In a recent development, the Embassy Industrial Parks plans investment of approximately USD 300 million (about Rs 2,100 crore) in the next three years for developing its ongoing logistics and warehousing projects, an official said.
The company, a joint venture between realty firm Embassy Group and private equity firm Warburg Pincus, is developing industrial and warehousing parks in Chakan (Pune) Bilaspur and Farrukhnagar (NCR) Sriperumbudur and Hasur (Tamil Nadu) and Hyderabad in a phased manner.
Aditya Virwani, a company spokesperson said that they have completed approximately 2.7 million sq ft area in three warehousing parks located at Chakan, Bilaspur, and Farrukhnagar. He further said that the organization has already invested nearly USD 80 million since 2016 when it started the operation and the work is under progress to build nearly 7 million sq ft of warehousing and industrial spaces.
On the question about investments, Virwani said that the company will infuse USD 250-300 million for the completion of these ongoing projects. He further said that the demand for Grade-A warehousing spaces has gone up with the implementation of the goods and services tax (GST).
Virwani, also the chief operating officer (COO), Embassy group said that E-commerce and third-party logistics firms are the main drivers behind this demand. The demand from automobile companies is however on a low due to the slowdown in the automobile industry but this is not going to impact the overall leasing activities, he said.
As per an industry expert, the leasing of warehousing spaces increased by 31 percent to over 13 million sq ft in eight major cities during the first half of 2019. While elaborating on the projects, Virwani said that the Embassy Industrial Parks has 52 acres of land at Chakan, Pune with 1.1 million sq ft of development potential.
The company has 24 acres with 6 lakh sq ft area in Bilaspur and 108 acres with 3 million sq ft. of potential development in Farrukhnagar. Similarly, in Sriperumbudur, the company owns 198 acres with 2.7 million sq ft of development potential and nearly 63 acres are offered as plotted development.