Category Archives: Warehousing

India’s warehousing sector to reach 516 mn sq. ft. by 2026: JLL

The warehousing and industrial sector of India is expected to expand up to 516 million sq. ft by 2026, states research firm, JLL’s H1 2023 India: Logistics and Industrial State of the Nation study. Delhi NCR, Mumbai, and Bengaluru are the major contributors to this expansion, while the top three cities in terms of demand are Mumbai, Pune, and Delhi NCR. For net absorption or new leases, the top eight cities in the country consisted of 15 million sq. ft., and third-party logistics operators made up for 43% of the demand in their leasing market. That marked a notable increase from the previous year where it was for 35% in H1 2022. Meanwhile, the lease share of the FMCG and retail industry went down to 15% in the current year from 23% in 2022. A similar decrease was also seen in India’s gross absorption, including renewals and churnings, which fell to 20 million sq. ft. in 2023 from 23 million sq. ft. last year.

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IndoSpace to invest $1bn to acquire logistics assets in India

To cater to rising demand, led by improved connectivity and government’s supportive policies, IndoSpace is planning to deploy over $1 billion to acquire new warehousing and logistics assets across India over the next two-three years, said reports. The joint venture between Everstone, Singapore-headquartered logistics facilities provider GLP and industrial real estate firm Realterm, will also be developing additional 30 million sq ft warehousing properties in the country, the reports added. “With the improved connectivity and recent government initiatives, we believe that modern, large, best-in-class logistics and grade A industrial warehousing facilities will continue to be in demand. The booming e-commerce sector and evolving consumption patterns are driving demand for modern logistics and quality warehousing facilities,” Rajesh Jaggi, Vice Chairman-Real Estate, Everstone Group was quoted as saying in reports.

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Lucknow becomes key logistics hub for e-com giants

Lucknow is emerging as a key industrial and logistics hub in North India after Delhi-NCR as the warehousing sector is estimated to generate 70,000 direct employment opportunities over the next five years, according to property consultant CBRE. In a statement, CBRE South Asia said that Lucknow region has witnessed about Rs 400 crore of investment by leading players like Amazon, Mondelez and Flipkart in the last five years, and an additional Rs 70 crore investment is expected in the development of warehouses in the city. The demand for quality warehousing space has consistently grown in Lucknow over the past five years and attained record levels in FY23, the consultant said. The total leasing of warehousing space in Lucknow region in 2022-23 stood at 0.18 million square feet from 0.11 million square feet in the previous year. Currently, the Lucknow region has a total of 5.2 million square feet of warehouse stock with about 1.4 million square feet of Grade A supply in the pipeline on the Lucknow-Kanpur highway cluster. “The capital city of Uttar Pradesh is one of the most important consumption markets in the state and is strategically located with seamless access to East, West, and Central India, emerging as one of the largest logistics hubs of Northern India,” CBRE said.

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IndoSpace leases 3 lakh sq. ft. warehousing space to Kerry Indev Logistics

IndoSpace recently leased 3 lakh sq. ft. of warehousing space to Kerry Indev Logistics. The facility, which occupies a space of 3 lakh sq. ft. is built exclusively for supporting Mitsubishi Electric India’s (air conditioning business) operations. The 3PL logistics provider has a well-established tenant portfolio including key OEMs from automotive and electronics manufacturing across India. The logistics park is situated within the industrial ecosystem provided by Sri City, renowned for its strategic location and world-class infrastructure. Rajesh Jaggi, Vice Chairman – Real Estate, Everstone Group, said, “We are deeply honoured to continue being the partner of choice for Kerry Indev Logistics. This renewed association is a testament to the trust they place in our capabilities, and we will continue to innovate and provide best-in-class solutions to all our partners and operate with the highest governance.” Xavier Britto, Chairman, Kerry Indev Logistics, said “We are excited to extend our partnership with IndoSpace offering Grade A assets and having a robust presence across India. The facility aligns with our mission to provide top-notch logistics and warehousing solutions to our clients. This facility, strategically located at Sri City, coupled with an ideal infrastructure, will enhance our operational efficiency, thereby enabling us to match customer expectations.”

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V-Logis opens 1,25,000 sq. ft. warehouse facility at Bhiwandi

V-Logis opens its state-of-the-art warehouse facility at Bhiwandi. Strategically located on the Mumbai Nashik highway and near the newly opened Nagpur Mumbai Maharashtra Samruddhi Mahamarg, this facility provides the best-in-class storage solution to clients nationwide. Covering a vast area of 1,25,000 square feet with an impressive clear height of 45 feet, this warehouse is specifically designed to cater to the evolving needs of modern logistics and distribution. The location holds immense significance as it lies along the 701-km Nagpur Mumbai Maharashtra Samruddhi Mahamarg, passing through Vadape in Bhiwandi. Additionally, the proposed Virar Alibaug Multimodal Corridor and Vadodara Mumbai Highway will soon offer a robust road network, further enhancing the connectivity of the region to various parts of the country. Key features of this facility include a pre-engineered building (PEB) shed structure, ensuring durability and flexibility, and FM-2 flooring with a load capacity of 8MT per sq meter. The warehouses are compliant with international standards, providing Grade A facilities that guarantee top-notch quality and reliability. Ensuring superior safety measures, the warehouse has received MMRDA approval and Fire NOC. This is equipped with essential safety features, including Water Hydrant, K-series sprinklers, and a 4 lakh-liter water tank.

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WOLP’s second warehousing-focused fund raises INR1,000 cr in 4 months

Welspun One Logistics Parks (WOLP) has successfully raised INR 1,000 crores within four months of launching its second fund. It has also announced the opening of its “green shoe” option to raise an additional INR 1,000 crore. The potential corpus could reach INR 2,000 crore upon completion of the green shoe option, which would rank it among the largest in the domestic real estate alternatives space. With an advanced pipeline of land parcels in key warehousing micro markets such as MMR, Chennai, Bangalore, and Lucknow already in place, the fund 2 is well positioned to add 10-12 million square feet of new projects to its existing portfolio. This approach could potentially create an aggregate portfolio of 16-18 million square feet over the next 4-5 years across first and last-mile facilities in Tier 1 and 2 cities. The plan entails an overall investment outlay of over INR 8,000 crore, which will propel Welspun One to an AUM of USD 1 billion. Welspun One was the first to recognize the untapped potential for domestic investors, WOLP provided this opportunity through financialization of real estate by launching India’s first AIF of INR 500 crore in 2021. This fund successfully committed the entire corpus across six 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 first fund’s portfolio leased and delivered.

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ESR to build urban distribution center in Delhi

ESR Group is making significant progress in constructing its Urban Distribution Centre in Delhi. The project consists of two buildings, and construction is underway for both. Building 1 is approximately 30% complete, with the first-floor slab currently being laid out. Scaffolding work is in progress for building 2, which is currently 20% complete. ESR aims to complete the construction of this multilevel distribution centre by the end of 2023. Situated in Alipur, northwest Delhi, the site will enable just-in-time delivery to 2 million customers in Rohini, Shalimar Bagh, Pitampura, Ashok Vihar, and Model Town, all reachable within 20 minutes. The location offers excellent connectivity throughout the city via the Outer Ring Road, just a 5-minute drive from the site, and the Eastern Peripheral Expressway (KMP). It also provides access to the neighbouring states of Haryana and Punjab via NH44. The upcoming UER 2 starts from NH 44 at Alipur, close to ESR’s Urban Distribution Centre, will connect Rohini, Mundka, Najafgarh, and Dwarka and end at Delhi–Gurgaon Expressway on National Highway 48 and make IGI airport accessible from this location within 40 minutes.

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LP Logiscience opens Grade A, green warehouse in Bhiwandi

LP Logiscience, the warehousing and contract logistic arm of Liladhar Pasoo group, inaugurated a state of the art, Grade A, green warehouse in Bhiwandi, Mumbai. Spread over a private campus of 15 acers, with 5 Lakh sq.ft. of storage space, equivalent to 30,000 pallet positions, this is one of the largest 3PL multi-client facilities in India, and is equipped with the best in industry standards of fire and safety compliance. The warehouse is also equipped with infrastructure for sustainable resource management, and can generate up to 500KW of solar power, and store up to 4.5Lakh liters of water through rain water harvesting and operates EV and CNG vehicles for green distribution. Varun Gada, Director, LP Logiscience, said, “This has been a passion project and, the way I see it, also the future for state of the art, storage solutions. I am extremely honored to have the support of an extremely talented team of expert vendors, especially our warehouse developers, who made this possible within the timelines and for the faith and trust that our clients put in us. We are committed to providing value-added, customized solutions that are executed in a manner compliant with the highest industry standards of safety. We are also committed to driving efficiency by leveraging the best in tech innovation, while also creating sustainable and green warehouses to help our customers achieve their carbon emission goals. This facility in Bhiwandi is one big step in the direction. Apart from solar power and rainwater harvesting for the warehouse, we also aim to impact the local community and share the surplus power to meet the requirement of our immediate neighborhood. In the coming months, we also aim to …

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Safexpress launches ultra-modern logistics park in Baddi

Safexpress has launched its ultra-modern Logistics Park in Baddi, Himachal Pradesh. This state-of-the-art facility is strategically located near Gurumajra, Manpura. The facility is spread over a land area of 70,000 square feet, enabled with ultra-modern transhipment and 3PL facilities, which will boost storage & warehousing needs of the businesses in this region while providing for faster connectivity. The new Logistics Park is cross-dock, equipped with loading and unloading of over 50 vehicles simultaneously. It has a column-less span of over 80 feet, which facilitates uninterrupted movement of goods within the facility. To enable all-weather loading & unloading of goods, the facility is equipped with 16 feet wide Cantilever Shed. The Logistics facility has the required firefighting equipment and trained manpower to deal with such exigencies. It is equipped with an integrated rainwater harvesting system, has a dedicated green zone and will be using sunlight during the daytime to conserve energy. Operations at the Logistics facility is highly streamlined, which ensures the country’s fastest transit-time from Himachal Pradesh to all destinations across India.

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DB Schenker expands logistics capabilities, launches facility

DB Schenker has expanded its capabilities and capacity in the UK and Ireland and in Scotland, the freight forwarder has opened a new facility in Glasgow. The freight forwarder’s new multimodal site in Hillington Park offers regional customers more than 17,000 sq ft of warehousing and more than 750 pallet positions for storage and pick/pack services. The site features full camera coverage including of its own external yard for devanning and loading containers. It is also ISO 9001 and ISO 14001 compliant and will achieve ETSF (External Temporary Storage Facility) Type A status within the next month. Our new Glasgow home offers our customers so much more in terms of warehousing solutions within this modern, highly secure facility supported by our committed and knowledgeable air and ocean team,” stated DB Schenker’s airfreight regional manager North, Debbie McBride.

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