Industrial real estate is both manufacturing and storage space apart from Industrial land, cold storage, SEZ, FTZ, CFS etc. Many use the terms warehouse and factory interchangeably. Some even say that “there is effectively no difference between a warehouse and a factory structure”. So, how is a factory different from a warehouse.
A warehouse is a commercial building generally used for storage of goods and warehousing is the process of proper storage and handling of goods and cargo using scientific methods in the warehouse and making them available easily and smoothly when needed. In recent days, warehousing is considered as one of the most important aspect of trade.
A factory is an industrial site, usually consisting of buildings and machinery, or more commonly a complex having several buildings, where workers manufacture goods or operate machines processing one product into another and this is in demand in India currently due to the world looking for alternative supply chains to China (post Covid-19) and proactive Central and State Governments who are promoting “Make in India”
Listed below the difference between a Warehouse and a Factory structure explained in detail
| Features | Warehouse | Factory |
| Location | Any where based on the demand | SIPCOT/ SIDCO (Government industrial parks) are most preferred |
| Power | 3 phase is sufficient | High tension Power connection required to run heavy equipments and machinery |
| Floor height | 4 feet above ground | Ground level |
| Flooring Capacity | 5 metric ton / sqmt | 10 – 15 metric ton / sqmt |
| Loading bays and canopy | Dock levelers needed with loading bays and canopy | Not required |
| Shutters | 13 ft width – Normally 1 shutter per 5000 sft | above 18 ft (to allow movement of containers within the shed) – minimal number of shutters |
| Ceiling Height | To accommodate racking and vertical stacking | Height required for EoT and for temperature control |
| Type of building | RCC or PEB normally | Most commonly PEB (ACC for older structures) |
| EOT Crane (Electric overhead traveling) | Not required | Required to carry heavy load |
| Container access | Loading and Unloading of goods takes place outside the warehouse | Loading and Unloading of goods takes place within the factory itself |
| Employee Safety | Required, If Hazardous goods are stored, need to follow the safety procedures set by the Government | Occupational Safety, Health and Working Conditions of workers to be followed without deviation as per Government norms |
| Fire Safety | Required Depending on items stored – basic extinguishers and Hydrants are the norm of the day – Sprinklers depend on the material stored | Fire Hydrants with high storage water tank, Fire Extinguishers, Fire Sprinkler, Smoke Detectors and fire fighting drills at regular intervals are Mandatory requirements |
| ETP (Effluent Treatment Plant )/ STP (Sewage Treatment Plants) | Not required, as goods are only stored | Mandatory |
| Water source | Minimum quantity required | Required in large quantity |
| Pollution Control Certificate | Not Required | Depend on the types of goods produced |
| Color Zoning Criteria based on polluting norms | Applicable only for Hazardous and Explosive goods (PESO) | Green, Orange , Red |
Warehouses and Factories these days are with improved designs, state-of-the-art features, such as higher ceilings or multilevel facilities for dense and more efficient storage, and more cross-docks and doors to facilitate production, storage and faster deliveries.
Also investing in renewable energy sources, such as rooftop solar power will enhance the efficiency of a warehouse or a factory but the entire supply chain as well.
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