Warehousing & Logistics

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Transindia Real Estate (TREL) to sell its Logistics Park in Jhajjar, Haryana for INR 637 crore

PNT Bureau

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

PNT Bureau

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

PNT Bureau

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

PNT Bureau

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

PNT Bureau

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

PNT Bureau

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

PNT Bureau

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

PNT Bureau

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

PNT Bureau

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

PNT Bureau

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....