Prologis Returns to India with a $500 Million Warehousing Investment
Prologis Inc., the world’s largest warehouse owner, is making a comeback in India with a $500 million investment by 2026. The company plans to build large-scale warehousing parks and acquire properties to strengthen its presence. According to Chief Investment Officer Joseph Ghazal, Prologis may double this investment over the next 5-7 years. Serving major clients like Amazon, it will offer both ready-to-lease and custom-built warehouses. With India’s Grade A warehousing sector still growing, the company sees strong potential. Initially, it will focus on five cities—Delhi, Mumbai, Pune, Bengaluru, and Chennai.
Recent land acquisitions include 200 acres in Sriperumbudur, 40 acres in Hosur, and 30 acres in Hoskote, with construction already underway in some locations. Prologis had earlier planned to enter India in 2007-08 but postponed due to the global financial crisis. In the future, it may expand into data centers as well. Competing with firms like Indospace, Blackstone’s Horizon Industrial Parks, Ascendas Firstspace, and ESR India, Prologis’ entry is expected to boost India’s warehousing sector and attract more global investors.
Prologis Returns to India with a $500 Million Warehousing Investment
Prologis Inc., the world’s largest warehouse owner, is re-entering India with a significant $500 million investment plan by 2026. The US-based company aims to strengthen its presence by developing large-scale warehousing parks and acquiring properties. Prologis, which provides warehouse space to global giants like Amazon, plans to offer both ready-to-lease facilities and custom-built warehouses tailored to specific clients’ needs.
Joseph Ghazal, Prologis’ Chief Investment Officer, stated that the company may even double its investment in India over the next 5-7 years. He emphasized the immense potential in India’s Grade A warehousing sector, which is still expanding. “India’s strong economic growth, supportive regulations, and increasing consumer demand make this the perfect time to expand here,” Ghazal said.
Prologis will initially focus on five major cities: Delhi, Mumbai, Pune, Bengaluru, and Chennai—key industrial and commercial hubs ideal for warehousing development.
Land Acquisition for Expansion
Over the past year, Prologis has acquired three land parcels for warehouse construction:
- 200 acres in Sriperumbudur, near Chennai
- 40 acres in Hosur
- 30 acres in Hoskote, on the outskirts of Bengaluru, in partnership with RMZ Corp
Construction has already begun in Sriperumbudur and Hoskote, while work in Hosur will commence soon, according to Vineet Sekhsaria, Prologis’ India head. The company is also open to partnerships to accelerate its growth in the country.
A Long-Awaited Entry
Prologis initially planned to enter India in 2007-08 but postponed its plans due to the global financial crisis. Now, with economic recovery and India’s booming logistics sector, the company is ready to establish its footprint. Globally, Prologis manages real estate assets worth $198 billion, covering 1.3 billion square feet. While its current focus in India is on warehousing, it may expand into other sectors, such as data centers, in the future.
Competition in the Indian Market
Prologis will face competition from major industry players, including Indospace, Horizon Industrial Parks (owned by Blackstone), Ascendas Firstspace, and ESR India. These companies have already established a strong foothold in India’s warehousing sector. However, Prologis’ global expertise and large-scale investments could give it a competitive advantage.
India’s Growing Warehousing Sector
India’s warehousing industry is experiencing rapid growth. The top eight cities currently have 438 million square feet of total warehousing space, with 238 million square feet classified as Grade A (high-quality) warehouses. Institutional investors own around 100 million square feet of this space, a remarkable increase from just 28 million square feet in 2019.
According to Chandranath Dey from JLL India, Prologis’ entry will add credibility to the sector. “India is attracting global investors, and having a major player like Prologis will enhance the market’s growth and confidence,” he said.
Why India?
India’s warehousing sector remains underdeveloped compared to global standards, yet it holds tremendous potential. The country’s economic growth, rising e-commerce demand, and government reforms like the Goods and Services Tax (GST) have created a favorable investment climate. Additionally, the increasing need for efficient supply chains and logistics solutions has made Grade A warehouses highly valuable.
Prologis’ return to India marks a significant milestone for the country’s warehousing industry. With its large-scale investments and focus on high-quality facilities, the company is poised to play a key role in shaping India’s logistics and supply chain infrastructure. As the market continues to grow, Prologis’ presence is expected to attract more global players, further boosting the sector’s expansion.