Presently, there are no standards set regarding how warehouses should be built or constructed, or promising fire safety norms. Therefore, we see vast number of warehouses with very differing infrastructure in terms of safety standards but at similar prices.
Secondly, from international point of view, most of the warehousing is far away from the city and they are able to do that successfully because the connectivity and distribution within the city is well mapped out. In India, today the challenges are many like ‘no entries’, bunch of restrictions, etc. It doesn’t become cost-effective to be very far away from the city. Cost of distribution within the city goes up significantly along with TATs to deliver within the city.
The bigger issue right now is transportation. For any company, the ratio of warehousing cost to transportation cost is almost 1:3 or 1:4.