As festival season approaches, Indian warehousing and logistics companies are rapidly expanding capacity through flexible storage solutions and advanced technology to meet surging online consumer demand, especially in tier-2 and tier-3 cities.
As India’s much-anticipated festival season approaches, warehousing and logistics companies across the country are actively expanding their storage, transport, and last-mile delivery capabilities to accommodate the surge in online shopping demand. This period, spanning from September to year-end, traditionally marks a spike in consumer spending, particularly benefiting sectors like e-commerce, fast-moving consumer goods (FMCG), electronics, lifestyle, and consumer durables.
Leading the charge, providers such as IndoSpace, the nation’s largest warehousing developer, have been establishing temporary, flexible storage spaces in key demand hubs including the National Capital Region (NCR), Bengaluru, Chennai, Pune, and Mumbai. IndoSpace’s managing director and CEO, Anshuman Singh, highlighted that such agile warehousing solutions permit scaling storage and distribution precisely where and when needed, without long-term commitments. This strategic positioning of inventory closer to consumption centres aims to strengthen supply chains during a period when consumer expectations peak.
Similarly, Allcargo Supply Chain Pvt Ltd is enhancing its logistics infrastructure by adding tens of thousands of square feet of temporary warehousing space in cities like Bengaluru, Kolkata, Chennai, and planning further expansion. Their managing director, Ketan Kulkarni, expects a 20-40% surge in demand encompassing consignment transport, sorting centres, and distribution, as partnerships with major e-commerce and quick commerce players extend beyond metros into tier-2, 3, and 4 cities.
Welspun One is also preparing for the heightened seasonal demand with sizeable speculative warehouses of 100,000 to 250,000 sq ft ready months ahead of the festive season. Managing director Anshul Singhal explained that the era of ad hoc capacity expansion is ending, replaced by more planned and data-driven readiness, reflecting the increasing importance of e-commerce in consumption patterns.
This push towards decentralized fulfilment is evident in Mahindra Logistics Ltd’s strategy. The company is adding approximately 0.8 million sq ft of temporary warehousing, 50 new delivery stations, and expanding its service coverage by 500 more pin codes, especially in tier-2 and 3 markets such as Ludhiana, Agartala, Ranchi, and Ahmedabad. CEO Hemant Sikka emphasised the integration of artificial intelligence and predictive analytics into operations to enhance demand visibility, reduce stockouts, and increase delivery reliability.
Online retail giants Flipkart and Amazon India are also gearing up significantly for the festival rush. Flipkart has increased its warehousing footprint by nearly one million sq ft across 10 strategic locations and expanded its workforce to assure seamless customer experiences. Notably, it is boosting its quick commerce offerings, extending 10-minute delivery services for everyday essentials to 19 cities via over 400 Flipkart Grocery stores. Amazon India has launched 12 new fulfilment centres in cities including Hooghly, Tiruvallur, Krishnagiri, Visakhapatnam, and Hubballi, alongside six new sort centres in smaller urban hubs like Trivandrum and Prayagraj to enhance delivery speed and network reach.
Complementing these infrastructural enhancements, logistics firms are also ramping up human resources. Shadowfax plans to onboard about 200,000 new delivery partners and facility staff this season, while Xpressbees is anticipating a 20-25% workforce expansion to meet peak demand expected in mid-October. Meesho is targeting a 70% increase in seasonal hiring, aiming to add 850,000 job opportunities through its seller and logistics networks. Amazon, meanwhile, intends to hire more than 110,000 seasonal workers across major metros, positioning this as its biggest-ever shopping event in India.
This significant scaling of warehousing, logistics, and delivery capacity mirrors broader trends of growing consumer reliance on e-commerce and quick commerce platforms, particularly in tier-2 and tier-3 cities where digital adoption is accelerating rapidly. Industry executives note that festive demand now requires not only increased capacity but also tech-enabled, data-smart logistics solutions able to anticipate order volumes and optimize last-mile delivery efficiently.
Beyond India’s borders, companies like Amazon are leveraging their platforms to boost Indian exporters, particularly in small-ticket goods, aiming to facilitate approximately $5 billion in exports this year to key markets including the US and UK. This initiative reflects growing global integration of India’s e-commerce and logistics ecosystems.
Industry observers from investors such as Dutch technology firm Prosus NV express optimism about the profitability and growth potential of India’s e-commerce sector. Prosus recently reported a sharp increase in adjusted profits from its e-commerce business and predicts further market activity including multiple initial public offerings from fast-growing Indian companies in the coming years.
In summary, as India enters its festival season peak, the logistics and warehousing sectors are responding with unprecedented flexibility and scale, supported by technological advancements and expanded workforces. This comprehensive effort signifies the critical role that robust, responsive supply chains play in meeting the evolving demands of India’s diverse and rapidly growing online consumer base.
Source: Noah Wire Services
