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July 2014 Manufacturing Destinations of India: A Real Estate Overview

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Page 1: Manufacturing Destinations of India: A Real Estate · PDF fileINDUSTRIAL AREA SANAND INDUSTRIAL AREA ... TUMKUR MADHUGIRI DABASPETE TIPTUR ... Manufacturing Destinations of India:

July 2014

Manufacturing Destinations of India: A Real Estate Overview

Page 2: Manufacturing Destinations of India: A Real Estate · PDF fileINDUSTRIAL AREA SANAND INDUSTRIAL AREA ... TUMKUR MADHUGIRI DABASPETE TIPTUR ... Manufacturing Destinations of India:

2 Manufacturing Destinations of India: A Real Estate Overview

ForewordIn this white paper, we illustrate the trends in the growth of the manufacturing sector in India. We then proceed to recommend growth opportunities for manufacturing occupiers in the coming years. The sectors considered for the study include pharmaceuticals/biotechnology, automobiles, heavy engineering, fast-moving consumer goods (FMCG), electronics and communications & aviation. These sectors have been chosen as major manufacturing areas because of their contribution to the manufacturing sector in India.

Page 3: Manufacturing Destinations of India: A Real Estate · PDF fileINDUSTRIAL AREA SANAND INDUSTRIAL AREA ... TUMKUR MADHUGIRI DABASPETE TIPTUR ... Manufacturing Destinations of India:

Manufacturing Destinations of India: A Real Estate Overview 3

Overview of the Manufacturing Sector in India

Evolution and Growth of the Sector

India was hardly an industrialised country at the time of gaining independence, and the first step India took was to recognise the manufacturing sector as a very important instrument for the country’s economic growth. In every five-year plan, the country continued to grow the manufacturing sector whilst encouraging and incentivising the private sector in the mid-cap and small-cap realms. Progressively, India strengthened its manufacturing sector further under a mixed economy from 1947 to 1991, and under a liberalised economy since then.

India’s manufacturing exporters have played a key role in promoting the sector’s prowess to consumers across the world. Manufacturing exports have always been a major contributor to India’s total merchandise exports. The main export markets for Indian manufacturing goods are the United States and Western Europe. Within Western Europe, Germany and the United Kingdom are two most important export markets.

Prominent Manufacturing Clusters

Manufacturing clusters have developed along major infrastructure corridors. These are specific areas developed for inter-regional industrial growth, including the development of manufacturing areas and clusters along the corridor. These corridors provide infrastructure such as roads, power and other utility services to facilitate the growth of manufacturing industries and regional economic development. Industrial development in India is scattered and can be divided into four zones—north, south, east and west. The chart below shows the major industrial states and cities in each zone.

India’s Manufacturing Footprint

DELHI/ NCR

AHMEDABAD

PUNE

HYDERABAD

BANGALORECHENNAI

MUMBAI

KOLKATA

• Automobiles• Fast Moving Consumer Goods (FMCG)• Heavy Industries

• Automobiles• Fast Moving Consumer Goods (FMCG)• Heavy Industries

• Automobiles• Fast Moving Consumer Goods (FMCG)

• Heavy Industries

• Automobiles• Fast Moving Consumer Goods (FMCG)

• Heavy Industries

• Life Sciences (Pharma and Bio-technology)• Automobiles

• Fast Moving Consumer Goods (FMCG

• Life Sciences (Pharma and Bio-technology)• Automobiles

• Electronics and Communication• Aerospace

• Life Sciences (Pharma and Bio-technology)

• Life Sciences (Pharma and Bio-technology)

MANUFACTURING ZONES IN INDIA

West Zone Mumbai, Pune, Bhiwadi, Jaipur, Ahmedabad, Vadodara and Panaji

North Zone Delhi (NCR)/Gurgaon, Kanpur,

Lucknow, Chandigarh and Indore

East Zone Kolkata, Guwahati, Patna and

Jamshedpur

South Zone Hyderabad, Visakhapatnam, Bangalore, Chennai and Coimbatore

Page 4: Manufacturing Destinations of India: A Real Estate · PDF fileINDUSTRIAL AREA SANAND INDUSTRIAL AREA ... TUMKUR MADHUGIRI DABASPETE TIPTUR ... Manufacturing Destinations of India:

4 Manufacturing Destinations of India: A Real Estate Overview

LIFE SCIENCES (Pharmaceuticals and Biotechnology)

Biocon | Dr Reddy’s Laboratories | Cipla Sun Pharmaceutical | Cadila Healthcare

The United Nations Industrial Development Organization (UNIDO) recognises India as one of the top-ranking countries among developing countries in terms of the production and distribution of pharmaceuticals.

According to the Department of Pharmaceuticals, the pharmaceutical industry in India is the world’s 3rd largest in terms of volume and 14th in terms of value.

According to a recent report by Ernst & Young (E&Y), the biotechnology sector in India is expected to achieve revenue of USD 11.6 billion by 2017, growing at a compound annual growth rate (CAGR) of 22%.

ELECTRONICS AND TELECOMMUNICATIONS

Philips | Sony | Havells LG | Samsung

According to the Department of Electronics and Information Technology, the current size of the electronic manufacturing industry is USD 70 billion and is aimed for USD400 billion by 2020, which means the industry must increase by more than five times over the next seven years.

AUTOMOBILES

Ford | Ashok Leyland | Renault Nissan Maruti Udyog | Tata Motors

The production of passenger vehicles in India was recorded at 3.23 million in 2012–2013 and is expected to grow at a CAGR of 13% during 2012–2021, according to data published by the Automotive Component Manufacturers Association (ACMA) of India.

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Manufacturing Destinations of India: A Real Estate Overview 5

AEROSPACE

Hindustan Aeronautics Limited (HAL) UTC Aerospace Systems | Tyco Electronics Dynamatic Technologies | StarragHeckert

India is fast becoming a major global aerospace consumer market, aided by a combination of increasing defence spending, booming commercial aviation market and rising technological and manufacturing capabilities among local companies.

According to the Investment Commission of India (ICI), investment opportunities of USD 110 billion are envisaged up to 2020, with USD 80 billion in new aircraft and USD 30 billion in the development of airport infrastructure.

HEAVY ENGINEERING

The engineering industry is the largest segment of all industrial sectors in India, accounting for 3% of India’s GDP and offering employment to more than 4 million skilled and semiskilled workers.

The Department of Heavy Industry (DHI), as its vision for 2020, plans that the Indian machine tools industry should secure a domestic market share of 67% by 2020.

Joseph Cyril Bamford (JCB) | Sany | Alfa Laval | Bharat Heavy Electricals Limited (BHEL) | LeeBoy

FMCG Fast Moving Consumer Goods

P&G | Indian Tobacco Company (ITC) | PepsiCo Coca-Cola | Amway

The FMCG sector in India is the fourth largest sector in the economy. It is also called the consumer packaged goods sector. According to the Confederation of Indian Industry (CII), the FMCG sector in India had a market size in excess of USD 13.1 billion as of 2012.

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6 Manufacturing Destinations of India: A Real Estate Overview

NH- 228

NH- 8

NH- 228

NH- 8A

NH- 8A

NH- 8

NH- 947

NH- 947

NH- 59

NH- 8

NH- 8C

NH- 8

SH- 2

SH- 71

Nandasan

Indrad

NaniKadi Part

Lunasan

Pansar

Vadu

Chhatral

Bhalthi

Vamaj

Moti Bhoyan

AmbikaNagar

Karan Nagar

Ambavpura

Unali

Santej

Dantali

Chharodi

Kaneti

Visalpur

SarkhejGam

Morasar

Kalikund

Chandisar

Kerala

JuvalRupavati

Rampur

Sahij

Ambareli

Koth

Gundi

Gada

Trambovad

Deva

VasoHeranj

Ramol

SandhanaMatar

KhadiyarapuraRadhu

Navagam

Kanij

Modaj

Mahemdavad

Jetalpur

Barejadi

GIDC VatwaSingarva

Vejalpur

BodakdevNikol

VastralAmraiwadi

RakhialKujad

Badodara

SaijpurBogha

SabarmatiGota

Sughad

Valad

Dabhoda

Juna KobaKhodiyar

Infocity

Urjanagar 1

Shantigram

Shiholi Moti

Sonipur

Balva

Lekawada

Dhamasana

Sector 26

Shertha

Nardipur

Aluva

KADI

BOPAL

SANAND

CHANGODAR

BAVLA

BAGODRA

ASLALI

DHOLKA

VATAMAN

KHEDA

BAREJA

BAPUNAGAR

ODHAV

NAROLGAM

NARODA

GANDHINAGAR

KALOL

THALTEJNARANPURA

CHANDKHEDA

YW

H D

AB

AD

EM

HA-A

KL

OH

D

VAMAJ RD

MAN

SA-K

ALO

L R

D

KAD

I-NAN

DASAN

RD

AHMEDABAD-VADODARA EXPY

DHOLKA-KHEDA HWY

BAGO

DAR

A-VATAMAN

RD

BAGODARA-DHOLKA RD

Hotel The Westend

Ginger HotelsComfort Inn

President

Evergreen Hotel

Civil Hospital

VadilalSarabhai Hospital

Narayana Hrudalaya

Fire Station

Fire Station

Fire Station

Fire Station

Fire Station

Electric SubStation

Vatrak River

ChandolaLake

KankariaLake

Sa

b iva Rr i emat rThol BirdSanctuary

IndrodaNature Park

CHANGODARINDUSTRIAL AREA

SANANDINDUSTRIAL

AREA

ASLALIINDUSTRIAL AREA

VATVAINDUSTRIAL AREA

NARODAINDUSTRIAL AREA

KADIINDUSTRIAL AREA

KALOLINDUSTRIAL AREA

KHEDAINDUSTRIAL AREA

BAGODRAINDUSTRIAL AREA

BAVLAINDUSTRIAL AREA

SARDAR VALLABHBHAI PATEL INTL. AIRPORT

A B C D

A B C D

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AHMEDABAD

MAP NOT TO SCALE. Designed and published by JLL. Jones Lang LaSalle Property Consultants (India) Pvt Ltd © 2014. All rights reserved.

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Manufacturing Destinations of India: A Real Estate Overview 7

Ahmedabad

Population

6.3 million

Density

12,000/sq km

City Rank

Seventh

Ahmedabad has been the major hub for the pharmaceutical industry in India for a long time with the presence of large players such as Zydus, Intas and Claris. However, after the inauguration of the Tata Motors plant for the manufacturing of the ‘Nano’ in 2010, it emerged as a major manufacturing destination in the automobile, engineering and FMCG sectors as well. Some of the major players that have forayed in the market since then include Ford Motors, Bosch, Hitachi Hi-rail, Colgate Palmolive and Gardner Denver, to name a few. Excellent infrastructure, including the availability of natural gas, reliable power and excellent road connectivity, has been the major advantage for Ahmedabad as a manufacturing destination.

Several manufacturing companies such as the Adani Group, Reliance Industries, the Nirma Group of Industries, Arvind Mills, Claris Lifesciences, Cadila Pharmaceuticals, Shell, Vadilal Industries, Rasna, Bosch Rexroth, Stork and Rollepaal, are present in Ahmedabad.

Ahmedabad has well-developed infrastructure, which is conducive to the growth of manufacturing industries. The submarkets are well connected by road, rail and air transport system with the rest of the country and other parts of the state.

MAJOR MANUFACTURING OCCUPIERS

Occupier Occupier Type Area (Acres)

Location

Tata Motors Automobiles 1,250 Sanand

Ford Motors Automobiles 450 Sanand

Gardner Denver Engineering 4.8 Changodar

Inbisco FMCG 21 Sanand

ALSTOM Bharat Forge

Engineering 60 Sanand

Teva Pharma 50 Sanand

Nestle FMCG 80 Sanand

Colgate Palmolive FMCG 25 Sanand

Oerliekon Engineering 25 SanandSource: Research and REIS, JLL

Temperature

Max 32.3 °C Min 27.4 °C

MANUFACTURING CORRIDORS

Manufacturing Corridor Major Industries Major Locations Land Value (INR per sq ft)

Monthly Rent (INR per sq ft per month)

12-Month Demand Outlook

State Highway 17 (SH 17) (Sanand–

Viramgam Highway)

Automobiles Engineering Sanand GIDC 200–550 18–30

NH 8A (Ahmedabad–Rajkot

Highway)

Pharmaceuticals Biotechnology Changodar–Bagodra 350–700 18–28

NH 8 (Ahmedabad–Vadodara Highway) FMCG Aslali–Kheda 300–550 10–15

SH 41 (Mehsana Road)

Engineering Metal Mehsana 350–700 14–22

Source: Research and REIS, JLLStrong/marginal decline Stable Marginal/strong increase

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8 Manufacturing Destinations of India: A Real Estate Overview

NH- 48

NH- 44

NH- 44

NH- 205

NH- 205

NH- 205

NH- 18

NH- 18

NH- 219

NH- 234

NH- 234

NH- 219

NH- 66

NH- 68

NH- 209

NH- 209

NH- 209

NH- 212

NH- 4

NH- 234

NH- 206

NH- 4

NH- 7

SH- 85

SH- 17

SH- 17

SH- 82

SH- 96

SH- 5

SH- 96

SH- 87

SH- 9

Huliyar

Chiknayakanhlli

Sira

Kadirihalli

Rolla

Pavagada

Madakasira

Thumakunta

Turuvekere

Channarayapattana

Krishnarajpet Melukote

Nagamangala

Chakkuru

SrirangapatnaMalavalli

Kollegal

Mangala

Billgundala

Denkanikottai

Marandahalli

Neraluru

Kanakapura

Kambainallur

Palacode

Male Mahadeshwarabetta

Kongadai Jalakandapuram

Mecheri

Hanur

Hura

Kelamangalam

KoppaAnekal

Kuppam

Kolar

Belatur

HSRLayout

Magadi

Vidyaranyapura

Belluru Yadiyur

Koratagere

Dhiburahalli

Gownipalli

Sidlaghatta

Kempegowda

Srinivaspur

Gauribidanur

Bagepalli

Amadagur

Puttaparthi

Galiveedu

Nallacheruvu

Lakkireddipalli

Gurram Konda

Chinnamandem

Palamaner

Ambur

Alangayam

Uthangarai

Yercaud

Pappireddipatti

Vazhapadi

TUMKUR

MADHUGIRI

DABASPETETIPTUR

MYSORE

NANJANGUD

GUNDLUPET

CHAMARAJANAGARA

MANDYA

KRISHNAGIRI

DHARMAPURI

HARUR

METTUR

SALEM

RAMANAGARA

TIRUPATTUR

VANIYAMBADI

ELECTRONICS CITY

HOSUR

KUNIGAL

KOLAR GOLD FIELDS

MULBAGAL

DODDABALLAPUR

CHIKKABALLAPUR

HIRIYUR

PENUKONDA

HINDUPUR

RAYACHOTI

KADIRI

MADANAPALLE

KURABALA KOTA

CHINTAMANIPUNGANUR

MYSORE ROADHOSUR ROAD

TU

MK

UR

RO

AD

Ginger Hotel

Lalitha MahalPalace Hotel

GoldenLandmark

Jayamahal Palace HotelThe LeelaPalace

Koshy's Hospital

Sagar Hospital

JSS Hospital

Vaidehi Hospital

KrishnarajaSagara Reservoir

StanleyReservoir

Fire Station

Fire Station

Fire Station

Fire Station

Fire Station

Fire Station

Electric SubStation

Electric SubStation

Electric SubStation

Electric SubStation

PedduruReserve Forest

KalrayanHill Forest

Lower KalrayanHill Forest

KoundinyaWildlife

Sanctuary

VASANTHANARASAPURAINDUSTRIAL AREA

DABASPETEINDUSTRIAL AREA

DODDABALLAPURINDUSTRIAL AREA

HOSKOTEINDUSTRIAL AREA

HAROHALLIINDUSTRIAL

AREA

JIGANIINDUSTRIAL

AREA

BIDADIINDUSTRIAL

AREA

BOMMASANDRAINDUSTRIAL AREA

ATTIBELEINDUSTRIAL AREA

KUMBALGODUINDUSTRIAL AREA

PEENYAINDUSTRIAL AREA MALUR

INDUSTRIAL AREA

AERO SEZHARDWARE PARK

VEMAGALINDUSTRIAL AREA

NARSAPURAINDUSTRIAL

AREA

BANGALORE INTL. AIRPORT

A B C D

A B C D

1

2

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5

6

7

8

1

2

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6

7

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BANGALORE

MAP NOT TO SCALE. Designed and published by JLL. Jones Lang LaSalle Property Consultants (India) Pvt Ltd © 2014. All rights reserved.

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Manufacturing Destinations of India: A Real Estate Overview 9

Bangalore

Population

8.4 million

Density

11,470/sq km

City Rank

Fifth

Temperature

Max 38.9 °C Min 10.6 °C

Bangalore, the state capital of Karnataka, is strategically located in South India. After India’s independence, during 1950s to 1960s, major public sector heavy industries such as BHEL, Bharat Earth Movers Limited (BEML), Hindustan Machine Tools (HMT) and Indian Telephone Industries (ITI), as well as knowledge-based production facilities such as HAL started their operations in Bangalore.

During the 1980s–1990s period, Bangalore evolved as a favourite destination for IT and IT-enabled services (ITeS).

The steady rise of Bangalore as a global manufacturing hub is supported by the presence of leading education and research institutions; a large number of large-scale and knowledge-based public sector industries and small-scale industries; a highly proficient English-speaking and relatively economically large labour pool; and a stable and liberal socio-political environment.

At present, the government is developing more industrial areas in and around Bangalore to attract investments. In the recent past, Bangalore emerged as a favourite destination for the automotive industry.

MAJOR MANUFACTURING OCCUPIERS

Occupier Occupier Type Area (Acres)

Location

Volvo Automobiles 122 Old Madras Road (OMR)

LM Wind Power

Engineering 40 Tumkur Road

Honda Automobiles 96 Narasapura

Scania Automobiles 35 Narasapura

Mahindra Aerospace

Aerospace 25 Narasapura

Biocon Pharmaceuticals 90 Bommasandra

Toyota Kirloskar

Automobiles 432 Bidadi

Bosch India Automobiles 97 Bidadi

Source: Research and REIS, JLL

MANUFACTURING CORRIDORS

Manufacturing Corridor

Major Industries Major Locations Land Value (INR per sq ft)

Monthly Rent (INR per sq ft per month)

12-Month Demand Outlook

Tumkur Road Pharmaceuticals/biotechnology Engineering

Peenya 1,600–2,100 25–30

Dabaspet 200–300 11–14

OMR

Engineering Automobiles

Pharmaceuticals Electrical and electronics

Hoskote 400–500 14–16

Whitefield 2,400–2,800 25–30

Narasapura 250–350 16–20

Hosur Road Pharmaceuticals/Biotechnology Engineering

Bommasandra–Jigani 900–1,000 18–24

Attibele 600–700 16–20

Mysore RoadAutomobiles and auto

components FMCG

Bidadi 250–350 18–22

Kumbalgodu 700–900 18–22

Bellary Road Aerospace Electronics and hardware

Aerospace SEZ, Hardware Park

400 N/A

Source: Research and REIS, JLLStrong/marginal decline Stable Marginal/strong increase

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10 Manufacturing Destinations of India: A Real Estate Overview

NH- 205

NH- 205

NH- 45

NH- 4

SH- 121

SH- 5 SH- 116

SH- 58

SH- 118A

SH- 57

SH- 52

SH- 51

NH- 4

NH- 45

NH- 46

NH- 205

NH- 205

NH- 18A

NH- 5

Pallipattu

Pothatturpettai

Banavaram

Ammoor

Mangadu

Mazhayur

Mecheri

Vembi

Mambakkam

Sengadu

Peranamallur

Desur

Ammanambakkam Nethapakkam

Madurantakam

Periayakattupakkam

Kunnathur

Kolambakkam

Melapattu

Perunagar

Ukkal

Puthali

Mamandur

Maiyur

Walajabad

ThenneriVedekkal

Perumbulipakkam

Thakkolam

Nemili

Mappedu

Perambakkam

Kilpakkam

Poondi

Venmanambudur

SenneriAgaram

Nallattur

Nagalapuram

Narayanavanam

S.B.R.Puram

Chinnapandur

Sathyavedu

Sricity Ramapuram

Tada

Venadu

Sriharikota

Tiruchanur

Renigunta

Bandarupalli

Pulicat

Kavaraipettai

Ponneri

Minjur

Ennore

Tiruvottiyur

Madhavaram

AmbatturGeorgeTown

Mogappair

Porur

Guindy Adyar

Chromepet

Tambaram

Sholinganallur

Mambakkam

Thirukkazhukundram

Nemmeli

Sirudavoor

Kelambakkam

Karumbakkam

PUTTUR

SHOLINGHUR

ARCOT

CHENGALPATTU

KANCHIPURAM

CHEYYAR

VANDAVASIMEIYUR

SRIPERUMBUDUR

ARAKKONAM

THRIVALLUR

THIRUTHANI

NAGARI

GUMMIDIPOONDI

SULLURUPETA

SRIKALAHASTI

TIRUPATI

AVADI

VELACHERY

MARAIMALAINAGAR

TIRUPATHI RD

SATHYAVEDU RD

CHITTOOR RD

UTHIRAMERUR RD

OM

R

EA

ST

CO

AS

T R

D

OM

R

Poondi Lake

PulicatLake

BAY OFBENGAL

PuzhalLake

ChembarambakkamLake

Palar River

Kolavai Lake

MadurantakamLake

KaveripakkamLake

Sri VenkateswaraNational Park

Nagiri HillsReserve Forest

KambakkamReserve Forest

PalemForest

PonnurReserved

Forest

Peria PuliyurForest

VHS Hospital

Parvathy Hospital

Hindu Mission HospitalMeenakshi MedicalCollege Hospital & Research Institute

Fortis Malar Hospital

Sri RamchandraHospital

Radisson Blu Hotel

The Trident

Vivanta by Taj - Fisherman's Cove

ITC Grand Chola

Fire Station

Fire Station

Fire Station

ElectricSub Station

Electric SubStation

Electric SubStation

GUMMIDIPUNDIINDUSTRIAL AREA

SRIPERUMBUDURINDUSTRIAL AREA

ORAGADAMINDUSTRIAL AREA

MARAIMALAI NAGARINDUSTRIAL AREA

IRUNGATTUKOTTAIINDUSTRIAL AREA

THERVOY KANDIGALINDUSTRIAL AREA

CHENNAIINTERNATIONAL

AIRPORT

A B C D

A B C D

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MAP NOT TO SCALE. Designed and published by JLL. Jones Lang LaSalle Property Consultants (India) Pvt Ltd © 2014. All rights reserved.

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Manufacturing Destinations of India: A Real Estate Overview 11

Chennai

Population

8.6 million

Density

11,000/sq km

City Rank

Fourth

Chennai is the fourth most populous metropolitan area in India. The city’s economy has a broad industrial base, spanning the automobile, computer, technology, hardware manufacturing, financial services and health-care industries. Chennai is India‘s second largest exporter of software, IT and ITeS. The city, accounting for 60% of the country‘s automotive exports, is rightly coined ‘the Detroit of Asia’.

Chennai‘s economic development has been closely tied to its port and transport infrastructure, which is considered as the best infrastructure in India. The city is served by two major ports—Chennai Port and Ennore Port. Chennai Port is India‘s second busiest container hub, handling general industrial cargos and automobiles, among others. The Ennore Port handles cargos—such as coal, ore and bulk—and break bulk cargos.

The major industrial locations of Sriperumbudur and Oragadam receive investment from major MNCs, such as Renault Nissan, Daimler and Yamaha.

The availability of cheap government-subsidised land in and around Chennai is limited, and the government is acquiring additional land to meet the growing demand. Leading private developers such as Ascendas and Mahindra World City have also made investments to create manufacturing zones around Chennai.

MAJOR MANUFACTURING OCCUPIERS

Occupier Occupier Type Area (Acres)

Location

Renault Nissan Automobiles 1000 Oragadam

Daimler Automobiles 400 Oragadam

Yamaha Automobiles 400 Oragadam

Ashok Leyland Nissan

Automobiles Multiple Multiple

Royal Enfield Automobiles 50 Oragadam

Michelin Automobiles 300 Thervoy Kandigai

Philips Carbon Automobiles 80 Thervoy Kandigai

Amway FMCG 50 Nilakkottai

Source: Research and REIS, JLL

Temperature

Max 45 °C Min 32.8 °C

MANUFACTURING CORRIDORS

Manufacturing Corridor Major Industries Major Locations Land Value (INR per sq ft)

Monthly Rent (INR per sq ft per month)

12-Month Demand Outlook

Sriperumbudur (NH 4)

Automobiles FMCG

Light engineering Electronics and hardware

Irungattukottai 800–1,050 22–30

Sriperumbudur 450–550 20–26

Oragadam Automobiles Electronics and hardware

Oragadam 350–550 20–25

Grand Southern Trunk Road

(NH 45)

Automobiles Textiles FMCG

Marai Malai Nagar 800–1,050 18–22

Grand Northern Trunk Road

(NH 45)

Automobiles FMCG

Heavy engineering

Thervoy Kandigai 100–300 18–22

Gummidipoondi 150–250 18–20

Source: Research and REIS, JLLStrong/marginal decline Stable Marginal/strong increase

Page 12: Manufacturing Destinations of India: A Real Estate · PDF fileINDUSTRIAL AREA SANAND INDUSTRIAL AREA ... TUMKUR MADHUGIRI DABASPETE TIPTUR ... Manufacturing Destinations of India:

12 Manufacturing Destinations of India: A Real Estate Overview

NH- 58

SH- 12

NH- 58

NH- 119

NH- 58

NH- 91

NH- 91

NH- 235

NH- 235

NH- 91

NH- 2

NH- 2

NH- 24

NH- 71B

NH- 71B

NH- 8

NH- 8

NH- 71

NH- 71

NH- 10

NH- 10

NH- 10

NH- 1

NH- 1

NH- 1

NH- 71A

NH- 71A

NH- 71

SH- 14

SH- 14

SH- 82

SH- 82

SH- 78

SH- 57

SH- 13

SH- 13

SH- 44SH- 14

SH- 52

SH- 24

SH- 22

SH- 20

SH- 20

Rahra

Assandh

Dhatrath

Gharaunda

Sushant City

HudaUrlana Kalan

SamalkhaNidani

Banwasa

Mundlana

Julana Ganaur

AshokNagar

Rithal

Gorar

KharkhodaMokhra

LakhanMajra

Bawana

SamplaKabulpur

Daola

ChandpurDhanirwas

Kosli

Badli

PataudiKhuspura

Khaleta

Bilaspur

Guraora

Nuh

Bawal

Mandhan

Dehana

Tijara

Mundawar

Shahjahanpur

Pahari

Badkli

Punhana

Kosi Kalan

Hasanpur

Kalanjar

Jattari

Bajna

JewarPalwal

Ballabhgarh

Birampur

Makanpur

GautamBuddha Nagar

Sohna

Badarpur

Vasant Kunj

Dwarka

GreaterNoida

Chhapraula

Muradnagar

Shahdara

NarelaModinagar

Daulcha

Bamnauli

Kirthal

Shamli

Shahpur

CharthavalJhinjhana

Bakdoli

Chhapar

Khatauli

Daurala

Jahidpur

Kharkhauda

Pilkhuwa

Gulothi

Kaseru

Pisawa

Khair

Arni

Mahdaura

PANIPAT

ROHTAK

SONIPAT

GOHANA

SAFIDON

JIND

MUZAFFARNAGAR

MEERUT

KANDHLA

BUDHANA

SARDHANA

BAHADURGARH

JHAJJAR

MANESAR

GURGAON

GHAZIABAD

NEW DELHI

NOIDA

FARIDABAD

HAPUR

AURANGABAD

NEEMRANA

REWARI BHIWADIDHARUHERA

FIROZPURJHIRKA

HODAL

KHURJA

BULANDSHAHR

SIKANDRABAD

DADRI

BARAUT

JANSATH

DEOBANDKARNAL

YA

MU

NA

EX

PY

MAW

ANA B

YPASS

TAURU RD

HISAR RD

GO

HA

NA

-RO

HTA

K R

D

Hotel Trident

Crown Plaza

The Oberoi

G.B.Pant

IndraprasthaApollo

Army BaseHospital

Yamuna R

iver

Yam

una R

iver

Yam

una R

iver

Fire Station

Fire Station

Fire Station

Electric SubStation

Electric SubStation

Electric SubStation

Electric SubStation

Electric SubStation

AsolaWild Life

Sanctuary

PANIPATINDUSTRIAL AREA

ROHTAKINDUSTRIAL AREA

SONIPATINDUSTRIAL AREA

MEERUTINDUSTRIAL AREA

BAHADURGARHINDUSTRIAL AREA

GHAZIABADINDUSTRIAL AREA

MANESARINDUSTRIAL AREA

DHARUHERAINDUSTRIAL AREA

BAWALINDUSTRIAL AREA

FARIDABADINDUSTRIAL AREA

NOIDA & GREATER NOIDA

INDUSTRIAL AREA

SIKANDRABADINDUSTRIAL AREA

PALWALINDUSTRIAL AREA

NEEMRANAINDUSTRIAL AREA

IGI INTERNATIONAL AIRPORT

A B C D

A B C D

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2

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7

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2

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DELHI NCR

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Manufacturing Destinations of India: A Real Estate Overview 13

Delhi NCR

Population

16.3 million

Density

11,297/sq km

CityRank

Second

The manufacturing sector plays a vital role in the economic development of the National Capital Region (NCR). The region has a wide variety of industrial products, including high-value and high-technology goods. The manufacturing submarkets of the NCR region are regulated under the development norms of a few nodal authorities, which include the Department of Industries, the Delhi Development Authority (DDA), Delhi State Industrial Development Corporation (DSIDC), Haryana Urban Development Authority (HUDA), Rajasthan State Industrial Development and Investment Corporation (RIICO) and Uttar Pradesh State Industrial Development Corporation (UPSIDC).

The development of the industrial clusters and their supporting infrastructure is undertaken by these nodal authorities or by a few cooperative societies.

Several manufacturing companies such as Maruti Suzuki, Ranbaxy Laboratories, Escorts Group, Honda, GSK Consumer and Nestlé India are present in the NCR.

NCR has been able to attract sizable investment from multinational companies, large business houses, foreign investors, nonresident Indians and small-scale entrepreneurs. NCR is an investor-friendly region and offers a rich reservoir of skilled, motivated and relatively low-cost workers, with good infrastructure and harmonious industrial relations.

MAJOR MANUFACTURING OCCUPIERS

Occupier Occupier Type Area (Acres)

Location

Maruti Suzuki Automotive 600 Manesar

Ranbaxy Laboratories Pharmaceuticals 9.1 Gurgaon

Honda Automotive 52 Manesar

Escorts Group Engineering Conglomerate

250 Faridabad

Nestle India Limited FMCG 7 Samalkha, Haryana

GSK Consumer Consumer Health Care

140 Sonipat

Source: Research and REIS, JLL

Temperature

Max 31.4 °C Min 18.8 °C

MANUFACTURING CORRIDORS

Manufacturing Corridor Major Industries Major Locations Land Value (INR per sq ft)

Monthly Rent (INR per sq ft per month)

12-Month Demand Outlook

NH 1FMCG Metal

Food processingPanipat and Sonipat 450–1,150 14–20

NH 2Automobiles

Heavy machinery Metal

Faridabad 1,100–4,500 20–40

Palwal 350–1,000 15–20

NH 8 Automotive Textiles

Manesar and Daruhera 900–1,800 17–30

Neemrana 700–1,400 16–24

NH 10 Food processing Metal

Bhadurgarh and Rohtak 700–1,850 17–25

NH 24Chemicals

Food processing FMCG

Ghaziabad 550–1,850 15–25

NH 58Chemicals

Food processing FMCG Metal

Ghaziabad 550–1,850 15–25

Meerut 550–1,147 15–20

Source: Research and REIS, JLLStrong/marginal decline Stable Marginal/strong increase

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14 Manufacturing Destinations of India: A Real Estate Overview

NH- 7

NH- 16

NH- 9

NH- 202

NH- 202

NH- 7

NH- 9

NH- 7

NH- 7

NH- 167

NH- 150

NH- 218

NH- 16

NH- 167

NH- 7

NH- 9

SH- 15

SH- 217

SH- 25

SH- 10

SH- 11

SH- 15

SH- 1

SH- 6

SH- 13

SH- 10

Deoni

Jamkhandi

Sirvar

Khanapur

Ullesugar

Gurmatkal

Chittapur

Navandgi

Malkhed

Kalgi

Chincholi

Chitaguppa

Chandankheri

Rajoli

Kanji

Sirkatnalli

Nittur

Hippalgaon

Aurad

Markhel

Deoulwadi

Jalkot

Mukhed

Kundalwadi

Sangam

Bichkunda

Wajrakhandi

Banswada

Nizampet

Alladurg

NyalkalChandoor

Munipalli

Marpally

Shankarpalli

Dharur

Vikarabad

Tandur

Pargi

Kosigi

Mohammadabad

Devarkadra

Patherched

Komreddypally

Sriramnagar

ShabadPentlavelli

Balmur

Nizamabad

Srisailamgudem

Kalwakurthy

Mudigonda

Amangal

Bijnapalli

Manchal

Shivannaguda

Shivampet

Ramasagar

Chegunta

Dubbak

Domakonda

Palwancha

Sircilla

Rudrangi Poodur

Vattimalla

Athmakur

Bheemgal

Sirikonda

ArmoorAtmakur

Maddulapalli

Choppadandi

Jangapally

Singapuram

Koheda

Ghanpur

Jangaon

Aler

Atmakur(m)

Valigonda

Shapelly

Narketpalli

MarrigudaGhattuppal

Yacharam

NagarjunaSagar

Lakshmapur

Veldhurthy

Guttalachenupenta

Komarolu

Thirumalagiri

Marrigudem

Makrekal

Dharmaram

Tirumalagiri

Chennur

Gudur

Rahamatnagar

Kondapalakala

BIDAR

ZAHEERABAD

BHALKI

YADGIRMAHBUBNAGAR

KUKATPALLY

SECUNDERABAD

SANGAREDDY DUNDIGAL

SIDDIPET

RAMAYAMPET

MUSTABAD

YELLAREDDY

UDGIR

AHMADPUR

DEGLOOR

HUSNABAD

NARAYANPET

DEVARSUGUR

RAICHURGADWAL

WANPARTI

RAYAVARAM

BHUVANAGIRI

RAJAPET

GENOME VALLEY

VEMULAWADA

JAGTIAL

KORUTLA

NIZAMABAD

YACHARAM

KAMAREDDY

VARNI

BODHAN

FAROOQNAGAR

KOLUKONDA

KOLUKONDA

KARIMNAGAR

KAMALAPUR

WADDEPALLE

NALGONDA

MACHERLA

SRISAILAM

ZAHEERABADINDUSTRIAL AREA

ISNAPURINDUSTRIAL AREA

PATANCHERUINDUSTRIAL AREA

PASHAMYLARAMINDUSTRIAL AREA

KALLAKALINDUSTRIAL AREA

MEDCHALINDUSTRIAL AREA

KONPALLYINDUSTRIAL AREA

CHERLAPALLYINDUSTRIAL AREA

KOTHURINDUSTRIAL AREA

SHAMSHABADINDUSTRIAL AREA

ADIBATLAINDUSTRIAL AREA

AUTONAGARINDUSTRIAL AREA

HAYATHNAGARINDUSTRIAL AREA

SINGHINAGARINDUSTRIAL AREA

JEDCHERLAINDUSTRIAL AREA

Srisailam Dam

JuralaReservoir

NagarjunaSagar

KrishnaRiver

Dindi River

Srisailam DamReservoir

KrishnaRiver

Bhim

a R

iver

KaranjaReservoir

Singur DamReservoir

NizamsagarLake

OsmanSagar

HimayatSagar Lake

Nandi Kot KurReserve Forest

KU

NC

HAR

AM

RD

MUMBAI HWY

NAR

AYAN

KH

ED

RD

PARGI RD

Taj Krishna Hotel

Novotel

Hotel Minerva Grand

Kamineni Hospital

Prime HospitalFire Station

Fire Station

FireStation

Electric Sub Station

Electric Sub Station

RAJIV GANDHIINTERNATIONAL AIRPORT

A B C D

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2

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Manufacturing Destinations of India: A Real Estate Overview 15

Hyderabad

Population

7.7 million

Density

18,480/sq km

City Rank

Sixth

Hyderabad is a diversified economic zone with varied industries, including life sciences, FMCG and automobiles. During the 1950s–1960s period, most of the Indian premier public enterprises were established in Hyderabad, giving an edge to the traditional manufacturing and bringing in technological advancements.

The Andhra Pradesh Government, through its New Industrial Policy, aptly titled ‘Industrial Investment Promotion Policy (IIPP) 2010–2015’, places major emphasis on the creation of quality infrastructure; promotion of manufacturing investment zones and industrial corridors; and special focus on micro-sized, small-sized and medium-sized enterprises (MSMEs).

The city has greatly benefitted from setting up world-class infrastructure providing connectivity to the areas nearby, promoting industrial corridors along the national highways connecting to Nagpur, Bangalore, Mumbai and Vijayawada.

The new policy is a good sign for Hyderabad, as more industries would provide a perfect balance to the IT boom in Hyderabad, where IT is still the dominant industry. Manufacturing would greatly strengthen and take advantage of the world-class infrastructure developed by the government and would provide employment and opportunities to a larger base of the economy.

MAJOR MANUFACTURING OCCUPIERS

Occupier Occupier Type Area (Acres)

Location

Tata Advanced Systems

Aerospace 50 Adibatla

P&G FMCG 170 Kothur

AugustaWestland Aerospace 10 Shamshabad

Mahindra and Mahindra

Automobiles 100 Zaheerabad

Alexandria Biotech Park

Biotechnology 300 Shamirpet

ICICI Knowledge Park

Biotechnology 200 Shamirpet

Piramal Healthcare Pharmaceuticals 10 Medak

Source: Research and REIS, JLL

Temperature

Max 32.0 °C Min 20.2 °C

MANUFACTURING CORRIDORS

Manufacturing Corridor Major Industries Major Locations Land Value (INR per sq ft)

Monthly Rent (INR per sq ft per month)

12-Month Demand Outlook

Nagpur Highway, Karimnagar Highway

Pharmaceuticals/biotechnology

Medchal, Genome Valley, Kallakal, Kompally 350–450 10–16

Mumbai Highway Automobiles Food processing

Patancheru, Pashamylaram, Isnapur,

Zaheerabad370–550 9–15

Bangalore Highway, Shamshabad

FMCG Pharmaceuticals

Aerospace

Shamshabad Airport, Adibatla, Kothur,

Thimmapur, Jadcherla, Srisailam Highway

200–750 10–17

Vijayawada Highway Automobiles Textiles

Autonagar, Sanghi Nagar, Hayathnagar, Cherlapally

250–500 12–18

Source: Research and REIS, JLLStrong/marginal decline Stable Marginal/strong increase

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16 Manufacturing Destinations of India: A Real Estate Overview

HowrahR.S.

SealdahR.S.

NH- 2

SH- 2

NH- 2

NH- 117

NH- 117

NH- 6

NH- 34

SH- 15

SH- 1

SH- 6

SH- 2

SH- 13

SH- 1

SH- 15

SH- 15

Srikrishnapur

Shrirampur

KumrulHansnan

Nabagram Keshabpur

Bhandarhati

TarkeshwarHarishpur

Beraberi

Haripal

Parbbatipur

Bhimpur

Daluigacha

Sheakhala

Atpur

JangiparaMasat

Gopinathpur

Begampur

Shankarhati

Kashtasangara

Dhulagori

Amta

Andul

Nangi

Alpur

Panchla

HatgachhaRaipur

Balarampota

Joarkole

FaltaFatepur

Amarpur

Bishnupur

Julpia

Dhamua

SahebpurRaghabpur

Subuddhipur

Naktala

Dhakuria

Kalighat

Bhagabanpur

RajarhatNewtown

MadhyamgramDankuni

Mirpur

Rishra

Noapara

Titagarh

Panihati

Baidyabati

Ichapur

Champdani

Sankarpur

Dharampur

Bandel

Bansberia

Gayeshpur

Raghunathpur

KANCHRAPARA

KALYANI

HOOGHLY-CHINSURAH

BHATPARA

CHANDANNAGAR

SINGUR

BARRACKPORE

KHARDAHA BARASAT

UTTARPARAKOTRUNG

NORTHDUMDUM

JAGATBALLAVPUR

KOLKATA

SOUTHDUMDUM NEW TOWN

RAJARHATGOPALPUR

DUM DUM

BALLYGUNGE

BUDGEBUDGE

ULUBERIA

UDAINARAYANPUR

BAGNAN

HOWRAH

LILUAH

BARUIPUR

RAJPURSONARPUR

JOKA

SHYAMPUR

BEHALA

SANKRAIL

SALFLAKE CITY

GARIA

MAHESHTALA

DOMJUR

DHANIAKHALI

NATIONAL HIGHWAY-2INDUSTRIAL AREA

DANKUNIINDUSTRIAL AREA

KALYANIINDUSTRIAL AREA

KALYANI EXPRESSWAY

INDUSTRIAL AREA

ALAMPURINDUSTRIAL AREA

DHULAGARIINDUSTRIAL AREA

NATIONAL HIGHWAY 6INDUSTRIAL AREA

ULUBERIAINDUSTRIAL AREA JOKA

INDUSTRIAL AREA

DIAMONDHARBOUR ROAD

INDUSTRIAL AREA

HooghlyRiver

HooghlyRiver

Acharya JagadishChandra Bose Indian

Botanic Garden

GR

AN

D T

RU

NK

RD

DU

RG

AP

UR

EX

PY

KONA EXPYANDUL RD

KA

LYA

NI E

XP

Y

KALY

AN

I EXPY

The Floatel Hotel

The Oberoi Grand

Kenilworth HotelITC Sonar

Hyatt Regency

SSKMHospital

Nilratan Sarkar Medical College and Hospital

B.M. Birla Heart Research Centre

Fire Station

Fire Station

Fire Station

Electric Sub Station

Electric Sub Station

Electric Sub Station

Electric Sub Station

NETAJI SUBHASH CHANDRA BOSE INTERNATIONAL AIRPORT

A B C D

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Manufacturing Destinations of India: A Real Estate Overview 17

Kolkata

Population

14.1 million

Density

24,000/sq km

City Rank

Third

Kolkata, including its metropolitan area, is the third most populous city in India and the main commercial and financial hub of the eastern and north-eastern part of the country. Developments such as the huge leather complex that has been set up at Bantala and the export-processing zone that has been built in Falta, have paved the way toward the city being an industrial hub. In addition, industrial estates in Kalyani, Taratala, Dankuni, Kasba and Howrah, with specialised sectors such as the country‘s first toy park and a gem and jewellery park, are spread throughout the metropolitan area.

Kolkata‘s economic development has a close relationship to its port and transport infrastructure. There are two distinct dock system—a river port at Kolkata with 28 berths and a deep water port at Haldia with 12 berths. Kolkata port handles containers and industrial cargo while Haldia Port handles bulk cargos such as coal, ore and oil.

The proposed draft of an industrial development policy aims to leverage the core competence and the state’s rich mineral base for the promotion of manufacturing such as engineering, chemicals, petrochemicals and its downstream industries, along with the introduction of the latest technology and foreign direct investment (FDI). Sunrise and high-tech industries will be promoted through policy and business process reform to create ease in doing business by the creation of a single window system for industrial start-ups. By doing this, the government will take a giant step toward growth.

MAJOR MANUFACTURING OCCUPIERS

Occupier Occupier Type Area (Acres)

Location

Cadbury, PepsiCo, Rollick, and others. (Sudharas

Food Park)Food processing 100 Dhulagari

Elkos, Seiko, among others. (Poly Park)

Poly processing 60 Dhulagari

Jute Mills (Reliance, Auckland, Alliance,

Weaverly, among others)Jute industries 400 Multiple

Coca Cola Food processing 20 Dankuni

Himadri Chemicals Chemicals 40 Multiple

Jayashree Textiles (Aditya Birla)

Cotton 30 Rishra

Britannia Industries FMCG 10 Taratala

Century Ply Plywood 35 Multiple

Eveready Battery plant 12 Multiple

Keshoram Industries Cotton 20 Khidirpur

Source: Research and REIS, JLL

Temperature

Max 31.7 °C Min 22.2 °C

MANUFACTURING CORRIDORS

Manufacturing Corridor Major Industries Major Locations Land Value (INR per sq ft)

Monthly Rent (INR per sq ft per month)

12-Month Demand Outlook

NH 6FMCG

Warehousing Polythene

Ferro-alloys

Dhulagari and Alampur 350–500 14–18

Uluberia 150–200 10–14

NH 2 FMCG Ferro-alloys

Dankuni 250–300 13–17

Diamond Harbour RoadPolythene

Manufacturing FMCG

Joka 1,400–1,900 20–25

Sirakol 200–250 8-–20

Kalyani Expressway Chemicals Light engineering

Kalyani 200–300 8-12

Source: Research and REIS, JLLStrong/marginal decline Stable Marginal/strong increase

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18 Manufacturing Destinations of India: A Real Estate Overview

NH- 8

SH- 54

NH- 8

NH- 8

NH- 3

NH- 3

NH- 3

NH- 222

NH- 17

NH- 17

NH- 4B

NH- 4B

NH- 4

SH- 54

Bhinar

Chandansar

VatarDhaniv

Sai Nagar

Vasai WestPoman

Sai Nagar

VarsavaDongri

Uttan

Gorai

Thane West

Dahisar East

Borivali

KandivaliWest

KandivaliEast

MulundWest

Kalwa

Dighe

Mumbra

Airoli

Ghansoli

KoparKhairane

BhandupWest

GoregaonEast

AndheriEast

Malad West

Versova

Juhu

Sakinaka

Vashi

Sanpada

Dadar

Chembur

WorliParel

Byculla

Kalbadevi

Fort

Colaba

Mahim

Bandra West

GharapuriVillage

Seawoods

Jasai

JawaharlalNehru Port

Trust Township

JNPT

Uran

Karanja

Revas

Koproli

Chowk

Chinchavan

Shedung

Ulwe

Koproli

Kalamboli

Panvel

Taloje

Kolegaon

Sonar pada

MukundNagar

Titwala

Ambivli

Gokul Nagar

Padgha

Khadawali

Angaon

Akaloli

Umbar PadaNandadeVIRAR

NALA SOPARA

VASAI

NAVGHAR

BHIWANDI

MIRABHAYANDAR

DOMBIVLI

MUMBAI

NAVIMUMBAI

RASAYANI

AMBARNATH

BADLAPUR

ULHASNAGAR

KALYAN

VAJRESHWARI RD

JNPT RD

JNP

T R

DU

RA

N R

D

MU

MB

AI-P

UN

E E

XP

Y

The Taj Mahal

Manama Hotel

Trident

Hotel Marine Plaza

Grand Hyatt

Tata Memorial Hospital

INHS Ashwini Hospital

Sir JJ Group of Hospitals

VaitarnaRiver

Thane Creek

Back Bay

Morbe Dam

PanvelCreek

TulsiLake

ViharLake

PowaiLake

Ulhas River

Ulhas River

Ulhas River

Fire Station

Fire Station

Fire Station

Fire Station

Electric SubStation

Electric SubStation

Electric SubStation

Electric SubStation

Electric SubStation

Karnala BirdSanctuary

Sanjay GandhiNational Park

THANEINDUSTRIAL AREA

TTC MIDC

PATALGANGAMIDC

MAROLINDUSTRIAL AREA

WAGLEINDUSTRIAL AREA

TALOJE INDUSTRIAL AREA MIDC

PANVELWAREHOUSING

AREA

JNPTWAREHOUSING

AREA

BHIWANDIWAREHOUSING

AREA

CHHATRAPATI SHIVAJI INTERNATIONAL AIRPORT

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Manufacturing Destinations of India: A Real Estate Overview 19

Mumbai

Population

18.4 million

Density

22,937/sq km

City Rank

First

The manufacturing activity in Mumbai region is now primarily concentrated in the MIDC areas of Thane, the Thane-Belapur belt [Kalwa, Airoli and Trans-Thane Creek (TTC)], Taloja, Patalganga and Ambernath, and the non-MIDC areas of Patalganga, Khopoli and Pen, among others. Most of these areas are the first MIDCs that were developed in the early 1960s to promote chemical, engineering and other auxiliary industrial units.

The Thane-Belapur belt houses large-sized companies such as Mukund Steel, BASF, Siemens, RPG Life Sciences, Reliance Life Sciences and Nycomed. The areas of Taloja and Patalganga have more of the chemical, pharmaceutical and food product companies, such as Kellogg’s, Aditya Birla, Asahi Glass, Kingfisher, Reliance Industries and Cipla. Some of these areas were considered out-of-town locations for the industries to survive.

As the cities of Thane, Mumbai and Navi Mumbai developed, some of these areas changed into real estate developments.

However, the state industry body, MIDC, has been proactive and is in the process of acquiring more land parcels in Patalganga, Ambernath and other surrounding areas.

MAJOR MANUFACTURING OCCUPIERS

Occupier Occupier Type Area (Acres)

Location

Petronas Lubricants 24 Patalganga

Cipla (three units) Pharmaceuticals 40 Patalganga

Ruchi Soya Food processing 40 Patalganga

Aditya Birla Nuvo Spatiality carbon 50 Patalganga

Bombay Dyeing Polyester 30 Patalganga

United Breweries FMCG 25 Taloja

Hindustan Copper Metal and engineering 20 Taloja

Kellogg’s Food processing 60 Taloja

Lubrizol Chemicals 22 TurbheSource: Research and REIS, JLL

Temperature

Max 33 °C Min 16 °C

MANUFACTURING CORRIDORS

Manufacturing Corridor Major Industries Major Locations Land Value (INR per sq ft)

Monthly Rent (INR per sq ft per month)

12-Month Demand Outlook

MahapeChemical

Pharmaceuticals Electronics

Turbhe MIDC, Ghansoli MIDC, Rabale MIDC, Airoli

2,000-2,700 40–50

Patalganga Addl. Patalganga

550–1,100 22–25

Thane Industrial areas I and II

Pharmaceuticals Steel

Tarapur MIDC Dombivali 1,000–1,800 22–30

Ambernath, Murbad, Badlapur, Kalyan-Bhiwandi

1,000–1,400 18–22

Taloja MIDCChemicals

Textile Pharmaceuticals

Electronics

Taloja MIDC 1,350–2,050 22–25

Source: Research and REIS, JLLStrong/marginal decline Stable Marginal/strong increase

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20 Manufacturing Destinations of India: A Real Estate Overview

NH- 4

NH- 4

NH- 9

NH- 9

NH- 4

NH- 4

NH- 50

NH- 50

NH- 50

SH- 65

Salgaon

Chinchodi

Kadus

Lakhangaon

Ranjani

Savindane

Rajgurunagar

MukhaiKharabwadi

Dehu Chimbali

TransportNagar

Wakad Lohegaon

WadgaonSheri

WagholiKhadki

Aundh

Hadapsar

Phursungi

AmbegaonKhurd

Pirangut

Bavdhan

Manekhadi

Mandhar

Jejuri

Wadaki

Ramnagar

Walhe

Bhade Gaon

KhandalaBalvadi

Eksar

Asangaon

Lonand

Malavadi

Tathavada

Malthan

Pimpalwadi

Mudhale

Karhati

Barhanpur

Shivatkar

ChandgudeWadi

Patas

Kedagaon

Pargaon

Nhavare

Tardobachiwadi

Amble Nimone

Lakhewadi

Ranjangaon

Nighoj

Parner

Kanhoor

Chincholi

Wakalwadi

Bahul

Koyali

AMBEGAON

NARAYANGAON

PETH

TALEGAON

APATIPIMPRI

CHINCHWAD

LAVALE

NANDED

KOTHRUD

ALANDI

SASWAD

BHOR

SHIRGAON

PHALTAN

SANGAVI

KURKUMBH

URULIKANCHAN

TALEGAONDHAMDHERE

SHIRUR

CHAKAN SHIKRAPUR RD

SH

IRU

R-S

AN

GA

VI R

D

MUMBAI HWY

SH

IRU

R-S

ATA

RA R

DBeverly

Hills

Hotel Aurora Towers

Le Meridien

GurudwaraCommand Hospital

Noble Hospital

Dhom Lake

Veer Dam

BhatgharDam

Nira Devghar Dam

ChinchniDam

Bhima River

ChasKaman Dam

BhamaAskhed Dam

KhadakvaslaLake

Mu- tha al Ru i rveM

Fire Station

Fire Station

Fire Station

Electric SubStation

Electric SubStation

Electric SubStation

Electric SubStation

KURKUMBHINDUSTRIAL AREA

BARAMATIINDUSTRIAL AREA

LONANDINDUSTRIAL AREA

PHALTANINDUSTRIAL AREA

SHIRWALINDUSTRIAL AREA

KESURDIINDUSTRIAL AREA

JEJURIINDUSTRIAL

AREA

PIRANGUTINDUSTRIAL AREA

HINJEWADIINDUSTRIAL AREA

PCMCINDUSTRIAL AREA

TALEGAONINDUSTRIAL AREA

KURULIINDUSTRIAL AREA

CHAKANINDUSTRIAL AREA

KHEDINDUSTRIAL

AREA

NAGAR ROADINDUSTRIAL AREA

SANASVADIINDUSTRIAL AREA

SOLAPUR ROADINDUSTRIAL AREA

RANJANGAONINDUSTRIAL AREA

SUPAINDUSTRIAL AREA

PUNE INTL. AIRPORT

SH- 58

WAI

MAHABALESHWAR

KUDAL

A B C D

A B C D

1

2

3

4

5

6

7

8

1

2

3

4

5

6

7

8

PUNE

MAP NOT TO SCALE. Designed and published by JLL. Jones Lang LaSalle Property Consultants (India) Pvt Ltd © 2014. All rights reserved.

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Manufacturing Destinations of India: A Real Estate Overview 21

Pune

Population

5.0 million

Density

7,113/sq km

City Rank

Eighth

Pune has been the favourite industrial destination since the inception of the Pimpri-Chinchwad Municipal Corporation (PCMC) in the 1960s.

Furthermore, the Maharashtra Industrial Development Corporation (MIDC) stimulated the growth of industries in Pune by acquiring land and providing the requisite infrastructure.

Talegaon and Chakan are home to automotive giants such as Volkswagen, Mercedes Benz, Mahindra &Mahindra and General Motors, whereas Ranjangaon hosts all kinds of industries, such as automotive, white goods, jewellery, paints, food products and chemicals. The growth was aptly supported by trained manpower supplied by the various local and international educational institutions, the low cost of real estate and their proximity to the business capital of Mumbai and the port. As a result, the city has established itself as one of the most preferred locations in India for industrial development.

MAJOR MANUFACTURING OCCUPIERS

Occupier Occupier Type Area (Acres)

Location

Volkswagen Automobiles 600 Chakan

Mahindra & Mahindra Automobiles 750 Chakan

Bridgestone Automobiles 200 Chakan

DaimlerChrysler Automobiles 100 Chakan

Sany India Heavy Engineering

100 Chakan

Bajaj Auto Automobiles 250 Chakan

Fiat Automobiles 220 Ranjangaon

Joseph Cyril Bamford (JCB) Heavy Engineering

110 Talegaon

General Motors Automobiles 300 Talegaon

John Deere Automobiles 112 Sanaswadi

Source: Research and REIS, JLL

Temperature

Max 42.3 °C Min 31.59 °C

MANUFACTURING CORRIDORS

Manufacturing Corridor Major Industries Major Locations Land Value (INR per sq ft)

Monthly Rent (INR per sq ft per month)

12-Month Demand Outlook

Chakan Automobiles Heavy engineering

Chakan Phase I, II, III and IV, Kuruli, Nanekarwadi, Kharabwadi and Nighoje,

among others

450–800 25–30

TalegaonAutomobiles

Heavy engineering Talegaon MIDC 400–600 25–28

Nagar Road

Automobiles FMCG

Electronics Chemicals

Heavy engineering

Lonikand, Phulgaon, Sanaswadi 300–500 22–27

RanjangaonAutomobiles

FMCG Electronics

Ranjangaon MIDC 350–450 22–26

ShirwalHeavy engineering

Chemicals Food processing

Shirwal, Kesurdi, Khandala, Lonand 150–300 20–25

Source: Research and REIS, JLLStrong/marginal decline Stable Marginal/strong increase

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22 Manufacturing Destinations of India: A Real Estate Overview

India’s Advantages and Growth OpportunitiesThe Indian manufacturing sector has registered moderate growth in the past, even in times when the global economy was going through a major slowdown. The country places high priority on infrastructure development, thus offering high growth opportunities for a wide range of manufacturing industries and a wide range of untapped opportunities in other sectors. The entry of foreign manufacturing companies with technology-based orientation is helping India create a core and contemporary manufacturing sector fed by ancillary manufacturers that rely on simple technical skills.

Low Real Estate Costs

Occupiers seeking to buy land and construct their own facilities can find numerous opportunities in India. Land values are generally low in India. Manufacturing sector rents are also affordable compared to Sydney, Melbourne, Brisbane, Shanghai, Beijing, Guangzhou and Shenzhen.

Low Labour Costs

The cost competitiveness of labour is the key driver for the manufacturing sector in India. The cost of labour for manufacturing sector is cheaper when compared to other countries such as Japan, the United States, the United Kingdom, Poland, Korea, Australia, Germany, Brazil and Taiwan. This continues to transform the Indian manufacturing industry with respect to creating a competitive advantage in manufacturing. In addition, rising manufacturing wages in China are likely to bring new entrants to India, and the country expected to become a destination for manufacturing.

Favourable Policy

India is largely moving toward high-end manufacturing, with the government announcing multiple reforms and policies in the sector. The Indian manufacturing industry is

largely driven by low-cost and skilled labour force, adequate land laws and the reasonable cost of capital. India is increasingly adopting a global approach to become a strategic player on the international platform.

The Government of India has announced a national manufacturing policy with the objective of enhancing the share of manufacturing in GDP to 25% within a decade and creating 100 million jobs. It also seeks to empower rural youth by imparting necessary skill sets to make them employable. Sustainable development is integral to the spirit of the policy, and technological value addition in manufacturing has received special focus.

To achieve the desired growth rate for the manufacturing sector, it is also necessary to have a high growth rate for the country‘s exports. Considering this, the Department of Commerce has come up with a strategy on doubling India‘s exports to accelerate the rate of growth of manufacturing exports and reach a level of USD 534 billion by 2016–2017.

The government has also taken steps such as easing foreign investment restrictions in retail, civil aviation and television broadcasting as well as embarking on a fiscal improvement path by lowering unproductive subsidies in an effort to restore waning investor confidence.

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Manufacturing Destinations of India: A Real Estate Overview 23

Srinivasa Reddy NS Assistant Vice President, Research and REIS [email protected] +91 80 4031 4833

Srinivasa Reddy joined Jones Lang LaSalle in March 2008. Based out of Bangalore, he contributes to research deliverables on office, retail and residential real estate markets in India. He is also responsible for working on bespoke projects. His expertise lies in the fields of analytical market research, econometric modelling and forecasting.

Srinivasa holds a master’s degree in economics and has more than eight years of industry research and business consulting experience.

Shreyas Saoji Assistant Manager, Research and REIS [email protected] +91 22 6620 7575

Shreyas Saoji joined the Jones Lang LaSalle Research team in 2011. Based out of Mumbai, he contributes to bespoke research assignments and research covering office, retail and residential asset classes. He also contributes to the operations of the Real Estate Intelligence Service (REIS), the flagship quarterly offering by Jones Lang LaSalle Research.

Shreyas holds a bachelor’s degree in architecture and a master’s degree in Infrastructure Planning and Management and has over four years of experience in the field of real estate research.

Praveen Pinto Assistant Vice President, Industrial Transactions [email protected] +91 80 3999 9100

Praveen Pinto joined Jones Lang LaSalle in April 2008. Based out of Bangalore, Praveen currently leads the industrial transaction management practice in Bangalore. He has expertise in business location consulting, feasibility studies, market research and industrial transactions for various domestic and international firms looking at setting up industrial operations in South India.

Praveen holds a master’s degree in finance and has six years of real estate consulting and transaction experience.

Chandranath Dey Assistant Vice President, Head – Industrial Consulting [email protected] +91 79 4015 0021

Chandranath Dey joined JLL in May 2006. Based in Ahmedabad, Chandranath leads the industrial consulting business in India. He has expertise in the formulation of business plans, business location advisories and site selection studies for some of the largest Fortune 500 companies. He also manages techno-financial feasibility studies for large-scale industrial & logistic parks.

Authors

Ashutosh LimayeHead, Research and REIS +91 22 3985 1319 [email protected]

For research enquiries, please contact:

Srinivas N Head, Industrial Transactions +91 984 544 5495 [email protected]

For business enquiries, please contact:

Nirav Kothary Head, Industrial Services +91 972 775 8027 [email protected]

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JLL has over 50 years of experience in Asia Pacific, with over 27,500 employees operating in 80 offices in 15 countries across the region. The firm was named ‘Best Property Consultancy’ in seven Asia Pacific countries at the International Property Awards Asia Pacific 2014, and won nine Asia Pacific awards in the Euromoney Real Estate Awards 2013. www.jll.com/asiapacific About JLL IndiaJLL is India’s premier and largest professional services firm specializing in real estate. With an extensive geographic footprint across 11 cities (Ahmedabad, Delhi, Mumbai, Bangalore, Pune, Chennai, Hyderabad, Kolkata, Kochi, Chandigarh and Coimbatore) and a staff strength of over 6800, the firm provides investors,developers, local corporates and multinational companies with a comprehensive range of services including research, analytics, consultancy, transactions, project and development services, integrated facility management, property and asset management, sustainability, industrial, capital markets, residential, hotels, health care, senior living, education and retail advisory. The firm was named the Best Property Consultancy in India at the International Property Awards Asia Pacific 2014-15. For further information, please visit www.joneslanglasalle.co.in