India's vertical storage industry, also known as rack storage solutions, is expected to nearly double in size to around Rs 7,000 crore by 2030, driven by rising demand from manufacturers for storage facilities located close to production units and supported by government initiatives such as PM Gati Shakti and the development of multimodal logistics parks.
Vikas Choudaha, Business Head, Godrej Storage Solutions Business, part of the Godrej Enterprises Group, said companies are increasingly looking to optimise land use through vertical storage infrastructure.
"We are seeing a growing number of industries wanting to make more efficient use of available land. Many are also considering two- or three-storey facilities. When we started our Chennai facility in 2001, warehouse heights were typically around 7 metres. Today, they have gone up to nearly 20 metres," Choudaha told TNIE.
He said the push for efficient land utilisation, coupled with economic growth and supportive government policies, would continue to drive demand for vertical storage solutions.
Recently, the company set up a 120-foot automated rack-clad warehouse for a pharmaceutical major in Gujarat. "It is not feasible for pharma companies to maintain storage facilities outside their premises. Through efficient land utilisation, we installed a 120-foot rack-clad warehouse for a pharma firm in Gujarat," he said.
Choudaha added that shrinking space availability in key urban locations is also encouraging the adoption of vertical parking facilities by malls and commercial establishments.
The company is witnessing strong growth opportunities in the third-party logistics (3PL) segment, which currently contributes around 7-8% of its revenue.
"We engage with 3PL customers at an early stage and provide customised storage solutions based on their requirements," he said.
Godrej Storage Solutions contributes nearly Rs 1,500 crore to the overall revenue of the Godrej Enterprises Group.
According to Choudaha, the 3PL sector is expected to grow rapidly as more industries focus on manufacturing and outsource logistics operations.
The company had earlier planned to establish a second manufacturing facility in Chennai. However, those plans were shelved after the acquisition of Armes Maini in Bengaluru in 2024. It is now scouting for land near its Ambattur Industrial Estate facility for a new plant. In 2024, the company had proposed an investment of Rs 350-400 crore for a second Chennai facility. The Ambattur plant was commissioned in 2001.
Commenting on the West Asia crisis, Choudaha said exports to the region have been affected, resulting in a 30-35% decline in order inflows during April and May.
"The decline in orders from West Asia is a concern from a revenue perspective. To offset the impact, we have diversified into Southeast Asia and the Asia-Pacific region," he said, adding that robust domestic demand and growing business from Asia-Pacific markets are expected to help compensate for the shortfall.
He also noted that steel, the company's primary raw material, witnessed a 20-22% price increase during March and April before stabilising in recent weeks.