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Warehousing scales new heights: Vikas Choudaha
Articles- Jun 25,26
Godrej Storage Solutions is helping industries build larger, smarter and more efficient warehousing ecosystems, says Vikas Choudaha, Business Head – Storage Solutions, Godrej Enterprises Group, in an interaction with Ashlin Rajan.
Which sectors and trends are driving warehousing growth?
The growth of our intralogistics business is being driven by sectors such as e-commerce, quick commerce, manufacturing, automobiles, chemicals, paints, third-party logistics, cold chain, pharmaceuticals, and food and beverages. Demand is no longer limited to metro cities; we are seeing strong activity from Tier-I, Tier-II and Tier-III cities, as well as smaller towns.
The warehousing industry has changed significantly over the years. When this facility was set up in 2001, a 60,000 to 70,000 sq ft warehouse was considered large. Today, warehouses of around 4,00,000 sq ft are becoming common. Heights have also increased from 7 to 9 metres earlier to nearly 18 to 20 metres now.
Post-pandemic, e-commerce and direct-to-consumer delivery have become major growth drivers. With customers expecting faster doorstep delivery, including quick grocery deliveries, the need for larger, taller and more efficient warehouses has increased. Around 90 per cent of our products today go into warehouses, while about 10 per cent are used for storage applications within factories.
What is the Chennai plant’s capacity and key product range?
This is a tightly built facility. We do not have much open space because we have been adding equipment and machinery over the years.The plant has a processing capability of around 1,00,000 tonnes. In our industry, this scale of processing capability is rare. We also maintain a substantial steel inventory to ensure that production continues as per customer requirements.
Unlike products such as refrigerators or washing machines, which are bought as finished products and can be used almost immediately, our products are supplied as components. These components have to be assembled at the customer’s site to create the final structure. Although many of the components may look standard and simple, they can be configured into different solutions for different customer requirements.
How do you balance customisation, productivity and efficiency?
Although many of the components may look standard and simple, they can be configured into different solutions for different customer requirements.
For example, a petrochemical facility may have limited variety but very high volumes, with 60,000 to 80,000 pallet positions at one location. On the other hand, a retail environment may have 100,000 SKUs, but each SKU may require only half a pallet or a quarter of a pallet.
Different requirements need different systems. These systems also need to be integrated with mechanised equipment, which is supported by another Godrej business, the Material Handling business based in Mumbai.
Therefore, design and manufacturing are only one part of the business. Execution, assembly, installation and project management are equally critical. Customers are not merely looking for components; they are looking for a complete built structure. We need to ensure that the final outcome is delivered as required.
Reducing handling losses is another important requirement. Even if losses cannot be eliminated completely, they must be reduced drastically. Warehouses need to ensure that goods are stored and moved in good condition.
How is Godrej adapting to modern warehousing needs?
From a customer perspective, the expectations from storage solutions are very clear. Customers want operational efficiency in their warehouses so that materials can be sorted, packed, cross-docked and delivered to the end consumer in good condition.
They also expect safety and integrity of goods. The material should move through the warehouse without damage. In sectors such as pharma and food and beverages, statutory compliance is extremely important. We ensure this through our systems by following various global standards.
Technology adoption is helping these things happen faster and more efficiently. It positively impacts our customers’ businesses and improves service levels for their customers as well. So, it becomes a win-win situation. We work with several partners by providing the right kind of structures for automated systems. Rack-clad warehouses are one such area.
Although many of the components may look standard and simple, they can be configured into different solutions for different customer requirements. We also offer a range of products from equipment-based solutions to manual systems. A lot of this work is done for quick-commerce and e-commerce companies.
Warehousing
Intralogistics
Storage Solutions
Automation
Chennai Manufacturing Facility
Sustainability
Supply Chain
High-Density Warehousing
Godrej Enterprises
Vikas Choudaha
Ashlin Rajan
Future Factory
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