COVID-19 pandemic has been a great leveler and a teacher for countries and companies alike. While companies reshaped their organizational strategies, governments world over found newer ways of developing investment-friendly cities and towns to drive post-pandemic growth. Being one of the most literate states in the country, Kerala needs to up its economic horizons. In line with this, during a recently held event, the state’s Industries Minister P Rajeev said, “The State Government is working to improve its ranking in the EoDB index”. He aims to take Kerala from the current 28th spot to among the top 10 states.

According to the Minister, the aim is to bring Kerala to the top in the next five years, and to ensure this, a core team has been formed that has already started working on the same. The state has implemented K-Swift (an online single-window clearance mechanism) to fast-track business proposals. Kerala possesses tremendous potential for electronic products, including electronic chips and food processing. It has the best water quality in the country, making it the best location for food industries.

While this is one part of the possibilities, to harness the state’s true potential, the state also needs to develop new-age logistics parks to support the burgeoning demand. This is where players like Steelion find a greater prominence with their stronghold in designing and maintaining smart logistics parks, which are technically sound and in compliance with government norms for smart warehouses. 

How did it all start?

As mentioned earlier, the pandemic brought structural shifts in the way we do business, some of which will remain permanent, like online working, virtual meetings, and less business travel. To stay afloat and adjust to the changing market dynamics, agility is crucial. A quick move towards fast-paced warehousing, especially smart logistics parks, made perfect business sense as the pandemic had accelerated the demand for these verticals across tier I, II, and III cities in India. Steelion realized that tier II and III cities in India, including Kerala, are underserved markets for grade A logistics parks and warehouses and that’s how serving this underserved market became our GOAL.

How do we plan to bridge the gaps?

There is a shortage of grade A warehouses and logistics parks in India, with a 64% skew towards grade B warehouses. It is more pronounced in South India, with not a single grade A logistics park in Kerala. Our focus is currently in this specific area. Along with grade A warehouse or logistics park, we see significant demand for a Warehouse Management System, automated picking tools, automated guided vehicles, automated inventory control platforms, and the Internet of Things. Our upcoming logistics park in Angamaly, Kerala is a testimony to our promise & our delivery, which is a gateway to the southern business hubs of the country such as Karnataka, Kerala and Tamil Nadu.

As we move along, our mission is to strengthen the sustainable infrastructure and deliver our clients superior logistics parks in compliance with the new IGBC Green Logistics Parks and Warehouses rating system that in turn yield immense long-term benefits for existing and new projects. To give you some stats, the sustainable logistics parks offer energy savings to the tune of 20-30%; potable water savings of around 30-40%; reduction in greenhouse gas emissions; optimization of lead time and enhancement of storage space utilization. Intangible benefits include conservation of scarce natural resources, better health & well-being of occupants, and higher workforce productivity. Isn’t that a great proposition!

Riding the next phase of warehousing infrastructure growth

The Indian warehousing market is expected to grow by ~15% between 2021 and 2025, and warehousing space leasing is expected to reach 100m sqft. by 2023 from 32m sqft. in 2019. 3PL players are capitalizing on this opportunity by building logistics and distribution centers to stock inventory for e-tailers. This has given rise to the demand for warehouses and logistics parks in India.

With a view to capitalize on the burgeoning opportunities waiting to be tapped in the Southern part of the country, our focus area now remains to be Kerala and the rest of South India. With high disposable income, Kerala is recognized as a fast-growing consumer market, and companies are increasingly setting up a base there. Increased internet penetration and per capita online spending make Kerala very attractive to e-commerce companies. With the increasing realization of the need for grade A facilities, corporate clients are already enquiring about such options. With our expertise in building new-age smart warehousing in international and regional markets, we are well-positioned to capitalize on transforming the warehousing landscape in the country.