Avigna group to develop 5 million sqft of warehousing space in East, Northeast

In addition to japanese India, Avigna group can be scouting for 60 acre land parcel for establishing warehouses in Farrukhnagar (Haryana), in addition to 40 acres in Jaipur. It has tied up with shoppers in each cities. The corporate will arrange build-to-suit (BTS) amenities in these places.

Bullish concerning the warehousing potential of East and Northeast India, Avigna group is establishing 5 million sqft (MSF) of commercial warehouses throughout Patna, Kolkata, Guwahati and Siliguri at a value of round Rs 1,000 crore. Its goal is to faucet the rising demand for warehouses to cater to client durables, FMCG and prescription drugs.

The Bengaluru-based group has already launched such initiatives throughout south India, creating 10 MSF of warehousing area. Additionally it is establishing a 2MSF facility in Bhiwandi (Thane). All of the initiatives might be accomplished in phases.

“We’re specializing in Tier-II cities as e-commerce surge has opened up these areas. Warehousing was rising at a CAGR of 5% earlier than 2019, however now it’s 12-14% yearly and may go to 18-20% within the coming years as enterprises have realised the worth of an environment friendly provide chain community,” Avigna Group CEO Abhijit Verma informed FE.

Sharing the corporate’s plans for japanese India, he mentioned Patna and Guwahati are strategically situated. Whereas Guwahati is the gateway to the Northeast, the Patna warehouse will cowl Bihar, Nepal, north of West Bengal and east of Uttar Pradesh. Each the cities have good highway and air connectivity.

“In Patna, we’re scouting for 50 acre land and intend to develop 1-1.25 MSF of warehousing area. In Guwahati and Siliguri we plan to construct 3 MSF. This area has good potential for prescription drugs and provide chain for FMCG, client durables, and many others. We’re scouting for land in these areas. We’re additionally on the lookout for land parcels in Kolkata, the place we are going to develop 1 MSF,” he added.

On funds, Verma mentioned, “We begin a venture solely when we have now a consumer or not less than the principle consumer. That is an assurance that our investments aren’t going to lie idle. To construct 1 MSF on a mean as much as Rs 200 crore is required. With shoppers already on board, monetary establishments additionally really feel secure lending to us. All these initiatives have shoppers and we’re scouting for land collectively. We are going to finalise the land in FY21”.

In addition to japanese India, Avigna group can be scouting for 60 acre land parcel for establishing warehouses in Farrukhnagar (Haryana), in addition to 40 acres in Jaipur. It has tied up with shoppers in each cities. The corporate will arrange build-to-suit (BTS) amenities in these places.

In south India, Avigna has 5 places, Verma mentioned including “First is Hosur (Tamil Nadu), we have now 120 acre land with capability to construct 3 MSF. In Hoskote (Karnataka), we have now 130-140 acres and need to develop 3-4 MSF of warehousing area. In Chennai, we have now 40 acres and plan to develop 1 MSF. In Madurai, we might be creating 2 MSF, and in Nellore (Andhra Pradesh) 1 MSF”.

Of this, the corporate will ship 1 MSF in Hosur by the top of this fiscal. In FY23, it plans at hand over 2 MSF in Hosur, 1 MSF in Hoskote and 1 MSF in Madurai.