Storage Technologies and Automation Limited – case study

Introduction

Storage Technologies & Automation Limited (STAL), operating under the brand name Racks and Rollers, is an Indian MSME specializing in storage solutions and warehouse automation.

Products and Services:

• Design, manufacture, and installation of metal storage racks
• Automated warehouse solutions
• Customized storage solutions for various industries including:
  • Oil and Gas
  • Automotive
  • Aerospace
  • Food and Beverages
  • Pharmaceuticals
  • Textiles
  • Retail
  • FMCG
• Display and storage racks for commercial and industrial use

What does it do?

Let’s dive into specific examples of how Racks and Rollers (Storage Technologies & Automation Ltd.) has provided storage solutions tailored to specific needs of their clients:

1. E-commerce Giant in India:

• Challenge: Rapidly growing inventory, limited warehouse space, and increasing order volumes.
• Solution: Racks and Rollers designed and installed a multi-tier racking system with integrated conveyor belts and automated picking modules. This optimized space utilization, improved order picking efficiency, and accelerated order fulfillment.
• Result: Increased storage capacity by 40%, reduced order processing time by 25%, and significantly enhanced customer satisfaction.

2. Leading Pharmaceutical Company in the Middle East:

• Challenge: Need for a compliant and efficient storage system for temperature-sensitive medicines and vaccines.
• Solution: Racks and Rollers implemented a temperature-controlled warehouse with specialized racking for pharmaceuticals, along with a robust batch traceability system.
• Result: Ensured product safety and efficacy, maintained regulatory compliance, and minimized product loss due to temperature fluctuations.

3. Automotive Component Manufacturer in Europe:

• Challenge: Inefficient manual storage and retrieval of car parts, leading to delays and errors in production.
• Solution: Racks and Rollers installed an automated storage and retrieval system (ASRS) with robotic shuttles. This system streamlined the movement of parts, reduced manual labor, and improved inventory accuracy.
• Result: Increased productivity by 30%, reduced storage space requirements, and enhanced overall production efficiency.

4. Large Retail Chain in India:

• Challenge: Difficulty managing diverse inventory across multiple stores and warehouses.
• Solution: Racks and Rollers implemented a centralized inventory management system with barcode scanning and RFID tracking. This enabled real-time visibility into stock levels, improved order accuracy, and streamlined replenishment processes.
• Result: Reduced inventory carrying costs, minimized stockouts, and enhanced customer service.

5. Cold Storage Facility for Perishable Goods:

• Challenge: Need for a storage system that maintains optimal temperatures for perishable goods while ensuring efficient space utilization.
• Solution: Racks and Rollers designed and installed a mobile racking system with adjustable shelving for various product sizes. The system optimized space utilization while maintaining proper air circulation for temperature control.
• Result: Increased storage capacity, reduced energy consumption, and minimized product spoilage.

These examples showcase Racks and Rollers’ ability to provide customized solutions that address the specific challenges faced by different industries. The company’s expertise in storage design, automation, and inventory management allows it to deliver solutions that optimize operations, reduce costs, and drive business growth.

Is the industry poised for growth?

The Indian storage solutions and warehouse automation industry is projected to experience robust growth in the coming years, with various estimates for the Compound Annual Growth Rate (CAGR):

Mordor Intelligence:

Projects a CAGR of 14.26% for the broader industrial automation market in India from 2024 to 2029. This encompasses warehouse automation as a significant sub-segment.

TechSci Research:

Estimates a CAGR of 11.17% for the Indian industrial automation market from 2023 to 2030.

Risks

Industry Cyclicality:

The warehouse automation and storage solutions industry can be cyclical, meaning its performance is often linked to the broader economic conditions. During economic downturns, businesses may postpone or reduce investments in warehouse upgrades, negatively impacting STAL’s revenue and profitability.

Technological Disruption:

The rapid pace of technological advancement in automation and robotics could disrupt the industry. STAL needs to continuously innovate and adapt to stay ahead of the curve, otherwise, they risk becoming obsolete.

Raw Material Price Volatility:

The cost of raw materials, such as steel, is a significant expense for STAL. Fluctuations in these prices can directly affect their profitability if they are unable to pass on increased costs to customers.

Regulatory Changes:

Changes in government regulations related to industrial safety, labor laws, or environmental standards could increase compliance costs for STAL and affect their operations.

Currency Fluctuations:

As STAL operates in international markets, fluctuations in foreign exchange rates can impact their profitability, especially if a significant portion of their revenue or expenses are denominated in foreign currencies.