Hyderabad has turned into an attractive warehousing location due to a strong infrastructure, network of roads & emerging warehouses in Hyderabad. The city has evolved from being just a hub for IT and pharmaceutical startups to being a full-fledged warehousing ecosystem.
What are the factors that make Hyderabad a prime warehousing location?
1. Exceptional air cargo capabilities
The Rajiv Gandhi International Airport witnesses progressively increasing air cargo growth every single year. Exporters, high-value importers and time-sensitive e-commerce businesses benefit from such brilliant air cargo capabilities. Businesses selling perishables, electronics and pharmaceutical goods heavily depend on proximity to airports for shorter lead time. The pipeline of warehouses in Hyderabad has been expanding due to increased investment in cargo handling and cold chain infrastructure.
2. Strategic multi-modal and road connectivity
Hyderabad has road corridors linking directly to ports and major consumption centres in Central and South India. It has been possible due to Outer Ring Road (ORR) and national highway links (NH 44, NH 65 and feeders). It helps in lowering fuel and operation costs and enabling faster distribution with the city by reducing transit time. There are also clusters of warehouses in Hyderabad along the Medchal-Patancheru and Shamshabad corridors to enable consolidated logistic nodes.
3. Multi-Modal Logistics Park (MMLP) pipeline
The Central Government and state authorities are actively planning to create MMLPs in Hyderabad. Once it is operational, a Multi-Modal Logistics Park will integrate rail, road and customs clearance capability, which will lead to lower per-unit logistics costs. This will create long-term structural benefits for both regional and national distribution networks. Feasibility work is already occurring on sizable land parcels to build a maximum number of warehouses in Hyderabad.
4. Sectoral demand drivers
Hyderabad hosts large IT, pharmaceutical and manufacturing companies. All these sectors demand specialized cold chain warehousing, sterile storage and quick air link capabilities. Simultaneously, due to the rise of e-commerce hubs in Southern India, there has also been a steady demand for last-mile warehouses in Hyderabad and fulfillment centres. All of these have created both volume and diversity in the warehouses in Hyderabad.
5. Rapid expansion of Grade A stock and institutional investment
Both public and private logistics operators, along with institutional developers, are actively building Grade A warehouses in Hyderabad, along with logistics parks. Several industry reports have indicated that consistent additions to warehousing stock have helped maintain moderate vacancy, attract further capital and attract occupiers. There has been a pattern of rent stability along with selective growth in key submarkets, which indicates sustainable and gradual demand for warehouses in Hyderabad rather than overheated speculation.
6. Cost competitiveness
In comparison to metro cities like Mumbai and Chennai, Hyderabad offers lower operating and land costs, even after its highly connected network. The supportive state policy, cost efficiency and skilled labour pool of Hyderabad make the city an attractive location for companies that are willing to regionalize their warehousing and build national distribution centres for a better chain of warehouses in Hyderabad.
7. Government support, along with policy clarity
Be it building industrial corridors, promoting pharma cities or logistic investment, the Hyderabad government has been taking proactive steps to promote a massive pipeline of warehouses in Hyderabad. Several central programs that promote logistics modernization and MMLPs are being launched to align with state initiatives. It has given investors more confidence regarding long-term supply chain efficiency, permits and utilities. Such policies reduce risk factors in implementation for developers and occupiers who are planning a multi-year warehousing footprint.
What are the practical considerations for occupiers who are planning to build a warehouse in Hyderabad?
Ensuring rental cost within budget and proximity to the highway isn’t enough while selecting a warehouse in Hyderabad. You also need to align your business operational model with the evolving landscape of the warehouses.
Here is a practical guide you can follow:
- Before deciding on a warehouse in Hyderabad, occupiers need to consider the cost of acquiring land, distance to target customers and turnaround times.
- Compliance to Good Distribution Practices (GDP) and temperature-controlled zones is a necessity for pharmaceutical and food companies. Operators should consider this criteria before finalizing a warehouse in Hyderabad.
- Most warehouses in Hyderabad are equipped with automated technology. Features like RFID-enabled inventory tracking, IoT-based monitoring for temperature, humidity and safety, a Warehouse Management System, and Dock-level sensors help in improving the overall supply chain efficiency and accuracy.
Hyderabad is one of the few cities that has a rare combination of Multi-modal access, affordability, tech readiness and industrial ecosystem leading to a long chain of warehouses in Hyderabad. TransIndia’s efficient warehousing service in Hyderabad can help businesses elevate the profit levels of their business.