Secular Growth Opportunities: India, Industrial & Warehousing

India’s Industrial & Warehousing stock is forecast to grow 42% over the next two years. At Horizon, our target is to double the operating portfolio over the same time-frame.

The increased demand by 3PLs, retail and industrial has made up for e-commerce’s interim hiatus, which too should see an uptick over the next 18-24 months as the present capacities get fully utilised. Fashion, footwear and retail are driving consumer demand. We have just handed over a 470 thousand sq ft facility in NCR to a global 3PL serving a European fashion major.?

Demand for last mile and in-city warehousing is set to explode due to rapid urbanisation and consumer propensity for wide choice and quick delivery. We are creating a 400 thousand sq ft bespoke urban fulfilment center for a global e-commerce major in Delhi, which will be the first facility of its kind in India.

Industrial CapEx is looking at Plug & Play BTS (Built to Suit) factory solutions to expedite time to market and maximise return on investment. EV, PV (Photo Voltaic) and Cold Storage are exciting opportunities. Horizon is constructing a BTS unit for a specialty chemicals company in Hyderabad, cold storage and EV facilities in Tamil Nadu and an automotive components factory in Pune.

Yields in the sector have faced a 150-250bps headwind due to the double whammy of increased interest rates, along with an accelerated rise in input costs. We experience a supply chain pricing lag as our customers build in efficiency and share costs with their consumers.

Over the past year,?Horizon has added?3.7 million sq ft to its anchor portfolio and is developing another 5 milion sq ft, with the current growth capital outlay of Rs. 4500Cr. We want to ideally acquire operating and brownfield properties but due to the dearth of good quality assets, have taken on the mantle of being national developers of scale in this asset class, delivering globally benchmarked quality for India to be proud of.

https://www.financialexpress.com/industry/warehousing-capacities-created-by-e-comm-firms-to-take-2-years-to-get-absorbed-horizon-industrial-parks-ceo/3051344/#:~:text=Warehousing%20capacities%20created%20by%20e-commerce%20firms%20will%20take%20another,logistics%20company%2C%20Horizon%20Industrial%20Parks.