Avigna Space to invest ₹2,000-cr in warehousing plans

The warehousing arm of Chennai-headquartered Avigna group has planned to invest ₹2,000 crore to develop nearly 10 million sq ft of warehousing space in southern India. Abhijit Verma, executive director and CEO of Avigna Space, informed that the company plans to first monetize its existing land bank to fuel further expansion. The company will develop 95 lakh sq. ft. including 3 million sq. ft. at Karnataka's Hosur and 4 million sq feet at Hoskote, besides 1.5 million sq feet at Chennai and one million sq ft at Andhra Pradesh's Nellore district. The Hosur warehouse will be developed in three phases with 10 lakh sq ft in each phase. The total investment in this would be ₹400 crore and the first phase will be operational by December this year. The company which specializes in providing turnkey warehousing solutions from land acquisition to asset development and management has planned for development in Coimbatore and Madurai. Once it reaches 20 million sq ft in southern India, it will move to the west and northern parts of the country. According to a Knight Frank India's report, warehousing demand has seen strong growth in the last few years and has recorded a rise of 44% CAGR since 2017. The committed land for the warehouse is estimated at 21,163 acres which has the potential of adding 63% more supply to the existing 307 mn sq ft of warehousing stock. Avigna Space holds lands in pivotal locations including Bangalore—Chennai corridor and Hoskote—Hosur—Chennai corridor and has decided to make the most out of its prime warehousing space across locations.