One of the major segments contributing to a rapidly growing logistics industry is the warehousing business. The growth in international trade coupled with the rise in containerization levels has led to high demand for warehouses. This creates tremendous opportunity for the private sector. The market, which is valued at USD 20 bn, is expected to grow due to the demand generated by importers and exporters for specialized services. The report begins with an overview of the industry indicating market size, growth, current state of the market and the infrastructural resources available. The report highlights various types of warehouses, categorized on the basis of ownership and usage. An analysis of the various investment options available to players entering the market has been provided in order to assist new entrants. The report covers the various initiatives taken by the government towards the development of warehousing sector including introduction of Single-tax Goods & Services Tax (GST) regime and Warehousing Act 2007, investments in logistics parks and free trade warehousing zones (FTWZs), and development of infrastructural facilities. The report identifies the key characteristics and trends including strong macroeconomic fundamentals, change in tax policy boosting warehouse outsourcing, significant investments by the logistics providers in warehousing segment, entry of realty players and large scale investments from private equity firms. Competition section profiles major private and public players in the market. The section contains a snapshot of their corporation, future investment outlook as well as their financial performance, providing an insight into the existing competitive scenario.

1. Warehousing Industry - India
July 2009

2. Executive Summary
Estimated worth INR XX bn in 2007-08; Expected to reach INR YY bn by 2010-11
Warehousing accounts for a% of the total logistics market
Market Major warehousing destinations are A,B,C and D
Warehouses can be classified as - public, private and bonded
Shift to GST tax regime
LE
The Warehousing Act, 2007
Government Private investment in logistics parks and FTWZs
Initiatives
P
Infrastructural developments
M
Development of the dedicated freight corridor
Trends A
Strong macroeconomic fundamentals
S
Changing tax policy boosting warehouse outsourcing
Most profitable segment in logistics leading to large scale investments
Realty players foraying into the market
Large scale investments from private equity firms
The market is fragmented with b% of the market comprising of the unorganized sector
u-v% of the organized market is accounted for by PSUs
PSU’s Private Players
Major Players • Company 1 • Company 4
• Company 2 • Company 5
• Company 3 • Company 6
WAREHOUSING INDUSTRY – INDIA.PPT 2

3. •Market Definition
•Market Overview
•Government Initiatives
•Industry Characteristics & Trends
•Major Players
•Key Developments
•Appendix
WAREHOUSING INDUSTRY – INDIA.PPT 3

4. Warehouse industry is estimated to grow at an accelerated rate
in accordance with the growth in trade and commerce
Overview Major Warehousing Destinations
•Warehousing in India is estimated to account Other Logistic Segments
for approximately z% of total logistics costs n%
Warehousing
•The current state of warehousing is dismal: expected to
Inefficient facilities account for L%
LE
logistic activity by
Lack of technology 20 - -
Shortage of expertise
P
Small and distributed across states primarily due
to the tax structure
M
m%
Warehousing
SA
•Fundamental demand is very strong leading to
large investments and expansion by logistic
service providers and warehousing companies
Market Size and Growth
USD bn mn MT
Capacity Expansion
•Market is estimated to grow at y% p.a. 60 x 150
y f
•The Government’s 11th Five Year Plan targets a w d
e
40 100 c
capacity of XX MT by 20-- v a b
•Competitive landscape is dominated by state- 20
u
50
owned companies although private
participation is also growing significantly 0 0
07-08 08-09 09-10 10-11 2008 ’09 ’10 ’11 ’12
Source:
WAREHOUSING INDUSTRY – INDIA.PPT 4

5. The government has taken strong initiatives and implemented
various policies for the development of this sector
Shift to GST tax regime
• Major transition from Central Sales Tax to the existing VAT regime coupled with the
introduction of Single-tax Goods & Services Tax (GST) allowing for the lower logistics costs
• Expected to lead to large warehouses offering various services via integration of technology
Warehousing Act
• The Warehousing Act, 2007 introduced a negotiable warehouse receipt (NWR) system
• NWR’s are expected to facilitate FI’s as it provides cost advantages and eases trade
procedure for players
Key Private Investment in Logistics Parks and FTWZs
Initiatives
• Government has been encouraging private players to develop logistics parks and Free Trade
Warehouse Zones in order to boost this sector by drawing in large scale investments
Infrastructural Developments
• Impetus has been on developing road infrastructure to support road freight
• Golden Quadrilateral and NSEW (North-South-East-West) Road Corridor are two major
initiatives forwarded by the government
Development of the Dedicated Freight Corridor
• Government plans to create a dedicated rail freight corridor along the east and the west
• Private participation is expected for developing modern logistics facilities and services
WAREHOUSING INDUSTRY – INDIA.PPT 5

6. Key Trends
Strong macroeconomic
fundamentals
Large scale investments from Changing tax policy boosting
private equity firms warehouse outsourcing
Trends
Most profitable segment in
Realty players foraying into the
logistics leading to large scale
market
investments
WAREHOUSING INDUSTRY – INDIA.PPT 6

7. Government Players (1/2)
Company Snapshot: Company 1
Corporate Information Financial Performance
Established 19-- Revenue Revenue Profit
INR mn Profit / Loss INR mn
Headquarters Mumbai v
8,000 u 1,500
LE
Capacity A
6,000
1,000
Location B warehouses
P
4,000
Key People • C (Chairman and MD) 500
M
2,000
• D (Chairman and MD)
A
• E (Joint Secretary) 0 0
S
2006-07 2007-08
Business Highlights Business Outlook
• Provides storage facilities for a wide range of products, • Expansion: Plans on expanding existing warehousing
from agricultural to industrial goods capacity in Kerala by a tonnes in 20-- - --
• It has a market share of t% (2008) • MOU: Formed an association with the Ministry of
• The company handled x TEUs in ’08 against y TEUs Consumer Affairs, Food & Public Distribution for
handled in the previous year, registering a growth of z% creating additional storage capacity of b MT
at their CFSs / ICDs • MOU: With C as it plans to set up a modern state-of-
the art CFS facility near the D Port
Source:
WAREHOUSING INDUSTRY – INDIA.PPT 7

8. Thank you for the attention
The Warehousing report is a part of Research on India’s Logistics Industry Series.
For more detailed information or customized research requirements please contact:
Gagan Uppal Gaurav Kumar
Phone: +91 22 4098 7530 Phone: +91 33 4064 6214
E-Mail: gagan.uppal@netscribes.com E-Mail: gaurav.kumar@netscribes.com
Research on India is a product of Netscribes (India) Pvt. Ltd. Research on India is dedicated to disseminating information and providing quick
insights on “hot” industries in India and other emerging markets. Track our new releases and major updates in these industries on
About Netscribes
Netscribes is a knowledge-consulting and solutions firm with clientele across the globe. The company’s expertise spans areas of investment &
business research, business & corporate intelligence, content-management services, and knowledge-software services. At its core lies a true
value proposition that draws upon a vast knowledge base. Netscribes is a one-stop shop designed to fulfil clients’ profitability and growth
objectives.
Disclaimer: This report is published for general information only. Although high standards have been used the preparation, Research on India,
Netscribes (India) Pvt. Ltd. or “Netscribes” is not responsible for any loss or damage arising from use of this document. This document is the
sole property of Netscribes (India) Pvt. Ltd. and prior permission is required for guidelines on reproduction.
WAREHOUSING INDUSTRY – INDIA.PPT 8