The logistics market glows like a 'supernova' with the entry of the global largest companies
- IBEF
- January 16, 2023
The Indian industrial and logistics spaces in the country has a total stock of about 350 million square feet (msf), and most of the world’s largest logistics players and private equity fund managers are looking to invest anywhere between US$ 500 - US$ 1 billion in the new ventures in the next couple of years, as per some industry experts.
According to sources, Prologis, the largest warehouse owner in the world, has drawn up huge plans for the Indian market and plans to build large warehouses near major industrial and commercial centres of the county. Alta Capital is also gauging two or three platform-level deals in the industrial and warehousing space. It previously did a platform deal last year worth US$ 50 million with Pragati, a warehousing developer and is looking to deploy US$ 150 million more. Mr. Siddhartha Gupta, Founder and Managing Partner of Alta Capital, said that India has a stock of Grade A and B of about 350 msf in the top eight cities of the world. Whereas, Savills India, a property consultant said that the overall industrial and warehousing space stock in tier I cities stood at 300 msf at the end of 2022 and is expected to reach 342 msf in 2023.
Mr. Sandeep Chanda, Managing Director of Panattoni India, one of the world’s largest industrial property developers, said that the market drivers of greater supply chain efficiency, rapid e-commerce growth, and consolidation among third-party logistics providers, help India in sharing the market with its counterparts in the US and Europe. He added that Panattoni India’s focus is to grow in the top eight Indian cities, and they are aiming to launch our first 2-3 projects by the end of 2023, involving an initial investment of US$ 200 million.
The Managing Director of Anarock Capital stated that due to an increase in demand, Grade A warehousing assets will witness an annual growth between 15-20% over the next three to four years. Adding to it, he said that post-Covid-19, the Indian warehousing industry has gone from being a sunrise sector to a full-blown supernova. The tremendous growth potential in the future is rapidly increasing demand from third-party logistics and e-commerce companies, across sectors like retail, fast-moving consumer goods, manufacturing, and electronics.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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