How India’s warehouse boom is fuelling a ₹7,000 crore storage solutions industry
The whirring of towering steel coils moving through automated cutting lines greets visitors to the Godrej Enterprises Group’s Storage Solutions facility in Chennai’s Ambattur. Spread across 26 acres, it is one of Asia’s largest and densest storage solutions manufacturing plants. As the facility marks 25 years, Godrej is planning its next phase of expansion around the city.
Today, every online order, supermarket shelf and factory assembly line depends on storage systems that determine how efficiently goods move through the supply chain. As India sees a boom in e-commerce, quick commerce, and manufacturing, its warehouses are becoming smarter, taller and denser. Companies such as Godrej Enterprises Group, Nilkamal, and Spanco Storage Systems are among those benefiting from the shift.
Chennai is one of the country’s leading warehousing and industrial markets, underpinned by its strength as a manufacturing hub. Abhishek Bhutani, managing director of logistics & industrial services, Cushman & Wakefield backs this claim with numbers. “The city accounted for 15% of pan-India warehouse and industrial leasing in 2025,” he says. “Industrial leasing, in particular, was 23% of the total, highlighting the city’s attractiveness for domestic and global manufacturers.”
“With locations such as Sriperumbudur and Oragadam already established as warehouse and industrial hubs, the city is likely to benefit from the growth of emerging locations such as Redhills and Periyapalayam in the medium term,” Bhutani adds.
“With locations such as Sriperumbudur and Oragadam already established as warehouse and industrial hubs, Chennai is likely to benefit from the growth of emerging locations such as Redhills and Periyapalayam in the medium term”Abhishek BhutaniManaging director of logistics & industrial services, Cushman & Wakefield
Steel into storage
“We set up the plant in Chennai as we needed port facilities. We are currently exporting over 25% [manufactured goods],” says Vikas Choudaha, business head, Storage Solutions, Godrej Enterprises Group. The Chennai facility offers around 100,000 tonnes of storage and intralogistics solutions. Here, steel is transformed into beams. The robotic welding systems, at one section of the factory floor, are capable of producing up to 2,000 beams a day.
“We set up the plant in Chennai as we needed port facilities. We are currently exporting over 25% [manufactured goods]… PLI [production linked incentive] schemes and Make in India initiatives boost industrial storage needs. Demand is also expanding rapidly in tier-2 and tier-3 cities, thereby expanding storage solutions beyond the metros”Vikas ChoudahaBusiness head, Storage Solutions, Godrej Enterprises Group
Back at the facility, once the beams are ready, they are moved to the painting line, where they are coated based on customer specifications. While dark blue, orange and yellow are among the most commonly used colours (bright hues enhance visibility), customers can choose shades as per their branding requirements. Every product undergoes quality testing. Key checks include powder-coating tests to assess weather resistance and salt sprays to evaluate corrosion resistance. They pick up samples from each batch and test it, the plant manager explains. The finished beams are dispatched to customer sites, and assembled and installed according to the available space and the design.
Godrej’s Chennai unit manufactures a wide range of storage products, including picking solutions, shelving systems, racking solutions and palletised systems for customers across industries. Simply put, it manufactures storage infrastructure that helps warehouses organise goods safely, save space, and move products efficiently. Goods such as refrigerators and washing machines are stored on giant metal shelves.
Rising demand
In 2025, Bhutani says, “Pan-India, Grade A warehousing market stock stood at 268 million sq. ft., and warehousing and industrial leasing stood at 66 million sq. ft., with a 26% year-on-year growth, highlighting the strong demand. Chennai Grade A warehouse stock stood at 42 million sq. ft, accounting for 16% of the total pan-India stock.”
Godrej’s Chennai plant has also been supporting industries, including FMCG, retail, automotive, pharmaceuticals, etc. “PLI [production-linked incentive] schemes and Make in India initiatives boost industrial storage needs. Demand is also expanding rapidly in tier-2 and -3 cities, thus expanding storage solutions beyond the metros,” says Choudaha, adding, “Seven of 10 Coca-Cola or Pepsi bottles sold in India are from our racking systems.”
With land becoming scarce and pricey, industries are optimising available space. Choudaha says that warehouse design has evolved significantly over the past two decades. Average heights have increased from about 7m two decades ago to nearly 20m today. Godrej’s in-house engineering team designs customised storage layouts based on clients’ inventory and warehouse requirements.
A manager at an e-commerce firm, formerly with an FMCG company, says, on condition of anonymity, that the Chennai floods had offered an important lesson in warehouse planning. “We realised the importance of storing goods at higher levels to prevent damage during flooding. Since then, we have been designing our storage solutions along those lines.”
Steel rolling and cutting at Godrej’s storage solutions factory in Chennai.
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Godrej Enterprises Group’s storage solutions factory in Ambattur.
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Automation uptick
According to Godrej, as warehouses become larger and more technologically advanced, businesses are increasingly investing in automated storage solutions to improve efficiency and optimise space. Godrej Storage Solutions contributes nearly ₹1,500 crore to the overall revenue of the Godrej Enterprises Group (other categories include furniture, real estate, aerospace, advanced engineering, tooling, etc.). With demand for storage solutions increasing, the company is also scouting for land near its existing facility in Ambattur Industrial Estate to set up a new plant.
Industry sources say FMCG companies and other businesses are driving much of the growth, while individuals and families relocating abroad are also increasingly using warehousing services to store household goods for a fee. Based on industry estimates and market analysis, Choudaha says the country’s vertical storage industry, also known as rack storage solutions, could nearly double to around ₹7,000 crore by 2030.
Robotic welding and automated manufacturing have improved operational efficiency at the plant by 15%-20%, according to the company.
Robots welding on beams at Godrej’s storage solutions manufacturing facility in Ambattur.
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Smarter investments
Amit Gossain, managing director, KONE India and South Asia, which is into the business of elevators and escalators, says, “At KONE, we use a mix of pallet racking, shelving and automated storage systems to maximise space and improve retrieval efficiency.” He adds, “Investment in storage solutions is typically a part of overall infrastructure and process improvement spending, and it is driven by business growth, operational efficiency needs, and automation strategies rather than a fixed percentage.”
“At KONE, we use a mix of pallet racking, shelving and automated storage systems to maximise space and improve retrieval efficiency”Amit Gossain Managing director KONE India and South Asia
“At Prozo, bulk goods are stored using space-efficient storage solutions, while individual products to be shipped are stored in shelves for faster access”Ashvini JakharFounder & CEO, Prozo
Ashvini Jakhar, founder & CEO of supply chain company, Prozo, points out that beyond space optimisation, storage infrastructure directly impacts operational productivity, picking efficiency, inventory accuracy, and overall fulfilment speed. Prozo’s storage systems can be redeployed across facilities. “At Prozo, we use different storage systems depending on the type of inventory. Bulk goods are stored using space-efficient storage solutions, while products that are picked and shipped as individual units are stored in shelving systems for faster access,” Jakhar adds.
“We invest ₹10-₹12 crore in storage solutions and warehouse infrastructure for large warehouses, spanning approx. 80,000-1,00,000 sq. ft. of size, and ₹6-₹8 crore in smaller facilities of 50,000-60,000 sq. ft.”Ajay RaoCEO and founder, Emiza
Ajay Rao, founder and CEO at Emiza, which operates a 19,500 sq. ft. warehouse in Chennai, says the company typically invests ₹10-₹12 crore in storage solutions and warehouse infrastructure for large warehouses, spanning approx. 80,000-1,00,000 sq. ft., and ₹6-₹8 crore, in smaller facilities of 50,000-60,000 sq. ft. size. “The right storage approach helps businesses maximise space utilisation, reduce errors, minimise damage and handling costs, support growth and improve customer service,” Rao concludes.
