In addition to ambient warehousing industry, the growth in storage solutions is defined by end-user industries
such as e-commerce, organised retailing, consumer durables, auto components and pharmaceuticals as well as
cold storage industries.

Increasing formalisation in warehousing to be a boon for Indian storage solution players

Use of pallet racks, coupled with mechanised retrieval equipment or systems, also allows in optimising space in
warehouses. For instance, standard forklifts can lift up to 10-15 ft, while turret trucks can lift more than 30-40 ft.
High pallet racks can be installed at warehouses along with these equipment, which can improve the space
utilisation in warehouses.

The pallet racking and shelving market is highly correlated with the level of organisation in the warehousing and
manufacturing industry. With increased formalisation, advent of third-party logistics (3PL) and entry of global
players in warehousing space, the pallet racking and shelving market will accordingly increase. Other enablers for
modern storage solutions such as mezzanine, compactors and goods lift, will also get a boost through the same.

Market characteristics
Provided below is the market breakup for the storage solutions industry across different parameters.
Organised vs unorganised

Share of organised players is expected to increase over the next three years on account of requirement of
customised products. However, the slotted angle racking and multi-tier racking systems witness intense
competition due to the large presence of unorganised players.

Different types of storage solutions are used across factories, warehouses, offices, hospitals, libraries, research
and development centres, banks, defence establishments and retail centres. Depending on the segment’s
requirement, various types of storage solutions such as automated storage and retrieval system (AS/RS) racking,
very narrow aisle racking, multi-deep radio shuttle racking, motorised mobile racking, gravity flow racking, drive
in racking, heavy duty pallet racking, mezzanine floor, long span shelving systems, slotted angle racking, mobile
compactors, cable drum racking and steel pallets are used.

Organised players’ share under storage solutions (FY20E)

   

% terms

Unorganised mix

beh ols (i)
Organised mix

Source: Industry, CRISIL Research
Usage: End users

Among the users of storage solutions, warehousing and 3PL players occupy the majority share. 3PL applications
typically comprise of ambient industrial warehouses, which exclude captive warehouses.

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