Asia Pacific-focused real estate services and investment major ESR Group plans to set up a 1-million-sq-ft warehousing logistics park in Gujarat‘s Sanand with an investment of over INR 400 crore. The project seeks to tap into demand seen emerging from ancillary units supplying to electric vehicle (EV) manufacturers. The Hong Kong Stock Exchange-listed company has acquired a 38-acre land parcel for its second investment in the state, the first being a 37-acre project in Jalisana.
While the first project’s infrastructure is ready, the new project is expected to be completed in the next three years.
“Gujarat attracts one of the highest foreign direct investments in India and is currently turning into an electric vehicles’ (EV) battery manufacturing and assembly centre. The availability of grade A infrastructure in a strategic location like Sanand is essential for the region’s industrial growth and will add to its EV manufacturing capacity,” said Abhijit Malkani, CEO of ESR India. The project is looking to create a focused space for established and emerging EV manufacturing and ancillary units to expand their presence in Ahmedabad and benefit from this thriving ecosystem.
In addition, the proposed project also has port connectivity to facilitate the import and export of components, and has access to Kandla port, India’s largest container port and is well connected with Mundra, Dahej, Jafrabad, Pipavav and Hazira ports. It also has access to Ahmedabad’s international airport, Vadodara international airport, and national and state highway networks.
Upcoming infrastructure development, such as the Delhi-Mumbai Industrial Corridor (DMIC) and Western Dedicated Freight Corridor (DFC), will further enhance Sanand’s connectivity and reduce logistics costs.
The new project’s location is close to Sanand Gujarat Industrial Development Corporation (GIDC) that currently houses 25 multinational and 300 domestic companies across various sectors, including automobile, auto ancillaries, FMCG, engineering, plastics, packaging, and electronics and is a growing market for electric vehicle manufacturing.
Given the proximity of the new project’s location to Ahmedabad city centre, it is expected to attract ecommerce and third-party logistics (3PL) companies.
