#12: Warehousing, Interiors & UDAN
Rather than bits, let's understand what's happening in the world of atoms
This past Sunday, 1949 held Lunch with Founders in Mumbai. We invited CAs working as investors, bankers, entrepreneurs, and consultants to attend the event.
Mr. Jay Prakash Gupta ( Founder - Dhan, Co-Founder - Raise Financial Services) and Mr. Deepak Kothari (Co-Founder - Ftcash) were the main speakers of the event.
Back to our weekly updates below:
Warehousing - Everyone wants (personal)space
1. Warehousing space requirement picks up space due to growth in industrial output.
2. in H1 of 2023 there was demand for 22Mn Sq ft; up 7% from same period last year.
3. Tier 1 cities accounted for 75% of the space absorption.
4.New supply of warehousing space amounted to 27M sq ft; 36% growth from last year.
5.Grade A warehousing amounting to 53% of the requirement and absorption.
6.Mumbai and Delhi being the top consumers of space.
7.3PL players and Manufacturing sectors being top absorbers of space at 44% and 22% in H1 of 2023.
8.Govt has identified 4.5lac hectares of land to be offered for development of Industrial + Logistics parks.
Ye dewaaren kya bolti hain - Interior Design *(How it’s changing)
- Still largely is the bastion of independent architects and interior designers operating locally/ regionally. Tech is slowly, but surely changing this segment
- Evolution: 2D/ 3D modelling tools > Livspace (Interior design as a service) > emerging use of AR/ VR/ virtual design tools > D2C furniture brands > tech first design houses > tech led sourcing
- Drivers for tech adoption:
- Obvious: Efficiency, Business Development, Co-ordination, Communication (Largely whatsapp)
- Not so obvious: More demanding customers (inspired by Instagram, Pinterest), project management (Social media drives lead gen - projects might come from anywhere), inspiration, sourcing
- Key companies/ updates: Livspace rumoured to buy #2 Homelane, design companies now sourcing their own whitelabelled furniture, one stop tech led sourcing for interior designers (Eg. Mistry Store), HomeDepot like store chains popping up (Eg. IBO)
UDAN-Emphasizing Air Connectivity
-India is the 9th largest civil aviation market in the world with strong levers for future growth. Passenger CAGR is expected to be c. 6.1% for India from 2018 to 2040. Greenfield and brownfield opportunities of c. USD 18.5 bn are currently available in the market.
-Privatization: 25 AAI airports to be privatized in next 3 years, 13 airports by 2023. Expected proceeds from privatization: c. USD 2.6 bn. Divestment of AAI residual stake in airports on the cards. UDAN scheme is driving traffic in underserved locations. Since independence, there were only 76 airports in India. Within a span of about 4.5 years (till 31st October, 2021), work has been initiated to provide scheduled connectivity to 104 unserved / underserved airports, 36 helipads and 14 water aerodromes. Traffic growth at non-metro locations is surprisingly outpacing national average.
-Key Players: GMR-owns 6 airports in India with 51.7 mn PAX handled in FY22
-Fairfax-owns the Bengaluru airport with 2 terminals, handled 16.3 mn PAX in FY22
-Adani - owns 8 airports in India handling 36.9 mn PAX in FY22
-Non Aero revenues has seen an increasing trend post Covid, forming over 50% of total revenues at major airports. The Govt. ultimately aims at democratising the civil aviation sector through this scheme.
Compiled by Kush Khandelwal & Tushar Khandelwal
Contributions by Arnim Dhakad, Amay Solanki, Ashish Purohit, Anand Vadia, Mukund Maheshwari, Parin Detroja, Prachi Malpani, Tanay Lohia, Shlok Sanghi, Harshil Shah.
Member of the week: Ujval Shah (#most helpful)
Join our community waitlist here.