Godrej Enterprises Group’s storage solutions business is expecting strong domestic demand led by expansion in e-commerce and manufacturing to balance out the stress in export markets.
Speaking to businessline Vikas Choudaha, Business Head, Storage Solutions, Godrej Enterprises Group, suggested that exports accounted for about 25 per cent of the storage solutions business in FY26 but given the current crisis in the Middle East, this could come down to 15-18 per cent this year. It currently exports solutions to 41 countries across the Americas, Middle East, Asean and Australia.
Despite this, Choudaha added that the business, which manufactures warehousing infrastructure and industrial storage racks, can post a growth of 13 per cent in the current financial year. It had closed FY26 with a topline of about ₹1,500 crore.
“Exports has seen some stress but I think the domestic market can make up for it. Even in exports we have already diverted focus towards Asia Pacific and other markets,” he said.
On the manufacturing side , Choudaha said the main challenge has been the increase in oil and gas prices. “Steel prices had spiked initially but the situation is a lot better now,” he said.
Dedicated facilities
The storage solutions business currently has two dedicated facilities in Chennai and Bengaluru with a capacity of over 1,00,000 tonnes and 20,000 tonnes respectively. The Bengaluru facility came as part of an acquisition allowing the business to expand capacity in the near-term.
On the wider storage market, Choudaha said that the rapid growth in e-commerce post the pandemic has been a strong tailwind for the industry with 30-35 per cent of the business now coming from the sector.“The growth of manufacturing industries, aided by PLI has also created increased demand for large scale warehouses and storage,” he said.
“We initially planned to set up another facility in Chennai with similar capacity to our current facility here. But setting up a facility of that size would have taken time and we needed the extra capacity sooner. The Bengaluru acquisition has given us a breather,” he said.
He, however, mentioned that plans for the new facility in Chennai is still on and estimates roughly ₹400 crore of investments to go into it. “We are not in a rush now. But if we continue to grow at this pace we will need to add capacity. So in three to five years we expect to build another plant,” he said.
Godrej currently holds about a one-third share of the ₹4,000 crore warehousing and industrial storage market in India, he added.