Contents Sr. No Topics I Concept & Need of an International Logistics Park II Concept of Regional Hub & Demand & Supply III Mumbai Region - Bhiwandi Emerging Warehouse Hub IV Operational Challenges – Bhiwandi Warehousing Hub V Renaissance Logistic Park – A Snapshot VI Key Learnings & Best Practices VII Client Expectation & Needs Satisfaction VIII Business Proposition & Way Forward Global Logistics Industry (LI) Scenario Global Logistics Industry (LI) = US$ 3500 billion International Logistics Performance Index (LPI) India’s Logistics Industry (LI) = US$ 66 billion 1. India’s LI % to Global Industry = 1.90 % LPI depends upon the following areas: Infrastructure : Quality of trade & transport related infrastructure 2. Logistics competence : Competence and quality of logistics services 3. Timeliness : Timeliness in shipments in reaching destination within the scheduled or expected delivery time 4. Tracking & Tracing : Ability to track & trace consignments 5. International shipments : Ease of arranging competitively priced shipments 6. Customs : Efficiency of clearance process Page Bank 4 Source: World LPI Survey 2010 Rank Country 1 Germany 2 Singapore 7 Japan 8 U.K. 15 U.S.A. 27 China 47 India Global Logistics Industry (LI) Scenario International Spends on Logistics Management Country Logistics Spending (% of GDP) 3rd Party Logistics (% of total movement) US 9.50 % 57 % Japan 10.50 % 80 % UK 11.00 % 68 % China 18.60 % < 10 %* India 13.00 % < 10 % Lower the % of logistics spent to GDP, better is the logistics management Higher % of 3PL shows a higher share of organized players Developing countries spend excess on logistics management * China exception to rule due to geographical conditions India’s LI Scenario Particulars India's Total Logistic Market Organized Unorganized Expected Logistic Market of India for the F.Y. 2012-13 Present % Share 100% 6% 94% Particulars India's Total Logistic Market Organized Unorganized F.Y.2009-10 (US $ in Bn) (Rs. In 000' Cr) 125.00 625.00 7.5 37.5 117.5 587.50 Future % Share 100% 14% 86% Present Logistic Market of India FY 2009-10 F.Y.2012-13 (US $ in Bn) (Rs. In 000' Cr) 135.00 560.00 18.90 94.50 116.10 580.50 Organised LI in India 60 54 India's Total Logistic Market 50 6% 40 34 30 Organized 20 Unorganized 10 94% 4 0 India US Europe Share of organised LI in India : 6% Need of the hour : International Quality of Logistics Parks Without this vital infrastructure, the cost of Logistics Industry will also stay higher & the efficiency will be low. Page 7 Potential Regional Hubs in India JLL Warehousing Hubs Mckinsey High Growth (ProductionConsumption) Clusters NCR NCR Mumbai Mumbai – Pune - Nashik 3 Bangalore Bangalore - Mysore 4 Kolkata Kolkata 5 Chennai Chennai 6 Hyderabad Hyderabad 7 Pune Mumbai – Pune - Nashik 8 Ahmedabad Surat - Ahemdabad 9 Surat Surat - Ahmedabad 10 Goa 11 Chandigarh 12 Kochi Kochi – Trivendrum 13 Vishakhapatanam Vizag - Kakinada 14 Nagpur 15 Coimbatore 1 Coimbatore – Salem Logistic Parks – Demand Factors • Major Demand for Logistics comes from: – Industrial Activity • • • • • • • Automobile Industry Electronics & Electrical Industry Textiles Industry Machine & Engineering Chemical & Pharmaceuticals Food Processing Industry Manufacturing SEZs – Agricultural – Retail Sector – EXIM Cargo Demand Parameters in Top 8 Locations S.N. Location Demand Factors 1. NCR Delhi Industry (Auto, Textile, Electronics, Machine &Engineering, SEZs), retail, & agriculture 2. Mumbai Industry (Electronics, pharma, textiles, auto -components), retail, agriculture, EXIM cargo 3. Chennai Industry (Auto, electronics, textiles, SEZ), retail, EXIM cargo 4. Kolkata Agriculture, EXIM, retail 5. Bangalore Industry (Electronics, textile, auto), retail, agriculture 6. Hyderabad Retail, industry (Pharma) 7. Pune Industry (electronics, auto, textile/garment), retail 8. Vishakhapatanam EXIM cargo, industry (Chemicals & pharma, SEZ), agriculture Supply Scenario of Logistics Space Total CWC Capacity in 8 Locations (MT) 1200000 S.N. 1 2 3 4 5 6 7 1015123 1000000 800000 600000 554016 400000 200000 0 94545 182098 104136 20285 29378 Place/ City NCR Delhi Mumbai Chennai Kolkata Bangalore Hyderabad Pune Number of CWC Warehouses 25 18 4 11 7 1 2 Number of ICD/ CFS 12 30 20 7 3 2 2 114730 8 Vishakhapatanam 4 Establishment of ICDs/CFSs offer advance logistic facilities and play important CWC is the biggest player in Logistics sector with role in organized logistic activity operations from Agri-warehouses to ICDs 4 Key Logistics Hubs in MMR Established /Emerging Logistic Hubs in Mumbai Bhiwandi Panvel Taloja Trans Thane Creek Rasayani Patalganga Averag e Rentals Rs/ Sq Ft/ Month 13 17 20 16 15 Land Cost Rs in Crores/ Acre 1.00 2.00 Focus: Bhiwandi City SN Current Market Trend Of Rental Rate Of Warehousing Complex In Bhiwandi Warehousing Complex ‘A’ Grade Warehouses Rent Per Sq.Ft. Rs.15 – Rs.18 ‘B’ Grade Warehouses Rs. 11 – Rs.14 ‘C’ Grade Warehouses Rs. 8 – Rs.10 Sectors % Share 1 Textile Sector 6% 2 Automobile Sector 32% 3 FMCG Sector 18% 4 Pharma Sector 14% 5 Cement Sector 4% 6 IT Sector 16% 7 Other 10% Total 100% Main Users / Sectors of the Proposed Product Focus: Bhiwandi Warehousing Hub Buyer’s Segment / Key Players In Various Industries Road Express •Gati •Safexpress •TNT •TCI Warehousing Industry •CWC •DHL logistics •AFL •Om Logistics •Safex •Delhi Assam Air Express •Bluedart •Gati Buyers’ Segments/ Players in various Industries Roadways •Patel Roadways •DHL •Schenker BAX •Semb Corp •Panalpina •Agil Freight Logistics Courier Industry •Bludart •First flight •AFL •DTDC •Overnight •Professional Courier Source : CII Report, World Bank Survey, Report by Cushman and Wakefield, REC, ASSOCHAM Survey Future Demand Future Demand for Warehouses for Year 2010-2015 13% Switchover of Corporate from illegal Warehouses in Bhiwandi 2% Agro & Industrial Need for Warehouses 50% 22% Retailing Sector Need for Warehouses Export & Import (Cargo Handling) Need for Warehouses Total Warehouses Space Demanded in Bhiwandi Sector 13% Switchover of Corporate from existing Illegal Warehouses SN Particulars Area in Mln Sq.Ft. 1 Switchover of Corporate from illegal Warehouses in Bhiwandi 2 Agro & Industrial Need for Warehouses 2.40 3 Retailing Sector Need for Warehouses 25.00 4 Export & Import (Cargo Handling) Need for Warehouses 15.08 Total Warehouses Space Demanded in Bhiwandi Sector 15.00 57.48 Future Demand Agro & Industrial need for Warehouses 2010 - 15 SN Industrial Sectors Area in Lac Sq.ft. I Agriculture 8.67 II Metal 2.40 III Chemical 1.00 IV Petrochemical 7.58 V Pharmaceutical 0.09 VI Cement 3.92 Total ( I to VI ) 24.00 Converted into Million Sq.Ft. 2.40 Future Demand Retail Sector need for Warehouses 2010 - 15 Particulars Shopping Malls Hyper Market Dept. Stores Super Market Mega Specialty Stores Exclusive Brand Outlets Total No. of Units Warehouse Space Required (Mln sq.ft.) Need in Mumbai & MMR Region (Mln Sq.Ft.) 225 280 400 3,200 Retail : WH = 1 : 0.50 45.00 14.00 10.00 40.00 20% 9.00 2.80 2.00 8.00 6.00 1.20 10.00 125.00 2.00 25.00 1,200 20,000 Allowance of FDI in Retail sector (Single brand & Multi-brand), number of Malls, Hypermarkets, Supermarkets will increase in the coming years. Leading Corporates like Pantaloons (Big Bazaar), TATA (Westside), Reliance (Hypercity), Bharti Retails, Raheja’s (Shopper’s Stop), Reliance Retails, DLF Shopping Malls, Bata, Archies, Crossword and other global players are in the foray. Retail market is growing at 20%- 25% p.a. Future Demand Export & Import (Cargo handling) need for Warehouses 2010 - 15 •India has the vast coastline of 7,517 Kms • 95% of India’s foreign trade by volume involves sea transportation •45 other non – major/ private ports are being modernized urgently to make Indian goods competitive in the international market. •Reduction in tax (Import duty, Ad-volerum Duty, Port Charges) will give a tremendous boost to cargo handling traffic •Rising Globalization and Increased International Trade between the countries, WTO, and the new SAFTA agreement signed between the SARRAC countries will boost the import and export of the country in the future years. •Along the 720 km coastal line of the Maharashtra State, two major ports, namely Mumbai Port Trust (MbPT) and Jawaharlal Nehru Port Trust (JNPT) at Nhawa-Sheva are in operation •Total Space Req. = 1 Tonne : 6 Sq.Ft. Addl. Coastal Cargo Handling Space required Addl. Air Cargo Handling Space required Total Area 150 Lac Sq. Ft. 0.76 Lac Sq. Ft. 15.08 Mln Sq. Ft. Major Issues faced by Operator in Bhiwandi Warehousing Hub S.N 1 Absences of Legal and Marketable title for warehouse Non-compliance of Development control rules & legal approvals Absence of planned complex Absence of Infra & Utilities of world class levels 2 No common facilities & amenities in warehousing complex Substandard warehouse building with broken floor. Cracked walls, heating, dusty environment etc Non-compliance Building for modern facilities like Racking system, forklifts, dock leveler etc Local issues of various monopoly of varia, local transport, labour supply, security etc 3 Non-compliance of fire & safety norms hence loss of insurance cover No human Interface in terms of toilets, restrooms, food courts hygiene Water logging flooding & termites Insects pests creating lot of goods lost No specialised facilities for temperature control , cold storage, chemical storage high cost good storage in strong room etc. Master Plan - Renaissance Project Summary Particulars Sr. No A B C D Description Project promoted by Special Purpose Vehicle Renaissance Infrastructure Type of Project 376 acres of Integrated Warehousing and Industrial Complex - Standard Warehousing complex of 120 acres - Green Industrial Complex of 80 acres - BTS Warehouse complex of 62.5 acres - BTSIndustrial Complex of 95 acres + 9 acres Commercial spare of 9 acres Green Industrial Units 138 Units - Each 6,250 sq ft Small plot with building 24 Units - Each 18,750 sq ft large plot with building 1360 Units - Each 2065 sq ft Industrial gala Warehousing Capacity 27 buildings 2 million sq. ft. area 3 lac million metric tonnes storage capacity Unique Selling Propositions What makes Renaissance Warehousing Business-class? Assurance 1 ‘First 100% Legal’ Warehousing complex in Bhiwandi 2 The project is promoted by the Special Purpose Vehicle(SPV) and is being developed under the approvals granted by Central and State Government to SPV 3 All land rights are in the name of SPV, further transferred to buyer ensuring 100% title legality 4 The complex is master planned, designed and executed by PMC approved by Government of India Contd… Business Class Facilities 1 The superior warehousing facilities speed up the throughput time and efficiency of the business operations from checking into terminals, docking unloading, loading, palletizing and checking out. 2 46 ft. exclusive road for every building with 68 ft. main road and 121 ft. (8-lane-one way) circular loop road around the entire complex 3 The complex comes with world-class exclusive common facilities: • Inbound and outbound truck terminal • HRD training centre • Food courts, commercial complex, trade centre • Warehouse support services outlets • Logistics equipment and service centres • Goods storage, trading and display support services 4 The complex will have all MIDC equivalent facilities of roads, water distribution, power supply, drainage, security system and fire fighting system 5 The fire fighting station located within the complex 6 The complex will be professionally managed by a dedicated Operations and Management team headed by the CEO Contd… Business Class Design 1 All 27 buildings of the warehousing complex are branded world-class PEB structures 2 The new warehouse structure has exclusive features of building insulation, air-conditioned, racking compliance and exclusive road for each warehouse building with controlled access 3 Screwless, standing seam roofing (SS 2000): Puncture- free roof system, roofing system is designed to handle expansion and contraction of the sheets during high temperature variations and avoiding corrosion 4 FM II (TR34) compliant flat floor for safety, precision, wide and narrow aisle racking arrangement. Strong reinforced, abrasion crack and dust resistant floor designed for racking and forklift loading 5 Poliginus reflective insulation: Heat insulated (reduction of 7°C when outside temperature is 45°C plus), fire retardant, improves work efficiency and offers safer storage of goods. 6 Pallet compliant flooring: The warehouse layout (length, breadth and height) is compliant to positioning of heavy duty racking system and designed to maximise the number of pallet positions 7 Continuous canopy of 6 m over-hung with Soffit Location Location of Future 1 Ring Road – MMR Plan 2 Location Plan Proposed Ring Road - MMR Plan Location Map Project Land & Approvals 100% Marketable Title & Freehold Property 1 Step 1 to 6 to make property 100% marketable to freehold 2 SPV transfer the title to the buyer or purchaser World Class Infra Road Section Traffic Management: Facilitating Business Facilitating a smooth flow: Our world-class traffic management systems are strategically planned to ensure that your goods move business-class. The terminals, wide central roads, directional guides, signages, inter-connected roads leading to warehouse and other units are planned for smooth flow and hassle-free movement. S.N A Truck Terminal C The truck terminal has been designed considering the length of the containers (60 ft., 40 ft. and 30 ft.), with a parking capacity of 100 trucks. B Facilities in Truck Terminal a. Canteen / Mess b. Driver Dormitory c. Shops Entrance Management For every truck which enters, the security checks for vacant space in the respective warehouse. Trucks will be permitted to enter the premises only if there is room else will be instructed to be parked in the truck terminal until availability of space in that warehouse. D Security Post Each entrance has a security cabin responsible for screening all the vehicles entering, coordinating on the availability of space with the warehouse in-charge and directing them towards the truck terminal or the respective warehouse. S.N Contd… Vehicular Movement E One-way movement of all trucks Two loop roads to facilitate movement of the vehicle internally (in case of wrong turns) F Road System • 121 ft. central complex road (8-lane, two-way) • 68 ft. main road (4-lane, one-way) • 46 ft. warehouse internal road (oneway) • Industrial tonnage cement concrete road • Road illuminated with sodium vapour lamp • Loop road for quick movement in case of a wrong turn • 41.75% of land area is road G Traffic Flow Management •Internal signage assisting smooth vehicular movement •One-way traffic for incoming vehicles •Efficient traffic management staff controlling the traffic flow Built-to-Suit: Provisions & Possibilities At the Renaissance warehouse, our structures have been designed in a manner that allows us to incorporate certain additions as per your unique business needs. For example, if your wares need temperature control, you require a ceiling higher by a couple of meters. At the Renaissance warehouse, there are various such possibilities along with the trust of getting the additions done through the same expert team that has designed this world-class structure. Below is a comprehensive list of built-to-suit provisions and possibilities over and above the standard elements. S.N Elements Customization possibilities 1 Height Standard ceiling height: 8 m Built-to-suit provision: Height can be extended up to 10 m 2 Racking Built-to-suit possibility: Racking can be created with various financial options 3 Flooring Standard Flooring: M25 grade, 150 mm thick, steel fibre reinforced concrete (SFRC), Dry Shake Hardener with Liquid Surface Hardener (LSH) Built-to-suit possibility: Depending on the business need, flooring with greater weight-bearability can be created Elements Contd… S.N Customization possibilities 4 Mezzanine Built-to-suit possibility: Mezzanine floor can be created as per the occupier’s need 5 Air Conditioning Built-to-suit possibility: In case the wares require temperature controlled environment, the same can be created on demand 6 Cold Room Built-to-suit possibility: Walk-in cold room can be created 7 Office Space In case the occupiers need to use a portion or the unit for office purpose, the same can also be designed and created in a fullyfunctional format depending upon the needs 8 Light Standard offering: The structure comes with 265 lights Built-to-suit provision: More lights can be added as per the need Our warehouse is compliant with various business types, including: • Pharmaceutical Industry • 3 PL & 4 PL Logistic • Studio • Low cost IT • Agricultural Warehouse Elements Contd… S.N Built-to-suit options Value Generation 1 Interiors - Office & Toilet Design Provision of office at entrance of the warehouse. Customization 2 Changing & Locker Room Toilets at entry side of the warehouse for executives and at exit side for labor and drivers Customization 3 Mezzanine Floors Provision of changing & locker rooms for workers Provision of mezzanine floors of required size for office purpose, as per requirement Customization 4 Heavy-duty Racking System Provision of racking system - pallet location - 11457 nos. Customization 5 Dock Levelers Provision of dock leveler for easy loading and unloading, as per requirement Customization 6 Air-conditioning Provision of air-conditioning of required tonnage Customization Locating & Land Acquisition of Logistics Park S.N Critical issues Problems Learning / Best practice 1 Fragmented ownership of land Consolidation of land Local facilitator / Aggregator having in depth understanding and relation in village 2 Defective title No marketable title Comprehensive title search since 1957 (day), court search, forest search etc 3 Title holder not having possession No possession of land Strong local team with surveyor having understanding of land possession 4 Land approvals Non transferability of land Local connect from collector office to talathi inhouse team of experienced people to follow through & get complete approval 5 Local Mafia Stopage of work Local Influential people part of land acquisition parcel to manage Approvals of Logistics Park Correct Land Use Violation of zone Development Control Rule Compliance FSI Violation (Illegal property) Environment & State Pollution Control Board Pollution & complete disregard for environment Water, Power, Boring water, load shedding & power cuts Communication - Industrial Zone - Location clearance Additional FSI/Higher FSI Environmental clearance MPCB content to establish product Water supply from irrigation Express feeder (non load shedding line) NA/ Deemed NA Local Approvals Grampanchayat NOC T.P. Plan Approval (as applicable) Design & Engineering of Logistics Park Contour, soil quality, slop of land Master planning of Logistics Park Infra & Utilities Design •Graded land must to super flat floor •High quality of sub bare must •Vastu compliant stop of land •Always master plan the logistic park on International paramenters in terms of Roads planning, utilities planning, environment plan, vastu compliance in terms of entrance, Building facing etc •Highway class road lanes, storm water drainages, transportation plan & traffic networking, WTP & Water supply network, STP & Sewages Netwok etc Build Plan & Design •Food courts Dhaka,Truck Terminals, Dormitories Common facilities & Amenities •Centrally located open space & landscaped area Open space & Landscaping •Best & experienced contractors to execute projects, flooring contractor, PEB Structures Engineering & Contracting Development of Logistics Park S.N Ideal steps to follow the development of Logistics park 1 Earth work to achieve desired level - 2 to 3 meter above high flood line (HFL) - Nothing coordinates to create a grid for Vastu Compliance - All Building at zero degree 2 Road & storm water network through the complex - Highway class lanes 3 Utilities corridors & Ducts - 3 to 4 meters utilities corridors 4 Locating WTP, STP, UG tanks, Fire station - Continuous source of water (Ideal from irrigation department) - STP to recycle water for irrigation & Flushing - Fire fighting system, fire station & CFO compliance certificate 5 - Centrally located open spaces & landscaped areas At least 10% as open space 5% common facilities & amenities Common facilities & amenities location 6 Standard building & Built to Suit plots - International standard for warehouse building - Plotting out area for building in project 7 Optimise FSI Utilisation - Specialised contractors to execute specialized job 8 - Always reside people around complex travelling is most energy draining activity - Residential Complex for work to work with all township amenities Page 45 Local Issue Management Critical issues Varai Problems Monopoly of Loading and unloading by locals Learning / Best practice 1. 2. 3. 4. Labour supply Monopoly of Labour supply 1. Create local representative bodies Laid out policies for non interface by locals Take land on joint development & made properties for letting out for villages Created fix compensation for village development 2. 3. Labour contractor with license & compliance on market driver pricing Objective to provide services to occupier No monopoly in labour supply Local transport Monopoly of local transport 1. 2. 3. Transportation in local Tempo station on market driven pricing No monopoly Security Monopoly of security 1. Creates 3 to 4 security licensed agency within village to provide services on market driven pricing & with quality of services No monopoly 2. Local employment Fixed percentage of employment compulsory 1. 2. HRD centre to train people on logistics skill Create semi skill & skill employment for use of equipments & assembling Operation & Maintenance Issues Problems Learning & Best Practices Quality of Infra Bad quality Design & Build to last for decades Create & build most reliable utilities i.e. water supply, electric system, sewage system, wages system, drainage system, fire fighting Quality of Utilities Non - reliability Common facilities & amenities Human interface ignored - Lack of Very human centric master plan & complex use Restrooms, Food areas, plan, creating sweet-spots around the complex & Dormitories, Provision stores keeping it clean & usable World class flooring complying FM standards Standing sun roof Warehouse Structure & Maintenance Broken flooring, leakages, fire, water-logging, insects heat Operation Management & Facilities Absence of professionalism Insulation Fire-fighting system Professional & skilled facilities management company Run Logistics Park as a service operation like hotel, hospital Critical issues for client S.N Critical issue for client in operation of warehouse Learning (Best practice) 1 Flooring of warehouse - FM: Compliant, International certified flooring 2 Leak proof roofing - Standing seem (Screwless roofs) 3 Docking Bays with Dock levelers - 1.2 meters Docking bay with dock levelers 4 Security gates & gated complexes - Two level gated complex with security system 5 Truck terminal - 5 to 7% of area dedicated for truck terminal 6 Fire fighting system & Insurance compliance - CFO Compliance & Certification 7 Local issue - Local committees & fixed payments 8 Availability of skill & semi-skilled labour - HRD centers local population to be trained to be employable 9 24 x 7 operation - Commutation facilities for 24 x 7 & residential facilities within complex 10 Heating & humidity in summer - Insulation, Righ vents, Turbo Ventilation 11 Flooding & Water logging - 3 to 4 meters above HFL, effective storm water drainage Page 49 Critical issues for client S.N Critical issue for client in operation of warehouse Learning (Best practice) 12 24 x 7 Power - Express fidder, back up generator 13 Solid waste & unclear - Solid waste management & regular cleaning through facilities management 14 Fast turnaround time - Excellent road, clear traffic movement, equipment loading & unloading, Highspeed connectivity 15 Human Interface in term of clean toliets etc - Public toilets, foot path, bus shelters, sitouts 16 Hygiene Food - Food courts lunch home, restaurants 17 Recreation to loose Fat - Club facilities, Recreation grounds, gardens 18 Traffic swift mobility - Signages, location standies, instruction boards 19 Area for commerce - Marketing centre, Exhibition Area, hotels Factory outlets. 20 Maintainance of warehouse building equipment - Professional team for facilities management Page 50 Business proposition & Way Forward Properties at Renaissance Logistic Park Bhiwandi Standard Building Built-to-Suit Lease Lease Ready for Possession 4.5 lac sq ft Ready to Build 15 lac sq ft Area under construction 10.00 lac sq ft BTS under Negotiation 10 lac sq ft Sale Area under construction for sale Sale 3.0 lac sq ft Ready to be sold under BTS 10 lac sq ft Demand Supply Analysis Supply Bhiwandi , MMR Demand Total Warehouses Space Demanded 57.48 Demand 53.71 48,130 6.83 Mn Sq. Ft. 11% Mn Sq. Ft. Total Industrial Park supply by RI Total Industrial Township Demanded 12% Mn Sq. Ft. Total Warehouses Supply by RI Total Industrial Space Demanded % of RI’s Supply to total Demand Supply 5.65 Mn Sq. Ft. 47% No. of Accommodation required Total Industrial Township supply by RI 22,500 No. of Accommodation available Thank You