Category Archives: Warehousing

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 …

Snowman Logistics has initiated operations at a newly leased multi-temperature-controlled warehouse in Guwahati, Assam. The total capacity of the warehouse is 5,152 pallets and this facility features eight chambers and four loading bays, equipped with the latest infrastructure. Specifically designed to accommodate products from ambient temperatures to minus 25 degrees Celsius, the warehouse will primarily focus on providing storage, handling and transportation services for ice cream, poultry, ready-to-eat food, dairy products, confectionery, bakery products, seafood, fruits and vegetables. Other products include pharmaceuticals, specialised chemicals and various commodities. Sunil Nair, CEO, Snowman Logistics said “The inauguration of our latest facility in Guwahati signifies a momentous achievement for Snowman Logistics. This establishment marks our initial venture into a fully leased cold storage facility, aligning with our strategic move towards becoming asset-light. With this expansion, our overall pallet capacity has soared to an impressive 1,41,000+ pallets, strategically distributed across 20 cities, thereby expanding our foothold in Northeast India.

The industrial and logistics sector witnessed significant growth both in terms of absorption and supply. In 2023, the sector witnessed absorption of 49.4 mn sq. ft. indicating a 6.7% increase compared to the 46.3 mn sq. ft. absorption in 2022. Notably, tier I cities witnessed 75% of the absorption while tier II and III cities accounted for the remaining 25% according to International real estate advisory firm, Savills India. Tier II and III cities are growing significantly as sourcing hubs, aiding efficient distribution. The absorption is being led by a surge in demand from the manufacturing and retail sectors, as well as continued sustained demand from the 3PL sector. The report suggests that the sector witnessed a fresh supply of 62 mn sq. ft. in 2023 of which 46.2 mn sq. ft. (75%) was from tier I cities and 15.8 mn sq. ft. (25%) from tier II and III cities. The surge in supply was due to the delivery of projects across the cities by major developers in response to growing demand. Absorption (mn sq. ft) across cities Note: Tier I city includes Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, Mumbai, Delhi-NCR, and Pune. Tier II and Tier III cities include Guwahati, Bhubaneshwar, Patna, Hosur, Coimbatore, Rajpura, Lucknow, Jaipur, Nagpur, Surat, Indore, Kochi, Hubli, Vizag, Belgaum and Anantapur. The overall Grade A space accounted for 53% of the supply in 2023 up from 48% in 2022, while overall Grade A absorption accounted for 54% in 2023 up from 42% in 2022, indicating a significant increase in the supply and demand for graded and compliant buildings. “Fueled by rising domestic demand and expanding distribution networks in tier II and III cities, the industrial …