LP Logiscience, the warehousing and contract logistics division of the renowned Liladhar Pasoo legacy brand, is embarking on a significant expansion in the Delhi NCR region. The move comes amidst a booming Indian warehousing sector, with LP Logiscience already operating a Grade A compliant, multi-user warehouse in Noida-Ghaziabad. They currently serve top clients in the specialty chemicals sector, leveraging specialized licenses like CTE and Fire NOC. LP Logiscience aims to double its growth in the next two years, capitalizing on a surge in warehousing transactions, reduced vacancy rates, and a shift towards third-party logistics providers in FY 2023.
LP Logiscience, the warehousing and contract logistics division of the renowned Liladhar Pasoo legacy brand, is excited to reveal its ambitious expansion plans in the Delhi NCR region. This move comes as the Indian warehousing sector experiences an unprecedented surge in growth, driven by increasing transaction volumes, reduced vacancy rates, and a shift towards third-party logistics providers (3PL).
Currently, LP Logiscience operates a Grade A compliant, multi-user warehouse situated between Noida and Ghaziabad in the Delhi NCR region, boasting over 5,000 pallet positions. Their specialization in licenses like CTE, CTE, and Fire NOC has attracted top clients from the specialty chemicals sector, aligning with their goal of doubling growth over the next two years.
The Indian warehousing sector has witnessed a remarkable transformation in FY 2023, with a total of 51.3 million square feet of warehouse space transactions recorded, and Delhi NCR emerging as a significant player, accounting for 8.6 million square feet. Vacancy rates have dropped from 13.8% in FY 22 to 9.7% in FY 23, showcasing the sector's robust expansion. Furthermore, 3PL logistics players claimed 54% of warehousing volumes in FY 2023, a departure from pandemic-year trends.
LP Logiscience's growth aligns with this dynamic environment, having evolved significantly over the past decade to handle over 3 million sq. ft of storage space and reach 7,000+ distribution pin codes across India, growing at a rate of 20%-25% YoY. Their next phase includes setting up state-of-the-art warehouses with advanced technology adoption and eco-friendly operations, aiming to qualify for environmental certifications that expand their global reach.
Infrastructure projects like the Delhi-Mumbai Industrial Corridor (DMIC), dedicated freight corridor railway (DFC), and expressways have increased land demand, raising rental rates by 7% in FY 23. LP Logiscience plans to leverage these developments in line with their goal to double operations in the Delhi NCR region over the next two years.
Their business model, supported by robust IT infrastructure, offers customizability and flexibility, allowing clients to pay only for the storage volume and throughput they require. LP Logiscience also aims to introduce sustainable practices for energy and resource optimization and develop an EV fleet for distribution.
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