European logistics major D B Schenker will double warehousing space to 7 million square feet in India in three years. A top official has said that after the implementation of GST, the logistic company sees growing demand from the corporate sector for such facilities.
D B Schenker ‘s country chief executive Vishal Sharma told PTI in an interaction, “ we are at 4 million square feet of space under management and will take it to 7 million square feet in three years. From an investments perspective, it will not be a large tab as much of this space will be owned by other developers and will be contracted on a longer-term basis.”
It can be noted that in the last few months, there has been a slew of announcements by realty developers about creating warehousing space. Sharma expressed happiness about getting the necessary space as required.
He said that the company had posted a revenue of above Rs 1,400 crore in 2017-18. It has been growing at rate of 18 per cent in the last three years. He said, “The next three years will see a doubling up of space per centre to 1.50 lakh sq ft as the warehousing activities have become more concentrated aided by GST.”
Vishal Sharma said, “The company will have about 25 warehouses, with 10-12 of them being bigger warehouses. The NCR, West and southern market comprising the Bengaluru-Chennai belt are the clusters which will see a bulk of development of this space.”