India’s Industrial Landscape in Q1 FY 2024-25: A Zone-wise Analysis
This report provides a regional overview of India’s industrial sector for Q1 FY 2024-25, focusing on the manufacturing and warehousing segments. These segments, documented by Biltrax Construction Data (hereafter referred to as Biltrax) through the BX-2 platform, explore key trends, major players, and government initiatives influencing regional developments.
Utilizing Biltrax Construction Data for Strategic Insights
Biltrax plays a pivotal role in tracking and analyzing construction projects across India. As of August 2024, Biltrax monitors 52,150 live construction projects. These encompass more than 17.03 Billion-SqFt of construction area and a total estimated construction value of 9,889,845 INR-Crore (1.16 USD-Trillion).?
BX-2
Biltrax’s BX-2 platform is a comprehensive resource for non-building projects across India. It covers diverse segments such as Roads & Highways, Industrial (Manufacturing & Warehousing), and Water Supply & Distribution. Our dedicated team of analysts meticulously tracks and monitors industrial projects within this extensive framework. BX-2 tracks over 20,000 projects, offering detailed information on construction volumes, geographies, roles & specializations, project durations, etc. By leveraging the platform, stakeholders gain valuable insights and strategic advantages, facilitating informed decision-making and efficient project execution in India’s dynamic construction sector.
Overview -
Biltrax's BX-2 platform has documented 1,174 new Industrial projects (manufacturing & warehousing) across India in Q1 FY 2024-25 (April - June 2024), covering a total area of 162.48 Million-SqFt and involving an estimated project investments of 160,342 INR-Crore.
Major Sub-segments
In the last quarter, the BX-2 platform documented 1,104 projects across major sub-segments of the Manufacturing sector, covering a total area of 147.55 Million-SqFt and a project value of 155,339 INR-Crore. The Steel segment accounted for approximately 32% of the total value. Other prominent sub-segments included Metal, Food Processing, Chemicals, and Pharmaceuticals, which have likely benefited from government initiatives such as the "Make in India" campaign and Production-Linked Incentive (PLI) schemes. The pharmaceutical segment, in particular, has significantly gained from the PLI scheme.
Zone-wise Distribution?
Biltrax tracks projects zone-wise as elaborated below?
– North Zone – Delhi, Haryana, Himachal Pradesh, Jammu & Kashmir, Punjab, Rajasthan, Uttar Pradesh, Uttarakhand, Chandigarh, Ladakh.
– Northeast Zone – Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura.
– East Zone – Andaman & Nicobar Islands, Bihar, Jharkhand, Orissa, West Bengal.
– West Zone – Dadra & Nagar Haveli, Daman & Diu, Goa, Gujarat, Maharashtra.
– South Zone – Andhra Pradesh, Karnataka, Kerala, Lakshadweep, Pondicherry, Tamil Nadu, Telangana.
– Central Zone – Madhya Pradesh, Chhattisgarh.
The East zone was the most dominant region in terms of the value of projects. It had a share of over 34% of the total value.
Zonal Analysis -
A. North Zone
In the North zone, 258 industrial projects have been newly tracked, covering 36.19 Million-SqFt with an estimated project cost of 27,829 INR-Crore. This includes 230 Manufacturing and 28 Warehousing projects.
Leading States in the North Zone Q1 FY 2024-25
Uttar Pradesh led the zone, contributing approximately 60% of the total project cost tracked by BX-2. In Q1 FY 2024-25, the state recorded 63 projects, covering 19.16 Million-SqFt and valued at 16,974 INR-Crore. To support its aim of becoming a trillion-dollar economy by 2027, Uttar Pradesh has developed a robust land bank of 25,000 Acres for prompt allotment to industries. Additionally, the state wants to set up 25,000 units in the hinterland by providing incentives, including a 100% stamp duty waiver.
Moreover, the Government of India has notified the New Central Sector Scheme (NCSS), 2021 for the Industrial Development of the Union Territory of Jammu and Kashmir with a financial outlay of 28,400 INR-Crore, encouraging new investments.?
Key Stakeholders -?
BX-2 identified 243 project owners overseeing the 258 projects. Among the notable projects is a Copper & Aluminium Manufacturing Unit by Proxima Metals Pvt Ltd in Mathura, Uttar Pradesh. The project’s estimated investment cost is 5,000 INR-Crore. Balrampur Chini Mills Ltd is also developing two projects in Uttar Pradesh valued at 2,115 INR-Crore.?
Besides these, BX-2 also tracked 35 design architects, with Avant-Garde Systems and Controls Pvt Ltd handling two projects, valued at 1,276 INR-Crore.
B. Northeast Zone
In the Northeast zone, BX-2 tracked 23 Industrial projects in Q1 FY 2024-25, covering 1.78 Million-SqFt with a cost of 530 INR-Crore. Of these, 15 projects were focused on Food Processing.
Leading States in the Northeast Zone Q1 FY 2024-25
Assam emerged as the leader during this period, accounting for over 95% of the total project value with 20 projects. These covered a total area of 1.75 Million-SqFt and were valued at 508 INR-Crore. Assam is becoming an investment hotspot due to initiatives launched over the last three years.
The Government of India allocated 2,434 INR-Crore to Assam under the Uttar Poorva Transformative Industrialization Scheme. This allocation is a part of the 60% outlay that has been earmarked for the eight North Eastern states. In the last quarter, the Assam Government also announced that it is looking at a defense industrial corridor and a policy is in the making to facilitate its establishment.?
Additionally, the Meghalaya Government is gearing up for its ambitious 10 USD billion economic roadmap by establishing a new industrial estate in Byrnihat. To make way for this project, 134 Acres of land will be converted for industrial use.
Key Stakeholders -?
BX-2 identified 22 active project owners in this zone during Q1 FY 2024-25. Kamakhya Biofuels Pvt Ltd tops this list in terms of total project value. A significant project by Kamakhya Biofuels is the expansion of a Grain-Based Ethanol Plant in Assam. This project is valued at 230 INR-Crore, with Praj Industries Ltd appointed as the design architect.
C. East Zone
The East zone saw 125 projects tracked, spanning 22.19 Million-SqFt with a total project value of 55,147 INR-Crore. Of these, 16 projects worth 35,962 INR-Crore were in the Steel sub-segment. A key project is Bhushan Power & Steel Ltd’s 32,000 INR-Crore investment for upgrading its facility in Sambalpur, Odisha. This includes expanding the crude integrated steel unit from 4.5 MTPA to 9.5 MTPA and its cement plant from 2 MTPA to 5 MTPA.?
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Leading States in the East Zone Q1 FY 2024-25
Odisha emerged as the leading state in the East zone, recording 32 projects spanning 12.25 Million-SqFt and valued at 44,551 INR-Crore. Odisha alone contributed over 27% of the total national project value for Q1 FY 2024-25.
Key Stakeholders -?
In Q1 FY 2024-25, BX-2 mapped 120 project owners and 9 consultants. These project owners are actively developing 125 projects. Of these, NALCO’s expansion of its aluminium smelter plant in Odisha is one of the largest. The project’s investment cost is nearly 17,163 INR-Crore, while Engineers India Ltd serves as the general consultant.
D. West Zone
The BX-2 platform tracked 286 projects in the West zone, covering 45.8 Million-SqFt and valued at 38,627 INR-Crore. Out of these, 273 projects were within the Manufacturing sector.
Leading States in the West Zone Q1 FY 2024-25
Maharashtra and Gujarat continued to dominate, accounting for 99% of the total project cost. Maharashtra recorded 195 projects valued at 20,485 INR-Crore, and Gujarat tracked 77 projects worth 17,963 INR-Crore. These two states are industrial powerhouses due to their excellent port and transport infrastructure, pro-business policies, and ease of doing business reforms.
Key Stakeholders -?
In the previous quarter, 283 project owners were tracked in the West zone. Additionally, 45 design architects involved in 55 projects were monitored. Two of these projects involved Jacobs CES Consulting Engineering Services India Pvt Ltd as the design architect. A key project tracked is the Outsourced Semiconductor Assembly and Test Unit in Sanand, Ahmedabad, Gujarat, developed by CG Semi-Pvt Ltd, a joint venture between Japan-based Renesas and Thailand-based Stars Microelectronics, with an investment of 7,600 INR-Crore.?
In Q1 FY 2024-25, BX-2 recorded 27 civil works contractors working on 34 projects, including a key warehousing project in Thane, Maharashtra, for Welspun One Logistics Parks Pvt Ltd, with an investment of 600 INR-Crore. Shrim Bhanu Constructions Pvt Ltd was appointed as the contractor, with Tata Consulting Engineers Ltd as the Program/Project Management Consultant (PMC) for this project.
E. South Zone
South zone had the highest volume of projects mapped in Q1 FY 2024-25. It accounted for approximately 35% of the total projects tracked on BX-2. This includes 418 projects with a combined construction area of 41.97 Million-SqFt and a total project cost of 29,556 INR-Crore. Of these, 399 projects are coming up under the Manufacturing sector (particularly in the Food Processing and Pharmaceutical sub-segments) having a construction area of 37.52 Million-SqFt and a cost of 28,507 INR-Crore.
Leading States in the South Zone Q1 FY 2024-25
Karnataka led the South zone with 114 projects, covering 17.96 Million-SqFt and valued at 10,981 INR-Crore. The state aims for an industrial growth rate of 15-16% annually to reach a trillion-dollar economy by 2032. Besides this, the Telangana Government is working on a 'Mega Master Plan-2050' to ensure widespread industrial growth and create jobs for nearly 35 lakh unemployed people in the state.?
Key Stakeholders -?
BX-2 tracked 402 project owners, 15 contractors, and 23 design architects working in this zone. Noteworthy projects include two by Chemplast Sanmar Ltd worth INR 1,300 crore and another by its subsidiary Chemplast Cuddalore Vinyls Ltd valued at INR 4,702 crore.
F. Central Zone
In the Central zone, the BX-2 platform tracked 64 Manufacturing projects, covering a total area of 14.55 Million-SqFt and valued at 8,653 INR-Crore.?
Leading States in the Central Zone Q1 FY 2024-25
Chhattisgarh contributed 83% of the total project value, with 41 projects covering 11.59 Million-SqFt and valued at 7,195 INR-Crore. As a move to boost industrial growth and support entrepreneurs investing in Chhattisgarh's industrial sector, the state government launched the Single Window Portal 2.0, aimed at providing swift clearances and approvals.?
Key Stakeholders -?
BX2 tracked 63 project owners in the last quarter. A major project tracked is a Flavour Manufacturing Facility at Ujjain, Madhya Pradesh, proposed by PepsiCo India (Varun Beverages Limited), with an investment of 1,266 INR-Crore. Vaastu Group of Engineers served as the leading consultant, followed by EICS Technology Pvt Ltd. In the previous quarter, BX-2 mapped eight projects worth 3,322 INR-Crore where Vaastu Group of Engineers was appointed as Design Architect or General Consultant. Additionally, four projects involving EICS Technology Private Limited as the design architect were also tracked.
In essence, zonal analytics play a crucial role in understanding regional dynamics. It provides indispensable insights for stakeholders to navigate the intricate industrial landscape. By harnessing data from Biltrax, industry participants secure access to comprehensive, up-to-the-minute information on construction projects nationwide. As the regional trends continue to expand, this detailed analysis equips stakeholders with the insights needed to make informed decisions. These further ensure alignment with regional demands and opportunities.
Thank you for following along with our in-depth analysis of each zone’s industrial trends and developments. Stay tuned for our upcoming series to explore the construction trends in India’s Roads & Highways sector.?
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India’s Roads & Highways sector in Q1 FY 2024-25
To explore our previous analyses, also refer: