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India’s logistics companies boost storage, delivery ahead of festive demand

Warehousing companies are setting up temporary storage spaces near prominent demand hubs to keep pace with order volumes and help deliver goods quickly to consumers.

Fast-moving consumer goods (FMCG) companies as well as e-commerce and quick commerce platforms are expected to corner a bulk of the festive season demand, both in metros and beyond.

IndoSpace, the country’s largest warehousing developer, is creating short-term, flexible spaces in key hubs such as National Capital Region (NCR), Bengaluru, Chennai, Pune and Mumbai.

“This allows companies to scale their storage and distribution precisely when and where they need it, without long-term commitments. We enable both large-scale distribution and last-mile readiness, ensuring that goods are positioned directly within key consumption catchments. This strengthens supply chains at the very moment when consumer expectations are at their peak,” said Anshuman Singh, managing director and chief executive officer, IndoSpace.

The Mumbai-based company provides storage services to sectors such as e-commerce, retail, FMCG and consumer durables, helping them move inventory closer to markets and manage distribution at scale.

The annual festive season in India typically begins in September, and runs till the year-end.

Mumbai-based logistics company Allcargo Supply Chain Pvt Ltd has enhanced its service delivery capabilities and temporarily added 40,000 sq ft warehousing space in Bengaluru and 17,000 sq ft in Kolkata. It plans to add 70,000-1,00,000 sq. ft space in Chennai and 1,20,000 sq. ft in Kolkata.

“This festive season, we expect a 20-40% surge in demand across consignment transport, sorting centres and distribution and logistics parks. We have partnered with leading e-commerce and quick commerce players to serve their logistics service demand in metro cities as well as tier-2, 3 and 4 cities,” Allcargo’s managing director Ketan Kulkarni said.

Anshul Singhal, managing director, Welspun One, says the festive season in the country is always a high-stakes period for consumption, and by extension, for logistics.

“Festive demand is no longer about ad hoc expansions. This year, preparation started earlier as e-commerce and quick commerce players gear up to handle surging demand. While we are not adding temporary space, we maintain speculative warehouses across major metros and tier-1 cities, typically 1 to 2.5 lakh sq. ft, that are ready at least three months before peak demand cycles,” Singhal said.

Besides e-commerce, quick commerce and FMCG, categories such as electronics, lifestyle and consumer durables are also creating strong requirements across multiple cities, he added.

Beyond metros

E-commerce and quick commerce companies are expected to be the biggest drivers of festive season demand, given the convenience they offer and the speed at which consumers in tier-2 and 3 cities are adopting them.

As demand swells across FMCG, retail and automotive segments, logistics and warehousing firms are expanding their focus beyond metros.

This expansion is aligned with consumption hubs in Chennai and Pune, and tier-2 and 3 cities including Hosur, Cochin, Vijayawada, Vizag, Siliguri and Coimbatore, said Aditi Kumar, joint managing director, TVS Industrial & Logistics Parks (TVS ILP).

“We expect 15-25% higher throughput volumes during festive season demand compared to regular months. We also offer workforce support during festive season to our clients on their request to ensure faster turnaround time and smooth operations,” she said.

To ensure e-commerce supply chains remain scalable and responsive, Mahindra Logistics Ltd is adding around 0.8 million sq ft of temporary warehousing capacity, 50 new delivery stations, and expanding its reach to 500 additional pin codes—primarily across tier-2 and tier-3 markets such as Ludhiana, Agartala, Ranchi and Ahmedabad.

“This season, we see festive-ready supply chains will be defined by de-centralised fulfilment and data-driven responsiveness,” said Hemant Sikka, managing director and CEO, Mahindra Logistics.

It is building a digitally-intelligent logistics ecosystem—embedding artificial intelligence-led forecasting and predictive analytics into operations to improve demand visibility, minimise stockouts, and enable faster, more reliable deliveries across the country, Sikka added.

Flipkart and Amazon

As the festive season approaches, large online marketplaces such as Flipkart and Amazon India are also preparing to meet the anticipated expansion in demand.

“To support this surge, we have expanded our supply chain infrastructure by adding close to one million square feet of warehousing space across 10 key locations. We have also scaled up our workforce to ensure we are fully equipped to deliver a seamless and reliable experience to millions of customers,” said Hemant Badri, senior vice-president and head of supply chain, customer experience; ReCommerce, Flipkart Group.

Badri added that Flipkart is also extending its quick commerce service to 19 cities and over 400 Flipkart Grocery stores, offering 10-minute delivery for everyday essentials.

Amazon India on Thursday said it has expanded its operations network to boost delivery speed for customers across the country, with the launch of 12 new fulfilment centres (FCs) and expansion of six existing centres. This would bring the first Amazon FC to five cities including Hooghly, Tiruvallur, Krishnagiri, Visakhapatnam and Hubballi.

It has also launched six new sort centres in smaller cities such as Trivandrum, Rajpura, Gorakhpur, Moradabad and Prayagraj.



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