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 The demand for Grade A warehousing stock will grow at a Compounded Annual Growth Rate (CAGR) of 12.5 per cent in India until FY30, a new report said on Friday. 

According to the global professional services firm Alvarez & Marsal (A&M), India is witnessing an emergence of high-quality warehousing infrastructure, recognising warehouses as vital components in delivering exceptional customer experiences.

At present, up to 70 per cent of Grade A demand comes from Delhi-NCR, Mumbai, Bengaluru, Chennai and Pune.

"The evolution of warehousing in India from simple ‘godowns’ to sophisticated logistics hubs signals a new era of efficiency and resilience in supply chain management," said Manish Saigal, A&M India Managing Director and Business Transformation Services Practice Co-Leader.

"Warehouses no longer serve as a mere storage facility, but rather as multifunctional logistic hubs integral to the seamless functioning of the supply chain and a superior choice for businesses aiming to optimise operations," he added.

Sectors which are mainly driving the warehousing demand are retail, third-party logistics (3PL) and e-commerce.

As per the report, these sectors are projected to contribute about 80 per cent of the total demand for Grade A warehousing over the next five years.

Further, the report mentioned that with advanced storage solutions and temperature-controlled environments, these warehouses are well-positioned to cater to the growing needs of various industries, contributing to the overall growth and efficiency of India's logistics ecosystem.