It is preferable to set up a warehouse in Chennai due to rising ports, highly connected highways, and growing e-commerce setups. Companies need to consider the factors of climate, cost, and connectivity needs to plan a warehouse setup in Chennai.
Chennai is the perfect fit for being a warehousing hub due to the following reasons:
- Global trade connectivity
Chennai has turned into a prime hub for import and export logistics due to the presence of Chennai Port, Kattupalli Ports and Ennore. Businesses building or renting warehouses in Chennai in these areas reduce their delivery time and transport costs by a significant margin.
- Huge industrial cluster
Chennai hosts huge industrial clusters of automobile and manufacturing companies in areas of Sriperumbudur, Oragadam and Ambattur. There is a huge demand for warehouses in Chennai by both e-commerce and third-party logistics companies.
- Skilled local PEB knowledge
Chennai has several manufacturers of PEB structures who know local building codes, size scalability and coastal climate conditions.
How to create the foundation for a future-ready warehouse in Chennai?
1- Plan the location
Pick a location for your warehouse in Chennai so that it is nearby to your customers. It will reduce the delivery time and cost. Some of the best warehousing locations are Outer Ring Road, GST Road and Ennore Highway.
2- Land use and zoning
The Tamil Nadu Industrial Guidance and Export Promotion Bureau have laid out several industrial land zoning regulations that must be complied with for industrial spaces. Every business planning to rent or build a warehouse in Chennai needs to follow these rules to avoid costly compliance violation costs and enforcement action.
3- Take climate into consideration
It is a non-negotiable to include design features like the use of galvanized or coated steel, waterproofing and flood resilience, along with humidity control in the warehouses in Chennai due to extreme temperature, high humidity, constant rainfall, etc. For perishables and pharmaceutical goods, insulated roofing, effective drainage, raised dock level and moisture barriers in racking and packaging areas are a necessity.
4- Evaluate the cost factor
From 2023 to 2024, there has been a steep hike in demand for premium quality warehouses in India. Chennai has successfully met a large share of that demand. Recent market reports indicate that rents for Grade A warehouses in Chennai are steeping rapidly. Hence, built-to-suit warehouses in Chennai will be more cost-effective for large occupiers. While comparing different warehousing sites, occupiers need to evaluate the total cost of ownership of the warehouse, including land price or rent cost, capex cost for climate control features, along with fuel and downtime risk
5- Consider the connectivity factor
The Chennai Port and Kamarajar Port of Chennai are in proximity to the upcoming Parandur Greenfield Airport Corridor Position. This has made Chennai a trade gateway for South India and Sri Lanka. There is massive road connectivity along the GST Road (NH-45), Outer Ring Road, and other elevated expressways, combined with increasing investment in Multi-Modal Logistic Parks (MMLPs) and container freight stations. This has turned into a huge operational advantage for export and import-oriented warehouses in Chennai and 3rd party logistics companies. Check the distance of your warehouse to port terminals and probable traffic points before you set up your warehouse in Chennai.
Practical Steps to Take for Setting up or renting a warehouse in Chennai
- Do a climate analysis of the area where you are planning to rent or build your warehouse in Chennai. Analyze flood spots, prediction of heat, humidity exposure, etc and include the cost of mitigating these risks in your project budget.
- Align your product flow (export-focused or domestic last mile) to the connectivity network that can facilitate it the best. Prioritize reducing lead time and transit cost by ensuring your warehouse in Chennai is in proximity to ports and MMLPs.
- Don’t just consider the rent per square foot to calculate your budget for obtaining a warehouse in Chennai. Include additional costs like climate control, insurance costs, backup power costs and other miscellaneous costs.
- For better efficiency, fewer bottlenecks, and potential automation, go for warehouses in Chennai with a well-designed layout. Go for warehouses that enable dock-to-stock flow, separate areas for receiving and dispatching goods and truck circulation hot spots.
- Adding sustainable features like solar panels, mezzanine floors, robotic racking, etc, to your warehouse in Chennai can save you a lot of money. Hence, go for warehouses with floors and roofs designed for a denser load.
- While building or renting a warehouse in Chennai, plan for different zones for different functions like temperature-controlled zones for perishables, stacking bay areas, traditional admin and office sections within the warehouse, etc.
Chennai is a hub for both domestic and international supply chains due to premium ports, well-connected highways, and a network of logistic parks. TransIndia can offer companies premium warehousing services in Chennai for their businesses.
