Warehousing & Logistics

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Porter achieves unicorn status with over USD 1 billion valuation

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....
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India leads Asia-Pacific data centre growth with 950 MW capacity, set to add 850 MW in next three years

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....
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Ikea makes Delhi-NCR debut with massive 150,000 sq. ft warehouse

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....
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Emiza unveils 27th warehouse, expands logistics prowess in India

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....
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Foxconn leases 550,000 square feet of warehouse space in Chennai's Oragadam Industrial Park

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....
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DP World opens 27,512 sq. ft. warehouse in Loutulim, Goa

DP World has inaugurated a state-of-the-art warehouse in Loutulim, Goa, spanning 27,512 sq. ft., poised to revolutionise the region's logistics landscape, particularly for the chemical and healthcare sectors. Strategically located near Mormugaon Port and Dabolim Airport, the facility ensures efficient transportation, reducing costs and delivery times. With a focus on safety, it features advanced fire protection systems and dedicated personnel to uphold occupational health standards. Tailored for the needs of the chemical and healthcare industries, the warehouse offers customisable storage solutions and advanced warehouse management systems for streamlined operations. As part of DP World's extensive national network, it facilitates seamless connectivity and unlocks new growth opportunities for businesses in Goa....
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HealthKart secures warehouse lease in Gurgaon's Logos Luhari Logistics Estate

HealthKart, a leading online nutrition platform, secures its largest warehouse space yet, leasing 2.25 lakh sqft in Logos Luhari Logistics Estate, Gurgaon, facilitated by Worldyard. The move emphasizes HealthKart's commitment to global operational efficiency and customer satisfaction. Amit Chaudhary, Founder of Worldyard, highlights the significance of this decision. Worldyard, renowned for its seamless leasing solutions nationwide, manages prime office, retail, and warehouse properties. Logos logistics park, strategically located with access to NCR's key areas, supports various industries. HealthKart, founded by Sameer Maheshwari, boasts over 200 brands, 100+ retail stores, and strong e-commerce presence....
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Mahindra Logistics' FY24: Standalone revenue at INR 1,183 crore, net loss of INR 54.7 crore

Mahindra Logistics Ltd. (MLL) recently disclosed its financial results for the quarter and year ending March 31, 2024, indicating a mixed performance. Standalone revenue slightly rose for both periods, while profitability dipped marginally. However, on a consolidated basis, MLL reported net losses for both Q4 FY24 and FY24, despite a modest revenue increase. Positive strides were observed in segments like 3PL supply chain services, with notable growth in the automotive, engineering, and consumer goods sectors. MLL emphasized its commitment to expansion through strategic acquisitions, exemplified by the recent investment in Zip Zap Logistics. While short-term challenges persist, MLL's focus on growth segments and strategic investments bode well for future prospects....
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Industrial and warehousing supply reaches a two-year high of about 7 million square feet in Q1 2024

India's industrial and warehousing sector is witnessing unprecedented growth, driven by a surge in demand reaching nearly 7 million square feet in Q1 2024, the highest in two years. E-commerce, with its rapid expansion, is a primary catalyst, with leasing activity for online retail tripling compared to the previous year. Traditional retailers are also expanding their warehousing needs, reflecting evolving consumer habits. While 3PL companies remain dominant, the rise in demand from sectors like retail and engineering signifies a broader economic upturn. Chennai is emerging as a key market, with leasing activity doubling, underscoring its strategic advantages. However, meeting this demand requires substantial investment in infrastructure and modern warehousing facilities across India's key cities....
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Warehousing sector thrives amid e-commerce boom, attracting over INR 8,000 crore in investment

India's warehousing sector is experiencing a significant boom due to the rapid growth of the e-commerce industry and the increasing demand for efficient logistics services, which are valued at billions of dollars. As India's e-commerce market grows rapidly, consumers expect faster delivery times, driving the need for specialised warehousing solutions. Both domestic and global investors are investing heavily in the sector, with big players like Blackstone and LOGOS planning significant expansions. This investment influx, totaling more than INR 8,000 crore, promises accelerated growth and a wider range of high-quality warehousing options. Modern warehouses, built using standardized construction methods and optimised operational practices, are well-positioned to meet the changing needs of businesses, thereby reshaping India's logistics landscape....
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India emerges as the new land of opportunity for global warehouse developers

Developers are rushing to meet soaring demand for warehouse space in India, driven by economic growth and supply chain diversification away from China. Projects like the Greenbase industrial park, backed by Blackstone, are expanding to accommodate companies shifting base from China. With India's infrastructure improvements and favorable market conditions, developers like Panattoni and Prologis are investing heavily. However, land acquisition complexities pose challenges, with surging prices and ownership disputes delaying projects. Despite hurdles, India's warehouse leasing market is thriving, attracting global players and signaling a significant shift in the country's industrial landscape....
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Tata Motors signs MoU with Tamil Nadu Government to set up automobile manufacturing facility

Tata Motors, India's leading manufacturer of commercial and passenger vehicles, has signed a Memorandum of Understanding with the Government of Tamil Nadu to explore establishing a new vehicle manufacturing facility in the state. The proposed investment of INR 9,000 crore could generate up to 5,000 jobs. If established, it would be Tata Motors' first plant in Tamil Nadu and second in South India. The MoU signing was witnessed by Chief Minister M.K. Stalin and aims to further attract investment to Tamil Nadu's thriving automobile industry centered in Chennai....
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Welspun One sells its Gurugram warehouse project for INR 900 million

Welspun One, a prominent industrial real estate developer, recently sealed the sale of a substantial warehousing project in Gurugram for INR 900 million (approximately USD 11 million). This transaction underscores the escalating interest of both domestic and global investors in India's logistics sector. The project, spanning a vast 2.9 lakh sq. ft., strategically located near major highways, enjoyed full occupancy leased to a leading third-party logistics (3PL) player, showcasing Welspun One's proficiency. The company's innovative warehousing Alternative Investment Fund (AIF), amassing over INR 900 million, regulated by SEBI, facilitates local investor engagement in the burgeoning warehouse market....
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Property Share launches its first Grade A+ warehousing asset in Jaipur

Property Share, India's largest commercial real estate investment platform, has launched its first warehousing asset on the platform. The asset is a 9.1% yielding Grade A+ warehouse located in Jaipur totaling 528,631 square feet and rented to Flipkart, India's largest e-commerce player. The INR 191 crore warehouse is Flipkart's largest distribution and fulfillment center in Western India, processing 200,000 orders daily. The asset offers state-of-the-art infrastructure and amenities and is strategically located providing access to over 40% of India's e-commerce suppliers. This marks Property Share's entry into the fast-growing Indian warehousing sector driven by demand from e-commerce companies....
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Blackstone sets sights on expanding Indian warehouse holdings to over 100 million square feet

Blackstone, a leading asset manager, is gearing up for substantial growth in India's real estate market, with plans to ramp up investments in warehouses to over 100 million square feet in the next two to three years. Additionally, the company eyes potential public offerings for its logistics business to capitalize on India's thriving market. Despite investor caution globally, Blackstone remains bullish on real estate in India and aims to leverage opportunities in hospitality, data centers, and office spaces, driven by the country's robust economic growth and demand dynamics....
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Mahindra Logistics launches new fulfilment centre to boost West Bengal's economy

Mahindra Logistics Limited announces the opening of a new 1.1 lakh sq. ft. fulfilment centre in Malda, West Bengal, enhancing its logistics network for grocery and e-commerce sectors. This strategic expansion aims to improve fulfilment and last-mile delivery services, serving Northern West Bengal, Eastern Bihar, and parts of the Northeast. The facility will create over 750 job opportunities and is part of Mahindra Logistics' commitment to diversifying its workforce. With this addition, the company's warehousing capacity in West Bengal increases to 3.3 lakh sq. ft., significantly boosting its logistics capabilities and support for nearly 2000 regional pin codes....
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Transindia Real Estate (TREL) to sell its Logistics Park in Jhajjar, Haryana for INR 637 crore

Allcargo Group's subsidiary, Transindia Real Estate (TREL), is set to sell its logistics park in Jhajjar, Haryana, for INR 636.71 crore, aiming to eliminate debt. The divestment includes a 10% stake in various logistics and industrial parks, yielding INR 433.37 crore in cash proceeds. The move aligns with TREL's strategy to focus on infrastructure development and expand operations, evidenced by ongoing projects in Karnataka and potential ventures in Tamil Nadu and Uttar Pradesh. TREL's commitment to quality, innovation, and sustainability is underscored by its track record in managing 5.05 million sq ft of industrial and logistics parks across India....
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India's warehousing sector achieves highest annual net occupancy

The latest report by JLL, reveals a significant surge in India's warehousing sector, with total stock reaching 371 million sq. ft by 2023, a 15% YoY growth. Major cities like Delhi NCR, Mumbai, and Bengaluru contribute over half of this stock. The demand for Grade A spaces, driven by hygiene concerns amid COVID-19, led to a net absorption of 40 million sq. ft in 2023. Pune led in absorption with 8 million sq. ft. Overall vacancy rates declined to 15% in 2023 and are expected to further reduce to 8% by 2027, with Grade A vacancy rates projected to remain below 5%. The industry is poised for robust growth, with a projected CAGR of 12% in total warehouse stock and 16% in Grade A stock by 2027....
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Walmart aims to triple sourcing from India with a target of USD 10 billion by 2027

Walmart, the global retail giant, plans to triple its sourcing from India, targeting USD 10 billion per year by 2027. At the Walmart Growth Summit, the company emphasized supporting Indian MSMEs and entrepreneurs, already training 50,000 individuals under its Walmart Vriddhi initiative. CEO Doug McMillon and President Kathryn McLay highlighted India's potential, aiming to contribute to its USD 4 trillion economy. The summit facilitates global market access for Indian manufacturers, focusing on diverse categories. Walmart's partnerships in India, including Flipkart and initiatives like Flipkart Wholesale, PhonePe, and Walmart Global Tech India, showcase a holistic approach to fostering growth and innovation....
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Warehouse space utilization surges by 21% in 2023, exceeding pre-pandemic levels

Despite economic uncertainty and decreased investment, the warehousing and logistics industry demonstrated resilience in 2023, with warehouse space usage increasing by 21% to 37.8 million sq ft, surpassing pre-pandemic levels. Institutional investment decreased by 65%, totalling USD 646 million, as investors adopted a cautious approach. Third-party logistics (3PL) firms played a crucial role, representing 44% of total absorption. Mumbai led in absorption, while Kolkata experienced a decline due to warehouse shortages. NCR saw a 21% rise in absorption, driven by its strategic location and e-commerce growth. Southern cities remained significant players despite challenges. While 2024 poses uncertainties, long-term growth prospects remain optimistic, with a predicted CAGR of 10%-13% driven by e-commerce expansion and infrastructure development....
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Zomato leases 3.08 lakh sq. ft. warehousing space in Bengaluru's Sumadhura Logistics Park

Zomato has secured a 7-year lease for 3.08 lakh sq. ft. of warehousing space at Sumadhura Logistics Park near Bengaluru. This deal, marking one of Zomato's largest warehousing transactions, comes as the company reported a net profit of INR 138 crore for the October-December period. Sumadhura Logistics Park, with an initial investment of INR 600 crore, spans 100 acres and offers 2.5 million sq. ft. of commercial warehouse space. The park aims to expand to 6 million sq. ft. in the next phase. Warehouses play a crucial role in buffering against disruptions, with retail being a key driver of warehousing demand in India....
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Metro Brands Ltd leases 3.25 lakh square feet warehouse in Bhiwandi, Mumbai

Metro Brands Ltd secures its largest warehousing space, a 3.25 lakh sq ft facility in Bhiwandi near Mumbai, for a five-year term. With over 826 stores nationwide, the move supports the company's expansion strategy. Facilitated by Colliers India, the transaction underscores the resurgence of the retail industry and rapid advancements in warehousing. RK Builders Group, the lessor, brings a strong track record to the deal. Reflecting broader trends, the industrial and warehousing sector witnessed steady growth, with Mumbai's Bhiwandi emerging as a preferred market. This strategic move aligns with Metro Brands' vision for aggressive growth and commitment to operational efficiency....
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Expanding Horizons: Adani Ports focuses on logistics sector for future growth

Adani Ports and Special Economic Zone (APSEZ) is strategically expanding their logistics business, with a focus on increasing warehousing capacity, rakes, industrial parks, and agri silos. The logistics segment contributed 8% of the company's total revenue in Q3FY24, and Adani Ports aims to triple its rake capacity and commission two new multimodal logistics parks in the next 3-4 years. With plans to expand warehousing capacity to over 60 million square feet, Adani Ports is positioning itself to play a significant role in the growing demand for efficient logistics solutions....
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Wistron and Karnataka Government to establish laptop manufacturing hub near Bengaluru

The Karnataka government has partnered with Wistron, a Taiwan-based ICT Service Management Solutions company, to establish a laptop manufacturing plant near Bengaluru. With an investment of Rs 1,500 crore, the fully automated facility is set to create 3,000 jobs and become operational by January 2026. This first-of-its-kind unit in Karnataka will manufacture laptops for various brands, exporting more than 50% of its production. The plant's focus on Industry 4.0 standards extends to producing IoT components and Electric Vehicle (EV)-related parts. This is aimed at positioning Karnataka as a leader in electronics manufacturing and fostering innovation....
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TVS ILP and Goa-IPB collaborate for logistics park in Goa

TVS Industrial and Logistical Parks (TVS ILP) has entered a strategic partnership with the Goa Investment Promotion & Facilitation Board (Goa-IPB) to establish a cutting-edge Grade A Logistics & Warehousing Park in Verna Industrial Estate. The INR 125 crore investment aims to redefine logistics standards across 15-20 acres, fostering economic growth and creating employment for 250 individuals with indirect opportunities for up to 1000 people. TVS ILP's ambitious plans include developing 20 million square feet of infrastructure nationwide in the next three to four years....
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Mahindra Logistics invests INR 170 crore in a warehousing facility in Phaltan, Pune

Mahindra Logistics Limited (MLL) is constructing a state-of-the-art warehousing facility in Phaltan, near Pune, covering 6.5 lakh sq. ft. Designed in two phases, the first phase of 3.5 lakh sq. ft. is set to commence operations by end-2024. Strategically positioned near key customers in the auto OEM and components sectors, the facility will integrate with MLL's national network, supporting logistics operations for diverse clients. Committed to sustainability, the warehouse will adhere to green standards and contribute to community development. The first phase, contracted to a manufacturing customer, aims for operational status by Q3 2024-25. The project reflects MLL's commitment to efficient and sustainable logistics....
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Mumbai Metropolitan Region achieves record 9.9 Million sq. ft in industrial & logistics leasing in 2023

In 2023, the Mumbai Metropolitan Region (MMR) achieved a historic milestone with an all-time high of 9.9 million square feet in Industrial & Logistics (I&L) leasing, fueled by robust activities in the second half. Dominated by third-party logistics (3PL) players at 73%, the MMR leasing dynamics showcased remarkable growth. Nationally, the I&L sector recorded a peak of 38.8 million square feet in leasing activity across eight cities, driven by structured operational models and increased demand for last-mile delivery solutions. The sector's resilience and strategic realignment has set the stage for continued growth....
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Anant Raj Ltd's Rs 500 Crore QIP fuels ambitious real estate and data centre plans

Anant Raj Ltd raised Rs 500 crore through QIP for debt reduction and working capital. The oversubscribed issue attracted over three times the applications. The company plans to invest Rs 1,000 crore in projects across Gurugram, Delhi, and Tirupati, including luxury and affordable housing. They aim to launch these projects in the next 6-9 months, anticipating Rs 4,500-5,000 crore in revenue over 3-4 years. Additionally, Anant Raj will invest Rs 10,000 crore in developing 300 MW data centre buildings, converting existing IT structures in Haryana....
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India's metro cities display robust demand for industrial and warehousing spaces

In 2023, the industrial and warehousing sector in India's top five cities demonstrated resilience with a 2% annual growth, reaching 25 million sq ft of gross leasing. Pune led with a 25% share, followed by Mumbai at 22%. Bhiwandi and Chakan-Talegaon were the most active micro markets. Third-party logistics players (3PL) constituted 40% of warehousing demand. Leasing by FMCG players tripled compared to 2022. Pune led in consecutive years of growth, while new supply reached 23.2 million sq ft. The sector is poised for continued momentum, driven by factors like EVs and increased retail consumption....
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Ivanhoe Cambridge and LOGOS to invest Rs 21,100 crore in Chakan, Pune

Ivanhoe Cambridge and LOGOS, a global real estate firm and logistics specialist, are set to invest a record-breaking Rs 21,100 crore in a logistics park in Chakan, Pune, marking India's largest foreign direct investment (FDI)-driven integrated private industrial and logistics development. LOGOS' fifth project in India, covering over 143 acres, aligns with the Chakan Industrial Estate's 1,000 manufacturing enterprises. The investment reflects confidence in India's industrial landscape, especially in Pune, recognized as a key growth centre. The project, exceeding 3.5 million sq ft, signifies the demand for modern, responsible infrastructure supporting India's manufacturing growth and emphasizes long-term commitment to the sector....
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Boeing opens distribution centre in Uttar Pradesh for quick spare parts delivery

Boeing, the prominent US aircraft manufacturer, has unveiled its cutting-edge warehousing facility, the India Distribution Centre, in Khurja, Uttar Pradesh. Spanning 36,000 square feet and operated in collaboration with DB Schenker, the centre is a key hub among Boeing's global distribution network, focused on shipping spare parts for its commercial clients. This strategic move aims to enhance support for regional aviation customers, optimizing fleet utilization and providing swift responses to emergent spare parts requirements in India. Positioned strategically along the Eastern Freight Corridor, near Delhi and the upcoming Jewar airport, the facility symbolizes Boeing's commitment to efficient customer service and marks a significant advancement in its global logistics strategy....
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Pixxel inaugurates state-of-the-art manufacturing facility in Bengaluru

Pixxel, a spacetech startup supported by Google, has inaugurated Megapixxel, its cutting-edge manufacturing facility in Bengaluru. Spanning 30,000 sq ft with a clean room and testing area, the facility will support the integration and testing of Pixxel's hyperspectral imaging satellites, starting with the Fireflies constellation in 2024. The facility, capable of producing up to 25 satellites simultaneously, positions Pixxel for substantial manufacturing needs over the next two years. The company plans to launch the Fireflies constellation in June and October 2024, with a target of manufacturing 75 satellites annually at full capacity. Pixxel's collaborations span industries like mining, oil and gas, agriculture, and technology, cementing its role in the spacetech sector....
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