After acquiring 107 acres in Devanahalli and Hoskote in Bengaluru, Welspun One, the industrial real estate and warehousing arm of Welspun Group, recently announced that it will build a 1.2 million square feet warehouse in Pune. Anshul Singhal, managing director, Welspun One, speaks with Raghavendra Kamath about the company’s strategy and outlook on warehousing sector. Excerpts:
What is your expansion strategy for next year?
Our focus for FY26 and FY27 is on deepening our presence in markets where demand is already visible and infrastructure is translating into real on-ground advantage, rather than spreading ourselves thin. Our land strategy will continue to be centred on consumption-led corridors, port-linked and airport-driven markets, and notified industrial belts where long-term demand visibility is strong. At the same time, we are consciously prioritising depth over breadth. We will continue to scale our flagship developments such as WTC Thane and WTC Nhava Sheva, while expanding selectively across key logistics markets that align with our portfolio strategy. Following the leasing of over 2.5 million sq ft in 2025, Welspun One today has over 19 million sq ft in its portfolio, with nearly ~6 million sq ft operational and another ~13 million sq ft under construction, strengthening our presence across warehousing, in-city distribution and port-led logistics.
How are land prices and acquisition dynamics evolving across key markets? How is that influencing your approach to land sourcing and portfolio building?
Land prices have meaningfully diverged across markets over the last year. In metropolitan regions, acquisition costs have moved up sharply, driven by limited availability of large, contiguous parcels and heightened competition from multiple asset classes. At the same time, land pricing in select tier II and emerging logistics corridors has remained relatively rational, particularly where infrastructure is either operational or clearly time-bound. This divergence has reinforced the importance of early market entry and micro-market selection rather than broad city-level bets.
Establishing a presence early in high-potential corridors allows developers to build scale, manage input costs and ensure long-term supply visibility, even as markets mature. At Welspun One, our land sourcing decisions are guided by a data-led assessment of corridor infrastructure readiness, consumption density and occupier demand visibility, rather than short-term pricing arbitrage. This approach allows us to build a resilient, future-ready portfolio despite rising land costs in mature markets.
Which occupier segments are driving the strongest absorption?
Manufacturing continues to be the single-largest driver of absorption, accounting for around 45%. This is followed by 3PLs (third-party logistics providers) at roughly 25% and e-commerce at about 12%, with FMCG, pharma and D2C adding further depth to demand. What is significant is not just who is leasing but how their requirements are evolving. Occupiers are increasingly prioritising operational efficiency and scalability over plain vanilla space which is directly influencing asset design.
Demand is rising for higher clear heights, automation-ready layouts, ESG-compliant construction and worker-friendly, inhabitable environments. Network strategies are also shifting towards multiple, well-located facilities closer to urban centres and along key transport corridors, enabling faster fulfilment and regional distribution while maximising throughput. Specialised formats such as cold chain facilities, robotics-enabled warehouses and flexible floor plan (FPP) configurations are becoming more mainstream, reflecting the diverse needs of different sectors. Together, these shifts are redefining warehousing from a storage function to a high-performance logistics infrastructure, clearly differentiating next-generation Grade-A assets from older, capability-constrained stock.
How do you see 2026 in terms of market demand, policy catalysts, in-city warehousing formats, and capital flows into the logistics space?
2026 should be a year of stable, structurally driven-demand, supported by consumption growth, quick commerce and ongoing supply-chain reconfiguration. Demand visibility is improving as occupiers shift from rapid expansion to optimised network planning. Policy momentum through initiatives such as PM Gati Shakti and improved multimodal integration will continue to influence site selection and execution timelines. In-city warehousing will move from experimentation to scale, driven by same-day delivery and micro-fulfilment needs, with vertical and multi-storey formats becoming essential in land-constrained urban markets. Capital flows are likely to remain selective, favouring Grade-A, institutionally governed developers that can deliver specialised formats, maintain compliance and execute consistently in high-demand micro-markets.