Shelving solutions are ideal for storage of assorted materials that are handpicked. Palletised racking solutions are
ideal wherein huge volumes of standard-type products are produced, stored, retrieved and distributed in and out
of manufacturing units or warehouses. Pallet Racks provide for manual as well as automated Storage & Retrieval

On the other hand, slotted angle racking, multi-tier racking systems, etc, are suitable for manual retrieval of
assorted materials.

Storage solutions industry

Slee eres ees

Shelves

 

Source: Industry, CRISIL Research
Market size
Goods and Services Tax (GST) implementation and growth across end-user industries to provide a boost
to storage solutions market

Pallet racking is an essential component of modern warehousing, manufacturing, retailing and other storage
systems. Pallet racks enable storage of materials on pallets, which are easier to use vis-a-vis manual operations.
Usage of pallets also makes loading and unloading convenient through the use of forklifts, and other material
handling equipment, which reduces time and improves efficiency.

The market sizing of the organized storage solutions industry, comprising pallets, racking and shelving, is
estimated at = 22 billion as of fiscal 2020. The industry grew at a compound annual growth rate (CAGR) of 14-
16% over fiscals 2016 to 2020. CRISIL Research forecasts the industry to marginally decline in fiscal 2021 on
account of disruptions due to the Covid-19 pandemic and the resulting impact on the supply chains of Indian
industries. Although going ahead CRISIL Research expects the industry to log 19-21% CAGR over the next three
years to reach 2 38 billion in fiscal 2024 from 2 21 billion in fiscal 2021, on account of incremental ambient
warehouse addition and rise in the share of organised warehousing players due to GST implementation.

Market size and outlook of the organized storage solutions industry in India
billion:
a piven)
35 &

30 - BS
25

20 R a
GI
62% CA
15 tenes ——©
Pz)

10 5

FY16E FY20E FY21P. FY24P.

Source: Industry, CRISIL Research

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