Welspun One, the logistics and industrial property arm of Welspun group recently said it plans to raise Rs 4,000 crore to fund its expansion. The platform plans to double its portfolio size from 16 million square feet to around 32 million square feet by 2028. In an interview, Anshul Singhal, managing director, Welspun One, tells Raghavendra Kamath about their strategy and warehousing segment. Excerpts:
Offtake from e-commerce has been low. Has it picked up?
E-commerce demand has been relatively low for the last 12-18 months but has begun to return, particularly with the expansion of quick commerce. We expect this to increase meaningfully through the course of this year. Over the past year, we have also seen an increased focus on last-mile logistics, driven by the rise of quick commerce and deeper urban penetration. Specialised warehousing, such as cold chain facilities and urban distribution centres, is in high demand as companies adapt to evolving consumer preferences. Interestingly, demand is spreading to tier 2, where e-commerce companies are expanding to ensure faster delivery and optimise supply chains.
What is your outlook for warehouse leasing in 2025?
We are highly optimistic for 2025. We anticipate significant growth, fuelled by the continued evolution of e-commerce and quick-commerce, which remains a major driver of demand in the country. The consumption trends in tier-2 cities are emerging as promising growth engines, complementing the established tier-1 markets. The rising need for Grade A warehousing solutions, especially last-mile logistics, will remain pivotal in metros and urban centres. Specialised formats like cold chain logistics and urban distribution hubs are gaining momentum due to evolving supply chain patterns. As global trade dynamics evolve, we anticipate incremental demand from EXIM trade near key ports and airports. The sector is poised for robust growth, aligning with the country’s economic trajectory. The industrial and warehouse logistics park (IWLP) supply in India is expected to grow across key markets, with absorption projected to rise to 47 million square feet in FY25, accounting for 90% of the incremental supply addition, making it a high growth potential market.
What kind of growth are you looking at in your lease revenues in FY25 and FY26?
We anticipate strong growth in leasing revenues in FY25 and FY26, driven by the operationalisation of large-scale projects like WTC Thane. This entry into urban logistics and specialised SEZ formats has positioned us to cater to niche demands and emerging market trends. Our focus on a pre-leased model with marquee tenants also provides a steady pipeline of revenues, ensuring consistent growth.
In which cities are you developing new facilities?
We are focusing on expanding our presence across key logistics hubs in India, particularly in tier-1 cities and high-potential tier-2 locations. For instance, in Mumbai, we have facilities under development in JNPA, Thane, and Bhiwandi, which cater to significant trade and e-commerce demand in the city. In Delhi NCR, our projects in Jhamuwas, Farukhnagar, and Hailey Mandi address the vast regional industrial, 3PL (third party logistics), and e-commerce requirements. Bengaluru is another major market for us, with developments in Devanahalli, Bagalur, and Hoskote aligning with the city’s technology and e-commerce epicentre. We are also developing a facility in Chinnambedu, Chennai, and Talegaon, Pune; strategically identified to connect industrial and logistics corridors.
How are the new facilities different from the older ones in size, scale, layout etc?
Our new facilities are a significant step up in design, scale, and sustainability. For instance, sites like JNPA and Thane are much larger than our earlier projects, utilising increased floor space index (FSI) to enable multi-story developments, allowing us to optimise land usage in prime locations. These layouts accommodate automation and facilitate higher throughput, which is essential for modern warehousing and urban distribution needs. Our focus on creating large-scale, strategically located and business-rationale-driven assets ensures that our facilities are not just warehouses but critical enablers of supply chain transformation. Sustainability is another key differentiator. Our logistics parks are designed to reduce carbon footprints, incorporating solar power systems, water-efficient fixtures, and advanced energy management tools. Innovative formats, such as mixed-use urban logistics centres and SEZ-based warehousing near ports and airports, are designed to address specialised demands and enhance connectivity across key markets.