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1、INDIA WAREHOUSING MARKET REPORT 20221INDIAWAREHOUSINGMARKET REPORT 2022RESEARCHINDIA WAREHOUSING MARKET REPORT 20222www.knightfrank.co.in/researchMumbai HOKnight Frank(India)Pvt.Ltd.Paville House,Near Twin Towers,Off.Veer Savarkar Marg,Prabhadevi,Mumbai 400 025,IndiaTel:022 6745 0101/4928 0101;Benga
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3、td.1st Floor,Centre block,Sunny Side,8/17,Shafee Mohammed Road,Nungambakkam,Chennai 600 006,IndiaTel:044 4296 9000GurgaonKnight Frank(India)Pvt.Ltd.Office Address:1505-1508,15th Floor,Tower B,Signature Towers South City 1,Gurgaon 122 001,IndiaTel:0124 4782700;HyderabadWestern Dallas Centre,5th floor
4、,Office#3,Hyderabad Knowledge City,Survey No.83/1,Raidurg,Serilingampally Mandal,Ranga Reddy District,TelanganaHyderabad-500 032,IndiaTel:040 4455 4141 KolkataKnight Frank(India)Pvt.Ltd.PS Srijan Corporate Park Unit Number 1202A,12th Floor,Block EP&GP,Plot Number-GP 2,Sector V,Salt Lake,Kolkata 700
5、091,IndiaTel:033 66521000Ahmedabad Knight Frank(India)Pvt.Ltd.Unit Nos.407&408,Block C,The First,B/H Keshav Baugh Party Plot,Vastrapur,Ahmedabad 380015Tel:079 48940259/40380259CONTENTSProminent themes in FY 2022 Institutional Investment Dynamics in the Indian Warehousing SectorWarehousing MarketsMul
6、ti-Modal Logistics ParksWarehousing Market AnalysisOther Warehousing Market145623AhmedabadAmbala-RajpuraBengaluruBhubaneshwarChennaiCoimbatoreGuwahatiHyderabadIndoreJaipurKolkataLucknowLudhianaMumbaiNagpurNCRPuneSuratVadodaraVapiVisakhapatnamAgraCochinPatnaSiliguriVijaywadaINDIA WAREHOUSING MARKET R
7、EPORT 20223FOREWORDThe past year which marked a period of recovery has seen us collectively overcome the worst of the pandemic.The business environment recovered dramatically once human mobility was restored,sparking a sharp recovery of 8.7%in GDP levels in FY 2022 compared to a contraction of 6.6%i
8、n the previous period.Almost all real estate classes experienced a strong resurgence in demand after the second wave and the warehousing market was not left out.In fact,with the sharp revitalization of consumer demand,businesses were hard pressed to restore supply chains immediately and add warehous
9、ing capacity,which spurred the warehousing market to record large transaction volumes along with robust rent growth across markets.In this report,we assess the warehousing market dynamics of key primary and secondary cities in India on parameters of demand,supply,occupancy and price.We also take not
10、e of the prominent themes that have taken root in the market and are expected to sustain in the foreseeable future.For instance,with the increase in land and construction costs,and a fundamental change in base expectations of Grade A warehousing properties,it is likely that rental levels will stay e
11、levated going forward.Given the extremely low penetration of organized warehousing in India compared to developed economies,and a concerted effort by the government to reinforce our logistics infrastructure with Multi-Modal Logistics Parks across the country,we believe that the Indian warehousing st
12、ory has a long runway for growth.The ever-increasing institutional interest in owning,developing and operating warehouse assets ensures that there is no dearth of professional expertise to direct the course of this growing market as it matures.We have gathered great learnings while making this repor
13、t and I am especially thankful to our industry stalwarts for contributing to this endeavor.I hope that the report adds value to you and plays a part in promoting the Indian warehousing story.I look forward to your feedback and wish you and your loved ones safe and healthy times.Shishir Baijal Chairm
14、an and Managing DirectorINDIA WAREHOUSING MARKET REPORT 20224INDIAN WAREHOUSING SECTORINDIA WAREHOUSING MARKET REPORT 20225INDIAN WAREHOUSING SECTORLogistics and warehousing constitute a critical link in the supply chain that connects the manufacturer to the ultimate consumer.It is the efficiency of
15、 a business supply chain that dictates the reach,time to market and cost efficiencies which prove to be major enabling factors for businesses to stay relevant in todays ultra-competitive environment.This is especially true in an internet age where businesses are constantly compelled to cut costs and
16、 delivery timelines to acquire and retain consumers.Managing cash flows is the biggest challenge businesses face when cutting costs,and inventory is the most significant component that locks cash up.Businesses need to ensure that adequate inventory is maintained to prevent a stock-out even during a
17、spike in demand.While accurate demand estimation forms the foundation of this endeavour,it is the efficiency of the logistics chain that determines the cost and time saving that can be achieved.This need for a continual reduction in the inventory cycle has radically transformed the role of the wareh
18、ouse from being a simple storage depot to a virtual pit-stop that facilitates inventory management,secondary packaging,cross-docking and extraction of products in the least possible time.Logistics cost in India accounts for 13-17%of the Gross Domestic Product(GDP)which is nearly double(6-9%)the logi
19、stics cost-to-GDP ratio in developed countries such as France,Hong Kong and the US.Much of the increased cost can be attributed to the absence of efficient intermodal and multimodal transport systems.Earlier,the incentive for organized players to enter Indias warehousing sector was minimal as the oc
20、cupiers themselves were content to engage with fringe partners that offered low-cost options through a network of small storage facilities near consumption centres.Multiple state and centre level taxes made it sensible for companies to maintain smaller warehouses in each state.Further,this limited t
21、he focus on automation and higher throughput.The services offered by organized logistics and warehousing providers are increasingly seeing higher demand from major occupier groups.A multitude of factors are driving this wave of change which include compliance requirements from regulators in the case
22、 of the pharma industry,quality consistency assurance from clients and regulators,statutory penalties on non-compliant warehousing facilities,economies of scale being achieved with larger warehouses,safety and security of goods,efficiency in operations,quicker turnarounds,the need for efficient ware
23、housing designs,besides the advent of e-commerce and other multinational businesses that prefer to occupy compliant facilities.This shift was further accentuated by the implementation of the Goods and Services Tax(GST)in India.The governments thrust to the sector by giving infrastructure status to t
24、he logistics sector,the Make in India programme,the development of multimodal transport networks and initiatives to set up industrial corridors like the Delhi Mumbai Industrial Corridor(DMIC),the Delhi-Kolkata Industrial Corridor and logistics parks have further fueled this demand.Growing at a fast
25、clip over the past five years,the Indian warehousing market is still a fraction of the size of its global,developed counterparts such as the US,the UK and China,in per capita space terms.The pandemic was the single-most disruptive event for supply chains across the country since the turn of the cent
26、ury,and caused transaction volumes to fall 23%YoY in FY 2021.Businesses that could not cope with its exigencies had to rethink their strategies and build in more resilience across their warehousing footprint.Knight Frank have assessed the short and long-term impact areas in previous reports and some
27、 of these trends have solidified in FY 2022.-Escalating input costs,increase in base expectations,and rising demand to push rental levels up across markets-Warehousing operators have had to contend with increasing input costs that have pushed up the cost of construction by an estimated 10-13%across
28、markets since the advent of the pandemic in early 2020.However,operators have not been able to increase rents due to weakening demand during this period.The strong recovery in demand during FY 2022 has tilted the market balance back in the operators favour with rentals growing by a substantial 5.6%Y
29、oY across the eight primary markets under our coverage.As the industry matures,occupier expectations regarding the base level offerings have increased and these are now getting represented in the standard specifications rather than value-adds that were charged over the base rents.This improvement in
30、 basic offerings has also increased costs and will result in rents forming a higher base going forward.Warehousing transaction volumes for the eight primary markets are estimated to grow at a compounded growth rate of 19%in the FY 2021-2026 period.The 62%growth in volume seen in FY 2022 started this
31、 off on a very strong note,and the resilience built into supply chains with businesses maintaining comparatively higher inventory levels over multiple locations should help support demand and rent.62%Growth in volume seen in FY 2022INDIA WAREHOUSING MARKET REPORT 20226-In-city warehousing and dark s
32、tores to grow on accelerated e-commerce demand-The constant need to reduce delivery timelines had always made the entry of in-city warehousing in the Indian market just a matter of time.With the pandemic vaulting the e-commerce sector on a high growth trajectory and the entry of players such as the
33、Tata Group and the Reliance Group in this highly competitive space,multi-storey warehouses could become mainstream phenomena much earlier than expected.Besides facilitating optimum land utilization in congested cities such as Mumbai,multi-storey warehousing will effectively reduce delivery timelines
34、 and transportation costs.Such solutions are already in place in Asian markets such as Singapore,Hong Kong and Tokyo.3PL players have been scouting for in-city development opportunities across Mumbai,Delhi and Bengaluru.The high real estate costs in these cities,however,make it a challenging venture
35、,and turnkey opportunities such as defunct mills,factory units or shuttered malls are also being considered.A more recent format within the ambit of in-city warehousing that has been gaining prominence is the dark store.A dark store is generally a warehouse that can either be used to facilitate a“cl
36、ick-and-collect”service such as that provided by D-Mart Ready,where a customer collects an item they have ordered online,or as an order fulfilment platform for online sales,generally in the grocery segment.These could be shuttered retail stores or basement premises that can be effectively converted
37、into last-mile order fulfilment centres.Dark stores have risen in prominence in the past two years especially in the grocery segment,with e-commerce players such as Instamart,Dunzo,Blinkit and Zepto maintaining these premises at urban consumption centres.These businesses could take up good propertie
38、s in urban centres as the retail industry has been under significant stress during this period.The dark stores have been instrumental in pushing sales and claiming market share from traditional retail formats with their unique proposition of delivering groceries within the hour at discounted prices.
39、While the discounts are a focused customer acquisition strategy,the rapidly increasing customer demand for this format is expected to continue to push demand for dark stores.The growth of dark stores in international markets fueled by the fast growing demand for online fulfilment and increasingly fa
40、vourable unit economics also support the growth of this format in Indian markets.-Decentralization of global manufacturing to benefit India-China accounted for 28.7%of the global manufacturing output in 2019 according to the United Nations Statistics Division.Global supply chains were heavily impact
41、ed when international travel as well as movement of goods to and from China was severely curtailed by other countries to prevent the spread of the pandemic.This prompted global corporations to scout for other manufacturing destinations so that their businesses would not be overly dependent on any si
42、ngle manufacturing destination.The Indian government launched a Production Linked Incentive(PLI)scheme to attract large investments in the mobile phone and specified electronic component manufacturing units.In November 2020,the PLI scheme was extended to ten more sectors,including food processing,ba
43、ttery storage,automobile components and specialty steel.Approximately 61 companies in the electronics industry(white goods)such as Samsung,Foxconn,Hon Hai,Rising Star,Wistron and Pegatron have set up component manufacturing plants at 111 locations across 14 states/union territories so far.Notwithsta
44、nding the competition from countries like Vietnam,Thailand,Indonesia and Philippines,industrial demand should get a boost as global corporations set up manufacturing operations in India.INDIA WAREHOUSING MARKET REPORT 20227India is among the fastest growing markets for storage infrastructure.Over th
45、e past decade,the industry has evolved from a traditional warehouse model to a modern logistics and supply chain ecosystem.The countrys thriving logistics industry has enabled a wide variety of warehousing needs,including temperature-controlled warehouses,high-density storage,and advanced distributi
46、on centers,among others.The industry is expected to expand further in the coming years,as logistics providers ramp up their capacity to meet the growing demand for logistics services.Additionally,the expansion of third-party logistics is also among the key drivers for demand in the warehousing secto
47、r along with the rise of e-commerce transactions and demand for storage in Tier l and Tier ll cities strengthening the last-mile delivery to customers.The market growth and recovery can be attributed to government policy assistance and increased institutional investment.The government focus is to de
48、velop its own supply chain and build up the domestic manufacturing industry.It has introduced legislation to reform the warehousing industry,which will immensely contribute to the development of the sector.We believe that demand for storage and warehousing services will grow significantly in the com
49、ing years.The entire supply chain is facilitated by seamless storage and movement of goods.Variables such as technical improvements in warehousing with automation and robotic mechanization will transform the industry.In order to increase leasing,there will be a greater emphasis on upgrading and expa
50、nsion in Tier I cities,as well as new market penetration in in-city warehousing and developing logistics hubs.Rajesh Jaggi Vice Chairman-Real Estate Everstone Capital AdvisorsINDIA WAREHOUSING MARKET REPORT 20228Multi-Modal Logistics ParksLogistics cost in India accounts for 13-17%of the Gross Domes
51、tic Product(GDP)which is nearly double(6-9%)the logistics cost-to-GDP ratio in developed countries such as France,Hong Kong and the US.Much of the difference in logistics costs could be attributed to the absence of efficient intermodal and multimodal transport systems in India that form the backbone
52、 of the logistics supply chain of these developed nations.A comparison between India and the USA highlights the difference in road freight cost per ton per km(ptpk)the cost in India(adjusting for Purchasing Power Parity)is INR 1.9 per ton per km,which is almost double that of the USA.0102030405Unfav
53、ourable intermodal mixUnderdeveloped material handling/warehousing infrastructureInefficient fleet mixUnderdeveloped road infrastructureProcedural complexitiesKey factors responsible for higher logistics cost in IndiaSource:Ministry of Road Transport and Highways(MORTH),Knight Frank ResearchSource:M
54、ORTH,Knight Frank ResearchTo address some of these inefficiencies,the Ministry of State Transport and Highways(MORTH)has initiated the development of multimodal logistics parks(MMLP)across 35 nodes in the country which account for approximately 60%of the freight movement in the country.An estimation
55、 for 15 of these regions which account for close to 40%of the freight movement in the country has been detailed below:S.No.Park LocationRequirement(acre)Storage(acre)Infrastructure(acre)Expansion and Landscaping1Delhi-NCR8563572852142Mumbai83North Gujarat4882031631224Hyderabad29512398745S
56、outh Gujarat27911693706South Punjab2269475577North Punjab26711189678Jaipur1978266499Kandla3051271027610BengaluruPuneVijayawada20384685113Kochi264110886614ChennaiNagpur174725843Total(acres)4,8162,0061,6051,204INDIA WAREHOUSING MARKET REPORT 20229Industrial and logisti
57、cs real estate has proven its resilience and will continue to amplify,supported by robust leasing momentum and upbeat investor sentiments.Moreover,Indias positioning to become a global manufacturing destination is in fruition;we have seen increased interest from several companies in the US and Europ
58、e wanting to invest in India and propelling the absorption of Grade A assets in key industrial micro-markets.The sectors that have seen significant real estate expansion are automobile and auto-ancillary,retail,3PL,and manufacturing.We have noticed a short-term dip in e-commerce expansion as they op
59、timise operational efficiencies.There has been increased consumption of electric vehicles supported by government subsidies and escalation of fuel prices.As a result,production and ancillary units supporting EV production have gained prominence.In addition,the adverse effects of climate change have
60、increased the adoption of renewable energy,leading to space requirements for producing and storing renewable energy components.The states that witnessed significant industrial activity are Maharashtra,Tamil Nadu and Gujarat.However,Delhi NCR,West Bengal,and Odisha noticed significant demand from ret
61、ail and 3PL.Moreover,we foresee an increase in rental values,which is much needed to sustain this sectors growth and accommodate the rising cost of construction and land prices.The pandemic has led to a behavioural shift in consumption patterns propelling quick commerce,15 min to same-day delivery.H
62、owever,there is a lack of compliant facilities within cities to support the continued growth.Therefore,multi-level in-city distribution centres in select tier 1 markets will also be one of our focus areas.However,land availability within cities constitutes a significant challenge.These modern multi-
63、storey facilities will serve densely populated catchment areas within cities.Construction delays have been a critical problem;rising input costs have delayed delivery timelines.However,there has been a stabilisation in recent times.Approvals have always been a challenge in this asset class;it takes
64、almost 8 months to a year to start construction,which needs to be optimised.In addition,land prices are soaring,and the availability of land in strategic locations with clear titles is becoming scarcer,posing a challenge for future investments.Overall,the outlook for this sector is optimistic;it wil
65、l continue to attract institutional investments and grow steadily.Abhijit Malkani CEO,ESR IndiaINDIA WAREHOUSING MARKET REPORT 202210The MORTH is implementing the development of Multi Modal Logistics Parks(MMLP)under the aegis of an umbrella SPV called the National Highways Logistics Management Ltd(
66、NHLML).These multimodal logistics parks are expected to serve four key functionalities.Freight aggregation and distributionLogistics parks will typically be developed outside urban agglomeration zones and act as hubs for freight movement enabling freight aggregation and distribution.Freight from pro
67、duction zones will be shipped to nearby logistics parks,where it will be aggregated and shipped on a larger sized vehicle to a logistics park near the consumption zone.Freight arriving at the destination logistics park will be disaggregated and distributed to the consumption zones inside the city.Lo
68、gistics parks acting as freight aggregation and distribution hubs enable line haul freight movement(between hubs)on larger sized trucks,thereby aiding in reduction of freight transportation cost.Logistics in India Existing and Ideal ScenariosMumbai Logistics ParkDelhi Logistics ParkMumbai suburbsDel
69、hiGurugram30 ton truckRailInland waterwaysIdeal ScenarioExisting ScenarioPoint to Point MovementHub and Spoke MovementWarehouseLogistics Parks EnableFreight aggregation&distributionMultimodel freight movementServices Logistics Parks ProvideStorage and warehousingValue added Services(cusrom clearance
70、,etc.)Hub-and-spoke model freight movementSource:MORTHDestination locationDestination locationINDIA WAREHOUSING MARKET REPORT 202211Multimodal freight transportationLogistics parks with road and rail connectivity enable multimodal freight transportation.This aids freight transportation between hubs
71、to shift from road to rail and waterways(wherever possible),thereby reducing the freight cost as rail costs are significantly lower than road costs.In addition,completion of the proposed rail dedicated freight corridors(Delhi to Mumbai,Ludhiana to Kolkata)and focus on developing coastal and inland w
72、aterways will accelerate adoption of rail and waterways for freight movement respectively.Storage and warehousingLogistics parks are envisaged to provide modern mechanized warehousing space,satisfying the special requirements of different commodity groups.For example,logistics parks will provide col
73、d storage facilities required for perishables,racked warehousing space for storing palletizable cargo(eg.parcel,apparel,etc.).With a higher proportion of mechanized material handling,warehousing in logistics parks will reduce storing and handling losses.Value added servicesThe logistics parks area i
74、s also envisaged to provide value added services such as customs clearance with bonded storage yards,warehousing management services,etc.Customs clearance at logistics parks will enable waiting time reduction at the ports and thereby reduce the freight transportation cost and time for export cargo.A
75、 comparison of multi-modal logistics parksMulti-modal logistics parks represent an evolutionary leap in the logistics infrastructure landscape of the country.The locations identified for these MMLPs will organically develop as economic and industrial hubs given the scale of investment and resultant
76、infrastructure that will be generated.Conceived and proposed to be developed under the Public Private Partnership(PPP)model,these MMLPs will attract capital from private sector funds,warehousing and logistics operators and other institutions.With an investment outlay of an estimated INR 500 bn,it is
77、 pertinent to assess the attractiveness of locations for these MMLPs based on inherent advantages that some of these locations possess compared to others.While providing efficient connectivity to consumption and industrial hubs is the focus of an MMLP,its proximity to these centres will certainly ad
78、d to the MMLPs value as an economically viable logistics and warehousing destination.With this in mind,we have assessed the MMLP locations based on the population,average income and the manufacturing output of districts which fall within a 100 km influence area of these MMLPs.The size of the residen
79、t population within the influence area provides a reference point of the potential consumer base in the immediate catchment area.This,along with their average per capita income,renders a good estimation of the effective demand base of the influence area.Similarly,the Net Value Added(NVA)at the distr
80、ict level is an accurate depiction of the manufacturing output within the influence area.These parameters effectively capture the consumption and industrial environment of an MMLPs influence area at a macro level,and enable potential investors,logistics and warehousing operators and others to draw f
81、irst-level comparisons.The scores have been calculated by allocating equal weightages to the population,per capita income and manufacturing output for the districts.While all the locations have the potential to develop into viable MMLPs,we have identified locations that are the most attractive based
82、 on our rating criteria.These locations will benefit from the economic and demographic make-up of their immediate vicinity,in addition to fulfilling longer-range logistics requirements that constitute the core of an MMLP.Transportation cost reduction According to MORTH,logistics parks will drive an
83、estimated 10%reduction in transportation cost for the top 15 nodes by enabling freight movement on higher trucks and rail.Larger sized trucks have approximately 60%lower freight cost on a per ton per km basis compared to smaller,lower trucks.Further,according to MORTH,freight cost by rail is nearly
84、45%lower on a per ton per km basis compared to average road freight cost.Warehousing cost reductionShifting from warehouses currently operated inside city limits to logistics parks situated outside the city limits will enable reduction in warehousing cost due to lower rentals in logistics parks.In a
85、ddition,modern and mechanized storage solutions provided by logistics parks will enable reduction in storage and handling losses.Pollution reductionIncreased freight movement on larger trucks and rail will enable reduction of carbon dioxide(CO2)emissions by approximately 12%for the 15 priority nodes
86、.The larger vehicles will result in lower CO2 emissions on account of lower fuel consumption per ton per km.Further,freight movement by rail has approximately 65%lower CO2 emissions compared to road freight on a per ton per km basis.Similarly,there will also be a corresponding reduction in particula
87、te matter,carbon(CO),hydrocarbon and oxides of nitrogen(HC+NOx)emissions.Congestion reductionAccording to MORTH,increased freight movement on larger trucks and rail to cater to the demands of the top 15 nodes will result in nearly 20%reduction in freight vehicles.In addition,shifting warehouses and
88、wholesale markets currently being operated inside the city or within its expanding periphery to logistics parks would free up urban spaces,enabling congestion reduction.Potential benefits of multimodal logistics parksINDIA WAREHOUSING MARKET REPORT 202212The most attractive MMPL locations reflect th
89、e best consumption markets and most industrial activity within the 100 km influence area of the respective locations.Bids for the Chennai MMLP are likely to close in 2022 and this will be the first MMLP to be awarded under the Bharatmala programme.The Chennai MMLP will require an investment of appro
90、ximately INR 7.9 bn from the private sector.Bids for the Nagpur and Bengaluru MMLPs are also expected to close by the end of 2022 according to the NHLML.The Nagpur and Bengaluru MMLPs will require a private sector investment of approximately INR 6.0 bn and INR 9.4 bn respectively.The bidders will co
91、mpete on a minimum-guarantee revenue share which will be payable three years after the award of the project.Feasibility studies are in progress at Mumbai,Pune,Hyderabad,and Coimbatore,and being initiated at Anantapur,Visakhapatnam,Jammu,Kanpur,and Bidkin/Jalna.At peak capacity,the MMLPs are estimate
92、d to handle 700 million metric tonnes(MMT)of cargo.NHLML has committed to providing a minimum four-lane paved road to the MMLP within two years from the appointed date and rail connectivity in the form of a single line rail siding within four years.The government recently increased the concession pe
93、riod from 30 years to 45 years to improve project viability for potential investors.This was done after taking cognizance of interested developers assessment that three development phases of five years each will only allow for 15 years of full operations and limit the viability of the project.This p
94、roactive and collaborative approach of the government is an indicator of its commitment to MMLPs and the logistics and warehousing sector.The growing Indian warehousing market is bound to be a big beneficiary of this massive regulatory push which sets the stage for increased investments from warehou
95、se developers and investors.MMLP Location Attractiveness IndexMost attractive MLLP locations Other MMLP locationsMumbaiPuneHyderabadNagpurBengaluruChennaiCoimbatoreJalnaVijayawadaNashikPanjiSuratValsadBidkinHisarJaipurKotaBhopalRaipurSundargarhRajkotKandlaSangrurAhmedabadIndoreAmbalaJammuBhatindaUdh
96、am Singh NagarGuwahatiPatnaKochiKolkataNCRVisakhapatnamChennai-Bangalore Industrial CorridorEast coastEconomic CorridorEastern Dedicated Freight CorridoruDelhiDankuniKanyakumariDelhi-Mumbai Industrial CorridorWestern Dedicated Freight CorridorsMumbai-Bangalore Economic CorridorAmritsar-Delhi-Kolkata
97、Industrial CorridorKandla PortJNPT PortParadip PortChennai PortV.O.Chidambaranar Port Cochin Port TrustNew Mangaluru PortINDIA WAREHOUSING MARKET REPORT 202213India is one of the worlds largest consumption markets which makes it an imperative to have a robust warehousing infrastructure.While pivotal
98、 regulatory measures such as the GST act removed inefficiencies on the supply side,the digital revolution has altered consumer behaviour and expectations,boosting growth in the warehousing sector.We believe this is Phase One of growth in the sector.We will see plateauing of demand 2022 and 2023 sett
99、ing the industry up for Phase Two of growth.We expect next phase of growth will be led by a)manufacturing sector,b)new alignment of road infrastructure and c)deeper and wider geographical expansion into next rung of cities.The growth of existing top seven cities will be led by gentrification from ol
100、d warehousing infrastructure to newly built infrastructure coupled with natural growth in per capita consumption.Greater internet penetration along with high adoption of smart phones with pre-loaded operating system and apps in local languages has bolstered the growth of digital led buying decisions
101、 amongst consumers beyond top 7 cities.Cities with high population density locations are becoming the preferred warehousing hubs and investment destinations.The demand for modern built compliant warehousing infrastructure,will see a spike soon in these markets.Same-day delivery assurances by e-comme
102、rce companies,friendly return policies,shorter lead times and the rising popularity of daily online grocery orders are some of the factors contributing to this trend.The higher awareness and commitment toward ESG will spark a radical shift amongst occupiers demanding to move only to such parks which
103、 help them meet their own sustainability goals.We believe that almost all industries will see pressures to have high ESG standards driven from global capital allocators,occupiers and government policy mandates.The PM GatiShakti scheme has become the overarching umbrella for all infrastructure augmen
104、tation plans for multi-modal connectivity and achieving logistics efficiency across the country.Established industrial markets like Gujarat,Chennai and Pune,have already witnessed increase in demand for industrial warehouse developments over the last two quarters.We are extremely bullish on traditio
105、nal Industrial locations over the next few years.Mehul Shah Chief Executive Officer,LOGOS IndiaINDIA WAREHOUSING MARKET REPORT 202214INDIAN WAREHOUSING SECTORInstitutional Investment Dynamics in theINDIA WAREHOUSING MARKET REPORT 202215INDIAN WAREHOUSING SECTORPE investments in Warehousing2011201220
106、001920202021H1 2022Amount invested(USD mn)Number of Deals52,1911,9871,7441,3138481,222Robust growth in Warehousing segmentQ1Q2Q3Q41,4001,3001,2001,1001,0009008007006005004003002001000202055%YoY20282155840Source:Knight Frank Research,Venture Inte
107、lligence Note:Private equity includes real estate funds,pure private equity funds,sector-focused funds,pension funds,sovereign funds,and AlternateSource:Knight Frank Research Buoyed by the e-commerce sector and the expansion of the Indian manufacturing industry,the Indian warehousing segment emerged
108、 as one of the most attractive investment propositions for institutional investors in 2021,at a time when the Indian real estate market was facing challenges due to the persistence of the pandemic.Incidentally,the Coronavirus pandemic merely served to hasten the pace of growth,investments,and techno
109、logical advancement in the warehousing industry.Covid-19 and the resultant global supply chain crisis impacted industries across the world causing a significant shift in construction costs,resulting in higher material costs and supply chain disruptions.The pandemic and the ensuing e-commerce wave ma
110、de consumers move towards online shopping for discretionary and essential items,ensuring a sharp rise in its warehousing demand share.Citing potential growth opportunities for organised segments,private equity investors(which include real estate funds,alternate investments funds(AIF),sovereign funds
111、,pension funds,sector specific funds and traditional private equity funds)have collectively invested over USD 6.2 bn in 2021,with an average investment of USD 119 mn per deal across commercial,warehousing,residential and retail sectors.Since FY 2017,the warehousing industry has garnered the second h
112、ighest share in equity investments after office,and significantly higher than retail.In 2021,the office segment witnessed the highest equity investments of around USD 2.8 bn,followed by warehousing at USD 1.3 bn and retail at USD 817 mn.In H1 2022,investments of USD 1.2 bn have already been received
113、 in the warehousing sector,with the USD 1 bn deal between Lodha Group,CDPQ,and Bain Capital being the largest.Investments in logistics and industrial segments witnessed a robust growth in 2021 on the back of strong demand for this asset class supported by rise in automation,and increased demand led
114、by third-party logistics.The annual investment volume increased by 55%YoY to USD 1.3 bn compared to USD 848 mn received in 2020.Compared to office and retail assets,warehousing assets require relatively less time(12 to 18 months)to construct.As Indias warehousing market is largely fragmented,there a
115、rent many sizable,organised businesses operating across the country whose acquisition costs can significantly affect the size of investor funds.Thus,investors choose to create such assets that can eventually become worthy of REITs or secondary sale.As a result,74%of investments made in the warehousi
116、ng sector since 2011 went toward greenfield/new development projects,while 17%were split between ready and new development.Only 9%of the inflows were used to purchase completed projects.INDIA WAREHOUSING MARKET REPORT 202216The cost of constructing a good quality Grade A warehouse park structure var
117、ies between INR 17,761-20,990 per sq m(INR 1,650-1,950 per sq ft)based on the contour of the land.The cost of land in India varies by a huge margin depending on the location and quality of infrastructure near the land parcel.Cap rates have declined significantly in the previous decadeYear20112022Sel
118、ect good quality rent-yielding warehousing assets13-15%7%-7.5%Compared to office and retail assets,there arent many high-quality mature warehouse assets available in India.The high cap rates observed in the warehousing sector in 2011 were on account of low investor interest,a lack of mature high-qua
119、lity assets,an unorganised industry structure,low demand for the Lack of mature assets in Indias Warehousing segment and shorter construction timelines post land acquisition make a strong case for greenfield investmentsPE and long-term capital providers alike actively participate in creating new War
120、ehousing assets79%21%Source:Knight Frank ResearchShare of investments since 2011Share of investments since 2011PESovereign/Pension fund0200705USGermanyFranceChinaIndiaUKSingaporeUAECanada1,977 USD MN1,200 USD MN150 USD MN100 USD MN364 USD MN55 USD MN2,643 USD MN1,600 USD MN900 USD MN11 DE
121、ALS01 DEALS01 DEALS01 DEALS09 DEALS01 DEALS13 DEALS02 DEALS02 DEALS Investors from Singapore and the US invested the most in WarehousingAmount invested(USD mn)Source:Knight Frank ResearchNote:The Grand Total represents investments announced since 2011.MixUnder-constructionReady16%74%9%1%New developm
122、entservices provided by the organised segment,and a lack of policymakers motivation to assist in the industrys expansion.However,over time,things began to fall in place for the warehousing industry and the cap rates decreased significantly over the last decade.Lack of organised assets and the strong
123、 need for warehouse and logistics spaces during the pandemic resulted in several greenfield developments throughout the year.Investors invested USD 1.2 bn in H1 2022 as industry confidence remained high due to the growing need for last-mile deliveries and logistics.The warehouse sector is projected
124、to emerge from the current crisis the quickest.Investors are likely to return to the warehousing sector with renewed vigour as the pandemics aftermath in India begins to fade and as emergent trends begin to take shape.In the backdrop of a policy of raising repo rate,this increased investor interest
125、is expected to keep warehousing cap rates in tight range in 2022.INDIA WAREHOUSING MARKET REPORT 202217India is at an inflection point.RBIs FY 2023 GDP projection of 7.2%makes India the fastest growing major economy in the world.With over two-thirds of the country younger than 35 years,this growth i
126、s bolstered by a growing middle class and a unified domestic market.Digital connect and the acceleration of e-commerce have fueled the demand for logistics.The countrys aspiration to be a regional manufacturing powerhouse,supported by the USD 1.8 trillion National Infrastructure Pipeline initiative
127、designed to drive national economic growth provides tailwinds to the sector.The country needs rapid creation of Grade A industrial and logistics supply to fulfil the quality,compliance and safety demands of existing and emerging customer segments.We need to also work collaboratively with our partner
128、s and customers to deliver sustainable yields that surmount the headwinds of galloping commodity prices.Horizons eco-system capability to deliver agile,high quality,fully integrated plug and play solutions pan India,from land acquisition to development,operations and asset management,in consonance w
129、ith the highest standards of ESG,promoting decarbonisation,diversity and good governance,is the differentiating edge of our business.The teams unstinted focus on superior tenant engagement provides our customers bespoke solutions that add massive value to their businesses.Rahul Pandit Chief Executiv
130、e Officer Horizon Industrial ParksINDIA WAREHOUSING MARKET REPORT 202218WAREHOUSING MARKET ANALYSISINDIA WAREHOUSING MARKET REPORT 202219WAREHOUSING MARKET ANALYSISAnnual demand analysis Market and sector splitThe warehousing market in India has long been considered an attractive investment opportun
131、ity,given the growing needs of a massive consumption market and the aggressive economic growth targets of the government.The focus on increasing manufacturing sectors share of GDP to 25%by 2025 and transforming India into a global design and manufacturing hub via the Make in India initiative is also
132、 a major driving force behind the interest in the warehousing market.While the investment rationale holds tremendous promise,the fledgeling warehousing market has seen demand falter in recent years due to economic sluggishness since FY 2020 and the COVID-19 pandemic in FY 2021.However,vast improveme
133、nt in the vaccination rates and an increased understanding of the pandemic laid the foundation for a better-than-expected recovery in the general business environment.With people coming to terms with their fear of the pandemic in FY 2022,supply chains recovered and demand rebounded quickly leading t
134、o a lot of spill over demand coming back into the market.The substantial increase in construction costs due to inflationary forces pushing up the prices of critical inputs such as steel and cement,also did not hold back the market from bouncing back to record levels in FY 2022.Occupier demand spiked
135、 62%YoY to 4.8 mn sq m(51.3 mn sq ft)in FY 2022 as businesses made up for lost time,and expansion plans that were put on the backburner due to pandemic related exigencies were revitalised.This also marks a fresh high in terms of annual transaction Warehousing market transaction volumeSo u rc e:Kn ig
136、h t Fran k R es e arc hFY 2017FY 2018FY 2019FY 2020FY 2021FY 20226.05.04.03.02.01.00.01.292.704.313.822.954.77Mn sq mvolumes for the Indian warehousing market underscoring the strength of the market,especially in the backdrop of a still stabilising economy.While NCR and Mumbai led the market in term
137、s of overall transaction volumes during FY 2022,Pune and Hyderabad saw the most YoY increases in annual transacted volumes at 166%and 128%YoY respectively.NCRBENGALURUCHENNAIMUMBAIHYDERABADKOLKATAPUNEAHMEDABADTOTAL0.84(9.1)0.55(5.9)0.47(5.1)0.80(8.6)0.50(5.4)0.40(4.3)0.70(7.5)0.50(5.3)4.77(51.3)FY 2
138、022 in mn sq m(mn sq ft)FY 2022 in mn sq m(mn sq ft)FY 2022 in mn sq m(mn sq ft)FY 2022 in mn sq m(mn sq ft)FY 2022 in mn sq m(mn sq ft)FY 2022 in mn sq m(mn sq ft)FY 2022 in mn sq m(mn sq ft)FY 2022 in mn sq m(mn sq ft)FY 2022 in mn sq m(mn sq ft)32%38%44%48%128%41%166%81%62%26%36%22%41%35%26%30%25
139、%30%Annual warehousing transactions%Change FY 2022 YoYCAGR FY 2017-22S o u rc e:Knight Frank ResearchINDIA WAREHOUSING MARKET REPORT 202220The eight primary markets are split into 31 warehousing clusters and interestingly,over half of the area transacted in FY 2022 occurred in five of these clusters
140、 in NCR,Pune,Mumbai and Kolkata.While occupier demand has rebounded,the fact that it has occurred in tandem with strong rent growth across markets is another reliable sign of market strength.This is also in stark contrast to the sharp fall in market rents seen in the pandemic impacted FY 2021 when a
141、lmost all markets experienced YoY rent declines.Rent growth has been the bane of the market over the past decade with developers facing stiff resistance from occupiers who were extremely reluctant to cede any ground on this aspect.Inflationary trends in steel and cement caused by a supply crunch due
142、 to the pandemic and the more recent rate hikes left little choice for developers and operators but to increase rates in FY 2022.This coincided with the spike in demand seen this year and tilted the market balance in favour of the developer,pushing up rents across the eight primary markets in the ra
143、nge of 3-9%YoY during FY 2022.Occupiers continued to show a marked preference for Grade A properties as they are much better geared toward tackling exigencies such as those posed by the pandemic or addressing the increased throughput requirements seen in its immediate aftermath.The inherent operatio
144、nal efficiencies,adherence to safety standards and better contingency planning as a result of greater expertise of personnel due to higher institutional participation are some of the factors that continue to draw occupier interest.Demand for Grade A properties remained strong during FY 2022 accounti
145、ng for 64%of the transacted volume.Average RentsMarketFY 2021 INR/sq m/month(INR/sq ft/month)FY 2022 INR/sq m/month(INR/sq ft/month)YoY ChangeMumbai218(20.2)238(22.1)9%Kolkata221(20.6)238(22.1)8%Bengaluru202(18.8)215(20)6%NCR193(17.9)204(18.9)6%Ahmedabad167(15.5)174(16.2)5%Pune248(23)258(24)4%Chenna
146、i229(21.3)236(21.9)3%Hyderabad210(19.5)215(20)3%S o u rc e:Knight Frank ResearchWhile it was marginally lower than the 65%market share seen in FY 2021,it was still substantially higher than the 53%seen in FY 2020.3PL and e-commerce players have always coveted the value additions that Grade A propert
147、ies bring into their supply chain operations,and their high share of total transaction volumes also have a significant role to play in the sustained take-up seen in Grade A properties.These two sectors accounted for 57%of the Grade A spaces taken up during the year.3PL players have been the most pro
148、lific occupier group fuelled by the increasing need for e-commerce logistics as well as the strengthening trend of most companies outsourcing their logistics requirements to 3PL operators.The 3PL sector accounted for the highest market share among all occupier groups at 29%in FY 2022.However,this wa
149、s lower than the 31%seen in FY 2021 which can be attributed in part to the drop in share of the e-commerce sector which constitutes a significant part of a 3PL players tenant roster.31%of the total space taken up by the 3PL sector in FY 2022 was located in Pune.The e-commerce sectors share fell from
150、 31%in FY 2021 to 23%in FY 2022.E-commerce players had aggressively expanded in FY 2021 especially in the grocery and pharmaceuticals space and had carried spare capacity into FY 2022.With retail stores having opened up,and life getting back to normal,the spike in consumer demand that they experienc
151、ed during the pandemic,ebbed to some extent.E-commerce players are recalibrating their operations to match contemporary consumer demand and this is reflected in their current share.However,with consumer behaviour being increasingly inclined to transacting on the internet,especially in younger genera
152、tions,e-commerce activity in the warehousing market is expected to regain traction in FY 2023.The absolute volume transacted by the sector has grown 17%in YoY terms despite the drop in share of total transactions.E-commerce players have expanded the most in the NCR markets in recent years and this h
153、as reflected in the markets overall share in the e-commerce sectors transactions pie which was the highest among the eight primary markets at 32%in FY 2022.With mobility restored to normalcy during FY 2022 as pandemic related fears abated,consumer demand rebounded in the hard format stores and had a
154、 direct bearing on the warehousing space take-up of the retail sector.The sectors share spiked from 4%in FY 2021 to 11%in FY 2022 as retailers had to quickly add warehousing capacities to cater to the swift rise in demand.In contrast to the 3PL and e-commerce occupier groups,manufacturing sectors su
155、ch as automobile,electronics and pharmaceuticals have seen significant growth in market share of total transactions,from 23%in FY 2021 to 27%in FY 2022.India has benefited from the sustained move towards decentralisation of manufacturing capacity from China,and in conjunction with the governments fo
156、cus on Make in India and the Production Linked Incentive(PLI)scheme,this has boosted the prospects of these industries in the country.INDIA WAREHOUSING MARKET REPORT 202221Annual share of Grade A transactionsS o u rc e:Knight Frank ResearchFY 2020FY 2021FY 202270%60%50%40%30%20%10%0%53%65%64%Sahre o
157、f Grade A transactionsSector-wise share of transactionsTransaction share by end-use of spaceSectorFY 2018FY 2019FY 2020FY 2021FY 20223PL35%36%35%31%29%Other Sectors21%21%23%23%27%E-commerce14%24%23%31%23%Retail12%11%8%4%11%Miscellaneous4%1%4%1%5%FMCD6%3%4%5%3%FMCG7%4%4%5%2%Source:Knight Frank Resear
158、chNotes:Warehousing demand data includes light manufacturing/assembling.Other Sectors include all manufacturing sectors(automobile,electronics,pharmaceutical,etc.)except FMCG and FMCD Miscellaneous category includes services such as telecom,real estate,document management,agricultural warehousing an
159、d publishingSource:Knight Frank ResearchNotes:Warehousing transactions refer to storage activityIndustrial transactions refer to manufacturing activityFY 2022 transactions share by end-use FY 2021 transactions share by end-use FY 2022 transactions share by end-use FY 2021 transactions share by end-u
160、se Warehousing Industrial88%12%WarehousingWarehousingIndustrialIndustrial85%15%12%of the volumes transacted during FY 2022 were purely for industrial use i.e.their end-use involved some form of manufacturing activity from sectors like automobile,FMCG and FMCD.Among the top eight markets in India-Pun
161、e,Chennai and Ahmedabad are cities with a significant industrial base.The market for industrial-use properties is expected to gain traction gradually as the governments focus on increasing Indias manufacturing heft starts to pay dividends.Stock and supply Knight Frank has conducted a ground-up surve
162、y of warehousing stock in the top eight markets of India to arrive at an assessment of the supply scenario that exists in the market today.The eight primary markets of India held an estimated 35 mn sq m(376 mn sq ft)of warehousing stock at the end of FY 2022.The Mumbai market accounted for 42%of thi
163、s stock and along with NCR,constituted 60%of the total stock.Strong transaction volumes have brought down the vacancy levels marginally to 16%in FY 2022.In fact,with the exception of Mumbai and Chennai,vacancy levels have reduced significantly for all other markets.Warehousing market stock,supply an
164、d vacancyFY 2021FY 2022403530252015105030.571.5516.6%So u rc e:Kn igh t Fran k R es e arc h17%16.5%16%15.5%15%14.5%14%4.3334.8916%Stock Supply VacancyMn sq MnVacancy%INDIA WAREHOUSING MARKET REPORT 202222Warehousing stock and vacancyMarketExisting Stock mn sq m(mn sq ft)Vacancy FY 2021Vacancy FY 202
165、2Mumbai 14.6(157)13.3%19.0%NCR6.4(68)15.8%13.8%Chennai3(32)13.1%15.0%Pune2.5(27)21.8%15.9%Bengaluru2.4(26)25.2%12.3%Kolkata2.3(25)21.5%10.4%Ahmedabad2.3(25)22.8%13.9%Hyderabad1.4(15)18.9%15.9%Total34.9(376)16.6%16.0%So u rc e:Kn igh t Fran k R es e arc hThe development of Grade A warehousing facilit
166、ies has been increasing in recent years,currently constituting 37%of the total stock compared to 35%in FY 2021.The larger warehousing markets of Mumbai and NCR have a significantly lower proportion of Grade A warehouses as they are much older markets,and a bulk of their stock had been built before t
167、he demand for Grade A warehousing gathered momentum.Pune and Chennai have the highest concentration of Grade A stock due to their primary demand base of auto and auto ancillary occupiers.The rising trend of Grade A development continued in FY 2022 with developers increasingly focusing on higher grad
168、e park development compliant to contemporary norms and the higher throughput requirements of businesses today.There is also an emerging focus on improving the aesthetics of these warehousing parks and enabling a better working environment.52%of the supply coming online in FY 2022 across the eight pr
169、imary markets was in Grade A properties.Six out of eight markets have seen the share of grade A stock increase in FY 2022 compared to the previous year.Share of Grade A stockMarketFY 2021 FY 2022 Chennai71%76%Pune71%70%Kolkata56%59%Hyderabad56%54%Bengaluru42%47%NCR29%36%Ahmedabad30%31%Mumbai18%18%To
170、tal35%37%Grade A VacancyMarketFY 2021 FY 2022 Bengaluru9.4%6.2%Kolkata12.7%8.5%Hyderabad12.4%9.0%Pune14.3%10.2%Chennai11.2%10.7%NCR22.5%11.6%Mumbai13.3%19.3%Ahmedabad32.6%21.5%Total15.1%13.0%Vacancy split by gradeGrade B VacancyMarketFY 2021 FY 2022 Bengaluru36.9%17.8%Kolkata32.6%13.2%Hyderabad27.1%
171、24.0%Pune40.3%29.5%Chennai17.4%28.7%NCR13.1%15.1%Mumbai13.3%18.9%Ahmedabad18.6%10.5%Total17.5%17.8%Total VacancyMarketFY 2021 FY 2022 Bengaluru25.2%12.3%Kolkata21.5%10.4%Hyderabad18.9%15.9%Pune21.8%15.9%Chennai13.1%15.0%NCR15.8%13.8%Mumbai13.3%19.0%Ahmedabad22.8%13.9%Total16.6%16.0%Vacancy in Grade
172、A properties is significantly lesser than the total vacancy for the eight primary markets under coverage and has reduced for the eight markets in FY 2022.Conversely,Grade B properties which constitute 63%of the existing stock in these markets saw vacancy increase from 17.5%in FY 2021 to 17.8%in FY 2
173、022.The increase of vacancy in Grade B properties compared to the decrease in Grade A properties in FY 2022 clearly depicts the shift in occupier preferences.Approximately USD 9.3 bn have been committed by private equity players in the warehousing market since the GST reforms were applied in 2017.Th
174、e relative dearth of supply of high-quality warehousing facilities that conform to contemporary compliance norms,continue to be a challenge.The availability of suitable land at reasonable prices is the biggest impediment in creating new supply as land parcels with clear title continue to be scarce a
175、nd digitisation of land records which can address this issue,is still a long way from becoming a reality.Bhiwandi and the Nashik Highway in the Mumbai market are a case in point where there is very strong occupier demand but issues with land titling curtail institutional interest.The market has clea
176、rly emerged from the shadow of the pandemic and occupier demand has continued to strengthen,concluding the year with a healthy pipeline.While inflationary worries in the global economy are causing concerns in the economy,the aggressive rate hikes undertaken by the central bank have proved effective
177、in controlling inflation.While the global economic environment will impact businesses in India,our relatively healthier fiscal position and gradually improving economy should support the warehousing market in FY 2023.INDIA WAREHOUSING MARKET REPORT 202223As India makes a big stride towards becoming
178、a global manufacturing and industrial giant,warehousing will serve as a large contributing factor and act as an enabler,fast becoming one its biggest building blocks.The introduction of various favourable initiatives like GST,PM Gati Shakti,and the ongoing national logistics policy,have made the sec
179、tor more bankable.This has further opened opportunities such as new land banks and greater supply chain efficiency that will help cater to wider customers across different pin codes,in turn creating more job opportunities.This evolving pace of the sector has made it a favourite of global investors l
180、ooking to capitalize on the bullish outlook of this strong growth story.As a key industry player,we have observed that even though India is one of the top markets,the limitation of Grade A warehousing remains a concern and thus,there is a huge opportunity to build and deliver Grade A,state-of-the-ar
181、t Logistics and Industrial parks which are 100%compliant,sustainable and have stringent safety norms.While the demand for Grade A has been consistent,there has been an inroad of newer trends like In-city warehousing,build-to-suit units,and automation.We envision that,in order to ensure seamless oper
182、ations and maximum output,more emphasis will now be given to evolved design functions and processes as per international standards.There is a collective need for tech upgradation and industry-wise customisation of warehouses especially when it comes to pharma,FMCG and cold storage.Logistics and e-co
183、mmerce players are scaling up to larger spaces in Tier-I and Tier-II cities.Tier 2-3 markets are the new hotspots that are catering to new consumers.The sector is being segmented based on industry type,usage pattern,infrastructure,end-user,technology-adoption and region,there has also been significa
184、nt growth owing to the rising demand for perishable goods.Additionally,flexible storage spaces with highly functional logistics parks help businesses meet their needs and give them better control over their budgets providing scalability and reduction in overall operational costs.The demand for the w
185、arehousing sector is on an upward trajectory.Welspun One has recognised this opportunity and last year acquired land across key micro markets pan India,and successfully launched and closed Indias first SEBI registered Category II INR 500 Cr AIF for domestic investors.”Anshul Singhal M.D.Welspun One
186、Logistics ParksINDIA WAREHOUSING MARKET REPORT 202224MumbaiPuneHyderabadNagpurBengaluruChennaiCoimbatoreVijayawadaSuratVadodaraVapiJaipurLudhianaAhmedabadIndoreAmbala Rajpura GuwahatiPatnaAgraSiliguriKochiKolkataLucknowNCRVisakhapatnamBhubaneshwarWAREHOUSINGMARKETSPrimary MarketSecondary MarketINDIA
187、 WAREHOUSING MARKET REPORT 202225AHMEDABAD WAREHOUSING MARKET The Ahmedabad warehousing market witnessed leasing volumes of 0.50 mn sq m(5.3 mn sq ft)in FY 2022,recording an 81%YoY rise.The city being a manufacturing and industrial hub,manufacturing sector companies(Other Sectors)are amongst the lar
188、gest demand drivers of the Ahmedabad warehousing market,accounting for 29%of the total demand of FY 2022.The 3PL and e-commerce sectors were the second and third most prolific consumers of warehousing space and constituted 19%and 16%share of the transactions pie respectively.The warehousing clusters
189、 in Ahmedabad are concentrated on the western and southern part of the city,connecting the market to major cities in Gujarat such as Rajkot and Vadodara.There are four major warehousing clusters in Ahmedabad:Aslali-Kheda and Changodar-Bagodara,located on the southern part of Ahmedabad,are the bigger
190、 established clusters that also lie along the golden quadrilateral which is well connected to Mumbai;while Sanand-Viramgam and Chhatral-Kadi-Vithalapur-Becharaji belt located in the western part are relatively newer clusters.The Aslali-Kheda belt is one of the oldest warehousing clusters and lies on
191、 the Mumbai-Ahmedabad highway capturing the maximum warehousing demand of 43%of the total in FY 2022.The belt is dominated by consumer led demand followed by that from manufacturing sectors.In FY 2022,the 3PL sector took up 27%of the total volume transacted while e-commerce accounted for 8%.The manu
192、facturing segment took up 24%of the total transactions.Being an older market,however,Ahmedabad has several bottlenecks ranging from insufficient infrastructure support to high land prices and a lack of modern offerings,making it unviable for new warehousing to develop in this area.Only 36%of the tra
193、nsactions concluded during FY 2022 took place in Grade A facilities compared to 48%in the preceding year,as most of the supply was controlled by local landowners.The Changodar-Bagodara belt lies along the Rajkot-Ahmedabad Highway,where the warehousing demand in FY 2022 came largely from the manufact
194、uring segment followed by e-commerce and retail segments.This belt is supported by good infrastructure and good quality 3x3 lane roads with divider separation.Several industries and manufacturing companies have their presence here due to the well-developed and planned eco system.New logistics and wa
195、rehousing parks,well equipped with modern technology have come up on this belt and have helped increase occupier activity here.35%of the transactions during FY 2022 took place on this belt.The Sanand-Viramgam and the Chhatral-Kadi-Vithalapur-Becharaji belts have primary focus on the automobile secto
196、r with the presence of large automobile companies along with their ancillaries.The Chhatral-Kadi-Vithalapur-Becharaji cluster accounts for 14%of the transaction volume in FY 2022 while Sanand-Viramgam accounts for 7%.In FY 2022,the space take up was driven by warehousing demand which garnered 92%sha
197、re of the transactions.The industrial segments which undertake various kinds of light to heavy manufacturing activities in warehousing parks had 8%share of transactions.The rentals for Grade A spaces in the Aslali Kheda belt are ranging between 183-269/sqm/month(17-25/sqft/month)while in the Changod
198、ar-Bagodara belt are ranging between 161-258/sqm/month(15-24/sqft/month).The Sanand-Viramgam belt and the Vithalapur Becharaji belt are comparatively affordable markets.The rentals for Grade A spaces in the Sanand-Viramgam belt range between 151-215/sqm/month(14-20/sqft/month)in the Vithalapur Becha
199、raji belt range between 172-215/sqm/month(16-20/sqft/month)Leasing volumes in Ahmedabad market grew by 81%YoY in FY 202236%of transactions in FY 2022 took place in Grade A facilities.92%of leasing in FY 2022 was towards warehousing demand.INDIA WAREHOUSING MARKET REPORT 202226Major warehousing locat
200、ions in AhmedabadClassification of warehousing locations into major clustersAHMEDABADSACHANAVITHALAPURKADISANANDCHANGODARBAVLABHAYALAKHEDAASLALIJETAPURBAREJAKANERAGOBHALAJHARIYALABAGODARANH47NH47NH47NH47NH47NH64NH64NH147NH947NH147NH147NH48NH48NE1S o u rc e:Knight Frank ResearchS o u rc e:Knight Fran
201、k ResearchWarehousing ClusterMajor Warehousing LocationsAslali-Kheda ClusterAslali,Jetalpur,Bareja,Kanera,Gobhalaj,Hariyala,KhedaChangodar-Bagodara ClusterChangodar,Bavla,Bhayala,BagodaraSanand-Viramgam ClusterSanand,Sachna,ViramgamChhatral-Kadi-Vithalapur-Becharaji ClusterChhatral,Kadi,Vithalapur,B
202、echarajiINDIA WAREHOUSING MARKET REPORT 202227Classification of warehousing locations into major clustersWarehousing market transaction volumeSelect warehouse projectsTop transactions during FY 2022S o u rc e:Knight Frank ResearchS o u rc e:Knight Frank ResearchSo u rc e:Kn igh t Fran k R es e arc h
203、S o u rc e:Knight Frank ResearchNameTypeDelhi-Mumbai Industrial Corridor(DMIC)Manufacturing CorridorWestern Dedicated Freight Corridor(DFC)Railway National Expressway-1Road InfrastructureAhmedabad-Rajkot National Highway (NH-8A)Road InfrastructureAhmedabad-Sanand-Viramgam State Highway(SH 17)Road In
204、frastructureSP Ring RoadRoad InfrastructureMandar Becharaji Special Investment Region(SIR)Industrial HubGIFT CityMega TownshipDholera Special Investment Region(SIR)Industrial HubWarehouse ProjectWarehouse ClusterPrime Indraprasth Industrial and Logistics HubAslali-KhedaTemenos Logistics ParkAslali-K
205、hedaPalladium Logistics ParkAslali-KhedaIndospaceChangodar-BagodaraGallops Industrial ParkChangodar-BagodaraCrystal Indus Industrial and Logistics ParkChangodar-BagodaraESR Jalisana Industrial and Logistics ParkChhatral-Kadi-Vithalapur-BecharajiOccupierOccupier IndustryWarehouse ClusterVoltas BekoFM
206、CDSanand-Viramgam ClusterFlipkartE-commerceChangodar-BagodaraSyngentaManufacturingAslali-KhedaReliance RetailRetailChangodar-BagodaraDelhiveryRetailAslali-KhedaFY 2018FY 2019FY 2020FY 2021FY 20220.600.500.400.300.200.100.000.320.460.470.270.50Mn sq mINDIA WAREHOUSING MARKET REPORT 202228Industry-spl
207、it of transaction volumeCluster-split of transactionTransaction share by end-use of spaceLand rate and rentsS o u rc e:Knight Frank ResearchNotes:Warehousing transactions:These refer to storage activityIndustrial transactions:These refer to manufacturing activitySource:Knight Frank ResearchNotes:War
208、ehousing transactions data includes light manufacturing/assembling Other Sectors Other Sectors include all manufacturing sectors(automobile,pharmaceutical,etc.)except FMCG and FMCD Source:Knight Frank ResearchSource:Knight Frank ResearchClusterLocationLand RateGrade AGrade B(INR mn/acre)Rent in INR/
209、sq m/month(INR/sq ft/month)Rent in INR/sq m/month(INR/sq ft/month)Aslali-KhedaAslali30-50226-269(21-25)161-215(15-20)Bareja20-35194-226(18-21)151-183(14-17)Kanera20-30183-215(17-20)151-183(14-17)Gobhlaj20-35183-215(17-20)140-172(13-16)Kheda12-20151-194(14-18)118-151(11-14)Changodar-BagodaraChangodar
210、25-40215-258(20-24)151-194(14-18)BavlaT15-20183-215(17-20)140-161(13-15)Bhayala13-20172-215(16-20)118-161(11-15)Bagodara8-15161-205(15-19)108-140(10-13)Sanand-ViramgamSanand16-30183-215(17-20)140-161(13-15)Sachana12-20151-172(14-16)118-151(11-14)Vithalapur-BecharajiKadi12-18172-215(16-20)118-161(11-
211、15)Vithalapur8-15172-215(16-20)118-161(11-15)Becharaji10-15172-215(16-20)118-161(11-15)FY 2021 transactions share by end-use FY 2022 transactions share by end-use Warehousing IndustrialIndustry Split-FY 2021Cluster wise split of transactions-FY 2021Industry Split-FY 2022Cluster wise spilt of transac
212、tions-FY 202232%68%8%92%3PL E commerce FMCD FMCG Other sectors Mis Retail Aslali-Kheda cluster Changodar-Bagodara cluster Chhatral-Kadi-Vithalapur-Becharaji Incity Sanand-Viramgam cluster25%0%1%15%29%3%16%8%21%4%0%7%19%12%14%23%33%16%35%23%32%19%43%1%INDIA WAREHOUSING MARKET REPORT 202229India is am
213、ong the most promising warehousing markets in the world given its compelling consumption and economic growth story.The past decade has witnessed prolific growth in this industry due to increasing participation of institutional players along with a gradually increasing requirement for higher grade wa
214、rehouses compliant with contemporary standards.Increasing adoption of technological advances have enabled efficiencies and enabled heightened throughput.The logistics industry is evolving fast to service the varied and extremely time-sensitive needs of businesses across the country and warehouses to
215、day are a critical component of this supply chain.The warehousing market is expected to continue to expand especially in the secondary cities as businesses endeavor to capture emerging markets and cater to the needs of the increasingly demanding consumer.While the escalating competition among wareho
216、using players is good for the occupier and will only improve supply chain efficiencies,recent increases in input costs of land,steel and cement have proved to be a significant constraint on warehouse development.However,occupiers who have;traditionally resisted significant increases in warehousing r
217、ents are beginning to acknowledge the substantial value that an efficient warehousing operation brings to their supply chain.As the industry matures,there is an increasing need to establish standards that will create awareness and educate occupiers on the various grades of warehouses and their value
218、 thereof.Naresh Sharma Managing DirectorCCI Logistics&Industrial ParksINDIA WAREHOUSING MARKET REPORT 202230AMBALA-RAJPURA WAREHOUSING MARKET The Ambala-Rajpura warehousing market is strategically located on the Punjab-Haryana border or the Shambhu barrier along the Grand Trunk Road,Banur-Tepla Road
219、 and Zirakpur.Shambhu Barrier is of historical significance in the Patiala district as it is a prime de-consolidation location for part truck load capacity in north India.The Ambala-Rajpura warehousing market is unorganized with warehousing facilities spread across several locations in Punjab and Ha
220、ryana in a triangle.This warehousing market caters to many Tier II cities in northern India.A few regional players have Grade A warehousing footprint on this node as the market has huge potential to serve multiple cities in Punjab,Himachal Pradesh and Jammu&Kashmir.The Ambala-Rajpura warehousing mar
221、ket offers availability of larger land parcels compared to some of the other nearby states which has made it a much sought-after market for developers looking to take exposure in this asset class.Many national players are actively setting up warehouses in this zone due to its strategic importance an
222、d consequently,the leasing momentum for warehouses has picked up pace in the past five years.Nearly 7.5 mn sq ft(0.7 mn sq m)of warehousing facilities have been leased in the past five years in this market.Rajpura is referred to as the Gateway to Punjab,as it is situated at the junction of National
223、Highway 44(NH 44 or old NH 1)connecting New Delhi to Attari in Punjab,and NH 7(Old NH 64)which runs from Chandigarh to Dabwali.Along with Ambala,Rajpura provides good road and rail connectivity to six to seven cities in north India.While Jammu&Kashmir is accessible within 6-7 hours via road,other ci
224、ties such as Ludhiana,Jalandhar,Chandigarh,Shimla and Delhi are only 1-4 hours away,making Rajpura a focal point for distribution of goods and services.Being an industrial town,Rajpura has a concentration of small-scale industries.Due to its proximity to the tri-city(Chandigarh-Mohali-Panchkula),sev
225、eral logistics park developers are launching parks in this region to boost their Grade A warehousing portfolio near NH 44 and NH 7 which are well-connected to the industrial clusters of Manesar,Dharuhera and Bhiwadi.Such growth of Grade A warehousing infrastructure in this cluster will support moder
226、nization of the supply chain and attract occupiers from sectors such as e-commerce in future.Warehousing activity in this market is getting organized in two prominent peripheral clusters:the Banur-Tepla cluster and the NH 44 Rajpura cluster.The scope for Grade A warehousing facilities to come up is
227、huge and crucial to attract significant leasing by occupiers.In FY 2022,the Ambala-Rajpura market accounted for 1.4 mn sq ft(0.13 mn sq m)warehousing leasing,a 19%YoY growth over FY 2021.71%of the space leased was in the NH 44 Rajpura cluster,while 29%was in the Banur-Tepla cluster.Of the total ware
228、house space leased in FY 2022,30%was concentrated in 3PL,followed by 26%leased by e-commerce.Retail accounted for 23%share,followed by FMCG at 15%.The remainder was occupied by Other Sectors.The Covid-19 led disruptions proved to be beneficial for Tier II warehousing clusters such as Ambala-Rajpura
229、as demand for warehousing space has been increasing steadily.In FY 2022,the Ambala-Rajpura market accounted for 1.4 mn sq ft(0.13 mn sq m)warehousing leasing,a 19%YoY growth over FY 2021.71%of the space leased was in the NH 44 Rajpura cluster,while 29%was in the Banur-Tepla cluster.Of the total ware
230、house space leased in FY 2022,30%was concentrated in 3PL,followed by 26%leased by e-commerce.INDIA WAREHOUSING MARKET REPORT 202231Major warehousing locations in Ambala-RajpuraClassification of warehousing locations into major clustersNH7NH7NH7NH44NH44NH44NH152NH152NH344NH205ANH44NH44NH205ABanur-Tep
231、la clusterNH 44 Rajpura clusterRAJPURAAMBALAS o u rc e:Knight Frank ResearchS o u rc e:Knight Frank ResearchWarehousing ClusterMajor Warehousing LocationsBanur-Tepla ClusterBanur,Banur-Tepla Road,Shambhu Barrier and all locations along Ambala-Bypass RoadNH-44 Rajpura ClusterLocations along the Grand
232、 Trunk Road(GT Road)from Mohra to Rajpura and ZirakpurINDIA WAREHOUSING MARKET REPORT 202232Major Infrastructure in RajpuraWarehousing market transaction volumeSelect warehouse projectsTop transactions during FY 2022S o u rc e:Knight Frank ResearchN ote:N H stands for Nat ional H ighwayS o u rc e:Kn
233、ight Frank ResearchSo u rc e:Kn igh t Fran k R es e arc hS o u rc e:Knight Frank ResearchNameTypeNH 44(Old NH 1)Road-NHNH 7(Old NH 64)Road-NHWarehouse ProjectWarehouse ClusterIndoswiftNH 44-Rajpura clusterContract LogisticsBanur-Tepla clusterOccupierOccupier IndustryWarehouse ClusterReliance RetailR
234、etailNH 44 Rajpura Cluster1K KiranaE-commerceBanur-Tepla ClusterFirstCryE-commerceNH 44 Rajpura ClusterStellar Value Chain3PLNH 44 Rajpura ClusterHULFMCGNH 44 Rajpura ClusterFY 2019FY 2020FY 2021FY 20220.350.300.250.200.150.100.050.00.170.200.110.13Mn sq mINDIA WAREHOUSING MARKET REPORT 202233Indust
235、ry-split of transaction volumeCluster-split of transaction volumeTransaction share by end-use of spaceLand rate and rentsS o u rc e:Knight Frank ResearchNotes:Warehousing transactions:These refer to storage activityIndustrial transactions:These refer to manufacturing activitySource:Knight Frank Rese
236、archNotes:Warehousing transactions data includes light manufacturing/assembling Other Sectors Other Sectors include all manufacturing sectors(automobile,pharmaceutical,etc.)except FMCG and FMCD Miscellaneous These include services such as telecom,real estate,document management,agricultural warehous
237、ing,and publishing Source:Knight Frank ResearchClusterLand RateGrade AGrade B(INR mn/acre)Rent in INR/sq m/month(INR/sq ft/month)Rent in INR/sq m/month(INR/sq ft/month)Banur-Tepla Cluster13-15161-205(15-19)118-140(11-13)NH 44 Rajpura Cluster15-20161-205(15-19)118-140(11-13)FY 2021 transactions share
238、 by end-use FY 2022 transactions share by end-use Warehousing IndustrialIndustry Split-FY 2021Cluster wise split of transactions-FY 2021Industry Split-FY 2022Cluster wise spilt of transactions-FY 2022100%96%3PL Ecommerce Retail FMCG Other sectors FMCDBanur-Tepla Cluster NH 44 Rajpura Cluster28%29%31
239、%26%69%100%30%71%29%23%15%6%4%INDIA WAREHOUSING MARKET REPORT 202234With the focus on Make in India and China+1 strategy since the start of Covid,we have seen a significant increase in industrial demand.Equally,the warehousing sector started with a huge spike in e-commerce demand and then a strong p
240、ickup amongst logistics companies,retailers and cold chain.We believe this is still the nascent stage and we will see the India story unfold over the next decade.We started Palava Industrial&Logistics Park as we saw a need for quality,sustainable parks with clear land title.It is also strategically
241、located in the Navi Mumbai-Taloja industrial belt and offers proximity to the JNPT port.We have seen good traction and its grown rapidly with over 300 acres under development.Recently,lvanho Cambridge and Bain Capital have partnered with us given our high quality development capability and our prove
242、n ESG strategy to strengthen green digital infrastructure segment in the country.These are exciting times for us and the rest of the industry and we plan to go pan-India with our offering.Shaishav Dharia CEO-Townships and Rental Assets LodhaINDIA WAREHOUSING MARKET REPORT 202235INDIA WAREHOUSING MAR
243、KET REPORT 202236BENGALURU WAREHOUSING MARKET Bengalurus warehousing market continued to grow in FY 2022 supported by strong consumption demand driving occupier interest in the market.Bengalurus warehousing market is divided into three key clusters,namely,Attibele-Bommasandra in the South,Hoskote-Na
244、rsapur in the East,and Nelamangala-Dabaspete in the West.In recent years,a strong consumer base coupled with business expansions have attracted developers to create large institutional grade warehousing facilities in Bengalurus prominent warehousing clusters.Sustained by large scale demand for Grade
245、 A warehouses,many regional and local players have also intensified efforts to develop quality warehousing facilities in this market.Its key manufacturing hubs located in proximity of National Highway 4(NH 4)which provides connectivity via Mumbai and Chennai,further goes to make Bengaluru a sought-a
246、fter warehousing market in Southern India.Maintaining its robustness,the warehousing demand in the Bengaluru market has continued to remain buoyant.In FY 2022,Bengaluru registered warehousing transaction volume of 0.55 mn sq mt(5.9 mn sq ft),a 37%growth over the previous financial year,and 5%above t
247、he pre-pandemic level witnessed in FY 2019.Prominent occupiers such as Microplastics,Flipkart,Schauffler,Reliance Industries,Autoliv,Wakefit etc.signed leasing spaces in Bengaluru market with deal sizes ranging from 0.06 mn sq m to 0.02 mn sq m(0.7 mn sq ft to 0.20 mn sq ft).Cluster wise,Nelamangala
248、-Dabaspete and Hoskote-Narsapura clusters clocked in 37%and 28%of the total transactions respectively in FY 2022.Other locations such as Whitefield,Soukya Road,Bidadi,Hosur etc.cumulatively accounted for 29%of the total transaction volume in the city.Hosur,although located in Tamil Nadu,caters to th
249、e consumption demand of Bengaluru due to its proximity to the city.Located along the industrial corridor between Bengaluru and Chennai,Hosur is a hub for industrial,manufacturing,and automobile sectors.Bengaluru being the hub for e-commerce and 3PL,inevitably supports the demand for warehousing in H
250、osur.Besides e-commerce and 3PL,Bengaluru also has market traction for various auto,auto-ancillary and manufacturing sectors.This is reflected in the total warehousing area of 49%leased by Other Sectors,of which manufacturing is the major component.3PL and e-commerce accounted for 18%and 17%of the t
251、otal transactions respectively.In FY 2022,apart from the traditional tenants,Bengaluru witnessed distribution center requirement for dark stores within the city.Dark stores are micro retail distribution centers that cater exclusively to online shopping.Since the Covid-19 pandemic,the spike in depend
252、ency on online shopping has necessitated the demand for dark stores,prompting the growth of urban logistics spaces.Currently,urban logistics in India is still at a nascent stage,however,it is on the cusp of going mainstream as consumers,especially in metropolitan cities such as Bengaluru,are likely
253、to get more reliant on the convenience of online shopping.Post GST implementation,the demand for large,organized warehouses has risen significantly especially in strategic locations.This has boosted developer sentiment to successfully build large institutional Grade A warehousing facilities in Benga
254、lurus prominent clusters.Quality warehousing structures along with built to suit facilities have deepened occupier interest in Grade A warehouses.As a result,the share of tenancy in Grade A warehouses increased from 38%in FY 2021 to 62%in FY 2022.In the next few years,the demand for warehousing and
255、logistics facilities in the Bengaluru market is likely to thrive,supported by prospects of growing consumer demand.Apart from this,the State and Central Government initiatives are expected to further facilitate logistics services in the Bengaluru market.State Government initiatives such as the Karna
256、taka Industrial Policy(2020-2025)aims to attract integrated industrial parks and private developers for the development of multi-modal logistics parks(MMLP),logistics parks,dry ports,cold storages,warehouses,and free trade warehouse zones(FTWZ)in the state.In 2021,under the Central Governments Bhara
257、tmala Pariyojana,the Karnataka Industrial Area Development Board(KIADB)has allocated a significant portion of land in Obalapura located in Nelamangala-Dabaspete cluster for the development of a Multi-Modal Logistics Park(MMLP).This logistics mode mix will further enhance warehousing and logistics op
258、erations in the Bengaluru market.Bengalurus warehousing market clocks in 0.55 mn sq mt(5.9 mn sq ft)leasing in FY 2022Nelamangala-Dabaspete cluster dominated warehousing lease volume in FY 2022E-commerce and 3PL tenants dominated the warehouse leasing in FY 2022.INDIA WAREHOUSING MARKET REPORT 20223
259、7Major warehousing locations in BengaluruClassification of warehousing locations into major clustersNH648NH648NH648NH44NH44NH75NH75NH48NH48NH48NH948NH275BENGALURUBIDADIDABASPETENELAMANGALAHOSURATTIBELE-ANEKAL BOMMASANDRAMALURSOUKYA ROADHOSKOTE NARSAPURAS o u rc e:Knight Frank ResearchS o u rc e:Knig
260、ht Frank ResearchWarehousing ClusterMajor Warehousing LocationsNelamangalaDabaspete ClusterNelamangala,T Begur,Govenahalli,Dabaspete,Devenahalli,DoddaballapurHoskoteNarsapura ClusterHoskote,Nidagatta,Thavarekere,Narsapura,Malur,SulibeleAttibele-Bommasandra ClusterAttibele,Bommasandra,Attibele-Anekal
261、 RoadOthersHosur,Soukya Road,BidadiINDIA WAREHOUSING MARKET REPORT 202238Classification of warehousing locations into major clustersWarehousing market stock,supply and vacancyWarehousing market transaction volumeSelect warehouse projectsTop transactions during FY 2022S o u rc e:Knight Frank Research
262、S o u rc e:Knight Frank ResearchSo u rc e:Kn igh t Fran k R es e arc hS o u rc e:Knight Frank ResearchNameTypePeripheral Ring RoadRoadNH 48/Mumbai-Bengaluru HighwayRoad-NHNH 75/Bengaluru-Tirupati HighwayRoad-NHNH 648/Nelamangala-Hosur RoadRoad-NHNH 44/Bengaluru-Hosur RoadRoad-NHElectronic City Eleva
263、ted ExpresswayTolled ExpresswayNandi Infrastructure Corridor Enterprises Road(NICE Road)or Bengaluru-Mysuru Infrastructure Corridor(BMIC)Tolled ExpresswayChennai-Bengaluru Industrial CorridorIndustrial CorridorBengaluru-Mumbai Industrial CorridorIndustrial CorridorKochi-Bengaluru Industrial Corridor
264、Industrial CorridorWarehouse ProjectWarehouse ClusterAllcargoOthers(Hosur)Avigna SpaceHoskote-NarsapuraWelspun One Logistics ParkOthers(Hosur)IndospaceAttibele-BommasandraEmbassy Industrial ParkOthers(Hosur)OccupierOccupier IndustryWarehouse ClusterMicro Plastics,ManufacturingOthers(Hosur)Flipkart E
265、-commerceHoskote-Narsapura ClusterSchaufflerManufacturingOthers(Hosur)Reliance RetailOthers(Hosur)Van Heusen RetailNelamangalaDabaspete ClusterFY 2018FY 2019FY 2020FY 2021FY 2022FY 2021FY 20220.600.500.400.300.200.100.003.02.52.01.51.00.50.026%26%26%26%25%25%25%25%25%24%0.230.522.10.200.322.426%25%0
266、.400.400.55Mn sq MnMn sq mVacancy%Stock Supply VacancyINDIA WAREHOUSING MARKET REPORT 202239Industry-split of transaction volumeCluster-split of transactionTransaction share by end-use of spaceLand rate and rentsS o u rc e:Knight Frank ResearchNotes:Warehousing transactions:These refer to storage ac
267、tivityIndustrial transactions:These refer to manufacturing activitySource:Knight Frank ResearchNotes:Warehousing transactions data includes light manufacturing/assembling Other Sectors Other Sectors include all manufacturing sectors(automobile,pharmaceutical,etc.)except FMCG and FMCD Source:Knight F
268、rank ResearchSource:Knight Frank ResearchClusterLocationLand RateGrade AGrade B(INR mn/acre)Rent in INR/sq m/month(INR/sq ft/month)Rent in INR/sq m/month(INR/sq ft/month)Attibele-Bommasandra clusterBommasandra-Jigani65-120237-409(22-38)108-290(10-27)Attibele-Anekal27-65237-301(22-28)161-194(15-18)De
269、vanahalli-DoddabalapurDoddaballapur25-45194-258(18-24)129-205(12-19)Devanahalli35-85204-398(19-37)172-215(16-20)Hoskote-Narsapura Hoskote25-45205-258(19-24)199-226(18.5-21)Siddhalaghatta18-35205-258(19-24)183-226(17-21)Nelamangala-DabaspeteNelamangala30-55194-258(18-24)172-234(16-22)In CityAcross Be
270、ngaluru45-200NANAOther Whitefield-Soukya Road45-200248-366(23-34)226-344(21-32)Soukya Road40-65248-301(23-28)226-280(21-26)Bidadi35-65205-280(19-26)194-237(18-22)Hosur16-35167-258(15.5-24)172-237(16-22)FY 2021 transactions share by end-use FY 2022 transactions share by end-use Warehousing Industrial
271、Industry Split-FY 2021Cluster wise split of transactions-FY 2021Industry Split-FY 2022Cluster wise spilt of transactions-FY 202225%75%30%70%Retail Ecommerce 3PL FMCG FMCD OtherAttibele-Bommasandra cluster Hoskote-Narsapura Nelamangala-Dadaspete In City Other 43%28%49%29%4%0%1%2%27%15%18%37%22%28%17%
272、28%5%29%14%5%INDIA WAREHOUSING MARKET REPORT 202240BHUBANESWAR WAREHOUSING MARKET Bhubaneswar is the capital city of Odisha and a key trading and commercial hub in eastern India.Due to a large concentration of steel and aluminum plants in Odisha,several ancillary industries have come up in different
273、 parts of the state.Bhubaneswar is also an active Tier II warehousing market due to its access to port and links to major national highways.It is well connected to Cuttack and other nearby towns.The presence of large industrial hubs,and the cargo and container handling activities at Dhamra and Parad
274、ip ports augur well for organised warehousing in the region.Warehousing in Bhubaneswar is clustered around the Bhubaneswar-Cuttack Road(NH-16),Tangi,Pitapalli and Chandaka.A demand for warehousing in the city has been picking up gradually in recent years and is widely dominated by local developers.I
275、n the last few years,development of industrial and logistics parks around the city has further boosted warehousing activities in the market.The erstwhile industrial areas established by the Department of Industries,such as Rasulgarh,Mancheswar,Chandaka,Khordha and Bhagabanpur,continue to witness dev
276、elopment of organised warehousing clusters in the vicinity.In FY 2022,the Pitapalli-Chandaka bypass which falls under the Pitapalli cluster and connects Bhubaneswar to Cuttack,was the most popular region amongst the warehousing occupiers.Located about 22 kms from Bhubaneswar city,Pitapalli is in pro
277、ximity to NH-16 and strategically situated to support the citys long-term storage needs.Bhubaneswars warehousing market is still at a nascent stage dominated by local players having Grade B spaces.Lately however,organized warehousing activity has started mushrooming which will strengthen the warehou
278、sing infrastructure in the city and attract occupiers.Warehousing space enquiries in Bhubaneswar is largely led by e-commerce,3PL,FMCG and FMCD.In the last few years,companies such as Flipkart,Bigbasket,Delhivery,Godrej and Dabur have leased warehouse space in Bhubaneswar.FY 2022 displayed a signifi
279、cant improvement in the warehousing demand with 0.08 mn sq m(0.8 mn sq ft)of warehousing spaces being leased.Of the total leasing,about 71%of the space was leased by 3PL tenants,followed by e-commerce with its share of 24%.Among the clusters,Pitapalli cluster clocked in 65%of the total leasing volum
280、e,followed by Bhubaneswar-Cuttack Road cluster with its share of 22%.The transactions were well distributed between standalone warehouses and industrial and logistic parks such as Khurda Industrial Park,Chhatabar Industrial Estate,TVS Logistics Park and more.In the next few years,expansion of e-comm
281、erce activity and the need for last mile delivery in the Eastern and North-Eastern states of India is expected to scale up the demand for warehousing in Bhubaneswar.Bhubaneswars warehousing market clocks in 0.08 mn sq m(0.8 mn sq ft)leasing in FY 2022Pitapalli cluster dominated warehousing lease vol
282、ume in FY 20223PL tenants occupied 71%of the total leased warehousing space in FY 2022.INDIA WAREHOUSING MARKET REPORT 202241Major warehousing locations in BhubaneshwarClassification of warehousing locations into major clustersTangiPitapalli ChandakaBhubaneswar-Cuttack Road(NH-16 Cluster)Bhubaneswar
283、NH16NH16NH57NH316S o u rc e:Knight Frank ResearchS o u rc e:Knight Frank ResearchWarehousing ClusterMajor Warehousing LocationsBhubaneswar-Cuttack Road(NH-16 Cluster)Rudrapur,Mancheswar,Nakhara,Pahala,Phulnakhara,PatiaTangi Tangi,Mongoli,KesuraPitapalliKhordha,Off KhandagariChandaka Kantabada,Barang
284、 areaINDIA WAREHOUSING MARKET REPORT 202242Classification of warehousing locations into major clustersWarehousing market transaction volumeSelect warehouse projectsTop transactions during FY 2022S o u rc e:Knight Frank ResearchS o u rc e:Knight Frank ResearchSo u rc e:Kn igh t Fran k R es e arc hS o
285、 u rc e:Knight Frank ResearchNameTypeNH 16/Bhubaneswar-Cuttack HighwayRoad-NHNH 316/Bhubaneswar-PuriRoad-NHWarehouse ProjectWarehouse ClusterKingston Logistics ParkOthers(Choudwar)TVS Industrial&Logistics ParkChandakaOccupierOccupier IndustryWarehouse ClusterAswika Warehousing3PLPitapalliFlipkartE-c
286、ommercePitapalliDelhivery3PLBhubaneswar-Cuttack Road(National Highway-16)TVS Logistics3PLPitapalliAsian PaintsManufacturingPitapalli FY 2019FY 2020FY 2021FY 20220.090.080.070.060.050.040.030.020.010.000.050.050.010.08Mn sq mINDIA WAREHOUSING MARKET REPORT 202243Industry-split of transaction volumeCl
287、uster-split of transactionTransaction share by end-use of spaceNotes:Warehousing transactions:These refer to storage activityIndustrial transactions:These refer to manufacturing activitySource:Knight Frank ResearchNotes:Warehousing transactions data includes light manufacturing/assembling Other Sect
288、ors Other Sectors include all manufacturing sectors(automobile,pharmaceutical,etc.)except FMCG and FMCD Source:Knight Frank ResearchSource:Knight Frank ResearchFY 2021 transactions share by end-use FY 2022 transactions share by end-use Warehousing IndustrialIndustry Split-FY 2021Cluster wise split o
289、f transactions-FY 2021Industry Split-FY 2022Cluster wise spilt of transactions-FY 2022100%100%3PL FMCD E Commerce OthersBhubaneswar-Cuttack Road(NH-16 Cluster)Pitapalli Tangi Chandaka 6%5%2%53%24%14%29%30%0%65%63%17%71%22%Land rate and rentsS o u rc e:Knight Frank ResearchClusterLocationLand RateGra
290、de AGrade B(INR mn/acre)Rent in INR/sq m/month(INR/sq ft/month)Rent in INR/sq m/month(INR/sq ft/month)Bhubaneswar-Cuttack Road(NH-16 Cluster)MancheswarNA280-323(26-30)258-280(24-26)Rudrapura60-75280-312(26-29)269-291(25-27)Pahala60-80280-312(26-29)269-291(25-27)PatiaNA323-377(30-35)NATangiTangi21-25
291、205-248(19-23)194-226(18-21)Mongoli21-25205-248(19-23)194-226(18-21)PitapalliKhordha25-28226-269(21-25)205-226(19-21)Off Khandagari25-28226-269(21-25)205-226(19-21)ChandakaKantabada21-28237-280(22-26)205-248(19-23)Barang Area22-28237-280(22-26)215-248(20-23)INDIA WAREHOUSING MARKET REPORT 202244Indi
292、a is among the fastest growing markets for storage infrastructure.Over the past decade,the industry has evolved from a traditional warehouse model to a modern logistics and supply chain ecosystem.The countrys thriving logistics industry has enabled a wide variety of warehousing needs,including tempe
293、rature-controlled warehouses,high-density storage,and advanced distribution centers,among others.The industry is expected to expand further in the coming years,as logistics providers ramp up their capacity to meet the growing demand for logistics services.Additionally,the expansion of third-party lo
294、gistics is also among the key drivers for demand in the warehousing sector along with the rise of e-commerce transactions and demand for storage in Tier l and Tier ll cities strengthening the last-mile delivery to customers.The market growth and recovery can be attributed to government policy assist
295、ance and increased institutional investment.The government focus is to develop its own supply chain and build up the domestic manufacturing industry.It has introduced legislation to reform the warehousing industry,which will immensely contribute to the development of the sector.We believe that deman
296、d for storage and warehousing services will grow significantly in the coming years.The entire supply chain is facilitated by seamless storage and movement of goods.Variables such as technical improvements in warehousing with automation and robotic mechanization will transform the industry.In order t
297、o increase leasing,there will be a greater emphasis on upgrading and expansion in Tier I cities,as well as new market penetration in in-city warehousing and developing logistics hubs.Sandeep Chanda Managing Director Panattoni India INDIA WAREHOUSING MARKET REPORT 202245INDIA WAREHOUSING MARKET REPOR
298、T 202246CHENNAI WAREHOUSING MARKET Absorption in the Chennai warehouse market increased by a substantial 44%YoY in FY 2022 with Chennai witnessing a total of 0.47 mn sq m(5.1 mn sq ft)of warehouse leasing activity.The subsequent rise in e-commerce and manufacturing sectors,as consumers inclined towa
299、rds online purchasing amid the pandemic,fueled the growth in Chennais warehousing market.Chennais development as a thriving trade center during the British era was due to its coastal position.The city is the first significant halt on Indias east coast in the Bay of Bengal,and has two significant por
300、ts:the Chennai Port,Indias second-largest cargo port,and the Ennore Port.Other ports,notably the Kattupalli Port,have also contributed to the growth of Chennais trading base.Chennai became a preferred base for heavy industry due to its proximity to the sea.The city serves as the Indian automobile in
301、dustrys home base.Other prominent trades practiced here include textile production and manufacturing for heavy industries.These three businesses have been and still are driving the industrial and warehousing markets in Chennai.E-commerce and retail players are a recent addition to this list of wareh
302、ousing demand drivers in Chennai.Most of the warehousing activity in Chennai is focused in three areas:one covers the citys south-west and western edge,another covers its northern belt,and a third covers its southern portion.The Sriperumbudur-Oragadam cluster is made up of storage facilities located
303、 between the Grand Southern Trunk Road(GST Road/Chennai-Trichi Highway)in the south and the Poonamallee High Road(Mumbai Highway)in the west.The Mannur-Thiruvallur Belt,which comprises Mevalurkuppam,Mappedu,Mannur,Pollivakkam,and Thiruvallur,is also a part of this cluster.This cluster,well-known for
304、 manufacturing,serves as the main hub for the automotive and related industries.The NH 16/GNT Road-Periyapalayam cluster is composed of locations around the Grand Northern Trunk Road(GNT Road/Chennai-Srikakulam Highway/NH 16,previously known as NH 5 in North Chennai.Serving an industrial belt tradit
305、ionally,this cluster has recently caught the attention of e-commerce businesses,FMCG companies,and significant 3PL players,particularly along the NH 16/GNT Road-Redhills Belt.The GST Road-Maraimalai Nagar cluster is made up of storage facilities in Chennais south-east,including Chengalpattu,Sengundr
306、am Industrial Area,and Maraimalai Nagar.This cluster meets both the new industrial demand in the city,as well as the spillover demand from the Sriperumbudur-Orgadam cluster.In terms of the industry,3PL businesses were the main force behind Chennais demand for warehouse space,accounting for 35%of all
307、 transactions.With a demand share of 38%,the Other Sectors(which includes all manufacturing companies excluding FMCG and FMCD)came in second,followed by the e-commerce sector at 14%and the miscellaneous category at 7%.Geographically,the demand remained concentrated in the Sriperumbudur-Oragadam clus
308、ter,which accounted for 69%of all transactions in FY 2022.Along with its manufacturing base,this cluster experienced rising demand from 3PL and e-commerce companies in FY 2022.At 31%,the demand in the Periyapalayam-NH16 cluster remained steady.Both land rates and rentals witnessed appreciation in se
309、lect pockets across the three clusters,in FY 2022.Driven by the increase in warehousing demand from e-commerce and 3PL companies,Grade A warehouse rents have appreciated marginally across most micro-markets in the NH 16/GNT Road-Periyapalayam cluster in North Chennai.Steady manufacturing activity co
310、ntributed to a marginal increase in warehouse rents in both Sriperumbudur-Oragadam and GST Road-Maraimalai Nagar clusters.Increased warehousing traction also attributed to an increase in land rates in Sriperumbudur,Irungattukottai,Red Hills and Karanodai belts.Transaction volumes grew 44%YoY to 0.47
311、 mn sq m(5.1 mnsq ft)in the Chennai warehousing market in FY 2022Geographically demand remained concentrated in the Sriperumbudur-Oragadam cluster,which accounted for 69%of all transactions in FY 2022.3PL businesses were the main force behind Chennais demand for warehouse space,accounting for 35%of
312、all transactionsINDIA WAREHOUSING MARKET REPORT 202247Major warehousing locations in ChennaiClassification of warehousing locations into major clustersCHENNAIMadhavaramPuzhalRed HillsAlamathiKaranodaiThatchoorPeriyapalayamKannigapairTiruvalurPolivakkamSriperumbudurMaraimalai NagarGokul ApuramMahinda
313、 World CityOragadam IrrunkattukottaiMappeduMannurNH32NH32NH48NH48NH48NH48NH716NH716NH716NH16NH16S o u rc e:Knight Frank ResearchS o u rc e:Knight Frank ResearchWarehousing ClusterMajor Warehousing LocationsSriperumbudur-Oragadam ClusterIrrungattukottai,Sriperumbudur,Oragadam and other locations on t
314、he in-roads branching from SriperumbudurMannur-Thiruvallur Belt:Includes Mevalurkuppam,Mappedu,Mannur,Pollivakkam and ThiruvallurNH 16/GNT Road-Periyapalayam Cluster(North Chennai)Periyapalayam Road,Thatchoor,Gummudipoondi.NH 16/GNT Road-Redhills Belt:Includes Madhavaram,Manali,Red Hills,Puzhal,Kara
315、nodai,Alamathi and PoochettipeduGST Road-Maraimalai Nagar ClusterMaraimalai Nagar,in and around Mahindra World City,Sengundram Industrial area,ChengalpattuINDIA WAREHOUSING MARKET REPORT 202248Classification of warehousing locations into major clustersWarehousing market transaction volumeSelect ware
316、house projectsTop transactions during FY 2022S o u rc e:Knight Frank ResearchN ote:N H stands for Nat ional H ighwayS o u rc e:Knight Frank ResearchSo u rc e:Kn igh t Fran k R es e arc hS o u rc e:Knight Frank ResearchNameTypeChennai PortPortEnnore PortPortNH 16/Grand Northern Trunk RoadRoad-NHNH 32
317、/East Coast RoadRoad-NHNH 45/Grand Southern Trunk RoadRoad-NHNH 48/Poonamallee High RoadRoad-NHNH 716/Chennai-Thiruvallur High RoadRoad-NHChennai-Bengaluru Industrial CorridorIndustrial CorridorVisakhapatnam Chennai Industrial CorridorIndustrial CorridorTamil Nadu Defence Industrial CorridorIndustri
318、al CorridorChennai MMLPMMLPChennai International AirportAirportWarehouse ProjectWarehouse ClusterAscendas-FirstspaceNH 16-PeriyapalayamSriperumbudur-OragadamESRSriperumbudur-OragadamNDR LogisticsNH 16-Periyapalayam:NH 16/GNT Road-Redhills Belt Sriperumbudur-OragadamNDR Logistics(Irrungattukottai)Sri
319、perumbudur-Oragadam:Mannur-Thiruvallur BeltLogos ParkSriperumbudur-Oragadam clusterOccupierOccupier IndustryWarehouse ClusterDHL3PLSriperumbudur-OragadamEichoff Wind Asia Pvt LtdManufacturingSriperumbudur-OragadamSkapsManufacturingSriperumbudur-OragadamFlipkartE-commerceNH 16-PeriyapalayamGuritManuf
320、acturingSriperumbudur-OragadamFY 2018FY 2019FY 2020FY 2021FY 20220.600.500.400.300.200.100.000.300.390.320.330.47Mn sq mINDIA WAREHOUSING MARKET REPORT 202249Industry-split of transaction volumeCluster-split of transactionTransaction share by end-use of spaceLand rate and rentsS o u rc e:Knight Fran
321、k ResearchNotes:Warehousing transactions:These refer to storage activityIndustrial transactions:These refer to manufacturing activitySource:Knight Frank ResearchNotes:Warehousing transactions data includes light manufacturing/assembling Other Sectors These include all manufacturing sectors(automobil
322、e,electronics,pharmaceutical,etc.)except FMCG and FMCD Miscellaneous These include services such as telecom,real estate,document management,agricultural warehousing,and publishing|Source:Knight Frank Research Source:Knight Frank ResearchClusterLocationLand RateGrade AGrade B(INR mn/acre)Rent in INR/
323、sq m/month(INR/sq ft/month)Rent in INR/sq m/month(INR/sq ft/month)Sriperumbudur-Oragadam ClusterSriperumbudur20 25237-269(22-25)226-258(21-24)Oragadam20 30248-280(23-26)226-258(21-24)Mappedu10 15172-205(16-19)161-183(15-17)Mannur17 23205-237(19-22)183-205(17-19)Irungattukottai40 45237-269(22-25)215-
324、248(20-23)Pollivakkam15 18205-226(19-21)194-226(18-21)NH 16/GNT Road-Periyapalayam Cluster(North Chennai)Cholavaram13 16194-237(18-22)172-215(16-20)Red Hills15 17215-248(20-23)194-237(18-22)Karanodai17 22215-248(20-23)194-237(18-22)Madhavaram80-100226-258(21-24)205-237(19-22)Puzhal60-80215-258(20-24
325、)205-237(19-22)Periyapalayam13 16172-194(16-18)172-194(16-18)GST Road-Maraimalai Nagar ClusterIn and around Mahindra World City25 27248-280(23-26)248-280(23-26)Maraimalai Nagar40 45237-280(22-26)237-258(22-24)FY 2021 transactions share by end-use FY 2022 transactions share by end-use Warehousing Ind
326、ustrialIndustry Split-FY 2021Cluster wise split of transactions-FY 2021Industry Split-FY 2022Cluster wise spilt of transactions-FY 202222%78%31%69%3 PL E commerce FMCD FMCG Other sectors Miscellaneous Retail Sriperumbudur-Oragadam Cluster NH 16/GNT Road-Periyapalayam Cluster(North Chennai)GST Road-M
327、araimalai Nagar Cluster32%2%28%7%29%20%13%11%30%14%31%33%57%35%69%1%6%38%INDIA WAREHOUSING MARKET REPORT 202250COIMBATORE WAREHOUSING MARKET The Coimbatore industrial and warehousing market recorded 0.1 mn sq m(1.3 mn sq ft)of space absorption in FY 2022,a 7%YoY growth.Coimbatore,which is in the mid
328、dle of the Southern Peninsula,offers easy access to Bengaluru,north Kerala,south Karnataka,and west and south Tamil Nadu.Because of this,numerous 3PL businesses and e-commerce players have established warehouses in Coimbatore to serve a wider range of customers from a single location.The increase in
329、 demand for last-mile delivery caused by the expansion of e-commerce was a major factor in the growth of the 3PL industry as a major driver of warehousing demand.The other driver for warehousing demand in Coimbatore includes the traditional heavy pump manufacturing industries,textile factories and m
330、etal casting industries that manufacture spare parts and components.The Avinashi Road cluster and the Pollachi+Palladam-Cochin Frontier Road cluster are the two primary concentrations of warehousing activity in Coimbatore.The Neelambur,IOC-L&T Bypass Road,and Avinashi areas in the east have been com
331、bined into a single homogenous cluster known as the Avinashi Road cluster,which largely serves industrial purposes.The Pollachi+Palladam-Cochin Frontier Road storage cluster,which includes southern locales such as Pollachi,Chettipalayam,Malumichampatty,Palladam,and Walayar,meets the warehousing need
332、s of 3PLs,e-commerce businesses,and FMCG/FMCD companies.From the neighbouring state of Kerala,this cluster provides easy access to the consumption markets of Coimbatore city as well as Kochi.Majority of transaction activity in the Coimbatore warehousing market in FY 2022 was centered in the Pollachi
333、+Palladam-Cochin Frontier Road cluster led by the increase in 3PL sector activity.This cluster contributed 96%of all transaction activity in FY 2022.The 3PL sector accounted for 35%of all transaction activity in terms of industrial orientation for the FY 2022 warehousing demand,while the demand for e-commerce was at 16%.Together,these two industries made for more than half of the overall pie.Drive