Welspun One Will Invest In Excess of INR 600 Cr to establish Warehouse Facility in Thane

Warehousing Thane

Welspun One Will Invest Over 600 Crore Rupees to Establish a Warehousing Facility in Thane.

The six million square foot facility will be constructed on 3.2 acres of Thane land.

Welspun One Logistics Parks (WOLP), an integrated fund and development management platform, intends to invest over 600 crore to construct a Grade-A, in-city warehousing-anchored mixed-use development at Wagle Industrial Estate in Thane, close to Mumbai.

This is the first investment made through its category II Alternate Investment Fund (AIF) vehicle Welspun One Logistics Parks Fund 2, which has already raised 1,500 crores out of a target of 2,000 crores.

"Warehousing is integral to positioning India as an attractive destination for global manufacturing and supply chain and plays a crucial role in the development of any economy. In-city logistics as a category is experiencing exponential growth due to the rising demand for e-commerce, swift commerce, and rapid delivery services, according to Welspun World chairman Balkrishan Goenka.

 The proposed facility to facilitate urban last mile delivery will have a total built up area of 6 lakh sq ft to be developed on a 3.25-acre land parcel owned by the fund. The development near Viviana Mall is presently in the pre-construction phase and is anticipated to open in the latter half of 2025.

"It is undeniable that the demand for in-city warehouse space is on the rise, with projected requirements reaching 16 million square feet in the Mumbai Metropolitan Region (MMR) by FY28. As businesses prioritise speedier order-to-delivery timeframes, having access to efficient logistical infrastructure in close proximity to the consumer is essential for meeting their business needs, according to Anshul Singhal, managing director of Welspun One.

In the next four to five years, the company intends to create a portfolio of 16 to 18 million square feet across first- and last-mile facilities in tier 1 and 2 cities. Singhal confirmed that the proposal entails an overall investment allocation of over 8,000 crore, which could increase the assets under administration to $1 billion.

In 2021, WOLP funded its first AIF, valued at 500 crore rupees, which was among the first of its kind raised from domestic investors.