Pune’s warehouse industry unaffected by Covid-19 amidst increasing demand from e-commerce

Pune’s warehouse industry unaffected by Covid-19 amidst increasing demand from e-commerce


Covid could not affect Pune's warehouse industry amidst increasing demand from e-commerce


Covid could not affect Pune’s warehouse industry amidst increasing demand from e-commerce&nbsp | &nbspPhoto Credit:&nbspPTI

Pune: The city’s increasing income as a warehousing and logistics hotspot is well on track. Pune has profited well out of the increasing demand from e-commerce and third party logistics sectors.

The city had recorded the biggest increase in warehousing transactions in India in the last financial year. Pune’s rise as an important logistics centre has to do with the altering nature of the industry and the demand from e-commerce companies. 

Most of them like to put warehouses on rent rather than put their land resources into it. The increasing demand from the sector has witnessed the state’s Industrial Development Corporation putting in parts of its industrial area in Chakan Talegaon industrial region for the building of logistics parks.

Realty firm Knight Frank’s report about the warehousing situation motivates the city’s image as an important warehousing centre. The sector has witnessed a compound yearly growth rate of 44% since the last three years, according to the report.

Pune has witnessed almost 5million sq. ft. of transactions in this year, according to the report. Third party logistics, e-commerce and production are top three sectors in terms of transactions. E-commerce has come up as the fastest flourishing sector with a 55% CAGR since the last three years. 

50 million sq. ft. of space is occupied by this sector across India. Fire fighting system and ground coverage taken into account, warehouses are categorised as Grade A and B. Most in the city are of grade A, at 71%. 15.5% of the warehouses in India have reported vacancies, against 21.8% in the city.

The city has 26 million sq. ft. of warehousing stock with a capability of 42 million sq. ft. more. Every year, rent of Grade A warehouses has seen an increase of 4-7%. The sector’s good phase can run into a bad patch in the next financial year, due to the Covid-induced slowdown, according to the report.



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