Tamil Nadu-based Avigna group will make investments round Rs 800 crore through the present monetary 12 months to develop industrial and warehousing parks in Tamil Nadu and Karnataka as a part of its growth plan, its Chief Government Officer Abhijit Verma mentioned.
Avigna group, which is into garment, training and export companies, entered the commercial and logistic park section in 2017-18.
In an interview with PTI, Avigna group Government Director and CEO Abhijit Verma highlighted that the corporate not too long ago accomplished the event in addition to leasing of first section of Hosur Park in Tamil Nadu comprising a million sq ft space.
On-line mattress model Wakefit, Stellar Worth Chain and Whirlpool have taken collectively round a million sq ft space. The rental yield is estimated at round 8-9 per cent.
“We’ve got demonstrated our capabilities by way of high quality improvement and consumer acquisitions with completion and profitable leasing of 1 million sq ft. Now, we are going to increase aggressively,” he mentioned.
Verma mentioned the corporate will develop an extra two million sq ft space at Hosur Park and a million sq ft every at Hoskote in Karnataka and Chennai through the present monetary 12 months.
Requested about deliberate funding, he mentioned the challenge value is estimated at round Rs 800 crore, together with land.
Verma mentioned the corporate has a complete of 120 acre land at Hosur industrial park and out of that, 40 acre has been utilised for the primary section of 1 million sq ft.
Avigna group has 130 acre in Hoskote with a complete improvement potential of three acre, of which one million sq ft will likely be developed this fiscal 12 months. It has 40 acre in Chennai to construct a million sq ft house.
Over the following 4 years, he mentioned the corporate will develop round 10 million sq ft of business and warehousing house throughout varied states.
A million sq ft every in Nellore, Andhra Pradesh and Madurai, Tamil Nadu are additionally in pipeline for coming years.
The corporate already has land financial institution at these areas.
Contemplating an upsurge in demand, Verma mentioned the corporate is trying to increase at Bhiwandi in Maharashtra, Farruknagar in Haryana, Jaipur and Kolkata.
“As per the varied analysis reviews, warehousing house is rising at a CAGR (compound annual progress charge) of 12-13 per cent as a result of varied components particularly a contribution of e-commerce surge.
“This is among the most steady asset world vast. Demand of warehousing and industrial house will rise in India 12 months on 12 months,” Verma mentioned.
The implementation of the products and providers tax (GST) regulation and progress of e-commerce sector have fuelled the demand for warehousing and industrial house in India, he mentioned.
Verma mentioned the COVID-19 pandemic has additionally benefitted this sector.
Avigna group can be exploring the opportunity of establishing meals terminal markets in Chennai and Madhya Pradesh, he mentioned.