As India is diversifying from being a vital outsourcing hub for Information Technology to being a production and manufacturing portal for several industries, real estate has been booming in recent years.

Warehousing is the need of the hour with prerequisites of efficient spaces, feasible placement, and sustainable future for business needs. Here’s a list of parameters to assess for a conducive investment.

Location

According to the New Indian Express Report: Tamil Nadu has emerged as the top industrial space in terms of land availability contributing 19.59%, with 21,456 hectares of land dedicated to industrial expansion– ‘the highest among other states.’

Chennai, in particular, is attracting a vast FDI (Foreign direct investment) as well as large Indian multi-corporations, owing to the SEZs. With a lower rental structure, Chennai has emerged as the largest industrial zone in South India.

Chennai has the two most prominent Industrial clusters–

1. Sriperumbudur-Oragadam Cluster: Mappedu, Mannur, Irungattukottai, Polivakkam
2. Periyapalayam NH-16 Cluster: Red Hills, Periyapalayam, Cholavaram, Karanodai

Warehousing space

Warehousing services Chennai is evolving to accommodate the growing demand. Due to the availability of large tracts of spaces,industrial real estate developers are offering large warehouses with ample resources.

Moreover, certain warehouses are customisable to adapt to your business needs.  Opting for such services can yield better results at the expanding stage of your business.

Affiliation

For those who are looking to optimise their brand value in the market, it is imperative that you associate with a reputed warehouse company in India. Such affiliations will credit you as a trustworthy brand in a whirlwind of competition.

Hiranandani Industrial Parks– the newest addition to Red Hills is endorsed by the prominent legacy of House of Hiranandani, a status that can elevate your brand value as well.

Leasing Arrangements

According to the Colliers Report, a strong momentum was captured in the leasing market, despite the pandemic consequences, with rising demands in cities like Chennai, NCR, and Pune.

MSMEs are opting for a warehouse for rent in Chennaithat allows flexibilty in contract in case of scaling or moving to a new location. Plus the cost-effective rental structure in Chennai is an incentive for evolving companies. 

For smaller enterprises, it is recommended to opt for the gross lease method: where the tenant pays only a fixed amount, while the maintenance, insurance, property taxes, and ancillary expenses are paid by the developer/owner of the warehouse facility.

Based on Industries

As per the aforementioned Colliers’ Report, the rising warehousing demand was led by 3PL (third party logistics) with 33% contribution, while E-Commerce has accounted for 29% of the total leasing.

Instead of choosing a miscellaneous space, it is best to opt for a warehouse that is suited for your industry needs. Such ‘built to suit’ spaces will help in streamlined operations while making it easier to scale further. You can maximise your profits while saving on budget with such dedicated spaces.

Hiranandani Industrial Parks is one such warehousing facility in Chennai that has designed its warehouses to cater to industries such as:

–        E-Commerce

–        3PL

–        FMCG

–        FMCD Industrial & Manufacturing

–        EV Manufacturing

Skilled Workforce

Skilled Employees are a resource that will guarantee the smooth functioning of your enterprise. Warehousing requires specific skill sets such as security compliances, handling of heavy equipment, technical expertise, and efficient working.

Enquire about the deployed workforce as this will significantly affect your business operations.

Advanced Technology

The top logistics companies in Chennai have incorporated automated technology within the industrial complex and warehouse for expeditious services. Applying these methods in your daily functions will reduce the operational costs, help in maintenance, and yield optimal results with lesser expenses due to faults, and needless to say– increases the overall efficiency.

In conclusion:

The aforementioned parameters will give you a projection of the industrial space that may be beneficial for your business.

If you are looking for a new project, then check out Hiranandani Industrial Parks at Red Hills, North Chennai the grand location which adheres to the majority of these factors. 

Sources:

https://www.newindianexpress.com/states/tamil-nadu/2021/oct/12/tn-tops-in-india-in-industrialland-availability-2370622.html

https://www.livemint.com/politics/news/national-logistics-policy-to-bring-down-cost-and-streamline-rules-11580668680723.html

https://www.news18.com/news/business/industrial-warehousing-leasing-saw-strong-demand-at-22-million-sq-ft-in-2021-colliers-4753283.htmlhttps://www.wallstreetmojo.com/gross-lease/