Category Archives: Warehousing

Investcorp Holdings BSC, the Middle East’s biggest alternative asset manager, is doubling down on warehouse investments in India, betting the nation’s manufacturing ambitions and e-commerce boom will fuel demand for logistics, said reports. Warehousing currently accounts for almost 16% of the Bahrain-based firm’s $350 million real estate portfolio in India, and it’s planning to boost that share in the coming year, according to Ritesh Vohra, the firm’s real estate head in the nation. “Warehouses could end up being our biggest strategy in Indian real estate,” he said in the reports. Investcorp joins a flood of international capital investing in a sector that’s been buoyed by the government’s plan to transform India into a manufacturing hub, and a steady rise in online shopping on platforms such as Walmart Inc.’s Flipkart and Amazon.com Inc. Institutional capital is flowing in,” said Vohra. “Warehousing is where office space was 7-8 years ago,” added reports. The company, whose Indian real estate portfolio is currently dominated by residential property, last year deployed $55 million to back Chennai-based developer NDR Warehousing Pvt. Ltd. That helped grow NDR’s stock of warehousing space to 14 million square feet from 9 million square feet.

The National Rail Plan envisages that the share of freight traffic by rail should go up from current share of 28% to 44% by 2051. The construction of Dedicated Freight Corridors (DFCs) on the important high density route is an important policy measure by Indian Railways to arrest the trend of falling market share of railways in the country and also will shift the advantage in favour of rail transport. DFC operation will bring-in efficiency in freight operation and enable rail tariff being more competitive because of its following operational/design features: Higher throughput per wagon and per train: Run Heavy Haul trains. Lower Energy Consumption: Reduce Operation and Maintenances Costs Reduction in Transit time: Reduce logistic cost of transportation and better utilization of Rolling stock Moreover Indian Railway has taken number of multi-pronged strategy to increase its modal share in freight segment which includes tariff rationalization and Tariff/freight incentive schemes which includes; diversification of freight basket, Liberalised Automatic Freight Rebate Scheme in Traditional Empty Flow Directions, Rationalization of Station to station rates policy, Rationalization of Merry-Go- Round, Concession in short Lead Traffic, Discount in freight to fly ash traffic booked in Open/flat Stock & covered wagons, Round trip charging for ultra short lead (upto 50Kms) container traffic, Round Trip Traffic (RTT) Policy, Automobile Freight Train Operator Scheme (AFTO), Introduction of Cube Container for two wheeler traffic. A New ‘Gati Shakti Multi- Modal Cargo Terminal (GCT)’ policy has also been launched to facilitate development of cargo terminals on non Railway land, as well as on Railway land (partially or fully) etc. In addition, various other schemes have also been introduced to attract private investment in General Purpose Wagons, Special Purpose / …

Prozo, a full-stack supply chain company, announced the opening of its new fulfillment center in Village Khasarwara, Lucknow. The facility is a built-to-suite (BTS) warehouse with an area of ~23,000 sq. ft and within 5 KMs of the nearest highway, NH27. It has 900 LSS positions which can support 16,200 bin positions, and the facility also has the space for 435 ground pallet positions, providing storage space for around 3 lakh units of apparel, accessories, small electronics, etc. The PEB structure offers a clear height of 12 Meters and has FM2 flooring with a load-bearing capacity of 5MT, said release. The PEB structure offers a clear height of 12 Meters and has FM2 flooring with a load-bearing capacity of 5MT. The facility is fully compliant with all necessary approvals in place, and has 24X7 CCTV monitoring, patrol guards, and fire extinguishers, making it a safe and reliable storage location.

Gati Ltd., an Allcargo Group company has expanded its EV-led last-mile delivery partnership with home furnishings retailer IKEA India for its store in Nagasandra, Bengaluru. In line with Gati’s vision to offer green express logistics solutions and support the government’s goal to cut the net carbon emissions to zero by 2070, Gati has deployed Electric three-wheeler cargo vehicles at IKEA’s Nagasandra store and plans to onboard larger capacity four-wheeler cargo vehicles in near future. Gati aims to increase the EV-led last mile deliveries for store to over 70 percent by 2023. Commenting on the collaboration, Pirojshaw Sarkari, CEO, Gati Ltd. said, “Deploying EVs for express distributions is a part of our sustainability and green logistics initiatives. Both Gati and IKEA are committed to last mile zero emission deliveries . Our association with IKEA is since 2019 and its subsequent extension from IKEA Hyderabad to Bengaluru store is a testament to that commitment. The collaboration is also in line with the government’s initiatives to promote green growth – economic growth keeping sustainability in focus. The EV deployment in logistics transportation is set to grow on the back of increasing ESG awareness among corporates and customer demand for sustainable logistics services. We look forward to extending our support to IKEA in its mission to achieve sustainable and greener deliveries. Saiba Suri, Country Customer Fulfilment Manager IKEA said, “Gati has been a pioneer in supporting IKEA India’s zero emission journey. We are very happy to extend our association with GATI for our Bengaluru store and thank them for the co-creation and smart execution which will surely support us in moving towards our aim of 100 percent zero emissions in home deliveries by 2025.” …

Indicold inaugurated the latest location on its Network at Rai Industrial Area Sonipat on 9th March 2023. The brand-new facility is a completely frozen facility with a capacity of 4416 pallets. The facility is equipped with the latest machineries and technology. It is designed with a view to minimize temperature loss by efficient planning of operations, mechanized movement, computer controlled plant management etc. The facility was inaugurated by Sh. Kalyana Rama, Chairman and Managing Director, CONCOR in the presence of Directors of CONCOR, Sh. Rajesh Goyal – President of Federation of Cold Storage Associations of India, Ms. Pragya Nehru, Director CII FACE, Shri Mukesh Aggarwal, MD, Siddhi Enterprises, Sh. Kartik Jalan, CEO & Founder Indicold. Sh. Kalayan Rama keenly noted the achievement by Mr. Mukesh Agarwal and Indicold is putting up this facility in a timeline of less than 60 days. This is no mean feat and an industry record by any standards. Sh. Mukesh Agrawal, thanked the entire team, vendors and specifically Indicold team led by Mr. Kartik Jalan in driving these seemingly impossible time lines and ensuring early commissioning of a world class facility. The event was well attended by industry leaders and representatives of the cold chain sector across Indicold’s verticals of store, move and prepare. On the day of the inauguration the first trucks of ice cream were unloaded and the facility started operations.

Welspun One Logistics Parks (WOLP) launched its second fund of INR 2,000 crores, including a green shoe option of INR 1,000 crores. Welspun One Logistics Parks Fund 2 is the successor of WOLP Fund 1, a SEBI regulated Alternative Investment Fund or “AIF” offering for domestic investors which it had launched in early 2021. WOLP Fund 1 received a favourable response from investors and successfully raised capital commitments of ~INR 500 crore from a set of high net worth investors including marquee individuals and family offices. WOLP Fund 1 has delivered strong performance with a track record of 100% commitment across a portfolio of 6 investments, aggregating to ~6.5MM sf in a short span of ~1.5 years from its first close. Further, the portfolio has also seen excellent traction on the ground with ~50% of portfolio expected to be physically delivered, leased and operating by mid CY2023. The fund’s performance is reflected in its inception to date gross IRR of ~21% basis its 30 September Net Asset Value (NAV) which is computed based on an independent third party valuation by a leading international property consultant. The Company places a strong emphasis on creating and implementing robust processes for a high level of governance and transparency across its business. A recent initiative on this front is the “WOLP investor portal”, a first-of-its kind offering in the real estate private equity space which provides investors with online access to comprehensive information on their portfolio assets and performance along with a full repository of fund documents, all at the click of a button. Balkrishan Goenka, Chairman, Welspun Group said, “The warehousing industry is now a fully integrated priority sector in India that contributes …

NCR based Industrial and Logistics real estate developer Pragati Group, has raised $200 Million of equity capital from a Private Equity fund based in Singapore. Pragati has been offering customized warehouse development solutions since its inception in 2010 to top MNCs like Amazon India, Flipkart, DHL-Bluedart, Bosch, Daikin, and many more. The Singapore based fund has committed to invest $200 Million with Pragati Group towards development of industrial and logistics real estate assets as per the deal signed in Q3 FY 2022. Part of the deal involved acquisition of 2 international grade operational assets of approx. 2 million sft of GLA in NCR, Pragati One & Pragati Farukhnagar Logistics Parks, providing successful exit to the previous financial partner Morgan Stanley. Part of the deal also saw this fund acquire an equity stake in Pragati. Col. Jitender Yadav, Founder of Pragati Group said, “Pragati’s vision is to be one of the top 5 industrial & logistics real estate developers in the country by developing a portfolio spanning 30 million sq.ft across key Tier I and Tier II Indian cities with best in class Grade A specifications and with sustainability and ESG at the heart of our business. Pragati has an excellent track record of working with world class companies like Amazon, Flipkart, DHL, Daikin, Bosch etc. and this capital will enable us to expand to other major cities in India.”

Coldman Logistics has launched its all new all purpose warehouse of 9,000 Pallets capacity near JNPT Port, this is the company’s second launch for the year; with this launch Coldman is now available at 14 cities with 1,00,000+ Pallets position across the country, said company’s official Linkedin post. “Our new facility is equipped with the latest technology, providing us with the capacity to store more products and streamline our operations. This expansion is a result of our dedication to providing exceptional service to our customers and our commitment to meeting your evolving needs. The warehouse is strategically located just 11 KM away from JNPT Port, making it easier for us to access major transportation routes, EXIM cargos ultimately resulting in faster and more reliable deliveries. Our new facility is an environmentally conscious facility, with sustainable practices implemented throughout our operations. This includes energy-efficient lighting, recycling programs, and an efficient use of resources, which aligns with our company’s commitment to sustainability. We continue to offer you, our customers, the same high-quality products and services that is synonymous with our name, but with improved efficiency and speed. We are grateful for your continued trust in our brand, and we look forward to serving you from our new facility,” said post.

The commercial capital of Madhya Pradesh, Indore, will soon have its own multi-modal logistics park as the work for the project has been awarded, the Ministry of Road Transport and Highway (MoRTH) announced. The MMLP project has been awarded to GR Infraprojects Limited, and will be developed in three phases for which target completion of Phase-I is two years, that is, by 2025, leading to commercial operations. Indore has a rich ecosystem, fertile soil and high-quality workforce. The MMLP at Indore will be developed in an area of 255.17 acres near Pithampur in Dhar district. “The site is strategically located near Pithampur industrial area, apparel and pharma cluster and abutting the Indore Tihi- Dahod rail line as well as proposed Mhow ring road, at 30 km from Indore Airport and Indore city. The estimated total project cost is Rs 1,110.58 crore,” the Ministry said in a statement.

China’s Cosco Shipping has opened a sea and air logistics centre in Guangzhou Airport’s economic zone to expand global operations. The facility is to include warehousing, logistics, e-commerce and other value-added services, said a statement. Its opening marks the start of the Shanghai-headquartered company’s regional supply chain platform in southeast China. Cosco Shipping Logistics chairman Han Jun said: “This logistics park applies [a] smart management system, which can make the best use of visualisation, digitalisation and intelligent technology to build a safe, convenient, efficient and green park. “This project is in line with the national Great Bay Area development strategy and we will increase investments in core resources and accelerate upgrading [to create an] integrated logistics supply chain.” CMA CGM, Maersk and Mediterranean Shipping Company (MSC) have all invested aircraft or entered partnerships to develop their own cargo airlines. CMA CGM Air Cargo is partnering with Air France-KLM and recently launched flights to Shanghai. Maersk has bought and leased aircraft, purchased freight forwarder Senator International (rebranded as Maersk Air Freight) and set up a subsidiary airline, Maersk Air Cargo, which began operations in October 2022. Atlas Air took delivery in November 2022 of the first Boeing B777-200 freighter that it will operate on behalf of MSC.