Chennai, long recognized as a major hub for automobile manufacturing, is rapidly emerging as a key destination for large-scale industrial warehouses and logistics parks. The city is currently witnessing a surge in warehousing and industrial infrastructure projects, valued at over INR 10,000 crore, driven by an increase in manufacturing activity and the strategic relocation of production from China by global firms.
Among the latest developments, Greenbase Industrial and Logistics Parks—a 50:50 joint venture between the Hiranandani Group and private equity giant Blackstone—has announced an INR 1,500-crore investment aimed at acquiring land and developing built-to-suit industrial spaces in the southwest and northern regions of Chennai.
Greenbase joins a growing list of major players expanding their presence in Chennai, which is attracting significant interest from industry leaders. Notable companies such as Singapore-based CapitaLand, domestic warehousing fund and development management firm Welspun One, and Ample Parks—a joint venture between Mahindra Lifespace Developers and private equity firm Actis—have all committed substantial investments to develop industrial warehouses in the region.
Niranjan Hiranandani, Chairman of Greenbase Industrial and Logistics Parks, attributes Chennai’s rise in warehousing and logistics infrastructure to a blend of factors, including favorable government policies and initiatives that ease the process of doing business. These include streamlined approvals, tax incentives, and fiscal benefits.
Chandranath Dey, India Head of Operations & Business Development at JLL, noted that India, like many other Southeast Asian nations, faces challenges in land acquisition and approvals. However, Tamil Nadu has set itself apart by mastering the complexities of land acquisition, making it easier for manufacturing and warehousing companies to establish their operations in the state.
Dey highlighted that while land acquisition is often a time-consuming and risky endeavor due to varying state regulations—such as the Urban Land Ceiling & Regulation Act (ULCRA) in West Bengal, which restricts ownership of large tracts of land—Tamil Nadu has effectively streamlined the process. The state’s innovative approach to dry and wet land categorization has eased the hurdles of land use conversion, a challenge that remains significant in other states.
He further emphasized that, with the exception of Gujarat, few states have matched Tamil Nadu’s success in making large parcels of land, pooled from both private and government ownership, readily available for industrial development. This strategic approach has positioned Tamil Nadu as a preferred destination for industries and developers looking to invest in warehousing and logistics infrastructure.
