Ahmedabad is strategically located in the western part of India. It serves as a gateway to the northern and western regions of the country, including Rajasthan and Maharashtra. Its proximity to major cities and industrial hubs makes it a natural choice for warehousing and logistics operations. Hence, there is a growing demand among retailers, stakeholders, and corporate organizations for a warehouse in Ahmedabad to effectively meet their business needs.
Ahmedabad's strategic location, excellent connectivity, industrial growth, and supportive policies have contributed to its emergence as an important warehousing and logistics cluster in India.
Warehousing in Ahmedabad: Major Clusters
Warehouse in Ahmedabad are predominantly situated in the western and southern areas of the city, establishing vital links to major cities in Gujarat like Rajkot and Vadodara.
Warehousing facilities in Ahmedabad are predominantly concentrated within four primary clusters: Aslali-Kheda, Changodar-Bagodara, Sanand-Viramgam, and Chhatral-Kadi-Vithalapur-Becharaji.
Warehouse in Ahmedabad: Regional distribution
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Aslali-Kheda and Changodar-Bagodara, situated in the southern region of Ahmedabad, constitute the larger and more established warehousing clusters. These clusters are strategically positioned along the Golden Quadrilateral, providing excellent connectivity to Mumbai. In contrast, the Sanand-Viramgam and Chhatral-Kadi-Vithalapur-Becharaji clusters, located in the western part of the city, are relatively newer in terms of development.
The Aslali-Kheda cluster, located on the Mumbai-Ahmedabad Highway, stands as one of the oldest warehousing clusters in the area. It accounts for the majority of warehousing demand, approximately 43% of overall transactions in FY 2023. Throughout the year, the manufacturing sector witnessed the highest transaction activity, followed closely by the 3PL (Third-Party Logistics) industry, contributing significantly to end-user demand within the Aslali-Kheda cluster.
The Changodar-Bagodara warehouse corridor is situated along the Rajkot-Ahmedabad Highway and witnessed substantial warehousing demand during FY 2023, primarily driven by the manufacturing sector. Following closely behind were the 3PL and retail segments. This corridor benefits from robust warehouse infrastructure, including high-quality 3x3 lane roads with divider separation. It has attracted numerous industries and manufacturing companies due to its well-developed and organized warehouse ecosystem. The emergence of modern technology-equipped logistics and warehousing parks has further boosted occupier activity in this warehouse area, accounting for 31% of the total warehouse transactions in FY 2023.
On the other hand, the Sanand-Viramgam and Chhatral-Kadi-Vithalapur-Becharaji belts primarily focus on the automobile sector, housing large automobile companies and their ancillary units. During FY 2023, the Sanand-Viramgam cluster contributed to 16% of the transaction volume, while the Chhatral-Kadi-Vithalapur-Becharaji cluster accounted for 10% of the overall transaction volume.
Warehousing in Ahmedabad: Rentals
Grade A space rentals in the Aslali-Kheda belt typically fall within the range of 161-269/square meter per month (15-25/square foot per month). In the Changodar-Bagodara belt, Grade A space rentals range from 161-258/square meter per month (15-24/square foot per month). These areas represent slightly higher rental markets.
In contrast, the Sanand-Viramgam belt and the Vithalapur-Becharaji belt offer comparatively more affordable rental rates for Grade A spaces. In the Sanand-Viramgam belt, rentals range from 161-226/square meter per month (15-21/square foot per month), while in the Vithalapur-Becharaji belt, they range between 172-215/square meter per month (16-20/square foot per month).
Additionally, there was some appreciation observed in land rates in both the Aslali-Kheda cluster and the Changodar-Bagodara cluster during the year.
Warehousing in Ahmedabad: Transactions trend in 2023
In FY 2023, the Ahmedabad warehousing market experienced a decrease in leasing volumes, with 0.35 million square meters (3.8 million square feet) of warehouse space leased compared to 0.50 million square meters (5.3 million square feet) in FY 2022. This decline in overall transactions can be attributed to a decrease in warehouse spaces leased by Fast-Moving Consumer Durables (FMCD) and Fast-Moving Consumer Goods (FMCG) players. However, Ahmedabad, known for its manufacturing and industrial activities, saw the manufacturing sector leading the demand for warehouse space, accounting for 41% of the overall occupancy, followed by the 3PL (Third-Party Logistics) and retail sectors at 32% and 10%, respectively. Transactions within the manufacturing warehouse space notably increased by 17% YoY during FY 2023.
Despite its established presence, the Ahmedabad warehousing market faces various challenges, including inadequate infrastructure support, high land prices, and a lack of modern offerings, which can deter the development of new warehouses in the region. Grade A facilities were preferred, representing 43% of the transactions in FY 2023, compared to 36% in the previous year.
Interestingly, in FY 2023, the demand for warehousing space took a slightly lower share, accounting for 76% of the transactions, compared to 92% in FY 2022. The industrial segment, engaged in various light to heavy manufacturing activities within warehousing parks, saw a significant increase, contributing to 24% of the transactions, compared to just 8% recorded in the previous financial year.
Knight frank report 2023
Warehousing in Ahmedabad: Leasing data
How Godamwale can help you set up efficient warehousing and distribution in Ahmedabad
Our mission is to help businesses make the best choices when it comes to selecting warehouses in India. With our vast network, we can find the perfect match for your needs. Our warehouses are meticulously maintained and thoughtfully organized, ensuring optimum efficiency. Rest assured, they come fully equipped with all the necessary amenities to support your business operations seamlessly. Our aim is to help you minimize operational expenses and enhance precision in inventory management.
Companies turn to us for a wide range of services, including On-Demand Warehouse solutions, Warehouse Rental options, Warehouse Leasing, 3PL Warehouse services, Warehousing and Distribution Services, 3PL Warehousing, Warehouse Management, Outsourced Warehouse Operations, Order Management and Fulfillment, Transportation, Last-mile Delivery, CFA services, and more.
1. Prime Locations & Network Optimization: Our strategically located warehouses in more than 200 locations helps decentralized inventory, reduce transit times and costs while ensuring easy access to your inventory.
2. Flexible Tenancy & Scalable Space: We offer flexible tenures and adaptable storage options, allowing you to adjust your capacity as needed.
3. Transparent Pricing: Our transaction-based pricing ensures fair and transparent costs, with you only paying for the services you use.
4. Security and Safety: Your inventory is protected with advanced security measures, including surveillance and access controls in our Warehouse.
5. Expertise and Experience: With years of industry experience, Godamwale's expert team ensures the careful handling of your goods
Godamwale’s SaaS platform - Inciflo enables companies to orchestrate and optimize the supply chain across facilities, networks, systems, partners and sales channels. From a single logistics technology platform, manage orders, inventory, operations, transportation, and analytics across programmes and providers.
A control tower with unparalleled real time visibility across supply chain to minimize excess inventory and free up working capital while avoiding stock-outs and increasing revenue.
Conclusion
Looking ahead, the future of warehousing in Ahmedabad appears promising, especially in light of the Indian government's emphasis on manufacturing and favorable policies. Ahmedabad's status as an established industrial hub for sectors such as chemicals, textiles, pharmaceuticals, and food processing positions it as a bright spot for warehousing demand. Here are some factors contributing to this positive outlook.
However, it's essential to address existing challenges, such as infrastructure bottlenecks and high land prices, to fully unlock Ahmedabad's potential as a warehousing and logistics hub. Nonetheless, with its established industrial base and the government's push for manufacturing, Ahmedabad is well-positioned to be a thriving center for warehousing and logistics in the years to come.
Customer satisfaction is the key to B2C and D2C businesses. Godamwale offers fast, flexible and affordable fulfillment and shipping with a fully connected and scalable warehousing network and a software that integrates with all your sales channels. From metros to rural India and from start-ups to scaling brands we have got you covered.
Warehousing involves the storage of goods and materials. In Ahmedabad, it's essential due to its strategic location as a major industrial and commercial hub in India.
Ahmedabad warehouses cater to a wide range of products, including industrial machinery, textiles, pharmaceuticals, agri-products, and more.
Godamwale offers features which typically include 24/7 security, CCTV surveillance, fire safety measures, loading docks, and varying storage capacities to suit your needs.
Costs vary based on location, size, and services offered. On average, warehousing rates in Ahmedabad can range from INR 15 to INR 40 per square foot per month.
Godamwale provides SaaS WMS "Inciflo" which helps in inventory tracking, order fulfillment, and reporting services as part of their offerings.
You can Contact the Godamwale warehouse provider, discuss your needs, complete necessary paperwork, and sign an agreement to secure your warehouse space.
