LP Logiscience, the warehousing and contract logistics arm of the esteemed Liladhar Pasoo legacy brand, is thrilled to announce its plans to expand its footprints and double its growth in the Delhi NCR region, strategically positioned in the backdrop of an unprecedented surge in the Indian warehousing sector.
Currently, LP Logiscience has a Grade A complaint, multi-user warehouse in the Delhi NCR region, between Noida and Gaziabad, with approximately 5000 plus pallet position, and caters to top clients from the specialty chemicals sector. With expertise and specialised licences like CTE, CTE and Fire NOC etc., LP Logiscience has been rapidly acquiring clients, as part of their business goal to double their growth in the next two years.
The Indian warehousing sector has experienced a remarkable transformation in FY 2023, marked by significant increases in transaction volumes, reduced vacancy rates, and a shift towards third-party logistics providers (3PL). According to detailed Knight Frank Report, a staggering total of 51.3 million square feet of warehouse space was transacted during FY 2022-23.
Of this, Delhi NCR emerged as a powerhouse, recording an impressive 8.6 million square feet of warehouse space transactions. A notable highlight is the significant reduction in vacancy rates, plummeting from 13.8% in FY 22 to a mere 9.7% in FY 23, indicative of the sector's rapid expansion and robust demand. Also, in a departure from the trends observed during the pandemic years from FY 2020 to FY 2022, third-party logistics (3PL) logistics players captured a substantial 54% share of warehousing volumes in FY 2023.
Further corroborating this remarkable growth, the CBRE H1 2023 report on the Industrial and Logistics (I&L) sector highlights a 35% year-on-year increase in total space uptake, reaching an impressive 19.1 million square feet in H1 2023. The Delhi NCR region, alongside Mumbai and Chennai, emerged as a dominant player in leasing activity, collectively accounting for a substantial 60% of the overall space uptake.
In this dynamic environment, LP Logiscience has risen as a key player, achieving extraordinary growth within the Delhi NCR region. LP Logiscience was established a decade ago as the warehousing and transportation business arm of the legendary Liladhar Pasoo group and today handles over 3 million sq. ft of storage space and a reach of 7000+ distribution pin codes PAN India. Since its inception, LP Logiscience has registered an impressive evolution, growing at the rate of 20% - 25% YoY. Now, it is ready for the next phase, with plans to set up state-of-the art warehouses with aggressive tech adoption and greener operations to qualify for environmental certifications that will help the brand to enhance its global reach.
With its relentless commitment to excellence, innovative technology solutions, and sustainability initiatives, LP Logiscience is poised to continue its upward trajectory, delivering superior services and unparalleled value to its clients. Speaking about its plans for growth in Delhi, Varun Gada, Director, LP Logiscience, said "Our journey in the Delhi NCR region is a testament to our unwavering commitment to innovation, sustainability, and client-centric solutions. We've strategically positioned ourselves to capitalize on the evolving infrastructure developments, dynamics of the warehousing sector, and our state-of-the-art technology solutions, coupled with our dedication to environmental responsibility, have set us apart. As we continue to expand our footprint and enhance our services, our focus remains firmly on delivering excellence and value to our clients."
The momentum in the Delhi NCR region is also fuelled by substantial infrastructure projects, such as the Delhi-Mumbai Industrial Corridor (DMIC), dedicated freight corridor railway (DFC) connecting Bawal and Haryana to Dadri, Eastern Peripheral Expressway (Kundli – Ghaziabad – Palwal), and Western Peripheral Expressway (Kundli – Manesar – Palwal).
These initiatives have contributed to an increased demand for land, consequently driving up average rental rates by 7% in FY 23. And LP logiscience aims to leverage this development to the fullest, keeping in alignment with their business plans of doubling operations in Delhi NCR Region in the next two years.
With a strong business model supported by an IT backbone, LP Logiscience’s multiclient warehouse setup offers customisation, and flexibility where clients can continue to enjoy the superior services while only paying for the storage volume and throughput which has now become the natural extension of LP Logiscience’s business model. The company also aims to introduce sustainable practices for energy and resource optimisation and also plans on building an EV fleet for distribution.
As LP Logiscience continues to contribute to the thriving Indian warehousing sector, it remains dedicated to its vision of transforming the logistics industry, setting new benchmarks, and driving positive change in the world of warehousing and contract logistics.
