Shops and Establishment Act is applicable to the warehouses whereas Factory Act is applicable where production activities take place. However, now you say that some of the production processes will be shifted to the warehouse. However, will these production processes remain within the purview of the shops and establishment act, or you need to convert shops and establishment license into the factory license that remains to be seen.
By chance if the labour inspector visits your warehouse and if he considers some of the activities as production activities and sends you the notice then proving that it is still warehouse will be a challenge. If you have a credible reply then you may go ahead and add a few value-adding activities to the warehouse.
29th March 2019 From India, Bangalore