Avigna group to invest 800 cr to build warehousing, industrial parks in Karnataka

New Delhi: Tamil Nadu-based Avigna group will invest around Rs 800 crore during the current financial year to develop industrial and warehousing parks in Tamil Nadu and Karnataka as part of its expansion plan, its Chief Executive Officer Abhijit Verma said.

Avigna group, which is into garment, education and export businesses, entered the industrial and logistic park segment in 2017-18. In an interview with PTI, Avigna group Executive Director and CEO Abhijit Verma highlighted that the company recently completed the development as well as leasing of first phase of Hosur Park in Tamil Nadu comprising one million sq ft area. Online mattress brand Wakefit, Stellar Value Chain and Whirlpool have taken together around one million sq ft area. The rental yield is estimated at around 8-9 per cent. "We have demonstrated our capabilities in terms of quality development and client acquisitions with completion and successful leasing of one million sq ft. Now, we will expand aggressively," he said. Verma said the company will develop an additional two million sq ft area at Hosur Park and one million sq ft each at Hoskote in Karnataka and Chennai during the current financial year. Asked about planned investment, he said the project cost is estimated at around Rs 800 crore, including land. Verma said the company has a total of 120 acre land at Hosur industrial park and out of that, 40 acre has been utilised for the first phase of one million sq ft. Avigna group has 130 acre in Hoskote with a total development potential of 3 acre, of which a million sq ft will be developed this fiscal year. It has 40 acre in Chennai to build one million sq ft space. Over the next four years, he said the company will develop around 10 million sq ft of industrial and warehousing space across various states. One million sq ft each in Nellore, Andhra Pradesh and Madurai, Tamil Nadu are also in pipeline for coming years. The company already has land bank at these locations. Considering an upsurge in demand, Verma said the company is looking to expand at Bhiwandi in Maharashtra, Farruknagar in Haryana, Jaipur and Kolkata. "As per the various research reports, warehousing space is growing at a CAGR (compound annual growth rate) of 12-13 per cent due to various factors especially a contribution of e-commerce surge. "This is one of the most stable assetworld wide. Demand of warehousing and industrial space will rise in India year on year," Verma said. The implementation of the goods and services tax (GST) law and growth of e-commerce sector have fuelled the demand for warehousing and industrial space in India, he said. Verma said the COVID-19 pandemic has also benefitted this sector. Avigna group is also exploring the possibility of setting up food terminal markets in Chennai and Madhya Pradesh, he said. PTI