According to a Knight Frank India report, the annual warehousing transactions for the top eight Indian cities will grow at a CAGR of 19% to 76.2 million sq ft by FY 2026

The warehousing sector has emerged as a cornerstone of India’s economy. The industry has been on a high growth trajectory in recent years owing to the changing consumer behaviors. According to a Knight Frank India report, the annual warehousing transactions for the top eight Indian cities will grow at a CAGR of 19% to 76.2 million sq ft by FY 2026 from 31.7 million sq ft in FY 2021. With such a remarkable expansion, the sector has carved a niche of its own and has established itself as one of the most resilient asset classes.

Reinforcing the need for a robust supply chain, the pandemic has been an accelerator of the sector’s rise. The shift towards digitization, contactless operations, and quick & timely deliveries led to significant expansion of sectors like e-commerce and pharmaceutical, resulting in huge demand. A few of the other stimuli have been the growth in the manufacturing sector with the ‘Make in India’ initiative, the 3PL revolution, the spate of institutional investments, and favorable government policies.

Looking at the ascending trend, it is imperative that the growth story of the sector progresses responsibly. The warehousing, logistics, and other allied sectors are major sources of the country’s GHG emissions. As per IEA 2020 review report, the Indian transport sector is responsible for 13.5% of CO2 emissions. Findings by Stand. Earth Research Group indicates that the last mile CO2 emissions in India and across the other regions are at least half of all overall emissions from e-commerce deliveries. In this scenario, green and sustainable warehousing can act as a viable way to mitigate emissions and address climate change.

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Green and sustainable warehousing involves integrating and executing eco-friendly practices, with the intent of reducing a warehouse’s power consumption, electricity costs, carbon footprint, and greenhouse gases. In addition, it also consists of the implementation of systems, tools, and devices along with technological integrations.

Developers must prioritize and formulate ‘sustainability through self-sufficiency’ initiatives aiming for a net zero industrial and the warehousing ecosystem. These initiatives ensure that there is no additional pressure on existing resources and are committed to bringing impactful changes. For example, at Lodha Industrial and Logistics Park (Palava) too, we follow a fourpronged approach to drive ‘sustainability through self-sufficiency’ by:

a) Generating solar power through roof-mounted solar panels with extra generated power fed back into the grid

b) Landscaping using indigenous plants grown at the in-house nursery which further require low maintenance and are well

adapted to the local environment

c) Using water for 100% construction from natural water bodies and reservoirs within the park as opposed to external

sources

d) Optimizing the land cut-fills across multiple sites within the same park

Besides, for the whole supply chain to be eco-friendly, the greening of the transportation sector is important. The rapid adoption of EVs coupled with electricity generation from renewable sources is the single highest impact that can be made on these emissions, as elucidated in reports by NITI Aayog and Rocky Mountain Institute (RMI) which states that by 2050, India can reduce 10 giga tonnes of CO2 by implementing clean and sustainable transportation practices. With the industrial parks accommodating a huge space, grade-A players should incentivize EVs/e-cycles in order to reduce carbon footprint related to internal travel. Similarly, to facilitate e-mobility and thereby reduce external emissions, EV charging stations need to b installed for use by passenger vehicles and trucks coming to/going from the site.

Government and industry bodies too are collectively taking measures towards achieving India’s net zero targets by 2070. CII’s Indian Green Building Council (IGBC) has also developed a pilot version – ‘IGBC Green Logistics Parks and Warehouses Rating System’ in tandem with the requirements of the UN Sustainable Development Goals.

India’s warehousing sector is at the cusp of transformation. As a significant component in supply chains worldwide, the warehouse is a competitive asset for businesses to achieve both financial and environmental sustainability objectives in the long term. Policymakers, governments, businesses, and individuals must come together to combat climate change and fasttrack the progress towards a green economy.

https://www.financialexpress.com/economy/indias-warehousing-sector-at-cusp-of-transformation-govt-biz-policymakers-must-pave-way-for-green-economy/2661201/