Category Archives: Warehousing

The real estate sister company of FM Logistic, Batilogistic and Lodha have signed a deal of Rs 106 crore to develop 30 acres land parcel at Palava Industrial and Logistics Park for FM Logistic India, with a total development potential of around 1 million square feet of warehousing space. This agreement is strategically signed to catalyse the job market in the region. Further expanding FM Logistic India’s businesses, Batilogistic will undertake the development of this land parcel in phases over next three to four years. This development is part of the 290 acre Palava Industrial and Logistics Park that also includes a joint venture between ESR and Lodha. Palava Industrial and Logistics Park is now emerging as a world-class hub in the Mumbai region driven by its high quality infrastructure, well planned parks and proximity to Navi Mumbai, JNPT port and upcoming international airport. Also, the park benefits from its easy connectivity to the full social eco-system of Palava City. The park offers a range of options including built to suit structures, standard structures and land parcels. Commenting on the deal, Alexandre Amine Soufiani, MD, FM Logistic India, says, “We are committed to providing our customers with high value and high efficiency Grade-A warehousing infrastructure. Globally, FM Logistic, in collaboration with Batilogistic, is a pioneer in developing and maintaining Grade-A warehousing facilities that provide cutting edge supply chain technologies to our customers. Through our association with the Lodha Group we will gain significant presence to service the neighbouring industrial areas of Thane, Navi Mumbai and Kalyan. The Grade-A logistic facility will be designed according to the best industry standards with high spec buildings, 100% compliance to norms and stringent safety …

In an industry-first move, Welspun One Logistics Parks has introduced a unique, online ‘Partner Portal’ to effectively collaborate with their external stakeholders, especially landowners and brokers. The goal of this platform is to create a transparent and efficient mechanism that will enable sharing of leads and create a direct communication channel with Welspun One’s land buying and leasing teams. Presently, the process of lead generation in the warehousing and logistics sector is confined to traditional modes of communication. The introduction of an online and integrated platform is a major step forward by Welspun One to bring about digitisation in the industry, and is in line with initiatives like ‘Digital India’ where there is an increasing emphasis on creating online infrastructure. Elaborating on this unique feature, Anshul Singhal, Managing Director, Welspun One Logistics Parks, said, “High internet penetration and adoption of technology has accelerated digitisation across verticals. The industry needs a seamless platform to eliminate outdated and lengthy processes involved in land and leasing transactions. With our distinctive, tech-enabled offering – the ‘Partner Portal’, we aim to build a high level of transparency, seamless communication, and timely updates through a single, online channel.” He added, “All the leads fed into the channel are evaluated under a CRM that allows us to sort deals faster and help focus the efforts of the real rainmakers of the industry, our broker community.” The feature can be availed by landowners, brokers, customers and International Property Consultants (IPCs) by simply registering on the company website’s Partner Portal section. The registrant is then provided with unique credentials that allows access to a specific dashboard and enables them to introduce new leads for land transactions and/or for fulfilling …

Mapletree Logistics Trust intends to acquire two yield-accretive warehouses in Maharashtra, India for Rs 4.55 billion (US$ 84.4 million). Ng Kiat, Chief executive of MLTM, said, “This will be MLT’s first acquisition in India, a fast-growing logistics market that offers attractive long-term prospects. Strong demand for logistics space is underpinned by a large growing consumer market, rapidly developing e-commerce, India’s increasing importance as a major manufacturing hub in Asia-Pacific as well as a severe lack of supply of Grade A warehouses.” Its manager, Mapletree Logistics Trust Management (MLTM), announced in a regulatory filing on Wednesday the proposed acquisition – its first in India – of a four-block, single-storey ambient warehouse and a two-block, single-storey ambient warehouse in Pune, both purpose-built with modern logistics specifications. These warehouses with remaining land tenures of 88 years and 86 years have a total gross floor area of over 89,000 square metres and occupancy rates of 100 per cent and 88 per cent. They are leased to a tenant base comprising mostly MNCs such as Kawasaki and Hyundai. The leases have a weighted average lease expiry by revenue of 2.2 years with built-in annual escalations. The acquisition is expected to generate a net property income yield of 7.4 per cent and also to be accretive at the distribution level, MLTM stated. Debts will be used to fund the purchase and the transaction is expected to be completed by the second quarter of 2021. After completion, the aggregate leverage ratio of the trust will be approximately 40.1 per cent while it will have 164 properties and assets under management of approximately S$10.7 billion.

Welspun One Logistics Parks has raised upwards of Rs 300 crore from a set of investors comprising of domestic high-net-worth investors and family offices towards the first close of its Alternative Investment Fund (AIF) ‘Welspun One Logistics Parks Fund I’. Launched early this year, this is India’s first warehousing AIF for domestic investors; key distributors of which are Sanctum Wealth Management, Edelweiss and InCred Wealth. The amount raised is a part of its Rs 500 crore maiden fund which when fully raised, along with associated bank financing will enable Welspun One to develop Grade-A warehousing assets worth Rs 1,900 crore; including its flagship 2.7 million square feet project in Bhiwandi which is currently underway. In total, the company expects to deliver a portfolio with an estimated leasable area of 7 to 8 million square feet over the next 3 to 4 years in pre-identified high growth markets such as Mumbai, Pune, Bangalore, NCR, Chennai, Kolkata and Lucknow. Welspun One’s investment strategy is focused on sourcing and developing feasible land parcels which suit institutional investors and get leased by valued occupiers, whilst maintaining high levels of compliance, safety and zero tolerance to regulatory lapses across the project lifecycle. BK Goenka, Chairman, Welspun Group, said “Led by an experienced team, Welspun One’s unique proposition of being an integrated platform which is able to execute deals from acquisition to development, leasing and divestment has resonated well with investors; as it mitigates some of the key concerns associated with similar products in the past.” He added, “We continue to be very bullish about this sector and are keen to meaningfully increase our allocation of capital through the Welspun One platform.” “Being the first mover …

IndoSpace has announced the acquisition of 55 acres at Farukhnagar in Haryana. This acquisition is a joint venture with Model Economic Township (METL), a 100 per cent subsidiary of Reliance Industries, and has a development potential of 1.28 million square feet. With this, IndoSpace has expanded its footprint in Delhi-NCR to over 480 acres across eight parks. The partnership reiterates the strong association between IndoSpace and Model Economic Township. In 2017, IndoSpace acquired 140 acres from METL in Badli, Haryana. The Farukhnagar micro-market has grown exponentially over the last few years and has emerged as a major warehousing and industrial destination in the Delhi NCR. Farukhnagar is close to Gurugram, New Delhi and other major manufacturing and consumption centers, and has fully developed social and physical infrastructure. This proposed development will meet the rising demand in Delhi-NCR for world-class Grade-A warehousing space from 3PL, FMCG, and e-commerce sectors. Rajesh Jaggi, Vice-Chairman – Real Estate, Everstone Group, said, “METL’s expertise in developing large-scale industrial infrastructure in this micro-market will add significant value to this partnership. This project highlights IndoSpace’s focus on supporting the growth of India’s logistics sector, which will continue to expand robustly due to improved warehousing infrastructure.” Shrivallabh Goyal, Whole-Time Director and CEO, METL, said, “We are happy to partner with IndoSpace to develop this world-class facility. This project is testimony to our pioneering efforts to attract world-class companies through best-in-class infrastructure and establish primacy of METL in the industrial and logistics map of Delhi NCR.” The logistics and industrial real estate sector has shown stupendous growth in the Delhi NCR region. The partnerships between IndoSpace and METL will contribute significantly to the transformation of the sector. The partnership …

ESR has announced that it will develop industrial and logistics facility at Chakan near Pune. Spread over 38 acre, this facility will serve as the hub for light manufacturing and logistics operations in the western region of the country. It will be surrounded by some of the largest auto manufacturing industries of the country. Chakan is known as the ‘industrial hub of India’ and is one of the most prominent industrial clusters for engineering, automobile, electronics, FMCG and logistics corporations. This park is ESR”s second development in Chakan. As of 30 June 2020, the fair value of the properties directly held by ESR and the assets under management with respect to the funds and investment vehicles managed by ESR recorded about US$ 26.5 billion. ESR has been listed on the main board of the Stock Exchange of Hong Kong since November 2019.

“Indian warehousing is going through a transformation,” says, Sandeep Chadha, Partner & Managing Director of Pragati Warehouster. He continues, “With close to 90 per cent of warehousing falling in unorganised category, there are opportunities galore. There is an unprecedented demand for superior Grade-A warehouses from across the industries led by e-commerce. With the onslaught of technology, and favourable tax regime, opportunities are there to scale the operations on a multi-location basis and provide state-of-the-art and globally compliant warehouses. The new normal essentially is incorporating the latest developments. For example, warehouse labour shortages have long been a thorn in global supply chains, but a new web application developed for innovative organisations could soon change that. A host of issues may force warehouse operations to slow down or grind to a halt, but perhaps the most disruptive of all is dealing with a shortage of warehouse employees.” “In times of higher demand, this creates logjams that are tough to break, much less recover from. For businesses, that means both time and resources are wasted. With their first-hand insights into the intricacies of warehousing logistics, we plan a four-member team set out to put an end to this age-old industry problem. Our warehouse operations personnel can easily facilitate the sharing of manpower among the company’s facilities where there are surges in demand. Today logistics cost in India accounts for 13-14 per cent of the Gross Domestic Product (GDP) which is nearly double (7-9 per cent) the logistics cost to GDP ratio in developed countries such as the US, Hong Kong and France. So, there is an opportunity for incumbents to play a decisive role in bringing down the cost with the judicious use …

Bajaj Electricals (BEL) and Mahindra Logistics (MLL) signed an agreement for innovative logistics optimisation and outsourcing arrangement. This deal is a complete end-to-end redesign and outsourcing of Bajaj Electricals’ entire logistics by Mahindra Logistics, with the twin objectives of achieving enhanced & industry-best service levels, coupled with a logistics cost saving in excess of 25 per cent. The total contract value, of this one-of-its-kind deal in the Indian Logistics industry, will be in excess of Rs 1,000 crores over the next 5 years and is the outcome of a unique and collaborative solution. Working together closely, MLL has developed for BEL a fully redesigned and consolidated logistics network, with storage optimisation, transportation management and inventory movement through technology, best practice and automation. At the heart of the network, there will be two large ultra-modern mega-warehouses in Delhi and Mumbai, with latest technology, automation and skill-building, enhanced by environmentally conscious, greener & sustainable warehouse practices. This network will further operate fully IT-enabled fulfilment centres from which BEL’s dealers, distributors, customers will enjoy market-leading delivery lead times. As part of the solution, MLL will be deploying a healthy mix of dedicated long-haul fleets and local distribution trucks, enabled by the latest tracking technology and control tower operations. There will also be a transition towards sustainable logistics using electric delivery trucks from EDel by Mahindra Logistics. For BEL, this project marks a significant transition towards leveraging logistics management as a competitive advantage. Speaking on the occasion, Anuj Poddar, Executive Director, said, “At Bajaj Electricals, we have been actively working towards various strategic initiatives to enhance value for our customers and other stakeholders. This collaboration with MLL is one such key initiative and I …

According to the JLL report ‘India Real Estate Outlook – A new growth cycle’, despite unfavourable socio-economic environment, warehousing stock in top eight cities, which includes, NCR Delhi, Mumbai, Bangalore, Chennai, Pune, Kolkata, Hyderabad and Ahmedabad has added 27 million sq. ft to reach a total of 238 million sq. ft. in 2020. Further, the demand is expected to grow around 160% to reach 35 million sq. ft in 2021 if the external conditions stay stable, mainly if there is no relapse of COVID / lockdown and so on. Probably over the next one to two quarters, a clearer picture will emerge. “In Q4, the market started gaining momentum with highest supply and absorption in 2020 post the lockdown. Industrial spaces witnessed a 13 per cent Y-o-Y growth in total stock in Grade A & B warehousing space in top eight cities. The overall warehousing space stands at 238 million sq. ft at the end of 2020 compared to 211 million sq. ft in the previous year thereby resulting in a net supply of 27 million sq. ft,” said Yogesh Shevade, Head Industrial Services, JLL, India. “Important point to note here is that in 2020 the end -users / tenants have looked for new and innovative ways to taking up spaces on short term / temporary leased of tenure 9 -12 months for leasing of ‘white spaces / unused spaces’ in existing leased warehouse on sub-lease. Unfortunately, these does not get captured in net absorptions (considering these are already leased),” he added. The warehousing and logistics market in India started gaining impetus with highest supply and absorption in the Q4 of 2020. The demand is expected to increase in 2021 …

Stellar Value Chain Solutions has selected cloud-based enterprise-class supply chain solution from Infor for digitising and streamlining its warehouse management. Easily configurable and available across all distribution centres of the company, the digitalised supply chain service will offer its clients enhanced transparency, visibility and cost-efficiency, accelerate go-to-market strategy and leverage data analytics to identify new market opportunities. “At Stellar Value Chain Solutions, we have successfully initiated a tech-driven supply chain transformation across the country by setting up modern distribution centres following global best practices. Leveraging Infor’s supply chain management excellence and futuristic warehouse management solutions, we have taken the transformation to the next level by rolling out a cloud-based enterprise-class Infor Warehouse Management Systems (WMS) in India. This cutting-edge supply chain solution is scalable and flexible which requires minimal reconfiguration to integrate with the clients’ tech platform. It helps us offer our diversified clientele superior real-time visibility, customised services and data-driven consumer insights. Our world-class tech-enabled supply chain solution will help our clients achieve incremental growth,” said Anshuman Singh, Chairman and Managing Director, Stellar Value Chain Solutions. “Digitization is a fundamental reality for businesses today. Infor is proud to be a strategic partner of Stellar Value Chain Solution’s business transformation journey to help bring disruptive change to the Indian supply chain landscape. We have the deep industry experience to understand the complexities and unique technology requirements of this dynamic and fast-evolving industry,” said Ranga Pothula, General Manager, India Business Unit and Senior Vice President, Global Delivery services, Infor, in adding, “Infor’s purpose-built industry-specific solutions in the cloud will deliver to businesses unprecedented visibility into inventory, orders, equipment, and people to enrich service levels, increase product velocity and ensure support for …