IndoSpace which is one of the most successful developers and owners of Grade A industrial space having backing of Everstone Group planning to invest more than Rs 580 crore to develop two new logistic parks with a total land area of 76 acres in Karnataka. It forms part of investment plans that the company agreed to make according to a Memorandum of Understanding (MoU) signed with the state government.
IndoSpace signed the term sheet agreement in 2022 for the investment in the warehousing and logistics sector for Karnataka where the firm committed an investment of Rs 3,000 crore in seven years of the agreement. This huge investment may make a generation of 14,000 new jobs and this is the largest investment by an industrial developer in Karnataka.
The two logistic parks planned for operation in the near future will have the combined area of 1. It has the opportunity to develop 8 million sq.ft for automotive, engineering, electronic manufacturing and 3PL companies. The parks will be established progressively, construction of the parks is set to start this year and plans for the parks to be partially operational in the next 2–3 years.
Among those proposed include the IndoSpace Nelamangala II logistics park that will be established in 35 acres of land and will cost Rs 240 crore. Sited in the Bengaluru-Mumbai highway (NH48), this park stands to greatly boost the capacity of this region for industrial productivity. The second park IndoSpace Narasapura II will have a size of 40 acres, and the total investment is to be made of Rs 340 crore. It is located off Old Madras Road (NH 75) close to growing industrial centers of Vemgal, Malur and Hoskote.
IndoSpace already operates three logistics parks in Karnataka: Among the several warehouses IndoSpace Nelamangala I of 16 acres; IndoSpace Bommasandra of 5 acres. Narasapura II is a 4-acre development on the new Bengaluru-Chennai highway and Narasapura I is a sprawling 64-acre development.
IndoSpace currently boasts of a national portfolio of 52 logistics parks and 58 million square feet of delivered space established in 11 cities.
The industrial and logistics sectors continue to attract significant investment, driven by the growing demand for these assets. This trend is bolstered by the ongoing decentralization of manufacturing from China and government initiatives like ‘Make in India’ and the Production Linked Incentive (PLI) scheme. A supportive regulatory environment, coupled with government-backed policies and reforms, is expected to further boost infrastructure spending and increase demand for modern logistics facilities.