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TVS Industrial & Logistics Parks (TVS ILP) has entered into a memorandum of understanding with the Karnataka government to invest INR 200 crore in developing industrial and logistics parks across the state. The agreement, formalised recently at an investment conclave in Bengaluru, focuses on creating technology-enabled facilities catering to sectors such as manufacturing, e-commerce, and third-party logistics. The company, which already operates 14 parks in South India, aims to expand its regional footprint through this investment. The development comes amid sustained growth in India's industrial and logistics real estate sector, where leasing activity has recorded double-digit annual growth, driven primarily by manufacturing demand and supply chain expansion across major and emerging markets.
TVS Industrial & Logistics Parks (TVS ILP) has signed a memorandum of understanding with the Karnataka government in the past week to invest INR 200 crore towards the development of industrial and logistics parks across the state, with a focus on strengthening supply chain infrastructure and supporting industrial growth. The agreement was formalised in Bengaluru during an investment conclave, where senior representatives from the company and the state government outlined plans to expand logistics capacity in key industrial corridors. Advertisement
The proposed investment will be directed towards building technology-enabled industrial and warehousing facilities designed to meet the requirements of sectors such as manufacturing, e-commerce, automotive, fast-moving consumer goods, and third-party logistics. These facilities are expected to include Grade-A infrastructure and built-to-suit solutions, particularly in locations around Bengaluru, which continues to attract significant industrial and warehousing demand.
The company currently operates a portfolio of 14 industrial and logistics parks across South India, and the Karnataka investment is intended to expand this footprint while aligning with rising demand for organised warehousing and integrated supply chain infrastructure. The move reflects a broader trend among developers and investors to scale up logistics assets in response to structural shifts in manufacturing and distribution networks.
Industry data indicates continued momentum in the industrial and logistics real estate segment. Leasing activity increased by 15.6% year-on-year to 18.5 million sq ft during the January-March quarter of 2026, according to Savills India. Manufacturing accounted for 35% of total absorption at 6.5 million sq ft, followed by third-party logistics players at 23% and FMCG and consumer durables at 14%. Tier-I cities dominated demand with a 79% share, although tier-II and tier-III cities contributed 21%, reflecting a widening geographic spread of occupier interest.
On the supply side, new completions rose 39% year-on-year to 22.1 million sq ft during the quarter, with tier-I cities accounting for 84% of additions. Pune emerged as the second-largest market in terms of absorption, capturing a 24% share, followed by Delhi-NCR and Mumbai. The data points to sustained demand for modern warehousing, supported by manufacturing expansion, supply chain diversification, and increased consumption across regions.
The agreement with Karnataka also aligns with the state's ongoing efforts to attract investments in industrial infrastructure through policy support and investment promotion initiatives. With Bengaluru and its surrounding regions emerging as key logistics hubs, the addition of new parks is expected to augment capacity and improve distribution efficiency for occupiers.
The development underscores continued investor interest in logistics real estate, where institutional and developer-led investments are increasingly focused on technology-enabled assets that can support evolving supply chain requirements. As occupiers seek scalable and efficient infrastructure, such projects are contributing to the formalisation and expansion of India's industrial and warehousing ecosystem.
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