As India cements its position as a global logistics and manufacturing hub, the transition from traditional and labour-intensive warehousing to AI-driven and automated facilities is picking up pace. This transformation, marked by the integration of AI and automation into warehousing operations, is driven by the need for greater efficiency, accuracy, and cost reduction. India’s warehousing industry is projected to reach 500 million sq. ft. by 2030, with automation expected to cut operational costs by up to 30%. Therefore, the adoption of cutting-edge technologies like artificial intelligence (AI), robotics, and the Internet of Things (IoT) has become a necessity for businesses looking to offer the best while staying competitive in this dynamic environment. 

Push for smarter warehousing

Warehousing in India has long been affected by inefficiencies due to manual workforce, fragmented supply chains, and lack of real-time data visibility. The exponential rise in e-commerce, fuelled by platforms such as Amazon, Flipkart, Blinkit and Instamart, has put immense pressure on warehousing and logistics companies to meet growing consumer expectations for quick and same-day deliveries. Therefore, warehousing companies are now leveraging AI-powered predictive analytics, autonomous mobile robots (AMRs), and automated storage and retrieval systems (AS/RS) to optimise inventory management and streamline supply chain operations.

As a tech-enabled infrastructure solutions provider, the logistics parks have integrated automation based on client requirements. For example, we have implemented dock levellers and docking bay as a safety automation measure for First Solar at the Pillaipakkam facility, and for Alstom at the Coimbatore facility. Additionally, most of the industrial parks feature advanced sensor lighting to enhance energy efficiency.

Government initiatives such as Make in India and Digital India have further propelled the warehousing industry toward tech-driven solutions. The rise of Grade A warehouses designed for seamless integration of AI and automation reflects this shift. These advanced warehouses enhance storage efficiency, streamline inventory management, and significantly improve turnaround times. 

Key technologies driving the transformation

AI-driven inventory management & demand forecasting: AI-powered analytics and machine learning are predicting demand patterns, optimising stock levels, and minimising wastage. Predictive analytics helps businesses anticipate order fluctuations, ensuring a responsive supply chain. Predictive maintenance can reduce machine downtime by 30-40% while extending equipment lifespan by 20-40%. 

Robotics and automation: Automated guided vehicles (AGVs) and robotic arms significantly enhance picking, packing, and sorting efficiency. Autonomous Mobile Robots (AMRs) are increasingly being deployed in Indian warehouses to transport goods, reducing manual handling and improving workplace safety. Companies that adopt automation experience reduced turnover rates, lower insurance costs due to fewer injuries, and greater overall employee satisfaction.

IoT and real-time tracking: Smart sensors and RFID (Radio-Frequency Identification) technology provide real-time inventory tracking, improving visibility across the supply chain. IoT-enabled systems monitor temperature, humidity, and other environmental factors crucial for industries such as pharmaceuticals and food storage. 

Blockchain for supply chain transparency: Secure and decentralised blockchain technology ensures transparency in transactions and traceability of goods, preventing warehousing fraud and inefficiencies. This technology is beneficial in sectors like pharmaceuticals, where regulatory compliance and authenticity verification are paramount. For instance, The Karnataka State Drug Logistics and Warehousing Society has integrated blockchain technology to modernise drug supply management for government healthcare facilities statewide. 

Warehouse Management Systems (WMS): Next in line, advanced WMS software enables centralised control over inventory, order processing, and workflow automation. These systems integrate seamlessly with AI and IoT technologies to ensure real-time data synchronisation and operational efficiency.

Impact on Indian market

The integration of AI and automation is not only enhancing operational efficiency but also creating new job roles in machine learning, programming, and data science to operate the tech-driven warehouse management industry. Additionally, automated warehouses are enabling businesses to reduce turnaround times, lower costs, and improve customer satisfaction—key factors in India’s competitive logistics sector.

Moreover, India’s rapidly growing urban population and expanding consumer base in tier-2 and tier-3 cities are driving increased demand for last-mile delivery solutions. AI-driven route optimisation and autonomous delivery vehicles are expected to play a crucial role in meeting this demand, now more than ever.

---------------------------------------------------------------------------------------------------

About the author:

Ananth Seshadri is the President of TVS Industrial & Logistics Parks. Seshadri brings with him 25+ years of expertise in leading strategy, profit improvement & company turnaround engagements, new geography market entry/expansion, product management and business planning, etc. across different geographies including India, USA, and China. Of the total period, he has worked for 15+ years in the TVS Group including TVS SCS. In his current role at TVS ILP, he coordinates and liaises with different teams to develop and implement new business ideas and strategies.