Indian e-commerce cos likely to invest up to $1.9 billion on infra by 2020:
Study
19/08/2014 17:14
Buoyed by the growing popularity of online shopping in India, the e-commerce market, which is expected to reach USD 20 billion by 2020, will see companies investing close to USD 2 billion in logistics, infrastructure and warehousing in the next six years, a study said. According to a joint study by consultancy firm PwC and industry body ASSOCHAM, Indian e-commerce industry will spend USD 950-1,900 million by 2017-2020 on infrastructure, logistics and warehousing. The study further indicates the investments that the Ecommerce companies will have to make in building large fulfilment centres and warehouses, downstream parcel and sorting centres, equipping these nodes with state-of-the-art technology and modern warehousing practices promoting viability across the logistics chain. The study estimates that over the next three to four years, there will be an addition of 7.5 to15 million square feet in the form of fulfillment centres indicating an additional 6 to 12 per cent of all the space available in the form of organised warehousing in India and almost 25 to 50per cent of all incremental addition of consumption-driven warehousing space in the same period. To enhance the reach further, additional sorting and delivery centers will also be critical. Such additional centers with each measuring around 10,000 to 20,000 square feet will be added, said D.S. Rawat, secretary general of ASSOCHAM while releasing the study.
19/08/2014 17:14
Buoyed by the growing popularity of online shopping in India, the e-commerce market, which is expected to reach USD 20 billion by 2020, will see companies investing close to USD 2 billion in logistics, infrastructure and warehousing in the next six years, a study said. According to a joint study by consultancy firm PwC and industry body ASSOCHAM, Indian e-commerce industry will spend USD 950-1,900 million by 2017-2020 on infrastructure, logistics and warehousing. The study further indicates the investments that the Ecommerce companies will have to make in building large fulfilment centres and warehouses, downstream parcel and sorting centres, equipping these nodes with state-of-the-art technology and modern warehousing practices promoting viability across the logistics chain. The study estimates that over the next three to four years, there will be an addition of 7.5 to15 million square feet in the form of fulfillment centres indicating an additional 6 to 12 per cent of all the space available in the form of organised warehousing in India and almost 25 to 50per cent of all incremental addition of consumption-driven warehousing space in the same period. To enhance the reach further, additional sorting and delivery centers will also be critical. Such additional centers with each measuring around 10,000 to 20,000 square feet will be added, said D.S. Rawat, secretary general of ASSOCHAM while releasing the study.
