Avigna Space, a warehousing and logistics company, is seeking to expand its presence beyond the three cities in which it is currently present to Western and Northern India, while also scouting for opportunities in tier-II cities.
The company, which is in the process of developing warehouses in Chennai, at Hosur and Hoskote in Bengaluru, and Nellore district of Andhra Pradesh, expects to commission about 5 million sq ft of planned warehouse space by the end of 2021 or Q1 of 2022.
“The company has built a land bank of about 1,000 acres; of this, about 500 acres have been earmarked for warehouse development in Chennai, Hosur, Hoskote, and Nellore near Krishnapatnam port. While 1 million sq ft of warehouse space will be commissioned in Chennai by December-January 2020-2021, this has already been tied up.
“By December 2021, we will have Grade A warehousing capacity of 5 million sq ft. Of this, 2 million sq ft will be developed in Chennai and Hosur each and Hoskote will have 1 million sq ft.”
Avigna Space recently partnered with Strata to raise ₹140 crore for a consortium of three Grade A warehousing asset opportunities amid the Covid-19 pandemic.
“In addition, we are also planning a mega food park near Chennai, which will align with the recently implemented farm Bills which open up access for the farm produce. Since food items are perishable, they tend to lose value and go waste as days pass by. Good warehouse facilities help extend their life and also fetch good prices for farmers.
“As a group with focus on textiles business, education and, realty, we have gradually diversified into this new area of warehousing. As we tracked the progress of GST implementation in the country, we felt that warehousing will be one major opportunity for a group which has a land bank. From Grade C category warehouses, India is set to leap into Grade A warehouses, where we want to have a big spread.
“We have closely tracked the development of real estate across various major cities. When we invested, they were all in the outskirts. Now with the growth of cities, they have all become part of the core area. The land bank we have can help us set them up faster and serve the rapidly growing need for quality warehouses.”