The warehousing sector has consistently seen good demand & rentals too have been holding well even in the difficult market conditions, indicating the robustness in this sector. Milestone warehousing funds have already invested in three cities and are planning to expand warehouses to eight more cities or logistics hubs like Hyderabad, Bengaluru, Chennai and Kolkata. Over the next five years, there is likely a demand for around 300 million sqft. for warehouses that would require a capital expenditure of over Rs. 40,000 crores. Currently, this segment has been growing at 10%-12% but over the next ten years, it is expected to grow at a rate of 30%-35% per annum and would be worth $25 billion.

The reason for Milestone's bullishness in this sector is that the warehousing sector is presently dominated by unorganized players who do not have a pan-India presence or network. The investment philosophy is that one who can set up modern & functional warehouses across the country will certainly be rewarded with more benefits.