Welspun One Logistics, Tamil Nadu govt ink pact for 6 warehousing projects

Welspun One Logistics Parks (WOLP), an asset management platform has entered into a pact with Guidance, the government of Tamil Nadu’s nodal agency, for investment promotion and single window facilitation to set up six warehousing facilities across the state.
These warehousing projects will be set up in prime warehousing micro-markets like Hosur, Sriperumbudur and Thiruvallur and will have a development potential of around 8 million sq ft to be built across a span of five years.

“As per our blueprint, we are looking at developing approximately 400 acres of land in Tamil Nadu to build top-class, warehousing facilities. With every project, we aim to create a social impact and these projects have the potential to create over 8000 jobs,” said Anshul Singhal, Managing Director, Welspun One Logistics Parks.

The projects will be executed by Welspun One Logistics Parks and will bring direct investments of approximately Rs 2,500 crore to Tamil Nadu.

"Over the past few years, India has made significant progress by building logistics infrastructure and undertaking various regulatory and structural reforms. Before the GST regime, most companies had multiple, small warehouses across states for the sole purpose of minimizing taxes. The introduction of GST allowed firms to start focusing on building efficient supply chain networks by establishing optimal-sized warehouses in fewer locations,” said Pooja Kulkarni, MD & CEO, Guidance.

The government of Tamil Nadu and Welspun One Logistics Parks, part of the $3.5 billion Welspun Group have entered into this pact to enhance the logistics infrastructure within the state.

Following the implementation of the Goods & Services Tax (GST) and emergence of ecommerce, the Indian logistics and warehousing sector is headed towards transformative growth.

While demand in other commercial real estate segments has been impacted in the last few quarters, the warehousing market has stood out led by e-commerce and third-party logistics growth.

According to industry estimates, almost one-fourth of the total warehousing space in India has been leased by e-commerce firms such as Flipkart and Amazon in the last two years. This is further expected to accelerate, due to larger behavioural change of consumer buying following the outbreak of Covid19 pandemic.

The industrial and logistics segment has become a key growth driver in real estate and expansion of the online retail sector has resulted in greater demand for warehousing, thereby resulting in higher investments in infrastructure and supply chain modernization.