The logistics

and warehousing
market in India
October 2022

© 2022 KPMG Assurance and Consulting Services LLP, an Indian Limited Liability Partnership and a member firm of the KPMG global organization The logistics and warehousing market in India 1
of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
Table of contents
1. Preface 3

2. Indian logistics and warehousing market – an overview 4

3. Key industry drivers 8

4. Trends shaping the industry 9

5. Evolving concepts and themes 11

6. Logistics value chain 12

7. The five competitive forces 13

8. Navigating through the challenges 14

9. Way forward: Immediate focus areas for companies 16

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Preface
Buoyed by the challenges of the pandemic and the corridors, improving focus towards multi-modal
rising ecommerce activity, the logistics and connectivity, policies such as Logistics Efficiency
warehousing sector in India has seen a rapid Enhancement Program, along with initiatives to
transformation. Evolving business needs and support sustainability⎯all of these account for
altering consumer behaviour has led to a series of policies favouring sector’s growth. However,
technological advancements, investments, newer surging land prices, skewed modal share towards
road, high logistics costs, and lack of adequate
business formats, further driven by favourable
infrastructure are some of the challenges faced by
government support. The ensuing focus towards
the sector. These challenges are likely to be
speed and convenience has driven consumers
addressed through larger focus on digitisation
towards online shopping, while on the other hand, across supply chain processes, better planning and
the commercial and office segments have execution, and a balanced strategy towards the
witnessed mutations in the form of flexible office modal mix.
space and smaller formats closer to customer
locations. Given the pace in demand from across Moving ahead, the demand for logistics and
the industries, the sector may well be set for strong warehousing is expected to percolate to tier II or
growth in the next few years. secondary markets, given the increasing
prevalence of these cities, specifically due to the
From a largely unorganised, asset-heavy industry, traction in the ecommerce segment. Companies
the industry is now shifting towards a lighter are expected to adapt to the changing industry
model, eliminating huge capex, optimising delivery dynamics, amending their business formats, the
timelines, and efficiently managing operations. technology infrastructure, and the strategies across
Technological developments have been rampant business processes.
across value chain, leading to larger focus on
automation and data analytics, while also Lastly, technology will play a pivotal role across the
deploying digital tools for effectively utilising logistics cycle, including sourcing, transport,
resources and managing operations. storage, and delivery of goods. Companies
implementing new technologies would be able to
Recognising the growing demand for the sector, realise benefits in the form of reduced manual
the Government has also implemented a range of effort, predictive insights, transparency across
action steps to improve the sector’s viability. supplier tiers, and a better customer experience.
Development of dedicated rail-based freight

© 2022
© 2022KPMG
KPMGAssurance
Assuranceandand
Consulting
Consulting Services
Services
LLP,
LLP,
anan
Indian
Indian
Limited
Limited
Liability
Liability
Partnership
Partnership
andand
a member
a member firm
firm
of of
thethe
KPMG
KPMG global
global
organization
organization The logistics and warehousing market in India 3
of of
independent
independent
member
memberfirms
firms
affiliated
affiliated
with
with
KPMG
KPMG International
International
Limited,
Limited,
a private
a privateEnglish
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Indian
The Indian logistics sector is on a Top locations2
growth trajectory, driven by
burgeoning ecommerce market and

logistics
technology driven transformation. The
industry has evolved from being a Top rated states as
transport and storage driven activity per the Leads

market –an to a specialised function, covering end

to end planning and management of
goods, value added services towards
index 2021--rating
the states on key
parameters around
overview last mile delivery, predictive planning
and analytics, among others. Top rated states
logistics services
and infrastructure

Indian logistics market (USD billion)1

380 Peer landscape

250
170 Ownership (2021)1 Structure1

10%
FY17 FY21 FY25E 10%
Up to 5 trucks
15%

Segment break up (FY21)1 5-20 trucks

5%5% 75%
90%
More than 20
18%
trucks
Organised Unorganised
73%
Highly fragmented industry with presence of several small, unorganised players
Road Rail Water Air
1. Logistics on the cusp of a transformation, Motilal Oswal, October 2021; 3. Third-party Logistics Market in India by End-user and Service - Forecast and Analysis
2. Logistics service market in India, Netscribes, 2022; 2021-2025, Technavio;
4. Indian express logistics industry 2022, Indian Chamber of commerce and Aviral

© 2022 KPMG Assurance and Consulting Services LLP, an Indian Limited Liability Partnership and a member firm of the KPMG global organization The logistics and warehousing market in India 4
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Indian logistics market – an overview

Value added services

3PL logistics
3PL

8% CAGR3

2020 2025 Highly

Consolidated
fragmented

End users:
For large scale companies and wide operations

Express logistics1,4

16-18% CAGR1 25%

2020 2025
75% Organised

Unorganised
End users:
Perishables or time sensitive delivery

Sources: 1. Logistics on the cusp of a transformation, Motilal Oswal, October 2021; 2. Logistics service market in India, Netscribes, 2022; 3.
Third-party Logistics Market in India by End-user and Service - Forecast and Analysis 2021-2025, Technavio; 4. Indian express logistics
industry 2022, Indian Chamber of commerce and Aviral

© 2022 KPMG Assurance and Consulting Services LLP, an Indian Limited Liability Partnership and a member firm of the KPMG global organization The logistics and warehousing market in India 5
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Indian
The Indian warehousing market Transaction share by end use Warehousing Tier 2 & Tier 1
is also gaining momentum with of space (2021)*1 (2021)2 Tier 3 cities Absorption by city (2021)2
increasing demand and supply cities

warehousing
over the years. 3PL and
ecommerce players are the
Warehousing
15% Industrial
major occupiers, penetrating in Supply 8.9 36

market –an tier-2 and 3 cities as well, and

eventually increasing the share
of secondary markets. Focusing
million
sq.ft
million
sq.ft
20% 18%

overview on larger picture of convenience,

efficiency, and sustainability,
companies are moving to a hub
Absorption 8.6 25.1
3%
4% 15%
million million 8%
and spoke model, while also 85% sq.ft sq.ft
adopting technology for 8% 14%
streamlined operations. *Warehousing refers to storage activity; Industrial refers to
manufacturing activity 11%

Demand and supply scenario of tier 1 cities2 Delhi NCR

Pune
11.2%
Cumulative Stock (mn sq. ft.)

Mumbai
200 12.00%

180

10.2% 9.9%
9.9% 10.00%

Bengaluru
9.4%
160

8.5%
Chennai
140

8.00%

120

Grade A
Kolkata
186
100 6.00%

Grade B
158 146 159
Hyderabad
80

143
119 125 123
4.00%

105 Vacancy
60

101
40
86 Ahmedabad
63 2.00%

Tier 2 and 3 cities

20

0 0.00%

2018 2019 2020 2021 2022E 2023E

1. India Warehousing Market Report 2021, Knight Frank;

2. Market in Minutes: India Industrial & Logistics, 2021, Savills

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Indian warehousing market – an overview

Sector split of warehousing Demand (2021)1

1% 1%
Transaction
23% 20%
growth (2017-21
4% 6% vs 2022-26)
5% 3%
5% 3%

31% 37% 165%

31% 30% 56%

2021 2026P
3PL Ecommerce FMCD FMCG

Retail Other sectors Miscellaneous

Share of secondary markets in warehouse transactions is increasing1

23%

15%
12%

2019 2020 2021

1. India Warehousing Market Report 2021, Knight Frank;

2. Market in Minutes: India Industrial & Logistics, 2021, Savills

© 2022 KPMG Assurance and Consulting Services LLP, an Indian Limited Liability Partnership and a member firm of the KPMG global organization The logistics and warehousing market in India 7
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Key industry Government initiatives
• Introduction of reforms such as GST and e-way bill,
Global manufacturing shift
• Global companies shifting manufacturing focus to

drivers driving industry growth, consolidation and efficiency

• Free trade warehousing zones and logistics parks. Government’s
India, leading to more demand for warehousing
options and logistics services
warehousing policy on exclusive warehousing zones through • Production Linked Incentive (PLI) scheme boosting
Increasing ecommerce public-private partnerships to ease transportation and logistics domestic manufacturing, and hence creating more
demand, technology costs and further propel growth1 demand for industrial space and warehouses.
upgradation and startup
• Government’s focus on infrastructure, logistics development and
activity is driving
multi modal connectivity, with INR7.5 lakh crore capex in FY23.2
market growth

New age startups Technology advancement

• Emergence of new age tech logistics startups, strongly • Modern technology solutions creating opportunities in
penetrating in this space and developing competitive terms of expansion of solutions across the value chain
offerings • Warehouses being conceptualised and integrated with
• Several players entering the B2B space, driven by technologies such as, Internet of Things (IoT), robotics
manufacturing and artificial intelligence (AI)
• New players bringing in more technology and digital systems
for higher productivity, triggering overall industry growth

Flourishing ecommerce
• Rise in ecommerce leading to expanded operations, catering accelerated demand
• Changing consumer behavior, demanding convenience through last-mile connectivity, ease of returns and other
value-added services
• Emergence of Direct-to-consumer (D2C) brands seeking end to end logistics services
• Omni channel retailing further boosting demand for multiple warehouses to serve the end consumers.

Sources: 1. How the new warehousing policy will transform India's logistics, Mint, 22 December 2021; 2. Budget speech document 2022-2023, 1 February 2022
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Trends
Surging demand for ecommerce with increasing customer centricity is pushing demand for third party integration. Role of warehousing
and logistics is moving beyond the traditional scope, with end to end optimisation, technology deployment and value-added services.

shaping the
industry
Ecommerce is driving the Indian warehousing market volumes, with sector's share in Statistics/Case study
Managing warehousing transactions growing from 18 per cent in FY2017 to 31 per cent in FY2021.1
complexities • This has led companies to outsource their logistics requirements to 3PL operators, to Transactions
through 3PL optmise delivery timelines, avoid huge capex, while maintaining an ‘Asset Light’ Growth
Growing scale of operations (million sq m)1
model
pushing adoption of FY2017-21 FY2022-26
technology deployment • Increasing focus on consumer-centricity, direct-to-consumer (D2C) model, last mile
delivery is further driving this shift. Hence, larger focus on 3PLs to manage inventory,
and 3PL services 165%
optimise fulfillment, end to end procurement, distribution and data management. 3.4 9.1
3PL players are moving beyond traditional services to: Ecommerce
• Integrate manufacturer’s ecommerce websites to provide network-wide inventory
Available to Promise (ATP)
• Provide estimated delivery dates for consumers and cost reduction, capacity 56%
4.9 7.7
expansion depending on demand
3PL
• Gain better visibility and faster decision-making and reporting across all operations.

About 56 per cent of Indian logistics companies use map-based solutions for shipment
An AI driven freight platform is
Technology monitoring. IoT, automation, electric vehicles (EVs), and location technology are among
helping fleet owners reduce cost
logistics industry’s key priorities.2
deployment by providing real time visibility in
for end to end Warehousing providers are looking at lean and smart logistics solutions, with supply chain and eliminating
transformation integration of technologies including cargo theft, improving delays and
• Internet of Things (IoT) for SKU* handling; augmented reality (AR), drones for detention, driver safety, vendor
inventory monitoring; and blockchain for data encryption. collaboration with the use of IoT
• Big data to forecast changes in volume and customer demands, with solutions on real and analytics.
time data analysis
• On road, integrated, optimisation and navigation software for driver delivery routes A global logistics firm has
launched an online platform
• Use of Digital Twins—virtual replicas of a physical object, like a building, to visualise
providing fluidity and transparency
warehouse operations and coordinate data from sources like IoT sensors. Warehouses
in supply, with features like track
and facilities can also use the technology to create 3D models to see changes within
and trace capabilities.
the layout and also assess the impact in advance.
Sources: 1. India Warehousing Market Report 2021, Knight Frank; 2. Internet of Things finding takers among logistics firms: HERE Tech; 15 July 2021 *Stock keeping unit
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Trends
Surging demand for ecommerce with increasing customer centricity is pushing demand for third party integration. Role of warehousing
and logistics is moving beyond the traditional scope, with end-to-end optimisation, technology deployment and value-added services

shaping the
industry
Warehousing and logistics ecosystem is evolving, with major push towards automation Statistics/Case study
End to end across processes such as storage, retrieval and relocation of goods. Increased throughput
optimisation requirement of sectors like ecommerce is expected to increase technology adoption.
with • The Indian Warehouse Automation Market is expected to grow at a 26.4 per cent A leading ecommerce player is
Companies are increasingly deploying a robot-based sortation
automation CAGR during 2021-2026, from USD86.2 million in 2020 to USD512.2 million in 2026.1
embracing automation and technology in its warehouses.
enabling cost-effective Some of the prevalent use cases include:
This enables 100 self-guided
warehousing techniques • Automation and robotics technologies, including automated storage and retrieval robots to autonomously sort items
systems (ASRS), conveyors, palletizers, sortation systems, autonomous mobile robots in the order of delivery pin codes.
(AMRs), automatic guided vehicles (AGVs), for streamlined operations
• Process-oriented automation software that leverages scanners, barcodes, to streamline Every hundred AGVs (automated
the data collection and integration process guided vehicles) result in a 60 per
• Autonomous mobile robots (AMRs) to deliver everything from intricate picking cent boost in process efficiency.
fulfilment to managing space efficiency by moving pallets and large payloads not
required immediately to remote / free locations
• Dark warehouses, which are completely automated and require no human
involvement.

Companies are increasingly evaluating the efficiencies of on-demand warehousing as a

Value added cost-effective and flexible business solution, while some are shifting to a hub and spoke Micro-fulfilment 10X by 2025
services model. (growth estimates)2 30X by 2030
• On-demand warehousing is an online marketplace model that leverages the power of
app-based tools. It helps with warehousing space requirements and connect with A logistics provider has invested
logistics players who offer excess warehousing capacity on a pay-per-use basis in a network of fulfilment
• By monetising unutilised storage spaces, warehousing players can save themselves centers, enabling merchants to
from bearing considerable expense on surplus spaces in on-demand warehousing directly sell their products, and
• Localisation of micro-fulfillment warehouses—citing facilities near high-population be closer to online buyers. Also
urban centers to enable faster and less expensive order fulfillment (Depending on the helping them leverage the network
company, these warehouses may be stocked from larger distribution centers in a hub- with end to end visibility of
and-spoke model or receive product directly from the manufacturer). operations

Sources: 1. Smart warehousing: A pressing priority for post-COVID businesses, TPCI, June 19, 2021; 2. Micro Fulfillment Market Expected to Reach an Installed Base of 6600 MFCs by 2030 – LogisticsIQ, 3 March 2022
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Evolving • Currently at a nascent stage, urban logistics is
gaining traction in metros and other cities, as
• Focusing more on supply chain resilience,
manufacturers are geographically diversifying

concepts consumers opt for more convenience,

transparency and flexibility of online purchases.
• To reduce costs and increase delivery efficiency,
their supply chains. Moreover, logistics
providers are integrating systems and players
across the value chain for higher visibility and

and themes warehouses are moving closer to customers

with smaller facilities, and penetrating to smaller
cities as well. India’s urban logistics spaces are
governance.
• With disruptions becoming rampant, remote
sourcing is expected to become more dominant
Some of the emerging expected to cross 7 million sq. ft by 20221 with technologies such as AI and Blockchain.
themes, though at a
nascent stage, are expected
to drive momentum
• A larger focus on circular economy based on • With remote working becoming popular, players
Cradle-to-Cradle (C2C) approach is the next new are expected to deploy tools like smart glasses
normal, emphasising on remanufacturing, and augmented reality collaboration apps, to
recycling, and reusability of materials. handle order allocation, inventory control
• With government also pushing focus on management, order picking, and material
transition from a linear to a circular economy, handling with simultaneous collaboration.
players would need to evaluate reverse logistics, • With AR-assisted training, employers could also
having all processes integrated. get trained through assisted remote-learning
features.

• Drones are gradually becoming popular, aiming • Logistics players would focus more towards
to eliminate manual effort and increase deploying energy efficient EVs and alternate
efficiency in areas where deliveries are difficult. fuels. This could increase usage of biofuels,
India’s drone rules 2021,3 could pave the way for hybrid EVs and hydrogen fuel cells
faster deliveries, higher profitability, and • The government has also been framing policies
substantial reduction in carbon emission. for cleaner technologies, and hence, investing in
• Facilitating last mile deliveries, a package, which greener cold supply chains and solar-powered,
currently takes up to 72 hours to deliver, will be temperature-controlled warehouses would be a
delivered between 8 to 12 hours with heavy lift focus area too.
drones.2
Sources: 1. India urban logistics spaces expected to cross 7 million sq. ft by 2022, JLL, 9 September 2021; 2. Heavy-Lift Made-In-India Drone To Redefine E-Commerce, Bits & Drones, India, 13 December 2021; 3. The Drone Rules, 2021, Ministry of civil Aviation, PIB, 28 January 2022

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The logistics
value chain First mile Line haul Last mile

Procurement Inbound warehousing Distribution Delivery hubs/Retailer

Inbound Outbound

• Inbound procurement of • Inventory management • Outbound shipments from • Storage of finished goods
raw material and goods • Storage, sorting, packaging factory/warehouses to • Inventory management and
• Consolidating shipments and other warehousing retailers/delivery centers demand planning End
Function
from different sources activities • Shipment tracking, quality • Order processing and consumer
and temperature control invoicing
• Last mile delivery
Road, Maritime, Rail, Air Road, Maritime, Rail, Air Road
Mode Involving both domestic and international transport Road for local supply; other modes for Involves local distribution
national/international shipments

Load • Bulk shipping • Not applicable • Unit shipping • Less than truckload (LTL)
units • Full Truckload (FTL) • FTL/LTL
• Supply chain planning • Assembly and product • Route optimisation and cost • Shelf replenishment and
Value
• Vendor management customisation/rebranding planning inventory analytics
added
• Notifications and updates;
services
reverse logistics
• Alternative fuels and EVs- • Smart warehouses and use • Sustainable distribution; • Express delivery
deployment for of cobots drones; autonomous • Micro fulfilment and dark
Evolving procurement • Automation across various delivery testing stores – moving closer to
roles • Blockchain technologies for functions for fast • Predictive analytics for cost customer
farm to fork tracking turnaround and quality and delivery planning

Note: This is an indicative value chain based on a normal scenario. The value chain may alter basis the model followed by logistics provider

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The five Threat of new entrants: High

competitive
• Low barriers to entry making
market entry easy
• Moderate investment required
forces • Technology advancement
introducing new players
(including startups, ecommerce
players) into the industry.
Bargaining power of Bargaining power of buyers:
suppliers: Low Moderate to high
• Presence of large number of
players reduces the bargaining Industry rivalry: High • Minimum differentiation and low
power of suppliers, due to switching costs gives high
abundance of choice Highly fragmented industry with ~90 per
bargaining power to consumers
cent small unorganised players1
• Lesser dependence on one supplier • Consumers often tend to switch
due to less complex service Intense competition with several players service providers, basis costs,
offering undifferentiated yet competitive flexibility and value-added
• However, players with large scale
services. services.
and differentiated offerings could
have a competitive edge.

• No other close substitute to

logistics industry, apart
from transportation services
• Consumers have an option
to switch to other modes
(for instance, rail, instead of
air freight).

Sources: 1. Logistics on the cusp of a transformation, Motilal Oswal, October 2021

Threat of substitutes: Moderate
Note: This is a broad-based Porter’s five forces model prepared for the overall logistics industry. Analysis the competitive forces would be more prevalent if a defined segment within the industry is picked
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Navigating
Challenge Steps to mitigate

Skewed towards road transport • Long haul goods could be transported through rail; bulk

through the • Rail’s share in freight transportation in Modal share (%)1 freight and low to medium value non-bulk products can
India has been declining over the years. In also be moved through rail and intermodal transport
2021, it accounted for ~18 percent share • The Government has been taking initiatives towards rail

challenges compared to 71 percent share for roads.1

While rail could be a cost-effective and
efficient option, companies are still not
71
39 45 44
infrastructure, investing in dedicated freight corridors to
increase rail network capacity. Eastern and western
dedicated freight corridors are expected to be
High cost and visibility deploying it due to time constraints and India US Europe China commissioned by June 2022.2
lack of flexibility.
• Cost of road transport is much higher Road Rail Water Pipeline
(INR2.5 per tonne/km compared to
INR1.35 per tonne/km for rail and INR1.1
per tonne/km for water).1
Lack of visibility • Use of control towers for better visibility, and a connected
Nearly 94 per cent of the Fortune view of metrics and events across the supply chain
• Supply disruption has been a major cause 1000 companies experienced supply
of concern in the recent times. Several chain disruptions during the pandemic.3 • Logistics firms can track the whole process of inventory
logistics firms have struggled or continue receiving, storage, order management and fulfilment, and
to struggle with deliveries due to lack of shipping from a single location.
Disruptions cost three
out of every
visibility across suppliers and routes. • Deploy real time tracking to send warnings and alerts for
10 containers to miss their
• This eventually has an impact on the scheduled sailing, thereby affecting immediate actions in case on any disruption. Notify
whole value chain, delaying production as their scheduling reliability.4 customers on shipping and estimated time of arrival (ETA).
well.

High logistics costs • While one of the ways to cost reduction is balancing the
Logistics costs in India2 modes of transport, companies should also increase
• Logistics costs in India are significantly
high, accounting for 14 percent of the
4% efficiency by optimising vehicle use and productivity
GDP,2 much higher than other large through effective routing and loading
Transportation • Invest in standardisation and digitisation of processes and
economies.
• Driven by high transportation cost, this 34% equipment
Inventory
can be attributed to low efficiency; under • The government has introduced Logistics Efficiency
62% Enhancement Program (LEEP)5 to improve logistics
utilisation of trucks, skewed modal share, Administrative
and obsolete technologies efficiency and building 35 multimodal logistics parks.

Sources: 1. Logistics on the cusp of a transformation, Motilal Oswal, October 2021; 2. Fast Tracking Freight In India, NITI Aayog, June 2021; 3. 94% of the Fortune 1000 are seeing coronavirus supply chain disruptions: Report, Fortune, February 2020; 4. Top 5 trends in supply chain
management to look out for in 2022, Economic Times, 19 February 2022; 5. Logistics Efficiency Enhancement Program (LEEP), Ministry of road transport and highways
© 2022 KPMG Assurance and Consulting Services LLP, an Indian Limited Liability Partnership and a member firm of the KPMG global organization The logistics and warehousing market in India 14
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Navigating
Challenge Steps to mitigate

Issues around environmental impact • Improving fuel economy by discarding old vehicles

through the
with poor performance

Fuel consumption (L/100 km)

• With a very high share of road transport, Fuel consumption of Heavy-
India’s freight activity deploy internal Duty Vehicles2 • Shift to EVs or alternate fuels, while also deploy clean
combustion engine (ICE) vehicles, mostly 50 technology for fuel efficiency.

challenges
45
powered by diesel. Penetration of EVs in 40
35 • The government has launched FAME II scheme,
freight is less than 1 percent, with players 30
25 offering a subsidy to accelerate manufacturing and
posing reluctance to switch to alternate 20
15 deployment of EVs. Under the scheme, the
Overcoming the fuels. 10
5 government has allocated INR 8,596 crore for upfront
0
environmental impact • Moreover, trucks in India have poor fuel subsidies for EVs and INR1,000 crore for charging.1
and soaring land prices economy, which negatively impacts the India US China Europe
environment.

Surging land prices • Develop a plan for space optimisation for better land
• Logistics and warehousing companies are faced with a growing challenge of utilisation
increasing land prices and unavailability of suitable land parcels. Increasing • Deploy technologies to reduce cost of operations,
competition for a suitable land parcel with several complexities around regulations and hence, offset the impact of rising land cost
is further adding to uncertainty. • Focus on smarter small warehousing spaces
• Since Indian warehouses are experiencing horizontal development with more
requirement of land, increasing prices could further add to incremental costs.

Key takeaways2
• Having an efficient modal mix could ultimately bring down costs– India has set a target of reducing the logistics costs as a share of GDP
from 14 percent to 10 percent which can save up to INR 10 lakh crore.
• Shift towards other modes to cause less road traffic. Also, improved modal share and reduce the vehicular-freight activity by 48 percent
in 2050
• Greater supply chain visibility to enable companies de-risk supply chains, avoid surge in prices due to unavailability, while ensuring
continued supply
• Additionally, focus on alternative fuels will lead to reduced carbon emissions and improved air quality – India can save 10 giga tonnes
of CO2 and 15 million tonnes of nitrogen oxide (NOx ) caused by freight transport by 2050.

Sources: 1. Govt increases allocation for EV subsidy threefold, Economic times, 4 February 2022; 2. Fast Tracking Freight In India, NITI Aayog, June 2021

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Way forward: Immediate focus areas for companies

Tier 1 cities remain key markets, however, it is imperative to percolate into secondary markets, given the increasing prevalence of
Tap into secondary tier 1 & 2 cities, especially with growing ecommerce. Utilising newer concepts of warehouses, including dark stores, micro fulfilment
markets hubs and on demand warehousing would be key to success, driving efficient last mile deliveries.

Sustainability to become a prominent pillar of the industry. Companies should be focusing towards deploying sustainable
practices throughout its value chain and functions. Green logistics, fuel economy and alternate fuels, smarter energy efficient
Sustainability is key warehouses are some of the initiatives to begin with. These could not only help achieve nation’s sustainability target, but also
benefit in the form of goodwill, newer customers, better partnerships, among others.

Adapt to changing Rise of ecommerce has created room for growth in the form of evolving formats such as omnichannel retail, quick
commerce and other models such as Buy Online, Pick up in store (BOPIS). It will be critical for logistics and warehouse
formats companies to strategise and manage their operations with changing landscape, to tap into these opportunities.

Necessary to adopt technology across logistics cycle, including transport, storage and management of goods.
Technology remains Companies implementing new technologies to reduce manual effort, IoT and cloud for real time insights and
predictive maintenance, and blockchain for supply chain transparency could receive plethora of benefits in
paramount the longer run.

© 2022
© 2022KPMG
KPMGAssurance
Assuranceandand
Consulting
Consulting Services
Services
LLP,
LLP,
anan
Indian
Indian
Limited
Limited
Liability
Liability
Partnership
Partnership
andand
a member
a member firm
firm
of of
thethe
KPMG
KPMG global
global
organization
organization The logistics and warehousing market in India 16
of of
independent
independent
member
memberfirms
firms
affiliated
affiliated
with
with
KPMG
KPMG International
International
Limited,
Limited,
a private
a privateEnglish
English
company
companylimited
limited
byby
guarantee.
guarantee. AllAll
rights
rights
reserved.
reserved.
Acknowledgements
We are sincerely grateful to the following people from the ecosystem who have helped in the preparation of this report

Research
• Reshma Pai (Associate Director)
• Aanchal Behl (Assistant Manager)
• Damini Sharda (Associate consultant)

Compliance and Design

• Sameer Hattangadi (Senior Associate Director)
• Lata Rathod (Manager)
• Nisha Fernandes (Manager)
• Shveta Pednekar (Manager)

© 2022
© 2022KPMG
KPMGAssurance
Assuranceandand
Consulting
Consulting Services
Services
LLP,
LLP,
anan
Indian
Indian
Limited
Limited
Liability
Liability
Partnership
Partnership
andand
a member
a member firm
firm
of of
thethe
KPMG
KPMG global
global
organization
organization The logistics and warehousing market in India 17
of of
independent
independent
member
memberfirms
firms
affiliated
affiliated
with
with
KPMG
KPMG International
International
Limited,
Limited,
a private
a privateEnglish
English
company
companylimited
limited
byby
guarantee.
guarantee. AllAll
rights
rights
reserved.
reserved.
KPMG in India contacts:
Neeraj Bansal
Partner, Co-Head and COO – India Global
Head – Insights Centre
E: [email protected]

Prahlad Tanwar
Partner & Global head – Logistics sector
E: [email protected]

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