Interview with Mr. Rajesh Jaggi, Managing Partner – Real Estate, Everstone Group
Mr Rajesh Jaggi, Partner
Managing Partner – Real Estate, Everstone Group
Media Release: 7 June 2017,
Q.1. Tell us what sets IndoSpace apart as one of India’s leading logistics and industrial development parks?
IndoSpace is the largest owner, developer and manager of light industrial, warehousing & logistics facilities with a national presence and also well-established land banks across the country.
Our reputation as the pioneer of modern industrial and logistics real estate in India and our service record has allowed us to attract and maintain great brands as our clients/tenants such as Amazon, L’Oreal, Procter and Gamble, Nissan, PepsiCo, DHL, Ericsson, Bosch, and Asian Paints, to name a few. Moreover our state of the art infrastructure such as standing seam roofs, pre-cast walls, energy-saving T5 lighting, 5-ton super flat floors and inventive use of natural light and ventilation converts space into value for our customers. We have the most experienced and largest development team across India with around 120 professionals. Overall, IndoSpace parks integrate the most innovative and superior technologies available to best serve our clients. We provide both ready and built to suit facilities helping address different needs of our clients. All our parks are strategically connected to major highways, railways, airports and seaports. IndoSpace provides global standard facilities & value added services, space optimization, safety compliances, and innovative initiatives in technology implementation.
Q.2. Kindly brief us about your latest developments in this segment.
We are planning to expand our total development portfolio to a total of 50 million sq ft in the coming 5-7 years out of which we have completed around 25% of development.
Q.3. What will be the impact of GST? And what will be your growth plans post GST?
There will be a consolidation of smaller warehouses to larger boxes by various large users across India to increase efficiencies. IndoSpace, with its modern and best in class industrial parks that are operating or are under development across the country, is very well positioned to take advantage of the need for bigger warehouses following the hub and spoke model.Our modern and best-in-class warehouses are strategically located near industrial clusters, consumption centers and major highways ensuring short turnaround time and offering excellent design and infrastructure, as well as built to suit options. Post implementation of GST, there will be more organized players in the infrastructure business as demand will increase. IndoSpace, being the largest player in industrial real estate in India, had taken the lead in 2007 for providing modern warehouses to cater to the different needs of the manufacturing, industrial and logistics sectors and we intend to maintain this position by continuously adding new land banks that are strategically located, developing world class infrastructure to enable scalability, pan India footprint and operational efficiencies for our customers.
GST will also result in a surge of 3PL & 4PL services. The use of technology and supply chain management systems to increase management efficiencies in warehousing will increase. For instance, technology and systems that IndoSpace has installed in its world-class warehouses/industrial parks such as efficient spacing, standing seam roof, skylights, T5 Lighting, pre-cast walls, passive ventilation, in-rack sprinkler systems, customized warehousing solutions: These systems that are provided to clients will be one of the differentiators between the winners and those who get left behind.
Q.4.Tell us about your latest joint venture with CPPIB?
We have partnered with Canada Pension Plan Investment Board (CPPIB) to create IndoSpace Core, a joint venture that will focus on acquiring and developing modern logistics facilities in India. CPPIB has initially committed approximately US $500 million to the joint venture and will own a significant majority stake whereas IndoSpace Capital Asia will manage the new entity.
IndoSpace Core has committed to acquire 13 well-located industrial and logistics parks totalling approximately 14 million square feet, from current IndoSpace development funds. The venture also has the option to acquire an existing pipeline worth approximately US $700 million as well as participate in a future development pipeline
Q.5.How do you think forums like India Warehousing Show, playing a key role in preparing industry for the changing times ahead?
This forum helps the fraternity come together and brainstorm on best methodologies, technology, latest equipment’s etc. Also, such progressive forums for the industry allow for knowledge sharing on policies and best practices.