Corporates including Johnson & Johnson, LG electronics, Lupin, Ranbaxy are planning to shift to a central warehousing model, courtesy the improvement in the roads network due to the ongoing National Highways Development Project (NHDP) and the possibility of a Value Added Tax (VAT) regime coming into place.
The trend among most companies so far was to have a large number of regional warehouses, due to problems in accessing their wholesale and retail outlets in time due to the dilapidated roads.