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Prologis plans to invest $1 billion in India over the next five to seven years, doubling the amount it had earmarked earlier as it focuses on one of the fastest-growing logistics markets globally.
The company has already acquired land worth $300 million in investment in Bengaluru (Hoskote) and Chennai (Hosur), covering around 300 acres, with a potential to develop 6 million square feet of warehousing space in the next three years. It will primarily focus on five major cities – Delhi, Mumbai, Pune, Bengaluru and Chennai – where it plans to develop logistics hubs.
Joseph Ghazal, chief investment Officer at Prologis said, 'Our core objective is to develop a best-in-class logistics real estate portfolio across the country’s largest five cities. We see immense growth opportunities, driven by the government’s push for infrastructure development and ease of doing business.'
'Prologis plans to take organic and inorganic routes to expand its India portfolio, including greenfield and brownfield acquisitions. The company is also actively pursuing strategic partnerships and joint ventures to accelerate its growth. It remains open to acquiring existing assets that meet its standards,' said Vineet Seksaria, head of India, Prologis.
The company’s commitment to India aligns with its broader strategy of establishing long-term investments in high-growth markets worldwide. 'There is no average asset size. Prologis can build warehouses ranging from 100,000 square feet to 1 million square feet, catering to a diverse clientele, including third-party logistics providers, e-commerce companies, retailers and light manufacturers,' said Ghazal.
Apart from logistics, Prologis is eyeing India’s emerging data centre market, recognising the increasing demand for digital infrastructure. The company is leveraging its global experience in energy, mobility and data centres to explore new opportunities in India. 'Data centres might be a vertical that takes off in India,' said Ghazal. 'We already have the capability and team to cater to customer needs in this space.'
Globally, Prologis operates in 20 countries with a 1.3 billion square feet portfolio and more than 5,800 warehouses. Nearly 3% of the world’s gross domestic product flows through its facilities, underscoring its pivotal role in global supply chains. In 2023, the company strengthened its leadership position by acquiring nearly 14 million square feet of industrial properties from Blackstone-affiliated real estate funds in a $3.1 billion cash deal bolstering the company's financial outlook and justifying the positive analyst sentiment.
