Logistics Investment: Transforming CWC Warehouses into Modern Facilities
Recent Developments in Warehouse Management
Horizon Industrial Parks, a logistics platform under the management of Blackstone Real Estate funds, has announced a significant investment of ₹700 crore aimed at revitalizing warehouses owned by the Central Warehousing Corporation (CWC) across 13 strategic locations. This initiative marks a pivotal partnership as Horizon has been appointed the primary partner to oversee this extensive portfolio of last-mile logistics assets.
Understanding CWC’s Role
The Central Warehousing Corporation is a government-established entity functioning under the Ministry of Consumer Affairs, Food & Public Distribution. With over four decades of experience in public warehousing operations, CWC plays an essential role in India’s logistics landscape.
A Vision for Modernization
Horizon Industrial Parks plans to transform these government-owned facilities into state-of-the-art Grade-A warehouses designed specifically for tenants operating in rapidly expanding sectors such as e-commerce, retail, third-party logistics (3PL), and cold chain services. The redevelopment project is projected to encompass approximately 2.4 million square feet—making it one of India’s most substantial last-mile logistics portfolios.
Investment and Development Plans
The commitment from Horizon includes an investment exceeding ₹700 crore dedicated to enhancing this portfolio. The real estate consultancy Knight Frank India facilitated this landmark deal and highlighted that Horizon will focus on developing Grade A warehousing across key urban centers with a total area spanning around 70 acres.
Strategic Location Focus
Most of these upgraded facilities will be strategically located within last-mile zones throughout major cities including Delhi NCR, Chennai, Mumbai, Pune, and Bangalore—ensuring proximity to residential neighborhoods and urban hubs which are crucial for efficient distribution networks.
Expert Insights on Logistics Growth
Asheesh Mohta, Head of Real Estate Acquisitions at Blackstone India remarked on the significance of this venture: ”Logistics represents one of our core investment strategies globally; we recognize its potential within India’s burgeoning market. Our aim is to leverage our scale and operational expertise alongside Horizon’s capabilities while collaborating closely with CWC to establish top-tier warehouses that enhance delivery efficiency.”
Expanding Horizons: Current Operations
Currently managing 25 industrial parks spread over more than 1,700 acres with an impressive footprint totaling 43 million square feet across ten major markets in India, Horizon Industrial Parks continues its trajectory towards growth within the sector.
Monetization Efforts by CWC
In parallel developments reported by Knight Frank India regarding monetization efforts undertaken by CWC reveal successful transactions involving approximately 83 acres dedicated to prime Grade A warehousing properties. As part of their modernization strategy through Public-Private Partnerships (PPP), CWC has earmarked over ₹782 crore for upgrades across more than sixteen properties situated at various locations nationwide.
Collaborative Projects Underway
Three specific sites have been allocated for development initiatives led by RSA Warehousing, TransAsia Shipping Services Ltd., and LL Logistics—with combined development potential reaching around 500 thousand square feet at an estimated cost nearing ₹82 crore.
This comprehensive approach not only aims at modernizing existing infrastructure but also enhances operational efficiencies critical for meeting growing demands within India’s dynamic supply chain ecosystem.
