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.
The Indian warehousing sector is experiencing a rise in investment, driven by the growth of e-commerce and changing consumer habits. Welspun One, a leading player in this space, recently raised a record INR 2,275 crore (USD 281 million) for its second fund, highlighting the strong investor appetite.
Welspun One's strategy focuses on "new-age" warehousing, targeting sectors with high growth potential. This includes urban distribution centres (within cities for faster deliveries), cold storage facilities for perishable goods, and logistics hubs located near ports (like Jawaharlal Nehru Port Authority) and airports for efficient national and international movement of goods. These segments are experiencing rapid growth due to the rise of e-commerce, demand for fresh produce, and the need for efficient supply chains across industries.
Modern warehouses offer several advantages over traditional storage facilities. They are strategically located near population centres or transportation hubs, allowing for faster delivery times (critical for e-commerce) and reduced transportation costs. These facilities are also equipped with advanced technology for efficient inventory management and order fulfilment, minimising errors and delays.
With its new fund of INR 2,275 crore, Welspun One plans to invest in projects totaling 8 million square feet, expanding its existing portfolio to a significant 18 million square feet. This expansion reflects the company's commitment to capturing the growth opportunities in modern warehousing.
One example is a mixed-use urban logistics development near Mumbai, targeting a space of close to 1 million square feet with an estimated cost of INR 600 crore. This facility will be strategically located to expedite deliveries within the city limits. Another project involves partnering with the Jawaharlal Nehru Port Authority (JNPA) to develop industrial and warehousing infrastructure in the JNPA special economic zone. This project has a development potential of nearly 1.3 million sq ft at an estimated cost of INR 700 crore. This collaboration will create a modern warehousing hub near a key port, facilitating efficient movement of goods for import and export.
The success of Welspun One's fundraising reflects the growing importance of modern warehousing in India's logistics landscape. This sector is expected to attract further investments as e-commerce continues to expand and consumer demand for faster deliveries increases. The development of modern warehousing infrastructure will be crucial for supporting India's economic growth and improving supply chain efficiency across all sectors.
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