IndoSpace, with backing from Everstone Group, will invest over INR 580 crore to develop two logistics parks across 76 acres in Karnataka. This initiative is part of an INR 3,000 crore commitment to the state's warehousing and logistics industry, as agreed in a 2022 MoU with the Karnataka government. The parks, designed to serve industries like automobiles, engineering, and electronics, will add 1.8 million square feet of development potential. IndoSpace aims to enhance Karnataka"s industrial capabilities, with construction starting this year. These investments reflect strong confidence in the logistics sector's growth and its importance to India's economy.
IndoSpace, backed by the private equity firm Everstone Group, plans to invest over INR 580 crore to develop two new logistics parks in Karnataka. These developments, covering 76 acres, are part of IndoSpace's commitment outlined in a Memorandum of Understanding (MoU) with the Karnataka state government. Signed in 2022, this MoU marks a seven-year agreement in which IndoSpace pledged INR 3,000 crore towards the state's warehousing and logistics industry. This significant investment, the largest by an industrial developer in Karnataka, will create 14,000 new jobs and strengthen the local economy while transforming the industrial landscape.
The planned logistics parks will have a combined development potential of 1.8 million square feet and will cater to key industries, including automobiles, engineering, electronics, and third-party logistics (3PL) operators. Rajesh Jaggi, Vice Chairman of Real Estate at The Everstone Group, announced that they will develop these parks in phases, with construction starting this year and the parks becoming operational within the next two to three years.
IndoSpace will develop Nelamangala II, one of the two proposed parks, on 35 acres along the Bengaluru-Mumbai highway (NH48) with an investment of INR 240 crore. This strategic location will bolster the region's industrial capabilities, positioning it as a significant hub in Karnataka's logistics infrastructure. IndoSpace Narasapura II, the second park, will span 40 acres off Old Madras Road (NH75), near prominent industrial hubs such as Vemgal, Malur, and Hoskote. IndoSpace will invest INR 340 crore in this development, further strengthening its presence in Karnataka.
IndoSpace already operates three logistics parks in Karnataka. IndoSpace Nelamangala I, covering 16 acres; IndoSpace Bommasandra, spread over 5.4 acres along the new Bengaluru-Chennai highway; and Narasapura I, which spans 64 acres. With a nationwide network of 52 logistics parks, IndoSpace has delivered 58 million square feet of space and has numerous projects under development across 11 cities.
The industrial and logistics sectors in India continue to attract substantial investment, driven by rising demand for these asset classes. The ongoing decentralisation of manufacturing from China, along with government initiatives like 'Make in India' and the Production Linked Incentive (PLI) scheme, fuels this growing demand. The favourable regulatory environment, along with government policies and reforms, will likely boost infrastructure spending, thereby increasing demand for modern logistics facilities.
Confidence among developers, owners, operators, and investors in the logistics sector remains high, driven by the growing need for efficient last-mile deliveries and advanced logistics solutions. IndoSpace's continued investment in Karnataka exemplifies the sector's strong growth and its critical role in supporting India's expanding industrial and economic landscape.
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