Category Archives: Warehousing

Landmark Capital, managing real estate investments through SEBI registered alternative investment funds (AIFs) and managed accounts, announced the launch of Landmark Warehousing & Logistics Fund. The fund is targeting a corpus of INR 500 crores, including a green-shoe option of INR 200 crores. Landmark Capital presents avenues to invest in the warehousing and industrial space in India. This is a unique opportunity presented by the changing landscape of logistics industry in India due to regulatory changes like GST, infrastructure development, and rise of digital platforms to buy goods and services. The fund is launched with an objective to generate superior risk-adjusted returns by investing in high-quality Grade-A warehousing and logistics opportunities. Landmark Capital is focusing on non-speculative built-to-suit assets and diversification across geographies to ensure effective risk mitigation. The fund’s deal pipeline accounts for over 400 acres of land with marquee names as potential anchor tenants.

IndoSpace announced its partnership with KSH infra to develop a portfolio of grade A warehousing and logistics parks over the next five years across the country. To develop these assets spread over 10million sq. ft., IndoSpace will be investing Rs 1,000 crore in this new alliance. The primary focus of the joint venture will be the tier I premium micro-markets including Pune, Mumbai, Delhi-National Capital Region (NCR), and Bangalore. In this venture, KSH Infra will take the responsibility of identifying and developing the assets and will also be co-investing in the assets along with IndoSpace. “The demand for warehousing and logistics space is high and the opportunity is enormous. As a market leader in this space, we are always looking to support India’s growth by enhancing our reach. With an established partner like KSH Infra, we are confident of tapping into the market potential,” said, Rajesh Jaggi, Vice Chairman, Real Estate, Everstone Group.

Adani Ports and Special Economic Zone Ltd (APSEZ) is expected to buy as much as 10 million square feet (sq ft) of warehousing assets every year as India’s largest private port operator bets on the e-commerce boom to raise capacity 150 times to 60 million sq ft by 2026 from the current 8 lakh sq ft. Adani Logistics Ltd, a unit of APSEZ, will use a mix of organic and inorganic opportunities to sail into a dominant position in the segment. The conglomerate led by Gautam Adani plans to add 30 million sq ft through greenfield development of warehouses leveraging its existing land parcels of 1,850 acres across top 20 cities in India, while about 30 million sq ft (16 per cent of Grade A market capacity) will be added through acquisition of strategic assets in the top 20 markets.

Kawasaki Kisen Kaisha (K Line) announced that its group company in Thailand, Bangkok Cold Storage Service (BCS) and K Line Container Service Thailand (KCST) will establish new warehouses in Bang Na district near Bangkok. Currently, BCS is operating two freezing and refrigerating warehouses in two locations, where are Thepharak district and Bang Na district, and KCST is operating ten dry warehouses in three locations where are Bang Na district, Amata City Chonburi district and Bangpra district. Both BCS and KCST have been operating warehouse businesses for more than 30 years in Thailand. K Line said that this decision has been taken to support the expanding distribution demand in Thailand and the diverse needs of its customers.

SSI SCHAEFER and Tee Yih Jia Food Manufacturing Pte Ltd., are set to launch Singapore’s largest automated rack-clad high bay warehouse storage facility in Q1 2022 at Tee Yih Jia’s new $450 million production facility in Senoko – the “Tee Yih Jia Food Hub”. The upcoming Tee Yih Jia facility consists of three warehouses — two cold rooms and one ambient temperature dry store — and features rack clad high bay warehouse with an automated storage and retrieval system (ASRS) which allows the automated placement and retrieval of high-volume loads from TYJ’s storage locations. Spanning more than 100,000 pallet positions of frozen storage racks, TYJ’s food factory and warehouse storage facility sits on a land area of 40,000 m². It is installed with 15 SSI EXYZ cranes which is estimated to be able to move up to 300 pallets per hour with automation technology. This cooperation comes as warehouse automation booms across the Asia-Pacific region. The APAC automated storage and retrieval systems (ASRS) market is forecast to grow at a CAGR of about 10% between 2021 and 2026. This growth is prominent in the food and beverage (F&B) industry, as companies recognize the advantages provided by ASRS systems and increase focus towards market adoption.

CEVA Logistics has further cemented its role as a leading player in the Southeast Asia wine and spirits sector after winning a three-year contract with Diageo to handle warehousing and value-added services in the Philippines. Diageo is one of the world’s largest alcoholic beverage producers, and the new deal builds on an existing relationship between the companies over the last two years with CEVA responsible for handling Diageo’s air and ocean import brokerage requirements. The contract further positions CEVA Logistics as the only 3PL serving the Top 3 global wine and spirits companies with transport and warehousing services in the Philippines. Under the terms of the contract, Diageo will become one of the first clients at the soon-to-be-completed CEVA Logistics Ruhale Taguig warehouse in southeast Manila. CEVA will manage full distribution center operations for Diageo’s range of products, including a temperature-controlled section for domestic distribution throughout the Philippines. CEVA will also provide tax stamping and labelling of more than four million bottles each year. With its extensive experience of operating with leading players across the beverage industry, CEVA will deliver full transparency to the customer to enable improved monitoring of the entire operation through its warehouse management software which will be integrated with Diageo’s enterprise resource planning platform.

E-commerce giant Amazon India has entered into an agreement with GMR Logistics Park Pvt Ltd as of August 19, 2021, to lease a 10 lakh sq ft of warehousing space for a period of 20 years, in Hyderabad, as revealed by Propstack. The chargeable area is 10.08 lakh sq ft and the starting rent is around INR 2 crore per month (INR 20.15 per sq ft). The lease starts from April 15, 2022, as per documents. As per the clause mentioned in the lease agreement, there will be a rental escalation of 15 percent every three years. GMR Logistics Park Pvt Ltd is expected to hand over the first phase of the leaseable premises on April 15, 2022, and phase 2 of the leasable premises on September 1, 2022, the documents showed

SpiceXpress is creating unique propositions in the Indian Logistics field by inaugurating the first of its kind Airport Based Free Trade Zone Warehouse in GMR Hyderabad international Airport, Telengana. At a time when India and the state of Telengana in specific is looking forward to promote the export and import of goods and help the manufacturers and traders boost their business we at SpiceXpress have taken the initiative of creating the Free Trade Zone at GMR Hyderabad International Airport, which is the right solution. A free-trade zone (FTZ) is a class of special economic zone. It is a geographic area where goods may be imported, stored, handled, manufactured, or reconfigured and re-exported under specific customs regulation and generally not subject to customs duty. “Most of our free trade zones are on the sea port side helping the manufacturers and traders who use the sea mode. Manufacturers and traders using Air mode, specifically Pharma, E Commerce, Aero Space, Perishables, etc had logistical challenges using these free trade zones. We at SpiceXpress are the first ones to set up a Free Trade Zone (FTZ) Warehouse on the Airport Side.”said Sanjiv Gupta, CEO, SpiceXpress

The warehousing sector’s meteoric rise to prominence in India was spurred by the introduction of GST leading to consolidation and the central government’s decision to grant ‘infrastructure status’ to the logistics sector including warehousing. Furthermore, with 100% FDI permitted in warehousing and logistics alongside maturated state-level warehousing policies, the sector has been seeing rapid institutionalization and subsequent inflow of major investments. The investments grew from USD 675 million during 2014-2016 to USD 2.3 billion from FY 2017-2019 in the top 8 cities of India. In 2020, the pandemic reinforced a structural shift in consumer preferences – accelerating the penetration of online sales even in tier-2 and tier-3 cities, thus giving a huge boost to the sector. Any e-commerce operation needs a strong and robust supply chain network, of which, modern warehousing forms a critical component. As global e-commerce companies rapidly look to expand in their battle for retail supremacy, investments in infrastructure like warehousing; especially well located, modern, compliant with very high construction quality; will remain a top priority. In a previous report, we have also estimated that e-commerce companies themselves will require at the very least 25 million sq. ft. of Grade-A warehousing stock in 2025 across the country which in 2020 was 9.3 million square feet.

SpiceXpress keeps up to its tradition of creating unique propositions in the Indian Logistics field by inaugurating the first of its kind Airport Based Free Trade Zone Warehouse in GMR Hyderabad international Airport, Telengana. At a time when India and the state of Telengana in specific is looking forward to promote the export and import of goods and help the manufacturers and traders boost their business we at SpiceXpress have taken the initiative of creating the Free Trade Zone at GMR Hyderabad International Airport, which is the right solution. A free-trade zone (FTZ) is a class of special economic zone. It is a geographic area where goods may be imported, stored, handled, manufactured, or reconfigured and re-exported under specific customs regulation and generally not subject to customs duty. Most of our free trade zones are on the sea port side helping the manufacturers and traders who use the sea mode. Manufacturers and traders using Air mode, specifically Pharma, E Commerce, Aero Space, Perishables, etc had logistical challenges using these free trade zones. We at SpiceXpress are the first ones to set up a Free Trade Zone (FTZ) Warehouse on the Airport Side. We thank Jayesh Ranjan, IAS, Principal Secretary to Government of Telengana, I&C and ITE&C Department for gracing the occasion and inaugurating the facility and opening it for all the manufacturers and traders to use.