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Agri-logistics firm Shree Shubham Logistics is expanding its warehousing footprint by adding about 3.5 lakh tonnes in capacity across six States, including Uttar Pradesh, Delhi, Kerala and Andhra Pradesh, by next year.
The company, which currently owns six lakh tonnes of capacity in Rajasthan, Gujarat, Maharashtra and Madhya Pradesh, will be spending about ₹200 crore for the additional capacity. “We will be entering the southern States for the first time,” Aditya Bafna, Promoter and Executive Director, said.
Lack of adequate storage facilities and related supply chain infrastructure is estimated to stand at a loss of ₹50,000 annually.
Nabard estimates that the demand-supply gap in warehousing is likely to increase from 12.04 million tonnes last fiscal to 12.30 million tonnes, including chemical fertilisers, this year. As against a demand of 21.31 million tonnes, the supply is about nine million tonnes.
Out of this gap, a major portion of almost sixty lakh tonnes would be in eight States, led by Uttar Pradesh with a shortfall of 17.8 lakh tonnesCreation of storage infrastructure is capital intensive with a relatively long pay back time. “At least ₹12 crore investment is needed to set up a five-acre warehousing facility that can store about 20,000 tonnes. But the payback time could stretch beyond 12 to 14 years,” Bafna told BusinessLine . The recent Union Budget has proposed an allocation of ₹5,000 crore for warehousing infrastructure.
Shubham Logistics, which provides the entire range of warehousing services, including transportation, grading, sorting, testing, storage and financing, will be sharpening focus on PPP projects, after its first venture with Rajasthan State Warehousing Corporation. Under the joint venture, the company is managing 38 of the total 90 warehouses.
“The income from the warehouses increased from ₹20 crore in 2008-09 to ₹62.95 crore in 2012-13 and ₹81.94 crore last year. We are currently in talks with Maharashtra for a similar project and we will be initiating talks with Andhra Pradesh and Telangana Governments,” he said.
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