Logistics Boom: Demand for warehouse automation soar amid 'Make in India' boost
manufacturing have boosted the demand for logistics in India, with a staggering 13.5 million square feet in January to March 2024 compared from 11 million square feet in the year-ago period, say a recent Savills India report. The data revealed that leasing of industrial and warehousing spaces in Tier-I cities increased 25% to 10.5 million square feet during January-March 2024 from 8.4 million in the year-ago, while Tier II and III cities witnessed a 20% growth to 3 million square feet from 2.5 million square feet during the given period.
The inflated demand for logistics solutions in India coincided with the country's 16-year record high manufacturing activity at 59.1 PMI in March 2024, said a survey by S&P Global. The last time a reading of this level was recorded was in February 2008, when the HSBC India Manufacturing Purchasing Managers’ Index (PMI) had touched a high of 59.5.
The growing need for warehouses in India's Tier 2 and 3 cities to urbanization, economic expansion, the rise of e-commerce, organized retails, and government's initiatives like ‘Make in India’ that attracts businesses toward these regions due to lower cost, said Nirav Doshi, Founder and Managing Director of NIDO Group, an intralogistics mechanization and automation solutions provider. NIDO aims to introduce two new models of unmanned goods movement system — AMRs and ASTRO — to enhance retrieval and fulfilment capabilities in Tier 2 and Tier 3 cities, he told us.
Automation technologies like IoT and AI enable efficient warehouses which drives further demand of logistics in India, said Doshi, adding that the company caters to automation needs with scalable systems for small businesses, focusing on affordability and support. NIDO's founder Doshi
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