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In India, the Freight and Logistics Market size is estimated at 288.18 billion USD in 2023 and is expected to reach 484.43 billion USD by 2029, growing at a CAGR of 9.04% during the forecast period (2023-2029)¹. This growth is being driven by a number of factors, including the country’s young population, rising disposable incomes, and increasing urbanisation.

The growth of the Indian economy is putting a strain on the country’s logistics and warehousing infrastructure. India’s expenditure on logistics costs amounts to approximately 13-14% of its Gross Domestic Product (GDP), which is considerably higher than the global average of around 8%².

One of the main reasons for India’s high logistics costs is the lack of Grade-A industrial parks. Grade-A industrial parks are modern facilities that offer a number of features, such as high ceilings, wide driveways, and loading docks that are located in strategic locations, close to major transportation hubs.

The demand for these Grade-A logistics parks in India is thus rising rapidly. According to a recent report by JLL³, the demand for Grade-A spaces has increased significantly, contributing to more than ~ 65% of the total market demand. This growth is being driven by a number of factors, including:

The growth of e-commerce: E-commerce is one of the fastest-growing sectors in India. The growth of e-commerce is driving up demand for Grade-A industrial development and industrial park for warehousing and distribution purposes.

The expansion of manufacturing: The manufacturing sector is another major driver of the demand for Grade-A industrial development. A number of multinational companies are expanding their manufacturing operations in India. These companies are looking for Grade-A industrial park and industrial warehousing to set up their factories.

The government’s focus on infrastructure development: The Indian government is investing heavily in infrastructure development with National Logistics Policy (NLP) and Multi-Modal Logistics Parks (MMLPs), including the development of new roads and highways. Thus, making it easier for businesses to transport their goods and services, further driving up the demand for Grade-A industrial park.

Why are future-ready logistics parks required in industrial real estate?

Future-ready logistics parks like the Lodha Industrial and Logistics Park (LILP) in industrial real estate, are essential for businesses that want to thrive in the 21st century economy. These parks offer a number of features that make them ideal for businesses of all sizes, including:

• Strategic location: They are located close to major markets and transportation hubs. Making it easy for businesses to reach their customers and suppliers quickly and efficiently.
• Grade-A industrial warehousing: They offer Grade-A industrial development that are equipped with all the latest features. These warehouses are designed to help businesses improve their operational efficiency and reduce their costs.
• Sustainable infrastructure: They are designed to minimize their environmental impact. These logistics parks feature a number of green initiatives, such as solar panels and rainwater harvesting.
• State-of-the-art technology: They are equipped with state-of-the-art technology to help businesses manage their logistics operations efficiently. This technology can help businesses track their shipments in real time, optimize their inventory levels, and improve their customer service.

How LILP, Palava is meeting the needs of future-ready businesses?

LILP, Palava is a state-of-the-art future-ready logistics park that offers all the features that businesses need to thrive. The industrial park is strategically located in Palava (next to Taloja), which is close to major markets and transportation hubs. LILP, Palava also offers future-ready warehouses, sustainable infrastructure, and state-of-the-art technology keeping sustainability at its core LILP, Palava is meeting the needs of future-ready warehouses in Mumbai through the below approach:

Location and connectivity: The Park is strategically located, next to Taloja, and is well-connected by national and state highways. It is also in close proximity to JNPT, India’s largest port, and has quick access to the upcoming Navi Mumbai International Airport. Additionally, a new DP road is connecting the park to Navi Mumbai [NH-48], and it has multiple access points for quick and easy connectivity. This excellent connectivity makes Lodha Industrial and Logistics Park, Palava an ideal location for businesses of all sizes as compared to warehouse in Bhiwandi, warehouse in Taloja, and warehouse in Navi Mumbai when it comes to Grade-A industrial park developers in India.

It is part of the largest privately developed city in the world – Palava, offering a diverse range of high-quality residential spaces and a walk-to-work opportunity in an international business district. This urban oasis also features world-class amenities, an Olympic Sports Complex, and educational institutions, making it an ideal destination for businesses to thrive seamlessly.

Future-ready warehouses: Lodha Industrial and Logistics Park, Palava (LILP) is a future-ready industrial and warehousing park with world-class infrastructure. It is spread over 800 acres and is integrated with high-quality amenities.

LILP is equipped with cutting-edge infrastructure, including EV charging stations, ample parking, fire safety systems, power infrastructure with 100% backup, a business facilitation office, security gates with CCTV monitoring, retail shops and ATMs, a truck terminal, a first-aid centre, drivers rest area, e-cycles for green mobility, external lighting and more.

Commitment to sustainability: Lodha Industrial and Logistics Park, Palava (LILP) is a sustainable industrial and warehousing park that is pre-certified as IGBC Platinum Park. It is committed to sustainability and is the ideal partner for a business’s growth in the coming future.

LILP’s green features and focus on self-sufficiency will help businesses reduce their environmental impact, achieve their sustainability goals, reduce their costs, and improve their resilience. Some of the green initiatives include solar panels, land cut-fill practices, rainwater harvesting, and energy-efficient lighting. These initiatives help to reduce the park’s environmental impact and save businesses money on their energy bills.

Hassle-free experience: Lodha Industrial and Logistics Park, Palava, offers a hassle-free experience for industrial plots and industrial real estate. It provides best-in-class facilities such as proven construction expertise, full compliance with government/IIA/ITP approvals, clear land titles, and cost-efficient solutions through bulk procurement. With a focus on future scalability and an on-ground business facilitation centre, this industrial park is a top choice for warehouses in Mumbai.

The ideal growth partner for India’s evolving logistics landscape

In conclusion, LILP, Palava stands out as a beacon of innovation and efficiency in the rapidly growing logistics and warehousing sector in India. With the Indian freight and logistics market poised for significant expansion, businesses seek future-ready, sustainable, and strategically located solutions.

Furthermore, LILP, Palava’s impressive clientele, including giants like Skechers, FM Logistic, Flyjac Logistics, Aptar Pharma, Schlumberger, and more, highlights its ability to serve diverse industries, from pharmaceuticals to retail and beyond. Notably, LILP, Palava has constructed India’s tallest distribution warehouse for Skechers, demonstrating its capability to meet unique and challenging requirements for warehouses in Mumbai. With LILP, Palava, businesses can expect operational efficiency, cost savings, and sustainable growth, making it the perfect partner for their path to success. Come and experience the ‘Make-in-Mumbai’ vision at Mumbai’s only future-ready park.

According to Knight Frank India warehousing report¹  , in FY 23, Mumbai witnessed the highest warehousing transaction, amounting to 9.5 million sq. ft, and the highest CAGR of 35% (FY 17- 23) when compared to other cities like NCR, Bangalore, and Pune. Mumbai emerged as the leading city for industrial & logistics leasing in India, reflecting the thriving nature of business in Mumbai and highlighting the rising demand for modern warehouses.

Mumbai’s remarkable business growth in recent decades in industrial real estate can be attributed to several key factors, including its strategic location, efficient transportation and connectivity facilities, robust financial history, supportive government policies, and ongoing development and infrastructure projects.

These factors have not only made the city an appealing hub for foreign investments but also a fertile playing ground for local businesses to flourish in a dynamic business ecosystem.

Mumbai’s rising need for warehousing solutions

Of these factors, including the rapid expansion of digitization, and e-commerce, as well as the growing demand for instant, last-mile delivery and logistics services, businesses in Mumbai are continually scouting to set up their warehousing provisions within this flourishing vicinity. Thereby, aiming to meet the increasing demands of instant supply and delivery of goods and services to their consumer base, whilst favourably capitalizing on the city’s cost-effective and well-connected infrastructure.

CHALLENGES IN WAREHOUSING GROWTH AND EFFICIENCY OF BUSINESSES

Over time, several warehousing corporations in Mumbai have attempted to capitalize on the exigency of both new and expanding businesses that are shifting from traditional, outer-city, and remote warehouses to modern in-city warehousing centers.

However, numerous issues arise with many of these warehousing facilities apart from their poor infrastructure, location connectivity, compliance concerns, sustainability concerns, and unit sizing options. Following are a few key challenges businesses are encountering with most warehouses in Mumbai:

Land clearance and compliance dilemma:

A significant hurdle businesses face in the warehousing industry is the lack of clear land titles and 100% compliance, resulting in ownership disputes and uncertainty that can lead to legal battles and financial losses. Many of these warehouses also lack essential government approvals and documentation, making it difficult for businesses to establish a secure, legal foothold. Furthermore, time and area-limited leasing arrangements in many of these warehousing units hamper future scalability, long-term planning, and potential investment.

Lack of safety and infrastructure:

Warehousing safety and security issues vary widely and are not consistently addressed. Issues about insufficient infrastructure, like CCTV surveillance, patrol guards, organized layouts, roads, and exits constantly put safety at risk. These inadequate measures not only lead to theft or damage to goods but also cause delays and inefficiencies in supply chain operations. The absence of substations and fire stations often magnifies these problems, leading to delayed emergency response times, which in turn jeopardizes employee safety and disrupts overall operational efficiency. Warehouse in Bhiwandi, warehouse in Taloja and warehouse in Navi Mumbai, face significant challenges pertaining to this.

Environmental sustainability neglect:

In pursuit of profitability, sustainability factors often take a back seat, with warehouses and businesses associated with them failing to incorporate eco-friendly practices into their day-to-day operations. The absence of expertise to navigate important statutory approvals for sustainable initiatives also additionally prequels this problem.

Lack of basic amenities:

Many warehouses have a notable absence of amenities like rest areas, canteens, and ATMs for both employees and drivers working in these facilities. Another important point issue recently highlighted is water and electricity supply conditions that trouble even the well-known warehousing locations. These are hygiene factors for a distribution warehouse.

These multifaceted challenges not only hinder day-to-day operations but also hinder long-term growth, and profitability, and restrict the ability of businesses to attract and retain clients. Inefficient amenities and infrastructure limitations restrict the potential and capacity for growth, making it imperative for businesses to find warehousing solutions that address these concerns to unlock their full resourcefulness. And here’s where LILP comes to aid for the perfect industrial warehousing solution.

LODHA INDUSTRIAL AND LOGISTICS PARK: EXPERIENCE MUMBAI’S ONLY WORLD-CLASS INDUSTRIAL AND LOGISTICS PARK 

Spread over 800 acres, Lodha Industrial and Logistics Park (LILP) in Palava is rapidly becoming India’s premier destination for top-tier manufacturing and warehousing solutions. By offering cutting-edge infrastructure and expert management services to industry leaders, both on a national and international scale, LILP in Palava has solidified its position as a trailblazer in this industrial development sector.

LILP is a leader in logistics and warehousing, known for its commitment to solving various business challenges with a smart approach to ensure efficient logistics and sustainable growth for clients.

Here’s how LILP addresses key warehousing concerns at its state-of-the-art industrial park:

Land clearance:

At LILP, we guarantee clear land titles and 100% compliant spaces, eliminating legal uncertainties and offering large, contiguous parcels for our clients’ future expansion plans at our industrial parks.

Each space is freehold, ensuring ownership stability and freedom, essential for long-term business strategies. In addition to our leasing options, LILP supports high-quality, customizable infrastructure with convenient ownership flexibilities.

Sustainability practices:

Pre-certified as an IGBC Platinum Park and holding essential environment clearance certifications, we at LILP set the highest qualifying standards for sustainability in the warehousing and logistics industry.

Teaming up with the global climate change leader RMI, we prioritize eco-friendly development, construction, and lifecycle management. Our commitment to eco-friendly practices encompasses everything from sourcing to utilization, including extensive green cover, organic waste treatment, and energy-efficient EV charging stations.

These efforts underscore our dedication to a sustainable future that not only benefits the environment but also leads to cost savings and efficient operations for our business partners.

Best-in-class amenities:

At LILP, we ensure that your operations run smoothly 24/7. We provide uninterrupted power supply and water supply to meet your operational needs. Recognizing the importance of providing a productive environment for all employees, we integrate thoughtful amenities such as employee parking, rest areas for drivers, and private rest areas into our planning. Our park is conveniently located near residential areas and social spaces to support a holistic work-life balance. We also offer basic amenities such as truck terminals, canteens, and ATMs to enhance ease for all our stakeholders.

Safety and infrastructure:

Safety is our top priority at LILP. Our facility is under 24/7 surveillance with CCTV cameras. Our premium infrastructure and plot planning are designed for efficient goods movement and storage. In line with our commitment to safety, we have fire stations, patrolling guards, and ambulance services in place to be prepared for any unforeseen emergencies. We ensure a secure and smooth operating environment for our partners at our warehouse space.

Unmatched location:

The industrial park is a part of Integrated Township Planning (ITP) at Palava. Palava is the largest privately developed city in the world. With a current population of approximately 1.5 lakhs, Palava’s population is expected to reach 5 lakhs by 2030, highlighting its rapid growth. What sets this park apart is its proximity to social housing, top-tier schools, healthcare facilities, shopping malls, and more, ensuring that the well-being of your employees is a top priority and easily accessible within this thriving urban ecosystem.

CHOOSE THE LILP ADVANTAGE: THE CLEAR CHOICE FOR WAREHOUSING IN MUMBAI 

In a dynamic and competitive business landscape, the choice of a warehousing facility is not merely a logistical decision but a strategic one. It poses an essential choice for businesses to choose a partner that puts their concerns first. Thus making LILP, Palava the right warehousing partner that by design and expertise prioritizes to actively address the myriad of concerns businesses face and comprehensively tackle issues.

At LILP, we are committed to empowering you by exploring and crafting innovative solutions that boost and enhance your business, driving it towards greater efficiency and profitability.

Partner with LILP, to discover the ultimate warehousing experience for complex urban warehousing and logistics needs. Experience the ‘Make-in-Mumbai’ reality at Mumbai’s only future-ready and world-class industrial and logistics park.

Realty developer Lodha Group, Bain Capital, and Ivanhoé Cambridge-backed Lodha Green Digital Infrastructure (LGDI) has acquired an over 8-acre land parcel in Mumbai’s Kurla locality.

The land will be used for the development of over 4 lakhs sq ft of Grade-A multi-tenanted in-city fulfilment centre to provide the last-mile warehousing infrastructure to third party logistics (3PL), e-commerce, and quick-commerce companies.

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