Small-to-medium sized manufacturers, distributors, and wholesalers have to get products to customers faster. One way of doing it is by managing all warehousing needs and transportation modes. It means that companies should be able to track, monitor and confirm the where-being of their product all the time. That makes transportation and warehousing the linchpins of any company. However, many companies face a challenge of building industrial warehouse space. Here, is where Embassy Industrial Parks steps in.
The company offers seamless solution to industrials by building industrial parks. To better understand its peculiarities and methodology of working, we had a word with the COO of the company, Aditya Virwani. This interview will also give an insight into how the company eliminates the rising real-estate challenges for multinational or small manufacturers.
IS Team: Kindly brief us about your company.
Mr. Virwani: In the last few decades, warehousing witnessed a significant transformation from a frail and unorganized structure such as godown to a well-planned and well-suited infrastructure aiming to provide a solution to contemporary business needs. This industry has substantially progressed from those days, to efficaciously make a huge difference to the manufacturing and growing e-commerce industry. The sector is evolving fast, with both the nature of the business and technology advancement and therefore undergoing robust changes. Embassy Industrial Parks was formed to help companies and businesses avoid the extra sweat by building and managing quality Grade A industrial, light manufacturing and warehousing spaces all over the country. We have started by bringing industrial parks to the key cities of India – Chakan – Pune, Sriperumbudur – Chennai, Farrukhnangar and Bilaspur – Delhi NCR and Hosur and Kothur – Hyderabad, we plan to expand into other metros eventually. These modern well planned technology-enabled industrial and warehousing solutions are targeted at industry verticals like E-Commerce, 3PL, Automobile Ancillaries, FMCG and Retail. Embassy Industrial Parks are built with a commitment to offering class apart experience
IS Team: What are the different products and services provided by your company, setting you apart from your competitors?
Mr. Virwani: Embassy Industrial Parks was founded in 2015 aiming to meet the requirement of a well-planned infrastructure that can ensure the smooth functioning of businesses that comes with warehousing needs. We take into consideration factors like strategic land positioning that makes business more convenient. We keep our eye on attention to detail and provide globally approved amenities like rest areas for drivers, dormitories, round the clock canteen, first aid centers, 24/7 security coverage an excellent fire fighting system, ample parking space for trucks so the flow of the traffic remains unaffected and does not hamper workflow. We provide built-to-suit industrial and logistics parks where clients can have up to 2X expandability. Over and above this, our in-house facility management arm, Embassy services manage all our assets so that our clients have can only worry about business growth.
IS Team: What are the key attributes that helped your company overcome the challenges that it faced during its establishment?
Mr. Virwani: The constant challenge with warehousing is the need to cater to the increasing demand. To be more specific, there is an increase in e-commerce as a mode of purchase by a larger population across different product segments in India. Secondly, India is undergoing massive urbanization and demographic change creating a huge wave of consumer demand over the next decade. ‘Next Generation’ warehousing and logistics solutions are offered by players like us who stay ahead of the time. One can be in this kind of space by being a fully compliant warehouse-management system which serves their client’s purpose in achieving success. Flexibility is at the heart of a high leap. Leading organizations of all sizes trust our solution, which is designed to grow with our clients and conquer the complexities of demanding sectors’ order fulfillment. We can proudly claim to be the pioneer of the lean model of warehousing. By maintaining the global standards in the infrastructure of the industrial parks we manage to provide advance technology and best quality services and be the ideal solution to our customers.
IS Team: With the massive advancements in the Real Estate Solution Providers segment, what are the opportunities and challenges evolving with it?
Mr. Virwani: The commercial real estate sector has witnessed robust growth and created a market for global investors. Industrial and warehousing sector has witnessed consistent growth since last 2 years. There is an increased demand in industrial sector like manufacture, lift in consumer demand and a huge impact of global trade on the business. Factors like these, growth in manufacture sector, rising consumer demand, an uplift in international relations, advent of organized retail in the country, increasing private and international investments in infrastructure along with the dynamic growth in e-commerce is ought to maintain prosperity in the sector in next few years. 77% YOY growth was observed in warehouse leasing. A recently published report states that the manufacturing sector that accounts for 80% of warehousing market is estimated at 739 million sq. ft. in 2019 and is expected to grow to 922 million sq. ft. by 2024. A strategically placed and well planned warehouse not only improves the consumer services but also enables competitive advantage through efficient supply chain economics.
One of the major challenges for any real estate player is land acquisitions. When we consider buying 50 acres to 200 acres of land and develop it, we hope for some reforms that make this process for industrial and warehousing configuration easier. The second challenge is approvals. Currently, the situation has definitely improved from what it was a few years back but I think we have scope for improvement there. The policies can become more users friendly. The important thing to understand here is there is that the more time approvals take; construction would delay and we won’t be able to generate revenues from the land.
IS Team: Share with us your company’s contributions to the industry and how it is helping its clients in their business growth.
Mr. Virwani: Founded in 2015, Embassy Industrial Parks brought Grade- A Warehousing at a time when warehouses were only available in an unorganized sector and emerged in the market as the pioneers of the new lean model of warehousing. Embassy Industrial Parks have gained importance across sectors today as it serves the business purpose without the need of owning it. A good warehouse is the primary requirement for businesses today and is a first-hand enabler of the global supply chain.
IS Team: How do you motivate creativity and innovation in the workspace while maintaining a healthy work environment?
Mr. Virwani: Embassy Group believes strongly in empowering people. The relationship of the company with their employees has always been trust driven and people are the asset for the company. We have programs and opportunities which encourage team members to come up with new ideas, suggestions that help at the business level. They are free to innovate the way things are done. The management believes in an open-door policy where any team member has access to reach out to senior management and can discuss any issue which ensures a healthy and transparent environment.
IS Team: Brief us about the current scenario of Real Estate companies and your company’s future plans.
Mr. Virwani: Real Estate companies in the current market scenario have experienced a mix of responses in terms of their projects for example a residential market has been undergoing a lot of stress especially for ticket sizes over 3 crs. and in general, the affordable segment has seen robust response to its offerings. Talking about commercial and industrial warehouse assets, the growth has been as robust as it has been in the couple of years in addition the vacancy rates are at its lowest levels since the financial crisis of 2008-09.
With respect to our existing portfolio Embassy Industrial Parks currently is at 4 million sq. ft. with 3mn that will be operational in another 12 – 18 months. Additionally, there is a pipeline of 6 million sq. ft.additional space which will total the space to 12-13 million sq. ft. Our plan is to strengthen our existing tenant base and work on repeat business deals across locations which we have been successful in doing with tenants like Stellar, Amazon and Myntra to name a few. We would like to work on these relationships to incur repeat business. Supporting our clients with expansion plans, we wish to focus on 5-6 micro markets within the country which are the demand drivers of the market currently.
The Frontrunner of the Company
Aditya Virwani is a dynamic young professional and is the COO of Embassy Group, one of India’s largest and among the finest property developers and also the spokesperson of Embassy Industrial Parks, the business that pioneered the lean model of warehousing in India. Over the last three decades, Embassy, together with its promoters, has developed over 53 million sq. ft. of prime commercial, residential and retail space in India as well as Malaysia and Serbia. Aditya has been exposed to the world of Real estate and Property development from a very early age of 15 years. He is keenly involved with the strategy and operations of the Embassy Group and its diversified businesses, along with his father Mr. Jitu Virwani, Chairman and Managing Director of Embassy Property Developments Limited.
