Industrial real estate and logistics parks developer IndoSpace is expanding its presence in western India with two industrial warehousing and logistics parks in Gujarat spread over 90 acres with an investment commitment of around Rs 600 crore.
The company’s logistics parks in Becharaji and Bavla near Ahmedabad aim to cater to the rising manufacturing demand in Gujarat.
IndoSpace Park in Becharaji is located on the outskirts of the Mandal Becharaji Special Investment Region (MBSIR), adjacent to state highway SH-19, and accessible to both industrial and transit hubs.
The logistics park in Bavla is in proximity to the Changodar-Bagodara industrial belts, on the Ahmedabad-Rajkot National Highway (NH) 47, offering Grade A infrastructure to many large and medium industrial and warehousing developments.
"After establishing a strong presence in Chakan, Pune in the western region, we are excited to further strengthen our presence in the state of Gujarat. The state is today one of India's important industrial hubs, and we aim at serving companies in the automotive sector including Battery Electric Vehicle (BEV) and BEV batteries manufacturing, e-commerce and retail industries,” said Rajesh Jaggi, Vice Chairman-Real Estate, Everstone Group.
According to Jaggi, the company plans to leverage on the manufacturing growth in Gujarat and provide Grade A logistics infrastructure to customers across industries.
Both the parks, according to the company, are well-suited for industrial, logistical, and storage operations and are ideally situated to allow quick access to Gujarat's major cities.
Gujarat accounts for nearly a quarter of the country's exported goods, and many global industrial developers and major businesses have their headquarters in the parks’ vicinity. In addition, Maruti Suzuki, Honda, Toyota are among the automotive companies located around these parks.
IndoSpace has the largest network of 44 logistics parks with 49 million sq ft delivered and under development across ten cities. The company is a joint venture between the Everstone Group, an India and Southeast Asia-focused private equity and real estate investor, GLP and Realterm, a US-based global industrial real estate group.
The demand for warehousing space has stood out in the last few quarters led by penetration of e-commerce and growth of third-party logistics in the middle of the ongoing pandemic scenario.
According to experts, the accelerated adoption of e-commerce, same-day or next-day delivery commitments fulfilled by third-party logistics companies, and the need to diversify supply chains are pushing demand for warehousing and logistics.
A favourable regulatory backdrop along with the government’s support through policy and reforms are further expected to boost the infrastructure spend and in turn the overall demand for modern warehousing.
According to industry estimates, almost one-fourth of the total warehousing space in India has been leased by e-commerce firms such as Flipkart and Amazon in the past two years. This is further expected to accelerate, due to larger behavioural change of consumer buying following the outbreak of Covid-19.
Property consultant Knight Frank projects that annual warehousing transactions for top eight Indian cities as primary markets will grow at a compound annual growth rate (CAGR) of 19% to 76.2 million sq ft by financial year 2026 from 31.7 million sq ft in FY2021.
The industrial and logistics segment has become a key growth driver in real estate and expansion of the online retail sector has resulted in greater demand for warehousing, thereby resulting in higher investments in infrastructure and supply chain modernization.
