Category Archives: Warehousing

Mahindra Logistics Limited (MLL) announced the opening of its state-of-the-art warehousing facility in Phaltan, near Pune. Encompassing an expansive area of 6.5 lakh sq. ft., this facility will be developed in two phases. The first phase, comprising 3.5 lakh sq. ft., is scheduled to be operational by the end of 2024. Spread over an area of 25 acres at Phaltan, the new facility will be an important part of Mahindra Logistics Ltd. nationwide network of multi-client facilities. Phaltan is a strategic location in close proximity to key customers in auto OEM & components through this warehouse, Mahindra Logistics will manage inbound logistics to manufacturing and distribution solutions of diverse clients in automotive and manufacturing sectors, located in the region. The facility will be integrated with MLL’s national network of warehouses, full truck load, and express parcel service. Phase 1 has been contracted to a manufacturing customer and will function as their national logistics centre and will go live by Q3, 2024-25. Amongst the largest warehouses by logistics service providers in the region, the facility will be designed as per Mahindra Logistics Ltd. sustainability standards. These include measures such as decarbonisation, utilization of renewable power, adherence to green warehousing standards, and active participation in local community development. As a part of this announcement, Mahindra Logistics Ltd. also plans to dedicate resources to skill development initiatives, creating employment opportunities for more than 500 individuals in the region. The company and its partners are set to invest Rs. 170 crores in capital across multiple phases for the development of the new facility and related infrastructure. Mr. Rampraveen Swaminathan, MD & Chief Executive Officer, Mahindra Logistics Ltd. said, “To enhance our capabilities and meet …

CBRE South Asia, in its latest report titled, ‘CBRE Industrial & Logistics Figures H2 2023’ shares, Industrial & Logistics (I&L) leasing in Bangalore stood at 4.7 mn. sq. ft. in 2023. The total supply stood at 4.6 mn. sq. ft. During 2023, among the industry segments in Bangalore, 3PL firms drove leasing with a share of about (43%), followed by Retail (23%) and Engineering & Manufacturing (10%). During the Jul-Dec’23 period, Bangalore’s I&L leasing stood at 2.7 mn. sq. ft. while supply stood at 3.0 mn. sq. ft. Eastern Corridor led half-yearly supply and absorption. Small-sized deal closures dominated space take-up in the second half of 2023. Key leasing transactions recorded in the city during Jul-Dec’23: • DMart leasing 240,000 sq. ft. in Avigna Industrial & Logistics Park • Delhivery leasing 140,000 sq. ft. in independent warehouse • Swiggy leasing 140,000 sq. ft. in independent warehouse On a pan-India basis, the Industrial & Logistics (I&L) sector recorded an all-time high leasing activity in 2023, achieving an 8% Y-o-Y growth. Total leasing in 2023 stood at 38.8 mn. sq. ft. across eight cities. The drift towards more structured operational models of industries such as retail, FMCG, and manufacturing is driving an increased demand for efficient last-mile delivery solutions and warehouse solution providers are actively exploring markets to meet this demand.

IndoSpace has signed an MoU with the Maharashtra Government at the World Economic Forum in Davos. The company plans to expand its footprint by acquiring approximately 100 acres with an investment of more than INR 700 crore in the Chakan-Talegaon region. This move is expected to create new job opportunities and boost the region’s economic growth. Rajesh Jaggi, Vice Chairman – Real Estate, Everstone Group, said: “IndoSpace’s strategic approach to enhancing Maharashtra’s industrial and logistics infrastructure has strengthened further with the signing of this MoU with the Maharashtra Government. This collaboration will propel IndoSpace’s expansion in the Chakan-Talegaon region, creating sustainable and efficient industrial spaces that will drive India’s economic growth. We are honoured by the trust and confidence placed in our expertise and look forward to this shared vision with the government.” IndoSpace is currently leading the market in Pune with the largest portfolio. The company manages over 500 acres across nine international-standard industrial and logistics parks in the Chakan area, making it the preferred choice for major companies for their industrial and warehousing needs. With nearly 10.5 million sq.ft. of built-up space, IndoSpace’s parks are strategically located for e-commerce and 3PL companies looking to speed up distribution in the Pune region. This impressive portfolio has been built with an investment of more than INR 3,500 crores.

CBRE South Asia’s latest report titled, ‘Tier-II Cities: The Time to Shine’ highlights that nearly 35 major domestic and global retail brands entered 14 tier-II cities in the Jan-Sep’23 period, indicating a surge in warehousing activity in these locations. These 14 cities include Chandigarh, Jaipur, Indore, Goa, Mangalore, Kochi, Lucknow, Patna, Ranchi, Guwahati, Bhubaneshwar, Vizag, Mysore, and Coimbatore. As per the report, several domestic and international retail brands, including Croma, Armani Exchange, Malabar Gold & Diamonds, Reliance Smart, Tanishq, H&M, Marks & Spencer, GAP, Starbucks, Pizza Express, Under Armour, among others, have expanded their retail footprint to tier-II cities in Jan-Sep’23 period. According to the report, the total retail stock in these 14 tier-II cities stood at 29 mn. sq. ft. as of Sep’23, with Jaipur, Lucknow, and Chandigarh each boasting retail stock ranging between 3 to 7 mn. sq. ft. The retail development in these cities has been a healthy mix of high streets and malls. The total retail supply recorded in these 14 cities has been ~2.4 mn. sq. ft. during Jul-Sep ’23. Top cities dominating supply addition during this period include Chandigarh, Jaipur and Lucknow. The total absorption across the 14 cities stood at 2.4 mn sq. ft. in Jul-Sep’23 period, led by Kochi, Jaipur, and Goa.

Mahendra Shah, Chairman and Managing Director, V-Trans (India) shares, “Attention of the current Government has been substantial on enhancing logistic and supply chain efficiency. We expect policymakers to support the same further and also take steps to reduce supply chain costs. Many measures taken to boost manufacturing have started showing results and an efficient supply chain will boost the cause further. In the forthcoming budget, we look forward to improved outlay for logistics Infrastructure. Regulatory and budgetary support for Fast-tracking multimodal logistics infrastructure projects is needed. In the last year, ULIP has already been operational, but the need of the hour is its faster adoption across the stakeholders. In the forthcoming budget, steps for easy usage of ULIP will help in waste reduction and improve interoperability in logistics. It is a sector that has a significant contribution to carbon emissions. We look ahead towards the initiatives for faster adoption of green logistics. Incentives and easier access to funds for the adoption of sustainable logistics can be a good option to move forward. Being a major player in road transportation, we would like to draw the attention of the Government towards issues related to drivers. The government needs to introduce some schemes in the logistics industry for drivers. Last but not least will be bringing petroleum products under the purview of GST. Fuel is the largest component of our expenses. Once the industry gets input credit benefit on fuel, it will be a major boost.”

IndoSpace has signed MoU with the Tamil Nadu Government to invest staggering INR 2000 crore to enhance the state’s industrial landscape and economic growth. This investment by IndoSpace is anticipated to generate 15,000 new jobs, providing a substantial boost to employment opportunities in the state. Rajesh Jaggi, Vice Chairman – Real Estate, Everstone Group, said: “Tamil Nadu continues to be a very important destination for us in developing industrial parks. It makes us proud that in providing world-class industrial logistics facilities to our clients, we are also able to contribute to enhancing the state’s industrial infrastructure. Signing this MoU is significant for us as it reaffirms the government’s trust in our capabilities. We are confident that this partnership will not only contribute to Tamil Nadu’s economic development but also work towards strengthening the overall economy for the nation.” IndoSpace has an existing land bank of approximately 600 acres in the region. With an expansive presence of 14 Grade A industrial and logistics parks strategically located around the main industrial hubs, IndoSpace has developed and leased around 13 mn. sq. ft. with a total investment of approximately INR 4000 crore in the state. This MOU with the Tamil Nadu Government is a part of the organisation’s continued commitment towards supporting industrial requirements and has led to the planning of an additional 5 mn. sq. ft. of land in the state.

Pragati Warehousing has signed MoU with the Tamil Nadu government, signaling a substantial investment exceeding ₹1,500 crores over the next five years. This decisive step cements Pragati Warehousing’s steadfast commitment to propelling economic development in Tamil Nadu. The company is strategically positioned to contribute significantly to the region’s growth, with plans to invest in the development of industrial and logistics parks. This investment is projected to generate direct employment opportunities for 500 individuals and create an additional 2,000 jobs indirectly. Lt Col Jitender Yadav, Chairman and Founder at Pragati Warehousing, said, “At Pragati, our efforts are dedicated to transforming the Indian warehousing landscape. This MoU reinforces our commitment to add global standard assets to the Indian logistics and industrial real estate. We believe in setting new industry benchmarks and ensuring that our contributions elevate the standard and efficiency of the entire sector.” Maneesh Jain, Chief Investment Officer at Pragati Warehousing, commented on the MoU signing, “From ease of doing business to a well-established industrial ecosystem, Tamil Nadu offers a compelling proposition for any investor. Tamil Nadu’s strides in electronics and auto manufacturing make it a pivotal hub for our expansion. This collaboration is a testament to the state’s forward-thinking policies, and Pragati Warehousing is excited to contribute to the state’s thriving industrial landscape.” Chandraveer Singh, Chief Financial Officer at Pragati Warehousing, added, “This MoU with the Tamil Nadu government will be instrumental in achieving shared objectives. It also lays a solid foundation for our further expansion in the key micro markets of the state. We are excited to be the state’s partner in progress.”

A.P. Moller – Maersk and the Government of Tamil Nadu signed a Memorandum of Understanding (MoU) to explore strategic opportunities together and enable the state’s growing trade. Tamil Nadu is currently the third-largest contributor to India’s GDP, with the potential to become the second-largest next year. It is also the third-largest exporter from India, with an ambition to become a 1 trillion USD economy by 2030. Maersk will now explore opportunities to invest in land development to create logistics hubs. These logistics hubs will implement the best practices from global examples to drive maximum efficiency while delivering resilience to customers’ supply chains. Maersk will also study the customer needs for storage facilities and build modern, state-of-the-art warehousing facilities that would incorporate the latest Warehouse Management Systems for the most efficient inventory management and focus on waste reduction. Finally, Maersk will also invest in building a fleet of electric trucks that will ensure sustainable and environment-friendly distribution. This is an imperative for some of the top customers of Maersk who have set for themselves stringent NetZero targets and who reply on logistics partners who can deliver decarbonised solutions.

Welspun One Logistics Parks (WOLP) announced the signing of its second Memorandum of Understanding (MoU) with the Tamil Nadu Government, solidifying its commitment to the state’s economic development. This strategic move entails an investment of INR 2000 Crores over the next 5 years and follows a successful INR 2500 Crore MoU inked in 2021. The new MoU, signed at the Tamil Nadu Global Investors Meet 2024, outlines Welspun One’s commitment to drive the proposed development of industrial and logistics parks with an estimated investment outlay of INR 2000 Crores over the next 5 years. This initiative is expected to generate direct employment opportunities for 5000 people and contribute to the development of ancillary industries, creating indirect employment opportunities for 10,000 people. This signifies the Tamil Nadu Government’s support for Welspun One beyond the financial commitment. It encompasses essential infrastructural and regulatory support, prioritizing uninterrupted power supply and other infrastructure assistance on a best-effort basis. The agreement underscores a mutual dedication to fulfilling of agreed-upon obligations, facilitated by Guidance, the nodal agency for investment promotion and facilitation under the Government of Tamil Nadu.

UPS and Guidance, the Government of Tamil Nadu’s nodal agency for investment promotion and single window facilitation signed an investment Memorandum of Understanding (MoU) to open more tech centers in India. The technology centres in India will continue to collaborate closely with UPS’s global tech teams for in-house technology development – solutions that make the company a world-class logistics provider with the best digital customer experience. This latest expansion builds on an initial investment announced in 2023, when UPS unveiled a strategic investment plan of $15-$20 million in its technology centres in India. In August 2023, the company opened its first technology centre in Chennai. The technology centres also show UPS’s commitment to the advancement of women and people from rural areas, including providing them opportunities for fulfilling careers in technology. o As part of its upskilling initiatives, students from the rural areas of Tamil Nadu have already joined the UPS technology centre as interns under the state government’s Naan Mudhalvan scheme. o The Women in Engineering Program, one of the Business Resource Groups at the technology centres, supports the representation of women in engineering through training, mentoring and development programs. o The technology centres also offer UPS ‘Returnship Program’ or ‘Paalam’ (meaning a bridge) – a unique opportunity for experienced technology professionals to re-join workforce after a career break. “Chennai can power innovation for the world as a world-class technology and innovation hub. It’s fueled by India’s ability to scale up talent pools and support innovation for global businesses and economic acceleration. We’re thankful to the Tamil Nadu government and the Guidance team for their support in developing a high-tech future powered by digitization, data analytics and automation. The …