Over the past decade India has become a manufacturing hub for most industries. The main reasons for this are increasing domestic consumption and the cost-effectiveness of outsourcing manufacturing activities. Some industries have gained tremendous traction over the last few years, cashing in on the ongoing trend of the economy. These include the following:
All these industries have a growing demand for organized warehouses.
Warehousing, which forms 20% of the total logistics market, was traditionally used as go downs to store goods from the time of production till the time of consumption. Over time and with the changing role of the sector, traditional warehouses have transformed to collection and storage points, where raw material, intermediate and manufactured goods are collected, assorted, stored and distributed to the point of consumption/ sale. The warehousing market in India is expected to grow at a rate of 35 to 40% annually, displaying high potential for growth over the next few years. Currently, the sector is highly fragmented with small players holding small units distributed across states with many challenges:
- Inadequate skilled labour
- Inefficient material handling with outdated handling equipment
- Limited technology penetration and innovation
- Lack of world-class standards and specifications
Almost 92% of the market is dominated by unorganised players, while 70 to 75% of the organised market is being controlled by PSUs such as Central Warehousing Corporation (CWC), the Food Corporation of India (FCI) and State Warehousing Corporations (SWCs). The current capacity of the organised warehouses, controlled by corporates, cooperative and private sectors, is 106.95 million metric tonnes (MT), of which the private sector has only 18 million MT, while Public Private Partnerships (PPP) are yet to start off in the sector.
Investments are needed in the warehousing sector in India to provide organised capital to achieve a world- class infrastructure platform and to support greater sophistication in services.
Over the last three years, the industry has recorded a CAGR of 10 to 12%. Going forward, it is expected to post a CAGR of eight to 10% over the next three years. In line with this, revenue and net profits of major players are further expected to grow over the medium term owing to higher growth in FMCG sectors and proposed implementation of the GST from April 2011. CRISIL Research projects investments of Rs.170 billion to 190 billion in establishing warehouses by 2012-13 in India.
SRP Group is currently operating warehouses at strategic locations across India and is in the process of creating new, state-of-the-art warehouses.
Our warehouses offer the following features and services:
- Mezzanine floors
- Pallet racking and Shelving
- Inventory management – this increases the flexibility of our customers, consumer response programs by modifying products in the distribution center to satisfy special promotions, recall requirements or to create value-added packages before delivery to retailers.
- Vendor managed inventory (VMI) – we work with our customers and their suppliers to set up VMI programs in distribution centres that allow manufacturers to buy materials on consignment and pay only for what they use each month allowing our customers to redirect
capital previously allocated to inventory.
- Sequencing – Nothing is more costly than shutting down an assembly line because of a lack of production ready materials. Our process is designed to sequence items for the right order at the right time – according to our customer’s production schedule.
Sample value added services
- Sub-assembly – By pre-assembling parts and components, we can help our customers reduce the number of assembly steps required at their factory, simplifying their manufacturing process and reducing costs.
- Kitting – The process simplifies parts handling by configuring individual high-activity parts into consolidated user packages prior to final delivery.
- Packaging & labelling – we can also help our customers configure products in the forms their customers want whether its bundling, shrink-wrapping, bar code label creation or any other type of custom packaging labelling and asset tagging. We also provide packing with special protective packaging for large-component shipments containing glass or fragile accessories. This is especially useful to the automotive market and computer markets.
- Cross dock scanning – we scan outer carton labels at our transit warehouse facilities to create an electronic packing list. The e-packing list information is combined with other logistics information to create a final ASN according to our customer’s specifications. Shipments with multiple parts per carton will require special bar code labelling in order to create an accurate ASN.
Our infrastructure includes:
- Handling equipment like Reach Stackers
- Various types of cranes
- Material handling equipment
- Fleet of various types of trucks
- MIS and Analytical Tools