Realtors expands to logistics and warehousing sector

Real estate building majors have fixed logistics and warehousing sectors on their building radar as they are now entering the $260-billion Indian logistics sector as companies are looking for large-sized warehousing spaces to consolidate and expand after the introduction of the Goods and Service Tax (GST). In this connection, the Bengaluru-based Prestige Group and Mumbai's Hiranandani Group and Lodha Group are creating robust warehousing presence to meet the growing demand from FMCG, e-commerce and manufacturing sectors. With the implementation of GST, octroi nakas have disappeared and requirement for warehouses is to be well-located and not just be outside city limits, said co-founder and MD of Hiranandani Group, Niranjan Hiranandani, adding that it has three logistics and industrial park projects at hand and are evaluating more locations. Prestige Group is also looking to replicate its success in commercial space to warehousing as well. Recently, it launched its first logistics centre in Malur, Kolar district about 50 km from Bengaluru and Lodha's 150-acre park in Palava in suburban Mumbai stands to gain from proximity to both the Jawaharlal Nehru Port (JNPT) and the upcoming Navi Mumbai airport. Likewise, among others, the Co-Founder and Director of real estate services company SILA, Rushabh Vora, said that so far, the domestic warehousing industry had been dominated by small and unorganized players but the occupiers are now moving out to consolidate their activities in large facilities and focusing on large manufacturing and e-commerce hubs, mostly in and around metros.