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.