24 Jun 2024

A new report by CREDAI and CRE Matrix forecasts robust growth in India's Grade A warehousing sector, projecting national stock to reach 300 million square feet (msf) by 2025, up from the current 216.2 msf. The surge is driven by the expanding industrial base, increasing manufacturing needs, and booming e-commerce, which requires efficient storage for nationwide order fulfilment. Rental prices for Grade A warehouses have risen by 5% in Q1 2024, with a healthy absorption-to-supply ratio indicating swift leasing and minimal vacancies. Pune and NCR lead demand, contributing 45% of Grade A space needs, with Mumbai Metropolitan Region and NCR combining for 53%. The report underscores government policies supporting the sector, including infrastructure status for logistics, GST implementation, and 100% FDI in warehousing, creating an attractive investment environment. With an anticipated 83.8 msf increase in Grade A space, India's warehousing sector promises substantial growth opportunities amidst a dynamic economic landscape.Read more

21 Jun 2024

ESR Group, a leading Asia-Pacific real estate developer, has acquired an additional 27 acres of land in Oragadam, Chennai, augmenting its existing industrial and logistics park to 107 acres. This expansion enables the development of an additional 2.5 million square feet of warehousing and industrial space, totaling an investment of over INR 276 crore (USD 33 million). Positioned strategically within the Oragadam-Sriperumbudur industrial cluster, the park aims to bolster Tamil Nadu's industrial landscape. ESR's commitment extends beyond infrastructure to creating a sustainable ecosystem, integrating green building practices to support environmental stewardship and enhance operational efficiencies for businesses in the region.Read more

10 Jun 2024

India's manufacturing sector is rapidly ascending, emerging as a favored destination for multinational corporations seeking to decentralize from China. The country's proactive governmental measures, including the influential "Make in India" initiative and Production Linked Incentive (PLI) schemes, have catalyzed this shift. With a burgeoning demand for light manufacturing and warehousing spaces, sectors like engineering, automotive, electronics, and white goods are experiencing exponential growth. India's allure lies in its vast and youthful population, burgeoning domestic market, improved infrastructure through initiatives like the Delhi-Mumbai Industrial Corridor, and investor-friendly policies. The surge in foreign direct investment heralds a new era of confidence in India's manufacturing prowess, setting the stage for further expansion and global prominence.Read more

05 Jun 2024

Hyderabad's prominent IT park, Waverock, has changed ownership once again. A joint venture between Shapoorji Pallonji Group and Allianz Real Estate (SPREF II) exited their investment in the property, selling it for approximately INR 2,200 crore. Waverock, a Grade-A IT SEZ located in Gachibowli, spans 2.4 million square feet and houses major tech companies like Apple. This transaction, involving a new joint venture of global institutional investors, including GIC and Xander Group, marks Waverock's third ownership change in recent years. The deal underscores the continued attractiveness of India's real estate market and Hyderabad's thriving IT sector.Read more

29 May 2024

Transindia Real Estate Limited (TREL), a leading player in the Indian real estate, warehousing and commercial logistics sector, recently announced its financial results for the quarter and full year ended March 2024. The company reported a drop in sales for both the quarter and full year but was able to report a significant rise in net profits due to a divestment of completed warehousing assets that helped boost liquidity and reduce debt. TREL has a robust pipeline of new projects and this enhanced liquidity will facilitate the development of world-class logistics infrastructure across multiple locations.Read more

27 May 2024

Indian logistics startup Porter has become the third unicorn of 2024, valued at over USD 1 billion, amidst a tough funding environment. Uniquely, Porter achieved this through internal investments rather than traditional venture capital. Around 15-20 individuals, including possibly friends, family, or employees, bought shares from the company's ESOP for INR 25 crore (USD 3.03 million). Founded in 2014, Porter focuses on last-mile delivery with light commercial vehicles. Despite a FY23 loss of INR 175 crore (USD 21.1 million), Porter's revenue doubled to INR 1,753.8 crore (USD 212.3 million). This internal funding success offers hope for other Indian startups amid a funding slowdown.Read more

24 May 2024

India leads the Asia-Pacific data centre growth, boasting a capacity of 950 MW, surpassing markets like Australia and Japan. The sector doubled its capacity since the pandemic, with 250 MW added in 2023 and an expected 330 MW in 2024. Mumbai dominates with 50% capacity, followed by Chennai. Emerging cities like Kochi and Jaipur attract development. With over USD 40 billion in investments and Mumbai's strategic location, the industry thrives. As supply surges, tenants gain bargaining power, with demand expected from various sectors. India's data centre sector is set for robust growth, cementing its regional leadership.Read more

23 May 2024

Ikea, the Swedish home furnishing brand, is establishing a 150,000 sq. ft warehouse near Gurugram, its first major venture into the National Capital Region. This move highlights Ikea's dedication to expanding its omni-channel presence in North India, complementing its online platform with physical stores. The warehouse, operational by early next year in Farrukhnagar, will serve as a central hub, fulfilling orders for both online and offline stores. Partnering with logistics leader Rhenus, Ikea aims to leverage its strategic location and efficient operations to meet the surging demand for home furnishing products in Delhi-NCR, setting the stage for a comprehensive expansion strategy in the region by mid-2025.Read more

22 May 2024

Emiza, a leading warehousing and last-mile logistics provider, expands its footprint by inaugurating its 27th state-of-the-art facility in Mumbai, spanning 125,000 square feet. This strategic move enhances Emiza's capabilities, enabling it to serve diverse industries with optimized storage, efficient picking processes, and cutting-edge technology. The new warehouse boasts advanced features like long-span shelving, dedicated return processing center, and robust security measures. Emiza aims to leverage this expansion to cater to emerging business models and broaden its services across sectors beyond its existing expertise. With successful funding rounds and strategic partnerships, Emiza fortifies its position as a leading 3PL solutions provider in India.Read more

10 May 2024

Foxconn, a major Apple supplier and one of the largest electronics manufacturers in the world, has leased about 550,000 square feet of warehouse space in Chennai's ESR Industrial Park located in Oragadam. This comes as exports of iPhones from India are rising sharply. The new facility, one of Foxconn's largest in India, will help optimize its supply chain and logistics to support growing export volumes from its Indian operations. ESR Industrial Park spans 100 acres and is a major industrial hub for electronics and automobile companies. The lease underscores Foxconn's commitment to scaling up production in India to meet rising demand for Apple products.Read more