27 February 2020

Spotlight- Embassy Group

EIP’s masterplan for Smart warehousing

 

Embassy Group to set up self-sustaining industrial park in Chakan, Pune

 

Recognising the impact of GST to Indian industry, Embassy Industrial Parks (EIP) has made bold and futuristic moves to develop their new-age warehousing and industrial parks in India. A joint venture between realty developer Embassy Group and private equity firm Warburg Pincus which has invested Rs.350 crore, EIP will build a 1.1-million sq. ft. industrial park at Chakan, Pune.

 

 

WAREHOUSING DEFICIT

As per all leading reports, Pune’s warehousing markets can be classified into two major clusters – Talegaon and Chakan belt, based on factors like geographical location, proximity to national highway, access to city centre and distance from major manufacturing hubs. The Chakan belt is expected to further consolidate its position as a manufacturing hub with MIDC expanding beyond the existing cluster. Presence of major industrial units (auto industry, consumer durables, e – commerce) in the established industrial estates in Pune have led to the emergence of warehousing activity. Hinjewadi, Chakan, and Talegaon, belts have bought billions in FDI inflows and next step would continue on a wider growth momentum which Maharashtra Govt is planning. Over a period of time, warehousing industry in India has evolved from just brick and mortar shelters to highly sophisticated stockrooms. Warehouses play a vital role in the entire value chain from raw material to customer delight. Post the Goods and Services Tax (GST), warehousing activity in the region has moved towards a more systematic mode of operation leading to an inflow of more institutional funding and formal sources of capital. A recent survey about leading warehousing occupiers in the country revealed that consolidation and expansion will be the key theme driving warehousing demand in the region. This will result in increased demand for larger and better quality warehouses leading to emergence of new warehousing hubs as well as expansion of the existing hubs.

 

 

PAN INDIA PLANS

Embassy Group has a three-decade long track record spanning commercial, residential, retail, and hospitality, segments of Indian real estate industry. With over 37 million sq ft delivered and a corporate client list of over 175 marquee global and Indian corporates that feature some of the best multinational corporations, Embassy has a proven track record of understanding the needs of global businesses and translating them into productive and effective workspaces. Warburg Pincus and Embassy Group had formed a JV in October 2015 and the entity is planning to invest about Rs.1,600 crore as equity to building seven-eight industrial parks over the next six years. The firm is exploring opportunities in Delhi, Bengaluru, Mumbai, Ahmedabad, Pune, Ahmedabad, and Kolkata. “We are at a land acquisition stage at present and hope to start construction in three-four more industrial parks in the next 12 months,” says Anshul Singhal, CEO, Embassy Industrial Parks.

 

 

PROJECT DETAILS

The Pune Industrial park project will mainly comprise built-to-suit factories ranging from 50,000 sq.ft to 2 lakh sq.ft in size. Singhal adds, “The total project cost would come to around Rs.350 crore, which includes cost of 52-acre land parcel which we bought last year. Construction has already started and we plan to deliver the project in two years.” This warehouse is being constructed by EIP to meet ever growing demand of logistics requirements of industry verticals such as FMCG, E-commerce, pharmacy, and 3PL operations, retail, consumer durables, apparel and fashion, automotive, pharmaceutical and healthcare, high tech and telecom. The company claims to have snapped up lease commitment for about 450,000 sq.ft of the project.

“We are looking at multinational companies in the space of light manufacturing and processing for the industrial park,” underlines Singhal.

 

 

FUTURE FOCUS

EIP was formed to address the challenges of companies grappling with building and managing industrial and warehousing spaces. They are committed to bringing quality Grade A industrial, light manufacturing and warehousing spaces in close proximity to leading consumer and industrial centers across India. The parks demonstrate global standards and execution excellence driven by a strong implementation team at the heart of EIP’s value proposition. Embassy has the expertise to systematically acquire large land parcels, masterplan to international standards, and execute in line with timelines. They are aligned to the flagship's quality focus and strong corporate ethic. EIPs are designed for full compliance with statutory and FCPA norms. They enlists a robust process-driven approach to operations with a world leading ERP system (SAP) at its core. This encompasses the end-to-end project development cycle.

 

 

 

Embassy Industrial Parks value proposition includes:

  • Turnaround projects fast by using pre-engineered steel buildings
  • Take strategic land positions
  • Deploy capital to scale with our clients
  • Employ a consultative approach and use domain expertise available to optimize design, control costs, and improve efficiency
  • Follow customers across key markets in India
  • Execute projects “on time, at cost, and as per defined specs”
  • Follow due systems and processes to meet the needs of MNC clients - audit, contractual, leasing, legal, and statutory and governance
  • Post construction, ensure quality maintenance and offer facility management

 

EIP is spending almost $1 billion in setting up greenfield and brownfield infrastructure required to run efficient logistics operations across India. Most importantly they pride themselves to be the only developer in India to set up integrated parks that are green and environment friendly. All upcoming parks are IGBC compliant Silver to Gold ratings. They provide rainwater harvesting, solar panels, and energy management. These parks have the right amenities such as truck parking, traffic management, 24/7 CCTV controlled security, fire management, Incubation warehouses, ATM’s emergency medical services and so on. The company not only builds A grade assets, they also have a full-fledged arm called Embassy Services who are pioneers in property and facility management.

In a nutshell, their advantages seem to users benefit in terms of long term costs and operational efficiency. They provide build-to-suit factory building and warehousing facilities to industrial and logistics clients on a lease rental basis. The development will further include best in class industrial infrastructure along with amenities.




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