Overview

Hemant Kejriwal, a logistics and supply‑chain veteran with over 25 years of experience, argues that India’s warehousing sector needs a flexible, pay‑per‑use model similar to office co‑working. He describes this shift as the “sachetization” of warehousing, likening it to how sachet packaging opened FMCG to mass consumers.

Current Warehousing Landscape

According to Colliers, India’s top eight cities added 34.5 million square feet of new Grade A industrial and warehousing space between January and September 2026, while 33.3 million square feet were leased in the same period. At the mid‑year point, the overall vacancy rate stood at 17.2%. Despite the supply surge, space is still offered primarily in large blocks on multi‑year leases with lock‑in periods, forcing businesses to forecast months ahead.

Limitations of Existing Options

When a company needs extra space for a few weeks or months, Kejriwal identifies three common but sub‑optimal choices:

1. Signing a long‑term lease and paying for unused space after the peak subsides.

2. Handing the entire operation to a third‑party logistics (3PL) provider, which outsources far more than storage.

3. Renting a cheap godown, which often fails fire‑safety norms and requires additional brokerage, GST registration updates, insurance extensions, equipment moves, manager deployment, and temporary labour hiring—all for short‑term use.

He cites practical examples such as an importer needing 5,000 sq ft for six weeks, a business requiring 20,000 sq ft for four months, or an extra 8,000 sq ft before Diwali, illustrating the mismatch between demand and existing lease structures.

Proposed Flexible Warehousing Model

Kejriwal envisions a model where a business signs a single, simple contract and can access managed Grade A facilities across a network within a day. Pricing would be usage‑based—for example, paying for 300 pallet positions in October and 120 in January—with rates linked to volume and duration. Inventory, transactions, and billing would be visible on a mobile device in real time, and transport or value‑added services could be added on demand. This model combines the safety of compliant Grade A parks with the flexibility of pay‑per‑use pricing, while keeping full inventory visibility and control with the client.

Enablers for Adoption

Kejriwal points to three changes that make the model viable today:

  • Existing infrastructure: Compliant Grade A parks have been built along major corridors, creating a supply base that developers need to fill.
  • Fragmented demand: Direct‑to‑consumer brands, quick‑commerce, frequent promotions, and diversification away from China generate smaller lots and shorter commitments.
  • Technology readiness: Cloud‑based warehouse‑management systems, multi‑client inventory segregation, app‑ and API‑based visibility, and digital GST and e‑way‑bill workflows enable efficient multi‑client operations.

He stresses that developers excel at building and owning assets, while logistics operators possess the expertise to run multi‑client facilities safely and accurately. A partnership between the two would lower risk and expand the market for both parties.

Stakeholder Benefits

  • Developers would fill space faster by serving new tenant needs and attracting small businesses currently using unsafe godowns.
  • Small and startup businesses would gain access to world‑class infrastructure, technology, and processes previously out of reach.
  • Larger companies would obtain room to experiment, launch more products across territories, and respond swiftly to disruptions.

Kejriwal concludes that making warehousing as flexible as co‑working offices will unlock agility across supply chains, enabling new business models and expanding product reach to Indian consumers.