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A surprise in store: Unpacking Welspun One's impact on India's logistics industry

India's logistics and warehousing industry is preparing for take-off and Welspun One is poised to ride the wave of change

BRAND CONNECT | PAID POST
Published: Jan 22, 2025 06:01:53 PM IST
Updated: Jan 28, 2025 11:34:27 AM IST

India’s logistics and warehousing industry stands at a crossroads of unprecedented growth and change. With e-commerce and quick commerce sectors expanding at over 19% CAGR, the nation’s logistics infrastructure is struggling to keep pace. Fresh supply of institutional, Grade-A warehousing facilities again fell short of demand in 2024. Addressing these gaps is critical, not just to meet immediate logistical needs but to catalyze India’s march toward a $5 trillion economy by 2027.

Enter Welspun One, the largest homegrown and leading platform that India’s logistics sector needs. Through its integrated fund and development management business model, the company is systematically reshaping the warehousing and logistics landscape in India. By strategically aligning its operations with emerging market demands, Welspun One is setting new benchmarks in efficiency, scalability, and innovation.

At the core of Welspun One’s strategy is a farsighted approach to land acquisition. The company identifies and procures large tracts of strategically located land across major industrial and consumption hubs. These sites ensure seamless connectivity to transportation networks, reducing transit times and operational costs. Leveraging powerful local networks of brokers, IPCs and wealth management firms has allowed Welspun One to source over 500 acres of prime land, underscoring its ability to secure locations that enhance supply chain efficiencies.

Add to the mix Welspun One’s innovative capital-raising strategy. The company launched India’s first AIF (Alternative Investment Fund) focused on warehousing, which attracted a variety of investors including high net-worth individuals, family offices, and domestic institutions, looking to participate in the full asset creation cycle, in an institutional, transparent and hassle-free manner. The first fund raised ~₹500 crore, and has already made two profitable exits for investors. The second fund has raised commitments of ₹2,275 crores (including co-investment commitment). The company is now working toward raising a ₹4000 crore fund to double its portfolio from 16 million sf to ~32 million sf by 2028.

The reason for Welspun One’s success is rooted in its simplified leasing solutions. The company’s unique approach involves offering customized leasing options that cater to diverse business requirements ensuring faster client onboarding and greater retention rates. As evidence of its success, Welspun One’s Grade A logistics park in Bhiwandi, with GLA of ~2.5MM sf was leased and delivered in ~3.5 years from the commencement of the project.

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Expert asset development capabilities give Welspun One a crucial edge. Each logistics park meets global standards of safety, efficiency, and sustainability. The company integrates cutting-edge technology to optimize warehouse operations, ensuring scalability and adaptability for clients. This approach meets current demand and anticipates future requirements, positioning Welspun One as a leader in smart logistics solutions.

At the core of a successful and sustainable warehousing and logistics operation is the emphasis on asset performance optimization. Using advanced data analytics, Welspun One ensures that each facility operates at peak efficiency. This maximizes returns for investors while enhancing tenant satisfaction.

In addressing the logistical challenges posed by India’s rapid economic expansion, Welspun One has distinguished itself as more than a mere solutions provider. It is a visionary enabler of connectivity, growth, and access. Advanced infrastructure could lower logistics costs in India from 14% to 8%, unleashing the global competitiveness of Indian industries. Institutions like Welspun One aren’t just responding to present needs; they are laying the foundation for economic growth that promises to transform India.

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