07 August 2020

Spotlight-Embassy Industrial Parks


Industrial Warehousing, a key demand driver for foreign investor



The warehouse industry of India is driven by superior logistics and warehousing systems. The key element of a warehouse influences the entire value chain starting from raw material to customer satisfaction ADITYA VIRWANI, CEO, EMBASSY INDUSTRIAL PARKS shares more insights on the common factors that influence investment for the warehouse and logistics sector with CONSTRUCTION OPPORTUNITIES.







Logistics and industrial parks have lately seen the entry of many foreign investors. The advent of such a trend has taken place either by potential partnership with a local developer or by liaison with global warehousing operators. The growth has taken place with increasing demand from occupants who are mainly into manufacturing sector, 3PL and e-commerce. The implementation of GST, infrastructure status and such other conducive government reforms has enabled the sector in driving demand for large integrated warehousing parks. Rapid infrastructure development within the country has made the unit economics more favourable as it has unlocked more land for better prices. It’s also made transport easier and fasterModern logistics& industrial parks are built in order to help companies avoid the extra sweat by building light manufacturing and warehousing space infrastructure of grade A quality.Various factors like operational conveniences and cost efficiency influence the growing demand of Grade A warehousing. The requirement has been observed to be more in metro cities and towns that are supported by presence of manufacturing hubs in the vicinity, access to transport network and exim facilities. There is also a rising consumption driven demand among urban population in the metropolitan areas. Currently well planned logistic parks are built with a commitment to offer superior experience& faster deliveries across major cities of India. Factors like strategic land positioning makes business more convenient. To meet global standards,the park operators like us keep eye on attention to detail and provide globally approved amenities like dormitories, round the clock canteen, first aid centres, 24/7 security coverage, an excellent fire fighting system, and ample parking space for trucks so the flow of the traffic remains unaffected and does not hamper workflow. Superior logistic parks like Embassy Industrial Parks even provide built-to-suit industrial parks where clients can have up to 2X expandability.  Big clients land up doing repeat business with the park providers across markets. The current modern large-size logistics parks are either backed by capital invested from the global market or they are local associations with a global warehousing operators. Recent reports from analyst firms state that theindustrial and logistics segment has attracted USD 500 million (about 3,500 crore) investment since 2017,post the implementation of GST.Sovereign and pension funds love stable and perpetual cash flow and this is an asset class similar to commercial that provides predictable cash flow with growth. A survey conducted recently, showed 70% of respondents indicating improvement in ease of doing business mainly on account of e-way billing which has removed a lot of bottlenecks in cargo storage and transport business. About 80 per cent of respondents felt that the taxation system improved, while 40 per cent respondents indicated that they will increase the number of warehouses in thisnew post-GST era. The position for warehousing will strengthen and estimated that leasing will be about 10-15 per cent higher this year at 25-30 million sq. ft. compared to last year.Leasing of warehousing spaces went up by 31 per cent to over 13 million sq ft across eight major cities in the first half of 2019, driven mainly by demand from third party-logistic and e-commerce firms.E-commerce is where IT was in early 2000’s. India’s online retail is less than 4% today so scope to go up is huge. Digital revolution is directly helping industrial space growth. With fundamental shifts across the industrial and logistic sector in last two years and increased demand for quality space, developers such as us, are more likely to build compliant large-sized spaces.


About EIPL:


Embassy Industrial Parks is a partnership between the Embassy Group and Warburg Pincus formed to address the challenges of companies grappling with building and managing industrial and warehousing spaces. They are committed to bringing quality Grade A industrial, light manufacturing and warehousing spaces in close proximity to leading consumer and industrial centres across India. These modern well planned, technology-enabled industrial and warehousing solutions are targeted at industry verticals like E-Commerce, 3PL, Automobile Ancillaries, FMCG and Retail.


The primary offering is industrial and warehousing parks housed in land parcels between 50-200 acres near the 8 key cities of Delhi, Mumbai, Bangalore, Pune, Ahmedabad, Hyderabad, West Bengal and Chennai. These parks will be fully master planned specifically cater to the industrial and logistics traffic movements and will boast a host of special amenities such as truck parking, canteens, rest areas, dormitories, business centres etc. This will ensure that the park becomes a self-sustaining business environment.


Embassy Industrial Parks has already left a mark in the market by acquiring lands in some of the major cities of our country. Embassy Industrial Parks has invested INR 350 crore to build a 1.1-million sq. ft. industrial park at Chakan, Pune. The company has acquired 52 acres of land in Chakan. Embassy Industrial Parks has signed a 1,910 crore MoU with the Haryana Government to build three warehousing & industrial parks in the State. In order to meet the MoU commitment, the company has recently acquired 110 acres of land in Farrukhnagar, Gurugram to build a 3 million sq. ft. logistics park. Embassy saw instant success in NCR when their debut project, a 600,000 square foot industrial park in Bilaspur sold out before completion. The association of Embassy Industrial Parks and Haryana government has generated employment for more than 20,000 people in the state. The company is also developing a 200- acre land into a 2.7 million sq. ft. park in Sriperumbudur near Chennai. Recently, the company announced acquiring 60 acres of prime real-estate in Hosur. This strategically located 1.3 million sq. ft. park is along the Bengaluru-Chennai highway NH 44 and only 60 kms from Bengaluru city centre. Embassy Industrial Parks is setting up logistics and industrial parks in West Bengal with an estimated phase wise investment of INR 1000 crore in. This association will generate direct and indirect employment for 1000 people in West Bengal and will be another milestone for the company.


Embassy Industrial Parks will also take up mandated search - in particular for international and multinational companies - with a specific mandate to “search” for land in pre-specified areas, acquire land on behalf of the company and create a complete campus or build to suit facilities. For companies wishing to expand their operations while limiting upfront capex, they offer a complete build to suit space to augment your existing operations. This expansion is limited to land, building and fit outs in return for a rental which will be on a long term flexible lease basis.


The Embassy Industrial Parks promise extends beyond building and delivering best-in-class industrial and warehousing solutions – to management and maintenance of these developments. This commitment to continuously enhance and protect the value of the development is backed by

Embassy Services, the property management arm of the Embassy Group. Embassy Services today manages over 55 million sq. ft. of commercial, residential spaces, industrial and office parks along with educational and hospitality centres across 12 Indian cities. This combination of experience and expertise makes Embassy Industrial Parks ideally poised to address the distinct demand for modern industrial and warehousing spaces with the optimal mix of cost, quality and location advantages.



More details please visit: Website:  www.embassyindustrialparks.com  



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