The efficiency of your supply chain is what determines the success of your business” – The statement stands true beyond doubt. An integral part of having an efficient supply chain is coherence in warehouse management. After all, warehouses have evolved from being just godowns for storing stock. Jaipur, Rajasthan is one of the key warehousing centres in North India, catering to the majority of handicrafts, textiles and gems & jewellery exports. In this Regional Story, we explore the existing condition of the city’s warehousing market and future prospects.
While the year 2021 was about emerging from the effects of the pandemic, 2022 was more about strengthening supply chains from within to withstand all future shocks. A prominent trend noticed in the past year was the ‘rise and shine’ moment in e-commerce and D2C, which created a strong resurgence of warehousing demand in order to restore supply chains.
This led to the warehousing market recording large transaction volumes along with robust rent growth across markets. This sharp recovery was noticed not just in Tier-1, but in Tier-2 and Tier-3 cities as well. In this game of demand and supply, the increasing cost of land and construction along with high expectations of Grade-A warehouses, have led to a rise in rental cost – a swing that isn’t expected to proceed downwards anytime soon.
Among one of the most crucial and promising warehousing markets in North India is Jaipur – located almost 300 km from the Capital, and boasting of excellent road connectivity to cities like Ahmedabad, Ajmer, Kishangarh and Jodhpur among others.
The Jaipur cluster consists of the NH-48 Corridor and NH-52 Corridor, which are further divided into Jaipur Ring Road, Delhi-Mumbai Highway, Sangrur-Ankola Highway and JaipurAgra Highway.
“Moving away from the traditional image of a tourist hub, Rajasthan Investment Promotion Scheme 2022 and 2019 have been pioneers in presenting the state as an industrial hub. Jaipur now connects and gives great access to smaller but important markets of Jodhpur and Udaipur, hence, the traction in Jaipur,” says Rishabh Goyal, Founder at Jaipur Warehousing Company.
With the recent inauguration of the International Cargo Terminal at the Jaipur International Airport, it is also expected that there will be a jump in EXIM activity, which will further boost warehousing opportunities in the areas surrounding the Airport.
E-COMMERCE AND 3PL
Conventionally, the warehousing demand in Jaipur Cluster has originated from textile manufacturers, FMCG companies, and other factories & industrial establishments concentrated across Vishwakarma Industrial Area (VKI), Sitapura, Bais Godam, Sudarshanpura, Mansarovar, Jaitpura and Bagru.
“With a large area of the state (60%) falling under the DMIC influence zone as well as being a key node on the DFC (with 39% of the corridor passing through the state), Rajasthan is at the center of upcoming logistics infrastructure development in the country.”– Rajaram Pai (Chief Business Officer – Industrial, Mahindra Lifespace Developers Limited)
“In the past 5 years, e-commerce and 3PL companies have shown tremendous growth, which has forced the supply side to adapt accordingly with 24*7 operations, fewer margins and high turnover. The demand from the sector is likely to show an upward trend in the next 5 years.”– Manish Tayal (Regional Manager at the Central Warehousing Corporation)
This is an abridged version of the original regional story which was published in the December edition of the Logistics Insider magazine. To read the complete article, click here.