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July 2014
Manufacturing Destinations of India: A Real Estate Overview
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.
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
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.
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
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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.
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
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
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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.
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
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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CHENNAI
MAP NOT TO SCALE. Designed and published by JLL. Jones Lang LaSalle Property Consultants (India) Pvt Ltd © 2014. All rights reserved.
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
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
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DELHI NCR
MAP NOT TO SCALE. Designed and published by JLL. Jones Lang LaSalle Property Consultants (India) Pvt Ltd © 2014. All rights reserved.
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
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
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HYDERABAD
MAP NOT TO SCALE. Designed and published by JLL. Jones Lang LaSalle Property Consultants (India) Pvt Ltd © 2014. All rights reserved.
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
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
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KOLKATA
MAP NOT TO SCALE. Designed and published by JLL. Jones Lang LaSalle Property Consultants (India) Pvt Ltd © 2014. All rights reserved.
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
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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MUMBAI
MAP NOT TO SCALE. Designed and published by JLL. Jones Lang LaSalle Property Consultants (India) Pvt Ltd © 2014. All rights reserved.
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
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
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PUNE
MAP NOT TO SCALE. Designed and published by JLL. Jones Lang LaSalle Property Consultants (India) Pvt Ltd © 2014. All rights reserved.
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
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.
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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