Robinsons Global Logistics Solutions (RGL) recently launched its operations independently after being spun off from its 65 year old parent company Robinsons Cargo & Logistics (RCNL). RGL aims to offer expert warehousing and distribution solutions that are aligned to the dynamic needs of modern business. With over half a million square feet of warehousing space under its management, RGL is among one of the modern and technologically enabled warehousing and distribution service providers in the country; catering largely to the exponentially growing demands of sectors like manufacturing, Retail, Infrastructure, IMPEX, SMEs and E-Commerce.
Aditya Vazirani, Director, Robinsons Global Logistics Solutions, said, “Going forward, we are expecting to grow at 30-40% YoY and are investing heavily on technology and in the cold chain space.”
The Indian warehousing market was worth INR 1,463 Billion in 2017 and is further projected to reach INR 3,179 Billion by 2023, growing at a CAGR of 13.6% during 2018-2023. This growth can largely be attributed to the implementation of GST and the move to grant infrastructure status to the logistics sector that resulted in a growth spurt for the warehousing and supply chain industry in India. Additionally, several other factors, like the country’s positive economic policies, growth across major industries such as automobiles, food, agriculture, pharmaceuticals, FMCG and the emergence of organized retail, have supported the growth of the warehousing industry in India. This exponential growth has led to the entry of organized player in the sector, resulting in the standardization of processes, the introduction of IT-enabled services and creation of structured systems and processes.
However, there are still many challenges that need to be addressed. Today logistics cost in India accounts for 13-17% of the Gross Domestic Product (GDP) which is nearly double (6-9%) the logistics cost to GDP ratio in developed countries such as the US, Hong Kong, and France. Much of the higher cost could be attributed to the absence of efficient intermodal and multimodal transport systems. Moreover, warehousing has also been facing major challenges, leading to increased logistics cost that is borne by the end users and other stakeholders.