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IndoSpace, an industrial and logistics parks developer invested Rs 1000 crore to expand its warehousing presence in NCR region, according to a senior executive.
The company has built two logistics parks, one in Dhatir, near Palwal, and another in Taoru, near Sohna, sum up 3.4 million square feet of space.
“From a warehousing viewpoint, NCR is a prime location for us.” We are growing our network as the region serves as a gateway to the North market and is home to a number of industries and opportunities,” said Rajesh Jaggi, Vice Chairman, Real Estate, Everstone Group.
The Everstone Group, a private equity business with a concentration on Southeast Asia and India, has a real estate division called IndoSpace.
In addition to these logistics parks, IndoSpace owns 8 parks in the Delhi NCR area with a joint potential development area of 14 million square feet.
As it believes that the present and planned infrastructure (KMP, DME) would lead to a rise in the demand for warehousing, particularly from 3PL and e-commerce enterprises, the company is considering a number of greenfield assets in NCR for FY24.
In the future, Jaggi added, “We aim to maintain the momentum and we are confident that these new parks will play a crucial role in propelling the growth of various sectors, including Pharma, 3PL, e-commerce, distribution, and retail.”
In ten Indian cities, IndoSpace runs 50 logistics parks sum up 57 million square feet. The Bilaspur Chowk belt in Haryana, which consist of Pataudi Road, Tauru Road, Farukh Nagar, and Jhajjar, has seen a boom in warehousing sector.
Savills India estimates that more than 46 million square feet of industrial and warehouse space will be absorbed in 2022. In 2022, Mumbai and Delhi NCR, two of India’s main cities, had the greatest absorption rates, each at 14%.
The entire industrial and warehousing space in Tier I cities was 300 million square feet as of the end of 2022 and is foreseen to increase to 342 million square feet in 2023. In terms of investment, the warehousing industry raised $1.5 billion in private equity in 2022.