Industrial and logistics real estate transactions in West Bengal surged over the past year and a half as companies led by e-commerce giants Flipkart and Amazon along with Asian Paints, Ranbaxy and Blue Dart snapped up warehousing space.
“Total warehouse space absorbed in the last one year was close to 1.5 million square feet against 1 million sq. ft. in 2014,” said Rahul Baid, head of corporate transactions at Champalall & Co., a Kolkata-based real estate company.
The largest deal was by Flipkart, India’s biggest e-commerce company, at Dankuni. “Our 150,000 sq. ft.-plus capacity warehouse in the east…improves our ability to deliver goods within a day in a very strategic market, that is also growing rather swiftly,” said a spokesperson of EKart, Flipkart’s logistics arm.
Amazon India set up its first fulfillment centre in the region, spread over 83,000 sq. ft. at Srirampore in Hooghly district in October to cater to the entire eastern region. Over 100 sellers from across the country have registered at this warehouse.
Gojavas, the logistics arm of Snapdeal, has taken up pockets of warehousing space of about 35,000 sq. ft. spread across depots in the city, including central locations such as AJC Bose Road.
“Most of these warehouse transactions have been happening in areas like Bombay Road, Budge Budge, Dankuni, BT Road as companies are catering to the northeastern states and also South Asian countries through Bengal,” Baid said.
Drug maker Ranbaxy Laboratories took up 40,000 sq. ft. on Kona Expressway, Cipla 25,000 sq. ft. on Bombay Road, Asian Paints 60,000 sq. ft. on BT Road followed by Fedex and Blue Dart, which have taken up 20,000 sq. ft. and 40,000 sq. ft. at Hyde Road and Bombay Road, respectively.
“Warehousing is expected to grow around 15%-20% annually considering the macro-economic scenario continues to grow and the e-commerce business continues to expand,” said Abhijit Das, director (east) at Cushman & Wakefield.