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What’s changing in warehousing in India?

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LI Ping HR Director / BHS Corrugated Machinery(Shanghai) Co.Ltd

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M+V is very professional in India HR market. They were able to provide us with strong support in our recruitment. We are satisfied with their service.

Falk Tzchichholz Sales Manager Export / Kjellberg Vertrieb GmbH

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With the incubation solution from Maier + Vidorno , we successfully placed our products in the Indian market and established valuable product market presence, which we can now build on further with our subsidiary

Andreas Dauerbock Quality Assurance / Voestalpine Grobblech GmbH

BIS registration project
The BIS registration project went smooth and efficient. We are very satisfied with the way the documentation, communication and inspection on-site was handled from the Maier+ Vidorno Team. We are happy to recommend working with M+V in India – with the expert’s advice you will need.

Rajesh Nath Managing Director / VDMA India Services Pvt Ltd German Engineering Association

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India has great investment potential for foreign companies if you manage the highly complex business environment professionally. Our experience shows – Maier+Vidorno is a competent partner to efficiently set up and run business.

Bjoern Becker Export Sales / Jumo GmbH & Co KG

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The cooperation of JUMO and Maier+Vidorno is a success story in India since 2008. Our sales, market presence and profitability in India shows constant growth. M+V knows about the challenges foreign companies face while doing business in India – and provides hands-on solutions.

Rene Pluss CFO, Member of the Board / Regent Beleuchtungskorper AG

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Maier+Vidorno understands business challenges in the Indian business environment and provides solutions with the help of its experts. M+V has experience in running business diagnostics and implement improvement and expansion strategies in various industries in India.

    What’s changing in warehousing in India-M+V Altios

     

    Shashank Verma | Head Supply Chain & Order Management | Maier+Vidorno

    LinkedIn | Twitter | Google+

    October 2019

    In our previous blog, we explained How does transport affect selling in India?. Here we will focus on developing warehousing infrastructure in India. We write a separate blog about this as it is one of the popular question asked by foreign companies who import goods in India, looking for a warehouse in India, sell in India, developing & managing the distributor network in India. This particular blog helps you to understand infrastructure status to warehouse and logistics in India & What is the status of FDI.

     

    Developing warehousing infrastructure

     

    Warehousing infrastructure is on high priority for the government. Based on the ongoing development of road infrastructure in the suburban belt, measures are being taken to build integrated logistics hubs across the national highways and expressways.

    Get a Hassle free trading in India

    ion and will be operational within next five years across the industrial corridor of the country, including the states of Delhi, Haryana, Rajasthan, Maharashtra, Madhya Pradesh, and Gujarat from the west side of India, and West Bengal, Odisha, Andhra Pradesh, and Tamil Nadu from the east.

    Realization of the benefits of these developments will be over the next ten years, as these projects will generate employment for residents and as a result, will assist in decongestion of cities plagued by job-related population migration.

    Logistics and warehousing indispensable role in the transportation of goods across the country also the manufacturing sector is amongst the major occupiers of warehousing space and both sectors are complementary to each other. In order to aid the manufacturing and warehousing sectors, the government has announced plans to set up multimodal logistics parks at 34 locations across India, which have the highest freight movement at an investment of INR 2 trillion.

    100% foreign direct investment (FDI) in the storage and warehousing sector under the automatic route has been permitted for several years. In addition to this, the government has recently announced infrastructure status to the logistics industry. This decision will enable companies in the logistics and warehousing sector to access funds at a lower cost, longer tenure, and enhanced limits. Companies would now be accounted for lesser cash outflows due to debt and interest repayments in the initial years unlike earlier, as the debt financing can be taken with longer repayment tenure.

     

    Are current reforms making it easier to do business in India?

    It would also enable them to raise larger amounts of funds as external commercial borrowings (ECB), borrow longer tenure funds from insurance companies, pension funds, sovereign funds and also make them eligible to borrow from the India Infrastructure Financing Co. Ltd (IIFCL). Moreover, even the banks would be able to lend to this sector with lower provisioning requirements than earlier. The approval process also gets simplified. The Government of India has set out certain conditions that need to be met for a project to be classified under infrastructure status.

     

    The government has defined “logistics infrastructure” to include a multimodal logistics park comprising an Inland Container Depot (ICD) with a minimum investment of INR 50 crore and minimum area of 10 acres, cold chain facility with a minimum investment of INR 15 crore and minimum area of 20,000 sq ft and/or a warehousing facility with a minimum investment of INR 25 crore and minimum area of 100,000 sq ft. Institutional players will not invest in unorganized and small warehouses; they generally invest or set up large warehouses and huge logistics parks.