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Warehouse Leasing: Rising Demand in Eastern India | Warehouse in Kolkata

by Parag Gupta Warehouse in India

Eastern India is growing at healthy rate since last decade and it has picked up further during last few years. The effect can be felt in all the economic sectors and warehousing industry has been prime example of East & North East India growth story.

Companies are now expanding in other cities of eastern India through warehouse in Kolkata and it has increased the demand of warehousing space. The initiative of ACT EAST and GST policies have further lead to this rise in warehousing demand.


Since decades Godown in Kolkata has been prime storage and distribution hub for east India, but now Guwahati is fast becoming second major hub followed by Patna , Ranchi and Bhubhaneshwar. The warehouse space demand is lead by FMCG, pharmaceuticals, third party logistics, healthcare and consumer electronics segment.

Kolkata is leading with approx 10 million sq ft leased followed by Guwahati at 2.5 million sq ft, Patna at 2 Million sq ft and Bhubaneswar at 1.5 million sq ft.

The average rentals in Kolkata was in range of 15 to Rs 24 Per Sq ft while at other main eastern cities in range of Rs 13 to Rs 24 per sq ft depending upon warehouse location and infrastructure quality.

The average big ticket leasing at Kolkata was in range of 50,000- 1,00,000 sq ft whereas same in Guwahati was in range of 30,000–60,000 sq ft , Patna in range of 25,000–50,000 and Bhubaneswar in range of 20,000–40,000 sq ft.

70 % of leasing in Kolkata was in area of Dhulagarh, Sankrail & Uluberia along NH 6

The implementation of GST had huge positive impact on warehouse leasing across India with a growth of over 50 % in H1 2017 compared to H2 2016. Guwahati has opened the gateway for expanding the businesses in North east , 2018 will see a major surge in warehousing and distribution industry. It will not only reduce the load on Kolkata but will provide tremendous opportunities for warehousing and 3PL industries in other eastern cities of India.

Also cities like Patna, Bhubaneshwar and Ranchi has been hugely undermined in warehousing and distribution sector. Now with increase in better road network and removed barriers of states taxes with GST, it is expected to realize its full potential. These cities saw increase of 34% in H1 2017 compared to H2 2016 in warehousing sector.

It’s time to have close watch on how warehousing story unfolds in Eastern India and invest accordingly.


About Parag Gupta Advanced   Warehouse in India

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Joined APSense since, July 1st, 2019, From Mumbai, India.

Created on Jul 9th 2019 07:35. Viewed 161 times.

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