Chennai Warehousing Overview

ONIX & 4FC: Chennai is one of the leading manufacturing hubs in India with large automotive companies and mobile phone manufacturers having their plants in the city. With a population of over 7 million (major consumption center) and being a port city, Chennai is a key node in the global supply chain and hence, a major warehousing hub. 

In this article, we outline some of the key micro-markets for warehouses in Chennai. 

1) Oragadam: The single most sought after micro-market for institutional logistics parks, Oragadam is home to multiple automotive companies such as Royal Enfield and Daimler. The location provides convenient access to the city and to the Bangalore-Chennai through Sri-Perumbudur. Warehouses of institutional quality are available for lease and may command rentals upwards of INR 20-22/sq ft/month.

2) Sri-Perumbudur and nearby: A large industrial belt home to SIPCOT that has scores of Indian and multinational manufacturing companies. Hyundai, Saint Gobain and Dell are some of the well known names. Located bang on the Bangalore Chennai expressway, the micro-market provides a straight road access to Chennai city. Sri Perumbudur is more of a manufacturing than a warehousing hub, and hence majority of the warehousing parks are located in the 10-15Km vicinity - that would include Oragadam. A 250 Cr Free Trade Warehousing Zone (FTWZ) is located here and warehouses in the FTWZ generate lease rentals between INR 25 and INR 28/sq ft/month

3) Puduvoyal: The Guntur-Chennai highway stretch of over 20Kms has multiple Grade A, B and C warehouses available for lease. Grade B warehouses are available for lease between INR 15-16/sq/month. Institutional quality warehouses, such as the Indospace park, command higher rentals.

4) Periyapalayam: An emerging warehousing hub close to Tirupathi road, Periyapalam witnessed institutional interest with Ascendas Firstspace investing US $120 million in purchasing a brownfield asset (part completed and part greenfield). There are other landlords who own individual small warehouses, mostly Grade B, in this area. The rentals currently hover between INR 14 and INR 16/sq ft/month.

5) Kuthambakkam: One of the older warehousing hubs close to the Chennai-Mumbai expressway, the micro-market is now within city premises. Since the current land prices are upwards of ~INR 2.5 Cr/acre, new warehousing investments are not happening in the area. There is availability of built-to-suit warehouses with landlords who hold land parcels here.