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Welspun One Logistics Parks (WOLP) is set to make a substantial investment of over Rs.600 crore to establish a cutting-edge warehousing facility near Mumbai. This strategic move marks the maiden investment through WOLP's category II Alternate Investment Fund (AIF) vehicle, Welspun One Logistics Parks Fund 2. Notably, the fund has already garnered commitments amounting to Rs.1,500 crores, with a targeted capital raise of Rs.2,000 crores. Balkrishan Goenka, Chairman of Welspun World, emphasized the pivotal role of warehousing in driving economic growth and positioning India as an attractive destination for global manufacturing and supply chain operations.
The proposed facility, strategically located at Wagle Industrial Estate in Thane near Mumbai, will serve as a Grade-A, in-city warehousing anchored mixed-use development. With an extensive total built-up area of 6 lakh sq ft, it will be situated on a 3.25-acre land parcel owned by the fund. Positioned in close proximity to Viviana Mall, this asset is currently in the pre-construction phase and is slated to become operational in the latter half of 2025.
The surge in demand for in-city warehousing spaces is undeniable, with projected requirements reaching a substantial 16 million square feet in the Mumbai Metropolitan Region (MMR) by FY28. This escalating demand is primarily driven by the exponential growth of e-commerce, quick commerce, and rapid delivery services. Businesses are increasingly prioritizing faster order-to-delivery times, necessitating efficient logistics infrastructure in close physical proximity to customers.
Anshul Singhal, Managing Director of Welspun One, emphasized the critical role of proximity in meeting evolving business requirements. As a result, the strategic location of the in-city warehousing facility near Mumbai aligns seamlessly with the needs of businesses seeking to enhance their logistics operations.
Looking ahead, WOLP envisions the creation of an aggregate portfolio spanning 16-18 million sq ft over the next 4-5 years. This portfolio will encompass both first and last-mile facilities located in tier 1 and tier 2 cities. Realizing this ambitious plan entails an overall investment commitment exceeding Rs.8,000 crore. Such a significant investment drive has the potential to catapult the assets under management to an impressive $1 billion. This strategic expansion aligns with WOLP's commitment to providing cutting-edge logistics solutions and underscores its role in catalyzing sustainable growth in the warehousing sector.
In 2021, WOLP made waves by raising its first AIF, a corpus of Rs.500 crore. This initiative marked one of the earliest instances of fund raising through domestic investors. The fund has already committed its entire corpus across six strategic investments, aggregating to nearly 6.5 million sq ft of logistics space. Remarkably, these commitments were made within approximately 15 years from the fund's first close, highlighting the robust demand for modern logistics infrastructure in India.
In conclusion, Welspun One Logistics Parks' substantial investment in an in-city warehousing facility near Mumbai underscores the sector's growing importance. As India's economy continues to expand, efficient logistics infrastructure becomes increasingly vital. This strategic move aligns with the demands of businesses aiming to provide rapid and reliable delivery services, particularly in the thriving e-commerce and quick commerce sectors. WOLP's commitment to developing cutting-edge logistics solutions positions it as a key player in the transformation of India's warehousing landscape.
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