Taking The Indian Warehousing Industry to New Heights

Innovative Zone

As COVID-19 continues to drive the Indian economy off its growth path, the real estate sector’s flexibility is put to the test. The warehousing market, out of all, saw a significant drop. Warehousing deals in the top eight Indian cities fell by 23% in 2020-21, totalling 31.7 Mn sq. ft. Not to mention, the related lockdowns, which brought economic growth to a standstill and had a deteriorating impact on occupier decisions, influenced the disruption. However, the warehousing market still has a huge potential to grow.

Despite the downturn, the sector is predicted to expand at a 19% compound annual growth rate to 76.2 Mn sq. ft. in the next five years. India has many property developers working in various industries who will play a crucial role in this development. Pragati Group is one such revered name in the property development sector. The enterprise is a composition of two companies – Pragati Warehousing (PW) & Pragati Infra (PISL).

The energetic professionals working with Pragati have stood by the worst and kept the flag flying high as they have seen immense professional growth,”

Recently, two of its core leaders: Lt. Col. Jitender Yadav (MD) Pragati Warehousing and Mr. Shubhendra Mittal (MD) Pragati Infra, agreed to an interview with our publication. The leaders discussed the origins of Pragati Group and how it rose from humble beginnings to become a force to be reckoned with. The exquisite read is a  condensed version of the flowing conversation.

THE IDEA AND ITS FRUITION

Lt. Col. Yadav initially brought forth the idea of the Pragati Group. However, it was not out of a passion for property development rather opportunities that motivated him to enter the realm. Since his days in college, he has had a keen interest in real estate. After joining the army, he bought and sold several land plots in a small way to add to his income. His continued investment and attention on land acquisition fuelled his natural interest in the realm. Not to mention, the investment decisions yielded positive results, prompting him to pursue real estate after voluntarily retiring in 2010 and launching his own business.

On the road, Lt. Col. Yadav met Mr. Shubhendra Mittal, a graduate from IIT Kharagpur with expertise in Infrastructure development and Business Development.

Under their leadership, Pragati Group has significantly aided the growth of the warehousing industry, propelling the Indian supply & logistics domain to unimaginable heights. Lt. Col. Yadav’s expertise in Business Development, Investor Relation Management, Land Evaluation, Consolidation, and Compliance & Leasing has made PW a one stop-shop for Land Acquisition, Compliance, Leasing, and Asset & Facility Management.

Mr Mittal has propelled PISL to prominence in the fields of EPC, Construction, Design, Procurement, and PMC. Their combined experience and excellence in delivery deadlines speak for themselves. The company has delivered over 8 Mn sq. ft. of logistics space to companies like Walmart-Flipkart, Morgan Stanley, Ecom Express, Amazon, Bosch, Allcargo, Myntra, Cadbury, Logos, and other MNCs. Its excellence and dominance account for its diversified portfolio, accomplished leaders, and a team of dynamic and experienced professionals.

MALLEABLE TO CHALLENGES

PISL & PW together makes Pragati Group competent and agile to the real estate’s fundamental challenges and complexities. Although both infrastructure and warehousing have developed over time, they still have specific intricacies. Identification of land and compliance for executing appropriate processes for condensing large swaths of data into small, efficient land parcels for clients and establishing effective communication with the local government authorities for efficient compliance completion are critical challenges, according to Col. Yadav. Also, a lack of proper identification of land and compliance affects the project’s key logistics attributes.

PISL and PW both have grown with the changing tides and are well-informed of their respective segments. The team at PW is qualified and committed to providing a personalised approach in identifying land for Industrial and Institutional Warehousing Projects to both multinational investors & Domestic clients. The prompt and professional approach has achieved a long list of satisfied clients with the best rates in returns. Lt. Col. Yadav’s industrial acumen and consistent ability to use creative approaches encourage strategic thinking among clients and investors, which also aids in resolving these difficulties.

Parallelly, PISL constantly strives to deliver excellence through tailored offerings in the construction space. Mr Mittal also adds that his stretched experience in setting up and managing multiple factories and industrial projects has enabled him to induce strategic thinking within Pragati. This aids in enhancing flexibility in response to clients’ ever-changing demographics, as well as assuring ethical and civic-minded construction processes by all staff involved on-site. Sustaining a benchmarked quality and standard for over 10 years, the leaders have created a niche for Pragati.

The journey has been exciting, and overcoming challenges has strengthened their mindset and taught them innovative ways to manage situations. There are still challenges with land aggregation and intervention, but Pragati is implementing swift methods to overcome them, especially offering solutions by establishing communication with the local farmers.

WHAT MAKES IT UNIQUELY COMPETITIVE?

Technology is a key ingredient for success in today’s futuristic society, and having said that, Pragati doesn’t leave any stones unturned. Leveraging its flexible business model, it adopts new and innovative methods to improve efficiency. Mr Mittal highlights a recent flagship that gives a better insight into its innovation drive. Their procurement division has introduced innovative processes through an application-driven process.

In his words, “The procurement application is a web-based app which is accessible to all our construction sites in order to decrease lead times for procuring essential materials for construction at the optimal price. Accuracy is attributed by the fact that technology is driven and appended to a company-wide cloud database which prevents any information mismatch.”

Pragati also invests heavily in R&D to stay competitive, acquire new technology, and create the groundwork for future growth. It helps in land consolidation, financial planning and ensuring timely delivery. The in-house analysis also gives an upper hand for large fund backed developers. Its USP is completing BTS projects at record speed; thus, it views competitors as business opportunities.

STANDING FIRM TO COVID-19

The COVID-19 wreaked havoc on the economic world, and Pragati was no exception. It had to sustain a considerable financial burden throughout the period in order to stand against this behemoth. But, it didn’t give up; it came out stronger and more capable. With its flexible business model, technological strength and resources, Pragati rose above the chaos. It implemented effective health and safety strategies and tackled this novel adversity in a planned manner.

The Company even accomplished 3 Mn sq. ft. of land development despite the COVID-19, which is a considerable achievement compared to its competitors, who are more established. The leaders of Pragati also share that 2020 was quite a learning opportunity. As per Lt. Col. Yadav, COVID-19 taught the importance of effective lean strategies to be employed for the efficient provision of services at every site. Now, after a year of constant challenges, Pragati stands as more effective and capable of facing new challenges and uncertainties.

“In times of great stress or adversity, it’s always best to keep busy, to plow your anger and energy into something positive.” – Lee Iacocca

AN UPRISING TRAJECTORY

Pragati Group came into existence to deliver personalized property development solutions for a variety of purposes other than industrial property development. Over the last five years, customer behaviours have dramatically influenced real estate, along with Govt. Policies and e-Commerce expansion. Technology also espoused this paradigm transformation and Govt. initiatives, like Make in India, Skill India, GST e-Way and Digital India. Growing while witnessing these changes, Pragati has matured and adapted to them.

The accomplishments have led both PW and PISL to accomplish multiple milestones. PW has a PAN India presence by the virtue of working on over 700+ Acres land in various cities like Delhi NCR, Bangalore, Mumbai, Hyderabad, Calcutta, Chennai, Ludhiana, Jaipur, Lucknow, Guwahati, etc. PISL showcased. These Milestones showcase the Company’s Mission – To address the multi-faceted warehousing industry in India and to create their own 10 Million AUM by 2025.

“Vision and Mission are an ever-long process which will place our organization amongst the worldwide

industry acclaim,” states Col. Yadav.

The Company seeks to develop 2-3 Mn sq. ft. every year and integrate innovative ways for better progress and growth in the Indian warehousing industry.

THE ONES BEHIND THE ENDEAVOURS

Pragati has journeyed storms in its quest to develop the Indian Warehousing Industry. And it’s not only COVID 19’s medical challenges; Pragati emerged above other economic challenges induced by the pandemic. The credit undoubtedly goes not only to the two outstanding leaders but also to a team of strong and seasoned professionals who kept the company committed to its vision, no matter what.

Pragati has a sizeable team working across its multiple sites. It provides employees opportunities customized and aligned to emerging opportunities in real estate. Most of its employees started from the ground up and have been with the company for over ten years, and now lead departments.

SET FOR NEW POSSIBILITIES

Pragati Group has travelled a long road and set many instances to prove its excellence. In the years to come by, Pragati seeks to expand its horizon in city development and reach out to Tier 2, 3 cities. It also plans to unveil development opportunities involving landowners.

PARTING THOUGHTS OF THE LEADERS

Through all ups and downs, we’ve seen the company grow. We pledge towards achieving more with time.

Whenever we lose confidence, we simply ask, “How’s the josh” which rings organization-wide, and everyone gets a new sense of pride with the progress they have created so far. Lt. Col. Jitender Yadav, Mr. Shubhendra Mittal, Pragati Group.