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Demand for warehouse automation boosts amid 'Make in India' push
Industry News- May 17,24
Economic growth boosts demand for logistics in India, with 13.5 million sq ft leased in Jan-Mar 2024. Tier-I cities saw a 25% increase, Tier II and III cities 20%.
The logistics sector in India is experiencing a significant surge in demand, driven by robust economic growth and the government's emphasis on local manufacturing. According to a recent report by Savills India, leasing of industrial and warehousing spaces saw a remarkable increase, with 13.5 million square feet leased in the first quarter of 2024, compared to 11 million square feet in the previous year. This surge in demand is particularly notable in Tier-I cities, where leasing increased by 25%, and Tier II and III cities, which witnessed a 20% growth during the same period.
This uptick in demand is attributed to various factors, including urbanisation, economic expansion, the rise of e-commerce, organised retail, and government initiatives like 'Make in India,' which incentivises businesses to set up operations in Tier 2 and 3 cities due to lower costs. Recognising this trend, NIDO Group, a leading provider of intra logistics mechanisation and automation solutions, is introducing innovative unmanned goods movement systems, namely AMRs and ASTRO, to enhance retrieval and fulfilment capabilities in these cities.
Nirav Doshi, Founder & MD, NIDO Group, emphasises the role of automation technologies, “AI-driven automation enhances order fulfilment efficiency and accuracy. Customer service systems powered by AI offer real-time support. AI analytics provide insights for continuous operational improvement, adapting warehouses to changing demand patterns effectively."
NIDO Group focuses on offering scalable automation solutions tailored to the needs of small businesses, ensuring affordability and support.
The company provides a range of warehouse automation solutions, including AS/RS for robotic storage, Conveyor Systems for inventory flow, Robotics and AGVs for order fulfilment, WMS for inventory management, and IoT Sensors for real-time monitoring. These solutions optimise last-mile delivery operations, enhance supply chain efficiency, and ensure seamless operations, ultimately fostering business growth in today's competitive market landscape.
Moreover, Doshi highlights the importance of artificial intelligence in revolutionising warehousing operations, enabling advanced capabilities such as demand forecasting, inventory optimisation, and resource planning. AI-driven automation enhances order fulfilment efficiency and accuracy, while AI analytics provide insights for continuous operational improvement.
As India positions itself as an attractive option for global companies seeking to diversify their production bases away from China, Doshi believes that strategic investments and growing technologies can enable India to transition away from its reliance on Chinese imports for warehouse automation solutions. Government initiatives, support for domestic manufacturing, improved infrastructure, and workforce upskilling in technologies are crucial factors in incentivising the development of indigenous automation solutions, thus reducing dependence on imports and driving further growth in the logistics sector.
(Source: Live Mint)
Logistics
warehouse automation
India
economic growth
Tier-I cities
Tier II and III cities
NIDO Group
unmanned goods movement system
AI
IoT
supply chain efficiency
last-mile delivery
artificial intelligence
demand forecasting
inventory optimization
government initiatives
domestic manufacturing
workforce upskilling
China
global companies
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