Welspun One Logistics Parks (WOLP), an asset management and development platform, has bought 40-acres land on the Malur-Hosur Road near Bangalore, to set up a large-scale warehousing facility.
With a development potential of around 1 million sq ft and a total project cost of Rs 300 crore, the facility around 25-km away from Outer Ring Road will service the Bengaluru Metropolitan region’s (BMR’s) industrial and warehousing demand for space.
“South India has always been an important market for us, and this is a crucial first step towards building a presence in the region by developing logistics infrastructure. WOLP has made significant progress in supporting the county’s warehousing network in a short span of time – from our flagship park in Bhiwandi, Maharashtra to the more recent acquisitions in Farukhnagar, Haryana and Lucknow, Uttar Pradesh,” stated B.K. Goenka, Chairman, Welspun Group.
As per him, this land acquisition will deepen the fund’s portfolio and strengthen the company’s vision of being a pan-India warehousing player.
The proposed project will be amid the few warehousing facilities owned and managed by institutional developers in Bangalore that are marked with limited supply of the grade A logistics
space. The demand for warehousing across key cities in India have witnessed a significant uptick on the back of the post Covid19 e-commerce boom.
“The land by virtue of being easily accessible via the Sarjapur road is located close to the residential and IT catchments of South-East Bengaluru. It also has the added advantage of benefitting from the well-established industrial ecosystem in Hosur. Our efforts to build top class warehousing facilities in this region will greatly benefit occupiers including E-commerce/3PL/end users along with industrial and engineering companies with operations in the state,” stated Anshul Singhal, MD, Welspun One Logistics Parks.
This is the first of six projects as part of the Memorandum of Understanding (MoU) that Welspun One recently signed with the Government of Tamil Nadu's nodal agency to set up warehousing facilities across the region.
The projects, to be executed under this pact, are likely to bring in direct investments of around Rs 2,500 crore to Tamil Nadu.
The logistics and storage segments in India are on the verge of transformation, thanks to the implementation of the Goods and Services Tax (GST) and the rise of ecommerce.
While demand in other commercial real estate segments has dampened in recent quarters, the warehouse market has stood out, owing to the growth of ecommerce and third-party logistics.
As per industry estimates, ecommerce companies like Flipkart and Amazon have leased over a quarter of India's total warehouse capacity in the last two years.
This is projected to accelerate further because of a wider shift in consumer buying behaviour following the advent of the Covid-19 pandemic.
The industrial and logistics category has emerged as a key development driver in real estate, and the growth of the online retail sector has resulted in increased demand for warehouses, leading to increased infrastructure and supply chain modernisation expenditures.
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