India’s Surge in Industrial and Warehouse Development

Author
Foodcom Experts
18.03.2024
India’s Surge in Industrial and Warehouse Development
Summary
Table of contents
  • Oragadam’s emergence as a significant industrial and warehouse hub in India.
  • The ambitious $800 million expansion of Greenbase Industrial Park to meet growing demand.
  • Challenges such as complex land acquisitions and escalating real estate costs.

Surge in India’s industrial and warehouse sector

Oragadam, a sprawling industrial center in southern India, is experiencing rapid expansion in the industrial and warehousing sectors. European and American companies are increasingly choosing this location for their investments and are pushing ahead with modernization and expansion. The Greenbase industrial park, managed by Blackstone and Niranjan Hiranandani, is experiencing a surge in demand. There are plans to invest 800 million dollars to expand the warehouse space to 20 million square feet. This development is a response to India’s economic growth of over 8% and the relocation of production sites from China by numerous companies.

Investments and challenges

Companies like Panattoni are embarking on ambitious projects, attracted by India’s enormous growth potential and infrastructural advances. Panattoni is planning a €109 million investment near New Delhi, focusing on access to expressways and rail freight corridors, and has further expansion plans in the pipeline. However, the sector faces challenges, including complex land acquisition issues and rising land prices, which are impacting developers’ returns as rental rates cannot keep pace. Despite these hurdles, demand for quality “Grade A” warehouses continues to rise, driven by e-commerce and manufacturing, highlighting India’s growing role as a hub for exports and domestic sales.

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