth assessment of factors responsible for India’s accelerated preference for Grade A warehousing and the urgent need for rapid digitalization, regulatory compliance, human safety, hygiene, and automation.

The WOLP report estimates an increase of 10% in Y-O-Y demand for Grade A facilities to a new total of 35% to meet additional unmet demands, as opposed to the earlier predicted industry demand of 25%. 

Critical demand drivers:

• Warehousing has overnight become the backbone for online grocers and other e-commerce businesses who struggle to service an unprecedented 3-5x rise in demand for essentials and are under pressure to scale operations following a massive fundraising
• At one end of the spectrum, the rising consumption of the 300 MM growing middle class serves as a key contributor to domestic demand, whereas at the other end, robust storage systems for agricultural produce (in terms of cold storage to meet basic needs) adds to create an expedited demand for quality warehousing across the country

Sector readiness:

• With a 100% FDI permitted in warehousing and logistics, the sector has now become a hotbed for attracting funds and incentivizing domestic investors, which in turn can make warehousing single-handedly tip India’s scale towards positive growth
• Insulated from credit risks when compared to the other real estate asset classes, a fully implemented GST and the government impetus on truck infrastructure has primed  the warehousing sector to respond and capitalise on the demand upswing
• Most warehousing state policies are matured, making warehousing a viable and lucrative industry, ready for imminent scale
• With major road networks, freight corridors and infrastructure spends on logistics already underway, the sector is ripe to fulfill the burgeoning demand

Supply-side dynamics:

• With clouds of uncertainty looming over previous investments made in co-working spaces, hospitality and retail, investors will look at re-allocating capital into the more  promising warehousing industry, pointing towards an upward trend in investment

Large scale economic impact:

• The warehousing sector is slated to become a necessity as large scale foreign investment and relaxed labour laws will make India a preferred destination for manufacturing
• A possible re-allocation of the white-collared workforce to Tier 2 & 3 cities which would become the new epicentres of growth, leading to a possible shift in consumption centres and logistic distribution patterns
• Further demand for warehousing will lead to monumental job creation and major upliftment of the society and economy at large. This makes the warehousing sector one of the biggest contributors to an employment boom in India

The research paper holds the position that this subsequent macro-economic effect of warehousing cannot be ignored and must be given its due. ENDS

Page 4/4. Research Paper Ends

Welspun One MD PROFILE : Anshul Singhal -Managing Director, Welspun One.
Anshul Singhal has over 15 years of leadership experience in the infrastructure and real estate sector
with a track record of establishing 5 new businesses from the ground up for 3 large corporates. He has held CEO & Director positions for Blackstone, Warburg Pincus and Brookfield investee companies.
Prior to founding Welspun One Logistics Parks, Anshul was the CEO of Embassy Industrial Parks (EIP), a JV between the Embassy Group and Warburg Pincus with a potential AUM of ~USD 1BN. Under his watch, EIP delivered 6MM sf of Grade A warehousing facilities, and acquired a land portfolio of 1400 acres in Pune, NCR, Chennai, Mumbai, Kolkata, Bengaluru, Hosur and Hyderabad, with development potential of over 35MM sf. He was responsible for the delivery of a 130MW solar farm in Karnataka
for the Embassy Group, which entailed an investment of USD 100MM Anshul was the founding director of JSW Severfield Structures Ltd from 2007-2014, a JV between USD 20BN JSW Group and Severfield-Rowen plc.; UK’s largest structural steel construction company.
He was instrumental in building a pan India team that delivered factories, power plants, warehouses and high-rise office buildings in India.
He enjoys a strong network of relationships across PE funds, business houses, family offices & customers. He is a member of the Royal Institution of Chartered Surveyors (RICS), GRI Club and has the unique distinction of being the only Indian selected for an internship that involved working with
the White House, Pentagon, IMF & World Bank during the George W Bush administration, while at university.