Grade A Warehouses in India: Meeting the Rising Demand for Modern Logistics Infrastructure

Grade A warehouses in India are modern, high-quality, and technologically advanced warehouses that meet global standards for safety, efficiency, and sustainability. These warehouses are considered a prime asset class because they provide crucial infrastructure for the logistics and supply chain industry, which is rapidly growing in India.

In recent years, the demand for Grade A warehouses in India has surged due to the growth of e-commerce and the increasing focus on modernizing the country’s logistics infrastructure. This has led to significant investments in the construction of new Grade A warehouses, particularly near major industrial hubs like Mumbai, Ahmedabad, Delhi-NCR, Pune, Chennai, Hyderabad, and Bangalore. As per a recent Knight Frank report, 64% of the transacted volume of 4.77 Mn sq m in FY 2022, was contributed by Grade A properties.

While the preference for Grade-A warehousing is increasing, a large proportion of assets in India still comprise Grade B and C structures. One of the key reasons for this is the lack of investment in infrastructure for logistics particularly in rural areas where Grade B and C warehouses are often the only options available. Secondly, some businesses may prefer to use Grade B and C warehouses because they are cheaper than Grade A facilities. Products stored in lower-grade warehouses are typically of lower-value and may require less stringent storage conditions. Finally, there may be a lack of awareness or understanding of the benefits of using Grade A warehouses. Many businesses may not be aware of the impact that modern, high-quality warehouse facilities can have on their operations, including improved efficiency, lower overall logistics costs, and reduced risk of damage or loss.

Demystifying Grade A Warehouse

Grade A warehouses come with the best-in-class quality and building specifications. While there is no validated industry standard for classification of Grade A facilities, there are certain features and specifications which mark them above the rest. Some of these features which Horizon Industrial Parks adheres to, are as follows:

1. Clear height of 12 m or more at eaves
2. Pre-engineered buildings with optimized column spacing
3. The truck apron is 16.5m concrete with 12 m wide roads
4. Walls are pre-cast concrete up to 3.6 m in height
5. Floors come with FM2 compliant design, taking a uniformly distributed load of 5T/sqm or more.
6. Well-ventilated with 3-6 air changes per hour as per NBC norms. Passive ventilation through louvers and roof monitors.
7. Fire, Health, and Safety compliant
8. Sustainable building design, sourcing, construction, and management

With sustainability becoming a boardroom agenda, institutional developers such as Horizon Industrial Parks have taken the lead on sustainability and have been adopting green concepts and techniques in their construction and property management operations. Water management through efficient usage and recycling, energy efficiency and use of renewable energy, reducing carbon footprint by creating Miyawaki urban forest, and waste management are just some of the initiatives taken by Horizon Industrial Parks.

Grade A Warehouses and Their Impact on Operations

Institutional developers bring global best practices and create warehousing spaces that are compliant with global benchmarks. The facilities are designed and developed based on their deep sectoral understanding and stringent quality parameters of a Grade A. The high-quality features and specifications enable in optimising inventory storage, improving productivity and throughput, and bringing in efficiencies to increase speed of operations.

Some of the benefits that a high-quality Grade A facility for enhancing warehousing operations are:

1. Vertical space – Since the clear height is at least 12 m, storage capacity increases enormously with best-in-class racking, shelving and storage systems, depending on the goods being stored. The height also allows for mezzanine floors in warehouses and development of multi-story warehousing facilities.
2. Flooring – Flooring cannot be changed throughout the life cycle of a warehouse. It must withstand and support the weight of the infra and equipment inside the warehouse. Material handling equipment work round the clock and the equipment performance, and amount of wear and tear depends on the quality of floor.
3. Docks and peripheral road – The design of a Grade A integrates the dock design, yards, and roads based on the expected movement of material, man and machine in and out of the facility, resulting in better throughput.
4. Adherence to SHE compliances – Grade A facilities provide amenities for a cleaner, cooler, safe, and hygienic environment for people handling operations, resulting in better manpower productivity.
5. Technology, automation, and mechanisation – Grade A provides the best infrastructure for implementing technology & automation.

The Shift to Grade A Warehouses

The requirement for advanced and sustainable infrastructure is across industry verticals. While Retail, Lifestyle and E-Commerce sectors set the tone with their need for speed-to-market, occupiers demanding Grade A today also include companies in 3PL, FMCG, Pharma, Chemicals, Automotive & Auto-Components, Engineering, Consumer Durables, Electronics & Electricals sectors. Progressive high-growth companies have been reworking their network strategy to become customer centric and have warehousing facilities closer to the customer

Conclusion

Businesses are transforming rapidly in the wake of regulatory compliances and customer choices. Warehousing operations are aligning accordingly. Institutional Developers are creating world class facilities which enhance operational efficiency, improve customer experience, and integrate sustainable practices. Scalability aligned with the businesses’ future growth plans, running tech-enabled operations, and green logistics are all driving the demand for Grade-A warehousing spaces.

Horizon Industrial Parks, a leading institutional developer in India, offers world class, compliant, and sustainable facilities across major Tier 1 and Tier 2 locations in India. Catering to occupiers across Industry verticals, Horizon offers ready-to-move and bespoke solutions that add massive value to their businesses.