<p>Buoyed by the growing popularity of online shopping in India, the e-commerce market, which is expected to reach USD 20 billion by 2020, will see companies investing close to USD 2 billion in logistics, infrastructure and warehousing in the next six years, a study said today.<br /><br />According to a joint study by consultancy firm PwC and industry body ASSOCHAM, Indian e-commerce industry will spend USD 950-1,900 million by 2017-2020 on infrastructure, logistics and warehousing.<br /><br />"The total spend on warehousing and sortation centres could be as high as 3-6 per cent of top-line revenues, which represents an cumulative spend of over USD 450-900 million of spend in warehousing till 2017-2020," ASSOCHAM-PwC study said.<br /><br />The industry is expected to spend an additional USD 500- 1,000 million during the same period on logistics functions, leading to a cumulative spend of USD 950-1,900 million till 2017-2020, it added.<br /><br />The study, Evolution of e-Commerce in India, estimates that over the next three to four years, there will be an addition of 7.5-15 million square feet of space in the form of fulfilment centres.</p>.<p><br />This indicates an addition of 6-12 per cent to the space available in form of organised warehousing in India and almost 25-50 per cent of all the incremental addition of consumption driven warehousing space in the same period, it added.<br /><br />"The potential of sector and the likely liberalisation in form of FDI could be a vital factor in attracting significant investments resulting in better infrastructure and robust supply chains," PwC Director (Operations) Saurabh Srivastava said.<br /><br />The growth of e-commerce industry has a huge potential in the country translating into huge gains for the manufacturing industry, infrastructure and jobs, he added.<br />"Size of the e-retail industry is poised to be USD 10-20 billion by 2017-2020," the study said.</p>
<p>Buoyed by the growing popularity of online shopping in India, the e-commerce market, which is expected to reach USD 20 billion by 2020, will see companies investing close to USD 2 billion in logistics, infrastructure and warehousing in the next six years, a study said today.<br /><br />According to a joint study by consultancy firm PwC and industry body ASSOCHAM, Indian e-commerce industry will spend USD 950-1,900 million by 2017-2020 on infrastructure, logistics and warehousing.<br /><br />"The total spend on warehousing and sortation centres could be as high as 3-6 per cent of top-line revenues, which represents an cumulative spend of over USD 450-900 million of spend in warehousing till 2017-2020," ASSOCHAM-PwC study said.<br /><br />The industry is expected to spend an additional USD 500- 1,000 million during the same period on logistics functions, leading to a cumulative spend of USD 950-1,900 million till 2017-2020, it added.<br /><br />The study, Evolution of e-Commerce in India, estimates that over the next three to four years, there will be an addition of 7.5-15 million square feet of space in the form of fulfilment centres.</p>.<p><br />This indicates an addition of 6-12 per cent to the space available in form of organised warehousing in India and almost 25-50 per cent of all the incremental addition of consumption driven warehousing space in the same period, it added.<br /><br />"The potential of sector and the likely liberalisation in form of FDI could be a vital factor in attracting significant investments resulting in better infrastructure and robust supply chains," PwC Director (Operations) Saurabh Srivastava said.<br /><br />The growth of e-commerce industry has a huge potential in the country translating into huge gains for the manufacturing industry, infrastructure and jobs, he added.<br />"Size of the e-retail industry is poised to be USD 10-20 billion by 2017-2020," the study said.</p>