How is the market for warehouses shaping up in India, particularly in terms of demand, client expectations, and regional growth?
India's warehousing space will likely reach 516 million sq ft by 2026, driven by booming e-commerce, growing consumer demand, and industrialisation. Third-party Logistics (3PL) and the automotive sectors dominate the market, accounting for 53% of the leased warehouse space. E-commerce giants are rapidly expanding their storage and distribution networks to keep pace with rising online shopping volumes, with demand especially strong in Tier-I and Tier-II cities. Bengaluru's warehousing growth is driven by robust demand from 3PL, FMCG, and electronics sectors, fueled by rising e-commerce, strategic location, and strong connectivity to ports and major highways. Availability of skilled labor, infrastructure development, and proactive government policies further boost the sector. The city's expanding consumer base and increased focus on supply chain efficiency also contribute to consistent leasing growth, projected to rise by 12–14% by 2025, as per a Savills India report.
How do you identify strategic locations for your warehousing parks? What are the top three factors that influence your site selection?
Before finalizing locations for our warehousing parks, we conduct a comprehensive evaluation based on key strategic factors such as connectivity, market proximity, and scalability. Our objective is to deliver immediate operational efficiency while ensuring long-term value and expansion potential for clients across diverse sectors, including quick commerce, FMCG, and manufacturing. The Sumadhura Logistics Park on Hoskote-Chintamani Road in Bengaluru is a prime example of this strategy in action.
Site selection begins with prioritizing superior connectivity to major highways, logistics corridors, and multimodal transport nodes. This ensures seamless movement of goods across regions and minimizes supply chain disruptions. Equally important is proximity to industrial production clusters, urban consumption centers, and the facilities of major clients. This reduces both transit time and costs, boosting overall logistics efficiency. We also place strong emphasis on scalability. Every prospective site is assessed for land availability, infrastructure readiness, and its ability to support future expansion. Our parks are designed to accommodate large-scale Grade A+ warehousing facilities, complete with essential amenities such as robust power supply, high-speed internet, and advanced safety systems. This holistic approach ensures that our developments are future-ready, aligned with evolving client needs, and positioned to serve as vital nodes in India’s modern supply chain ecosystem.
What is your current footprint across India, and are there any upcoming projects in Tier 2 or Tier 3 cities?
With a legacy of three decades, we have established a strong presence across two leading markets in South India- Bengaluru and Hyderabad. With over 50 projects delivered, spanning over 12 million square feet, and up to 40 million square feet in the pipeline, we have a multi-asset portfolio in the realm of real estate with premium offerings, including residential, commercial, warehousing, plotted development, managed office space solutions, retail and co-living. Recently, we have strategically expanded into some of the fastest-growing segments of the Indian real estate market, including uber-luxury residences, plotted development, and managed office spaces. On the warehousing front, we are planning to develop approximately 500 acres of industrial and warehousing parks in the near future. Tier-II and Tier-III cities are rapidly emerging as hotspots for real estate development across asset classes, including warehousing. Driven by the surge in e-commerce, these cities are becoming key hubs for the industrial and logistics sector. We are keen to explore and capitalize on the growing opportunities in these markets to accelerate our expansion and long-term growth.
We’re seeing a noticeable shift in client preference from ready-to-use spaces to built-to-suit warehouses. What’s driving this change, and how is your company responding to it?
Built-to-suit (BTS) warehouses are increasingly preferred by customers for their flexibility, scalability, and operational efficiency. Unlike ready-to-use spaces, BTS facilities are tailored to meet specific requirements – such as high-bay racking or temperature control – enhancing inventory turnover and performance. The rise of e-commerce, along with supportive government policies like the National Logistics Policy and Dedicated Freight Corridors, is driving demand. Quick commerce players and third-party logistics providers also favour BTS solutions for enabling collaborative, agile supply chains. We are catering to this growing demand with the development of Bengaluru’s largest Grade A+ logistics park, Sumadhura Logistics Park in Hoskote – a 100-acre planned logistics hub offering Grade A+ warehousing solutions. Designed to serve a wide range of industries, the park has already leased approximately 10,00,000 sq fts to leading quick commerce and logistics players, including Zomato, Nippon Express, and Zepto. With best-in-class accessibility, security, and sustainability features, it offers strategic connectivity to key markets and transport corridors, driving operational efficiency for our clients.
How do you approach partnerships with global investors, e-commerce players, or 3PLs to scale your parks?
Institutional investors have become instrumental in accelerating the development of industrial and logistics parks, given the substantial capital inflows these projects necessitate. Internationally, a tested framework involves collaboration between developers and institutional funds or entities operating through dedicated development arms. Sumadhura has effectively partnered with leading banking institutions to accelerate the establishment of our parks. Building on this momentum, we are actively pursuing additional institutional collaborations to create expansive Mega Logistics and Industrial Parks across South India. Concurrently, a detailed study of the evolving supply-demand dynamics in the E-commerce and Quick Commerce (Q-commerce) sectors has informed our strategic direction. Acknowledging the indispensable role of third-party logistics (3PL) providers in optimizing last-mile delivery expenses, we have structured our development strategy to support their scaling needs. Our project delivery is structured to meet strict timeline commitments, a factor that enables seamless operational planning for our partners. In parallel, the rise of speculative warehouse development, spurred by growing end-user demand for ready-to-occupy spaces, has influenced our planning approach, ensuring that we remain responsive to the market's shifting dynamics.
What sustainability features have you incorporated into your warehouses to align with ESG goals, such as green building certifications, solar energy, rainwater harvesting, or energy-efficient designs?
Sustainability is not just a goal for us – it’s a core responsibility we uphold to protect the future. Our warehouse is a pre-certified IGBC Platinum accredited park, underscoring our commitment to environmentally responsible infrastructure. We incorporate eco-friendly construction materials, energy-efficient LED lighting, and natural ventilation to reduce our carbon footprint. Thoughtful design features, such as rooftop and ground-pit rainwater harvesting, make the park largely self-sustainable in water use. Additionally, rooftop solar power generation is in the pipeline to further support energy self-sufficiency. By aligning with global ESG standards, we ensure our parks deliver operational excellence while making a lasting contribution to environmental sustainability.
As technology becomes a key differentiator in warehousing, how are you leveraging automation and digital solutions to add value? Is there a growing trend among tenants toward tech-ready, plug-and-play spaces?
Recognizing that technology has become a defining factor in modern warehousing, Sumadhura is integrating advanced automation and digital solutions across multiple facets of our logistics infrastructure. Our warehouses are designed to incorporate automation features from the outset, ensuring seamless operations as tenants expand their technological capabilities. We have introduced EV charging stations for both internal battery-operated vehicles and external apron areas to accommodate the transition towards sustainable transport solutions within our parks. Digital monitoring systems are deployed extensively for cold storage and temperature-controlled units, enhancing precision in environment management. IoT-driven dock management systems also connect automated docks, optimizing loading and unloading efficiency. To further reinforce operational sustainability, we employ energy-efficient architectural designs that maximize daylight usage and utilize solar panels to meet a substantial portion of the warehouses’ energy needs. Structural enhancements have been made to ground floors and mezzanine levels to support robotic navigation between racking systems. We also assist tenants in designing racking layouts that enable efficient robotic picking and sorting, improving throughput and operational agility. These innovations are not only boosting operational efficiency but also redefining tenant expectations. There is a clear shift toward tech-enabled, plug-and-play spaces, especially in Grade-A warehouses. As businesses pursue greater automation and process optimization, developers are responding with built-to-suit facilities tailored to meet the specific needs of global clients.
What impact have the National Logistics Policy and Gati Shakti initiative had on warehousing infrastructure, and what additional policies are needed to drive sector growth?
The National Logistics Policy (NLP) and PM Gati Shakti have significantly transformed India’s warehousing landscape, fostering a more integrated, technology-driven, and cost-efficient logistics ecosystem. Launched in 2021, PM Gati Shakti has emphasized multimodal connectivity, accelerating the development of logistics parks, freight corridors, and transport terminals, while reducing transit times and enhancing the viability of Grade-A warehouses along key corridors. The NLP, introduced in 2022, promotes technology adoption, digitization, and interoperability across logistics activities, aiming to reduce logistics costs to 8%–10% of GDP. To sustain and build on this progress, further policy support is essential – particularly in the areas of skill development for warehouse personnel, incentives for green and smart warehousing technologies, and streamlined land acquisition processes. Strengthening public-private partnerships will also be key to advancing logistics infrastructure and positioning India as a global logistics hub.
What are the challenges facing the warehousing sector in India? Which sectors are currently driving demand for warehousing in India?
Rising land prices and the scarcity of suitable parcels are key challenges in India's warehousing sector. Regulatory complexities and ambiguous land titles – often due to inheritance disputes – create legal uncertainties, especially in peripheral areas, hampering smooth acquisitions. Horizontal expansion faces added hurdles due to zoning and high compliance costs. Additionally, poor construction quality by local contractors and delays from multiple regulatory approvals impact project timelines. While organized developers following global standards can attract institutional investment, stringent due diligence on land titles, zoning compliance, and developer credentials is essential to ensure operational efficiency and mitigate legal and financial risks. India’s warehousing sector is witnessing robust growth, primarily driven by key industries such as third-party logistics (3PL), engineering and manufacturing (E&M), fast-moving consumer goods (FMCG), and e-commerce. According to a CBRE report, 3PL providers dominate the market, accounting for 41% of total warehousing demand. This surge is propelled by the increasing need for scalable, technology-driven solutions that enable companies to manage diverse client operations and optimize last-mile delivery.
The E&M sector contributes approximately 18% to warehousing demand. Government initiatives like “Make in India” and the Production-Linked Incentive (PLI) schemes have encouraged manufacturers to scale up production capacities. As companies expand operations and distribution networks, the need for strategically located, modern warehouses have become critical to ensure timely inventory management and cost-effective delivery solutions. Meanwhile, rapid urbanization, a growing digital consumer base, and rising disposable incomes are fuelling growth in the FMCG and e-commerce sectors. These industries demand faster delivery cycles and expansive distribution infrastructure, particularly in Tier-I and emerging Tier-II/III cities. As a result, there is increasing preference for Grade A and built-to-suit warehousing that supports automation, sustainability, and operational efficiency. This evolving landscape is transforming warehousing into a strategic pillar of India’s supply chain ecosystem.
How do you see the Indian warehousing sector evolving over the next 5–10 years? What role do you see your company playing in that transformation?
India’s warehousing sector is further poised for rapid expansion, projected to surpass 700 million sq ft by 2030. This growth is fuelled by increasing capital inflows from private equity firms, pension funds, and sovereign wealth funds, underscoring the sector’s rising institutional appeal. The demand for Grade-A warehouses is expected to grow significantly as investors prioritize high-quality infrastructure, reflecting a shift toward a more mature, quality-focused market. This transformation is aligned with India’s expanding economy and evolving logistics requirements. The National Logistics Policy further strengthens this momentum by aiming to reduce logistics costs and streamline operations, creating a more favourable environment for organized and standardized warehouse development. It is also expected to attract greater investment into the sector by simplifying regulatory processes and promoting efficiency. We are leveraging our deep expertise in land acquisition and client-centric design to actively pursue warehousing and industrial park developments along India’s key logistics corridors. Our commitment to sustainable construction practices ensures that our projects not only meet modern operational demands but also contribute to environmental responsibility. As a forward-thinking developer, we aim to play a significant role in shaping the future of India’s warehousing and industrial infrastructure.
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