Indian warehousing sector sees 8% growth in H1 2024, investment soars to USD 1.6 billion
In the first half of 2024, India's warehousing sector absorbed 16.6 million square feet, an 8% increase from H1 2023 but down 26% from H2 2023, with NCR seeing a sharp 74% decline. Mumbai and Pune led with 63% of total absorption, while southern cities, especially Chennai, saw significant gains. Investment surged to USD 1.6 billion, 42% of total institutional real estate investment in India, driven by foreign interest and economic recovery. Notable deals include Reliance Retail Ventures' USD 1.5 billion investment and new projects like TVS Industrial's USD 15.6 million logistics park in Goa....
Toyota establishes INR 25,000 crore plant in Sambhajinagar
Toyota Kirloskar Motor (TKM) signed a memorandum of understanding (MoU) with Maharashtra's industries department to establish a INR 25,000 crore automobile plant in Chhatrapati Sambhajinagar. Deputy Chief Minister Devendra Fadnavis emphasised that this investment reaffirms Maharashtra as a preferred destination for investors. The plant will create 24,000 jobs, including 8,000 direct positions and 16,000 in ancillary units, boosting the Marathwada region's economy. The facility will produce nearly 4 lakh vehicles annually, starting in three years, and will manufacture both electric and internal combustion engine vehicles.This investment marks TKM's first plant in the Marathwada region....
Industrial and warehousing leasing in India jumps 17% to 13 MSF in H1 2024
India's industrial and warehousing sector experienced a 17% surge in leasing activity in the first half of 2024, reaching 13 million square feet (msf), as reported by Colliers India. Chennai and Delhi-NCR led with over 3 msf each, while approximately 7.5 msf of new supply was added in the April-June quarter, marking the highest in two years. The June quarter alone saw a 48% rise in demand, with Delhi-NCR capturing 1.8 msf. Third-party logistics (3PL) providers were the largest occupiers, and large deals above 200,000 sq ft constituted 35% of the demand, highlighting robust sector growth....
Chennai and Delhi NCR drive industrial and warehousing demand
In H1 2024, India's industrial and warehousing sector saw 13 million sq ft of leasing activity, growing 17% YoY. Chennai and Delhi NCR led demand, driven by Third-Party Logistics (3PL) players, who took 36% of space. Chennai's demand doubled, while Delhi NCR saw significant uptake in Farukhnagar and Sonipat. Engineering, FMCG, and electronics sectors also increased space use. Despite rising supply, vacancy rates grew to 12.2%. The sector added 14.4 million sq ft of new space, with 40% in Delhi NCR. Large deals (over 200,000 sq ft) accounted for 35% of demand, mainly from 3PL, electronics, and FMCG sectors....
Sattva Group to develop 5 million sq ft of warehousing space in Karnataka
The Sattva Group has acquired 200 acres in Karnataka to develop industrial and warehousing assets. With an initial investment of INR 700 crore, the upcoming facilities in Dabaspet and Narsapura will have a development potential of five million square feet. The company plans to invest INR 12,000-14,000 crore over the next two to three years to diversify and explore new markets. Sattva Group, in partnership with Blackstone, holds 32 million square feet of real estate and is considering a REIT. The firm operates across 11 business verticals, focusing on residential, commercial, data centre warehousing, and hospitality....
Mahindra logistics Q1 FY25: Contract logistics grows 9%, freight forwarding up by 12%
Mahindra Logistics Ltd. (MLL) announced its Q1 FY25 results, showing resilience in a moderate demand environment. The Contract Logistics segment saw a 9% year-on-year revenue increase, reaching INR 1,045 crore. The Freight Forwarding business experienced a 12% growth from the previous quarter, driven by inbound ocean cargo demand. The Express business posted a 2% revenue rise, reaching INR 210 crore, with a 16% reduction in losses. MLL's joint venture with Japan's Seino Holdings Ltd. and a new warehouse in Guwahati highlight its strategic expansions. Despite challenges like higher start-up costs and manpower expenses, CEO Rampraveen Swaminathan remains optimistic about the year's outlook....
Aldar and DP World to develop a Grade A logistics park in Dubai
Aldar Properties has partnered with DP World to fund and develop a 1.55 million square feet Grade A logistics park at National Industries Park (NIP) in Jebel Ali, Dubai. This strategic agreement aligns with Aldar's AED 1 billion investment plan to expand its logistics real estate business in Abu Dhabi and Dubai. The park will feature LEED-certified modular buildings for 3PL, eCommerce, and retail tenants. Construction starts in Q4 2024, with completion in Q4 2025. This collaboration enhances logistics capabilities, supporting business growth and diversification in Dubai's logistics sector, and underscores Aldar and DP World's commitment to innovative logistics solutions....
Panattoni begins construction on INR 200 crore Logistics park in Haryana
Global logistics giant Panattoni has officially started its first project in India with the groundbreaking of Panattoni Park NH71 in Haryana. Located on National Highway 352, the 66,000 sqm park will feature over 32,000 sqm of warehousing space designed to high industry standards, including 100% wastewater recycling and ample green cover. This INR 200 crore investment signifies Panattoni's commitment to India, aligning with the country's growing demand for modern logistics solutions. The park's strategic location near major industrial hubs like Luhari and Farrukhnagar will streamline logistics operations and generate significant local employment opportunities....
India's warehousing sector faces land acquisition roadblocks amid rising demand
India's warehousing sector, crucial for economic expansion, faces a hurdle in land acquisition. As demand surges amid rapid economic growth, complexities in acquiring land due to fragmented ownership structures and lengthy approval processes slow development. Global interest, like Panattoni's USD 100 million annual investment plan, underscores market potential, yet initial delays near Delhi highlight challenges. Streamlining land acquisition is vital; simplifying procedures, enhancing data transparency on ownership, and offering incentives can optimise development. Despite obstacles, commitment from firms like Panattoni and expansions by Blackstone and Prologis signal optimism, advocating for collaborative efforts to unlock India's warehousing sector's full potential....
Welspun One raises INR 2,275 crore for modern warehousing expansion
Welspun One, a key player in India's warehousing sector, has secured a landmark INR 2,275 crore (USD 281 million) for its second fund, highlighting robust investor interest. Focused on "new-age" warehousing solutions, the company targets high-growth segments like urban distribution centres, cold storage facilities, and logistics hubs near ports and airports. These initiatives cater to the surging demand fueled by e-commerce and efficient supply chain requirements. With plans to develop 8 million square feet, expanding their portfolio to 18 million square feet, Welspun One aims to enhance delivery efficiency and support India's economic growth through strategic infrastructure investments....
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