Kirby India’s Packaged Solution for Warehousing Industry
Media Release: 12th May 2015,
Indian Logistics Market Scenario
Indian GDP composition consists of Agriculture, Manufacturing and Services. The services sector has grown rapidly over the last decade with percentage share of agriculture and manufacturing dropping considerably. But opening up of the economy with high FDI inflows and a number of multi-national companies setting up their facilities to meet the rapidly growing Indian consumer demand has resulted in giving a boost to the Indian manufacturing sector. This has also resulted in development of back end infrastructure which consists of logistics segment with warehousing forming an integral part of this segment.
Logistics segment also involves other sub-segments such as cargo handling, transportation, distribution services and others. Most of the leading corporates are setting up their own warehouses across different regions of India to cater to growing needs of Indian consumers and cut down on the delivery of the product. They have become a central part of function for many industries as they act as a storage place for all the materials starting from raw materials to finished goods spread over entire life cycle of any product.
Logistics and warehouse industry is expected to grow at a CAGR of 12-13 per cent for next 3 to 5 years and the market is expected to grow because of demand from importers and exporters for specialized services and custom-built warehouses. The total logistics market accounts for over 6.2% of India’s GDP and warehousing accounts for approximately 20% of the total Indian logistics industry. Currently, India has more than 2,000 million square feet of warehousing space out of which only 8% approximately is accounted by organized sector and the rest by unorganized sector consisting of 3PL, individuals, etc
In earlier days, warehouses were built with traditional brick and mortar construction and then structural steel building with trusses and other types of sections made inroads in the warehousing construction. But with the advent of sustainable construction, Pre-Engineered Steel Buildings (PEB) technology came into limelight in the warehousing segment and Kirby Building Systems India Ltd. (Kirby India) is the torch bearer for introducing this technology in India. Kirby’s warehouses buildings are customized to meet the unique demands of the customers. As a result, today Kirby has become synonymous with PEB warehouse buildings in the Indian market mainly because of its unmatched speed of construction, quicker delivery, highest quality and commitment, excellent customer service, good safety practices, etc.
The success of PEB in warehousing was because of usage of standard heavy sections having more weight in structural steel buildings thereby making them more expensive. This has enabled PEB technology to become one of the preferred modes of construction for warehouses being setting up across India. This erstwhile concept in India has now become a widely accepted solution with proven benefits for construction in the Indian environment. Also with eco friendly construction fast catching up the growth curve in the Indian market, PEB is the most viable construction solution as it is a green product with very little impact on the environment. PEB is also perfect fit for developing warehousing sites because of the recyclable nature of steel used in the buildings. Kirby already designs buildings that meet the green building and eco friendly construction norms.
Moreover, penetration of PEB in rural areas is still miniscule where many agricultural warehouses exist in smaller sizes which use the local vendor for onsite fabrication mainly because of cost advantage. Kirby India has already introduced a cost effective PEB solution for such smaller warehouses thereby making inroads in the rural areas.
Modern Warehouse Infrastructure
Lack of modern warehouses and inefficient infrastructure and supply chain management have led to heavy losses in billions due to tonnes of food grains lying in rotten condition over many decades. But the scenario has changed with the demand for modern warehouses has witnessed an tremendous increase over the last decade or so because of influx of multinational companies or manufacturers which has attracted many private equity firms to invest in the warehouse infrastructure.
Most of the warehouses are standard box type buildings as the design and other infrastructure for any warehouse depends on the storage requirements. Kirby has always taken care of all these requirements right before starting the design of the building. Also, the trends in technology along with innovations are further giving impetus to the PEB technology in the warehousing segment.
In current market scenario, more than 80% of warehouses are being built with PEB which has taken over the conventional mode of construction mainly because of its various advantages such as cost savings, faster return on investment, quicker delivery, faster installation, single source responsibility, low maintenance, flexibility in expansion, earthquake resistant, superior quality, etc. which have become vital for any type of warehouse construction.
Large Scale Warehousing – Need of the Hour
Need for large scale warehousing or dedicated logistics parks is fast catching up in India as it is mostly fragmented and unorganised industry dominated by many small players. This will enable companies to have larger warehouses supplying the distributors in the region, thereby enabling them to invest in better warehousing infrastructure and technology which will lead to increasing demand for PEB.
Challenges do remain as modern warehousing and logistic parks are still at nascent stage of development in India with the growth potential of warehousing industry being very high due to existing demand-supply gap. Indian Government is also playing a crucial role by promoting the warehousing segment through special tax benefits and other incentives and promoting FDI and signing trade agreements.
Some of the natural advantages related to the success of PEB in the warehousing segment include factory controlled fabrication on CNC machines, most optimized design due to usage of standard design softwares, large scale material procurement by Kirby India thereby lessening the costs, reduction in manpower costs and time because of supply of material without any delay, accident free installation with the highest safety and many such factors.
Trends in Warehouses
Warehouses are increasingly addressing specific requirements for its customers such as offering bare storage, storage with crane facilities, food storage, storage with multi-level stacking and open storage. Kirby India provides a package solution for these types of requirements with its new concept of Rack Supported Warehouses based on the end use of that warehouse. It is the only player to offer such packaged requirement and has already supplied such buildings to leading logistic companies. Kirby is present in both in PEB and Storage Solutions and it becomes strategic for the company to provide end to end solution for increasing demand for such type of requirements in the market.
PEB technology has become the centre of attraction across India especially in the Agro and Food & Beverages industries due to series of measures announced by the government to provide proper warehousing and cold storage facilities for fruits & vegetables, food grains, etc. Lack of temperature controlled warehouses close to farms and transportation of same in temperature controlled vehicles has become a major concern as they preserve the quality, integrity and longevity of the product. This has given huge opportunity to logistic players to set up temperature controlled warehouses or cold storages as the industry is estimated to grow rapidly at 26% compounded annually till 2017. This will give further boost to the PEB technology as the building part of these cold storages can be done by this technology. Other industry segments which are major drivers behind growth of warehousing industry include FMCG, Pharmaceuticals, etc.
Kirby has already executed such type of warehouses and is in the process of creating a separate packaged solution citing the increasing demand for cold storages. A well maintained warehouse also increases the life of the product and PEB technology acts as a major contributor to this because of its environmental friendly nature apart from the temperature control environment. Most of the modern warehouses coming up nowadays have multi-purpose functionality i.e. they can maintain various temperature levels at the same time for different variety of products as all the temperature controlled warehouses or cold chains built over 4-5 decades back does not have this facility.
Building Sustainable Innovations
Kirby Building Systems is one of the largest PEB companies in the world and is a 100 per cent subsidiary of Alghanim Industries, a Kuwait-based multi-billion dollar conglomerate, with more than 30 businesses and operations in 40 countries. Kirby has an annual capacity of more than 400,000 MT for producing high quality PEB with plants in Kuwait, UAE, Vietnam and India. Kirby introduced PEB in India, and is the market leader with two plants in India of total annual capacity of 200,000 metric tonnes. In the past decade, Kirby India has executed over 4,500 projects, involving 15,000 buildings spread over an area of 22 million square meters. The company has also executed more than 420 lakh square feet of warehouses across India and the count continues till date
The company has the privilege of partnering who’s who of corporates both from national and international front operating across all industry segments by setting up their facilities in India and across the globe. To name a few, Kirby India has been associated with companies such as ITC Ltd, Shree Shubham Logistics, Prasad Seeds, VRL Logistics, IndoSpace Logistics, Maa Ambe Warehousing, McCain Foods, Tata Group, Reliance Industries, Hindustan Unilever, BMW, Birla Tyres, Pipavav Shipyard, L&T, Pepsico, Coca-Cola, Procter & Gamble, Dabur India, JSW Steel, Gati, Mahindra & Mahindra, Honda Express Logistics, Milestone Buildwell, Soma Enterprise, Ruchi Group, Jain Irrigation, SEL Manufacturing, Videocon, Shree Renuka Sugars, Apollo Tyres, Bihar State Warehousing Corporation, Karnataka State Warehousing Corporation, Central Warehousing Corporation, etc., many entrepreneurs & individuals and third party players.
To conclude, Kirby is the only PEB manufacturer in India that is capable of supplying a packaged solution for all warehouse requirements maintaining international quality standards. Today, Kirby has become a generic name in the PEB market in India and has maintained its market leadership through its innovation and vast experience. Its buildings have stood the test of time, time and again against all odds – manmade and natural.
For more information, please contact:
Mr. Deepesh Nagar @ 040 – 30408500
Email – firstname.lastname@example.org
Website – www.kirbyinternational.com