IndoSpace has invested Rs 1,000 crore to expand warehouse premises in the National Capital Region (NCR), states a senior executive in the logistics parks development company.
As per Economic Times report, two logistics parks developed by the company are spread across 3.4 million square feet in Dhatir (near Palwal) and Taoru (Near Sohna).
IndoSpace is the estate branch of Everstone, an Indian and Southeast Asia-oriented private equity firm.
According to Rajesh Jaggi, Vice Chairman, Real Estate, Everstone Group, “From a warehousing perspective, NCR is a crucial location for us. With the region acting as a gateway to the North market and home to several industries and opportunities, we are expanding our network”.
Apart from these parks, IndoSpace own eight parks with a total potential development of 14 million square feet in the NCR region.
The company plans to explore greenfield assets in NCR for FY24 due to expected growth in warehousing demand — particularly for third-party logistics (3PL) and e-commerce, driven by the expressway projects underway — Kundli-Manesar-Palwal Expressway and Delhi-Mumbai Expressway.
“Going forward, we aim to keep up the momentum and we are sure that these new parks will play a vital role in propelling the growth of various sectors including Pharma, 3PL, e-commerce, distribution, and retail,” Jaggi said.
The warehousing industry has mushroomed around Haryana’s Bilaspur Chowk belt, which comprises Pataudi Road, Tauru Road, Farukh Nagar, and Jhajjar.
As per Savills India, industrial and warehousing space witnessed absorption of more than 46 million square feet in 2022.
The 3PL and e-commerce industries were major contributors to the growth of warehousing demand, accounting for 52 per cent of the total absorption.
Delhi NCR was the leading city in terms of absorption in 2022, with 16 per cent, followed by Mumbai with 14 per cent.
Warehouse space in tier-1 cities grew to 300 million square feet by the end of 2022 and is projected to increase to 342 million square feet in 2023.
Currently, IndoSpace owns 50 Grade A logistics parks in North (12), West (16) and South (22) zones, spread across 10 cities and occupying 57 million square feet of space.
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