Category Archives: Warehousing

Welspun One Logistics Parks (WOLP) has successfully concluded the initial close of its second Alternative Investment Fund (AIF), WOLP Fund 2, raising an impressive INR 500 crores from domestic high net worth and family office investors within a short span of eight weeks. The speed of the raise underscores the strong investor confidence in both, the Welspun One platform and the prospects of the warehousing and industrial sector in India. WOLP Fund 2 was launched in March 2023 and aims to raise a corpus of INR 2,000 Crore, including a green shoe option of INR 1,000 Crore. Along with project level debt, this is expected to give the fund enough dry powder to invest in projects which entail an outlay of over INR 6,000 crore. Fund 2 is the successor to WOLP Fund 1, introduced in early 2021, which has since been fully committed across a portfolio of 6 projects pan-India aggregating to 6.5 million square feet of grade A warehousing and industrial space. Fund 1 has also delivered an impressive track record with over 50% of the Fund 1 portfolio close to being leased and physically delivered within a short span of two years. Fund 2 will further add 10-12 million square feet of new projects to this footprint, taking Welspun One’s total portfolio to 16-18 million square feet over the next 4-5 years. Anshul Singhal, Managing Director, Welspun One Logistics Parks, said, “We are pleased to witness an exceptional investor response, as the first round of WOLP Fund 2 successfully closed at INR 500 Crore within a remarkable 8-week timeframe, which is a record of sorts in the alternative investments space. This achievement not only exemplifies the high …

EXZOD India will enter the Middle East and South East Asian markets as it expands into new geographies to cater to the ever-increasing market for pallets. At present, the company has four manufacturing units in Punjab, Maharashtra, Haryana and Telangana. The units are equipped with state-of-the-art automatic pallet manufacturing machines. According to Nitin Kalla, founder & MD, EXZOD India, “Increase in trade across industries has led to demand for pallets worldwide and we have established our presence in India with our four plants. As we foray into overseas markets, we have decided to set up our presence in the Middle East and South East Asia.” He further added, “Dubai, Indonesia, and Vietnam are key hubs for generating business in the respective regions, and establishing a state-of-the-art manufacturing unit in these key hubs will allow us to be in proximity to our clients in the region.’’ The company also plans to expand its Annual Maintenance Contract services for pallets in these regions as this will enable logistics companies and manufacturers to focus on their business. The company’s expertise in the supply chain space allows it to provide customized solutions as per requirement. The company provides technology-embedded AMC Services which is the only organized player present in the industry. Exzod has seen the demand for pallets growing exponentially.

The construction of India’s first International Multimodal Logistics Park in Jogighopa, Assam, is well underway, and the jetty is expected to be completed by the end of this year. The park, which is being built at a cost of Rs 693.97 crore, will provide direct connectivity to waterways, road, rail, and air, and is expected to be completed in 2023. Union Minister of Ports, Shipping & Waterways and Ayush, Shri Sarbananda Sonowal, visited the site recently to review the progress and expressed satisfaction at the pace of work. The development of the first International Multimodal Logistics Park is in line with Prime Minister Modi’s vision of transformation through transportation. The project aims to revamp the transportation network in the Northeastern region of India, including neighbouring countries like Bhutan and Bangladesh. The PM Gati Shakti National Master Plan is a key component of this vision, which aims to revive and rejuvenate the transportation system and make it an efficient and effective agent of change.

Balmer Lawrie, a diverse PSE with presence in manufacturing and services sectors has opened a Container Freight Station (CFS) in Vizag. Balmer Lawrie partnered with VPA for setting up an MMLH spread over 53 acres to meet the growing logistic demands of the region. Balmer Lawrie & Company Limited, set up a Multi Modal Logistic Hub (MMLH) in JV with Visakhapatnam Port Authority (VPA), Visakhapatnam Port Logistics Park Limited (VPLPL). Capable of handling Exim and domestic cargo, the Exim area will have CFS, warehousing, cold storage/temperature-controlled warehouse, open cargo storage, hazardous and non-hazardous cargo handling among others. The existing facility of VPLPL is in line with PM’s Gati Shakti initiative. This apart, there is potential of leveraging Electronic Cargo Monitoring System for cargo movement to Nepal, Bangladesh through VPLPL. This is the only facility with refrigeration facility and has a huge potential for movement of refrigerated cargo as well. The CFS in VPLPL, spread over 25 acres, is the only other facility in Vizag (other than CONCOR), which has rail connectivity with the port. This will facilitate faster movement of containers from the port, besides reducing the congestion on the road. The CFS operations within the multi-modal Logistics Park of Visakhapatnam Port Logistics Park Ltd, commenced in the presence of Shri Adika Ratna Sekhar on 24 April 2023 in Visakhapatnam.

Leasing of industrial and warehousing space rose 11 percent year-on-year (YoY) to 7.2 million square feet (msf) during the January-March period across five major cities, driven by higher demand from third-party logistics and e-commerce firms, according to Colliers India. The report stated that Delhi-NCR continued to lead in demand with a 29 percent share, followed by Mumbai. Third-party logistics (3PL) players accounted for 41 percent of the demand, followed by the fast-moving consumer goods (FMCG) sector at 12 percent. “The demand from the retail and FMCG sectors saw a three-fold rise YoY as they expanded their presence in larger markets such as Delhi-NCR and Mumbai. This increase in industrial warehousing space uptake aligns well with the growth in private consumption in the domestic economy,” the report added. Mumbai experienced a 37 percent YoY increase in leasing, primarily driven by 3PL operators who continued to expand in the city despite weaker economic and business sentiment.

Marking its entry in the State of Telangana, IRB Infrastructure Developers Ltd. (IRB) has been awarded 158 Kms (1,264 Lane Kms) Hyderabad Outer Ring Road (ORR) highway development project under Toll-Operate-Transfer (TOT) model with revenue linked Concession Period of 30 Years for upfront consideration of Rs. 7,380 Crores. Virendra D. Mhaiskar, Chairman & Managing Director, IRB Infrastructure Developers Ltd., said, “Proud to add this prestigious project to our portfolio, taking our asset base to over Rs.70,000 Crores and share in TOT space to 37%, the largest by any private player in India.” He added, “We express our sincere gratitude towards all authorities and stakeholders. We endeavor to execute this project through our Pvt InvIT platform.” The Hyderabad Metropolitan Development Authority (HMDA) had invited global competitive bids for the project; in which the Company had participated and emerged as the selected bidder. After signing the concession agreement, the project SPV will be making the payment of Rs. 7,380 Crores within a span of 120 days. About Hyderabad Outer Ring Road (ORR) Project: The Hyderabad Outer Ring Road (ORR) is a 158 Kilometers, 8 lanes ring road expressway encircling Hyderabad, Capital City of Telangana State. Opened up in December 2012, the large part of around 124 Kms of ORR covers urban nodes like Hi-Tech City, Nanakramguda Financial District, International Airport, IKP Knowledge Park, Hardware Park, Telangana State Police Academy, Singapore Financial District and Game Village. The ORR has well established connectivity with other important National Highways and State Highways.

Allana Cold Chain Solutions has announced its expansion in operations with the construction of storage facilities in Kolkata, Kakinada, and Dera Bassi. With the additions of Kakinada and Dera Basi facilities, the total holding capacity will increase to 65,000 tonnes. This expansion is a testament to Allana Cold Chain Solutions’ commitment to providing end-to-end solutions by integrating the experience and expertise in blast freezing, packing, inspection, freight forwarding and customized offerings to varied sectors and reputed clients such as McCain Foods, Britannia Industries, Morde Foods, Abbott India, Sapphire Foods (KFC supplier), Varun Beverages, Mars International and others, ensuring integrity of cold chain logistics requirements throughout the process. The new facility will pave the way for the company to serve a wide range of customers in the food, pharmaceutical and other industries that heavily rely on efficient cold storage and transportation. The company currently operates and manages cold storages in Uttar Pradesh (Ghaziabad, Aligarh, Unnao) with a holding capacity of 11000 tonnes, Kolkata (2800 tonnes), Mewat, Haryana (2000 tonnes), Mumbai and Aurangabad (28000 tonnes) and Zaheerabad, Telangana (6500 tonnes). It also boasts a state-of-the-art fleet of 125 refrigerated trailers and trucks up to 40 feet in length, a rare sight on India’s inland logistics routes, monitored 24/7 through a modern “Transport Control Tower” in Mumbai.

Welspun One Logistics Parks (WOLP) has partnered with jewellery maker GRT Group, to invest Rs. 700 crore for developing two warehousing projects near Chennai. WOLP in an official statement said that both the projects with GRT Group will entail a direct investment of Rs 700 crore and generate 3,000 jobs during the development phase and are strategically located on National Highway 16 – an integral part of the East Coast Economic Corridor (ECEC). Each park is spread across 60 acres of land with a development potential of 1.3 million square feet, the company said in a statement. The first project is being developed through a 50:50 joint venture between GRT Group and WOLP; it also marks the final investment of WOLP Fund 1 and results in the full commitment of the fund corpus of Rs 500 crore. The second project is being developed by WOLP for GRT Group under a “development management” agreement, according to a WOLP statement.

IndoSpace launched two new logistics parks, one in Dhatir, near Palwal and the other in Taoru, near Sohna further strengthening its presence in the National Capital Region (NCR). With a development potential of over 3.4 million square feet, these parks offer superior infrastructure, amenities, and versatile solutions, making them an ideal choice for warehousing and regional distribution needs. The parks are adjacent to several important highways like the NH – 919 with direct access to the upcoming DME (Delhi Mumbai Expressway), WDFC (Western Dedicated Freight Corridor), and DND-Faridabad- EPR/KMP Expressway – all expected to be fully operational by 2025. Convenient access to such key logistics infra enables these locations to become warehousing hotspots with pan-India serviceability. Rajesh Jaggi, Vice Chairman – Real Estate, Everstone Group, said, “From a warehousing perspective, NCR is a crucial location for us. With the region acting as a gateway to the North market and home to several industries and opportunities, we are strategically expanding our network in Taoru and Dhatir. Going forward, we aim to keep up the momentum with these state-of-the-art logistics parks and we are sure that these new parks will play a vital role in propelling the growth of various sectors including Pharma, 3PL, e-commerce, distribution, and retail.”

ESR Group has acquired 38 acres of land in Gujarat and will invest Rs 400 crore to develop an industrial and warehousing park. The project, located at Sanand in Gujarat, will have a development potential of 1 million square feet, the company said. ESR Group will invest about Rs 400 crore for construction and development. This will be ESR’s second investment in Gujarat. It had made its first investment at Jalisana, a 37-acre project. Abhijit Malkani, the CEO of ESR India, said this new park will add to the state’s flourishing industrial ecosystem. “Gujarat attracts one of the highest foreign direct investments in India and is currently turning into an EV (electrical vehicle) battery manufacturing and assembly centre,” he said. The availability of Grade A infrastructure in a strategic location like Sanand is essential for the region’s industrial growth and will add to its EV manufacturing capacity, Malkani said. ESR said there are 25 multinational and 300 domestic companies in this region across various sectors, including automobile, auto ancillaries, FMCG, engineering, plastics, packaging, and electronics. This project aims to create a focused space for established and emerging EV manufacturing and ancillary units to expand their presence in Ahmedabad, the company added.