TVSILP | Hosur Logistics Park
The International Property Consultant CB Richard Ellis (CBRE), India recently conducted a case study on TVS ILP’s flagship Logistics Park i.e. Hosur Logistics Park (HLP). CBRE represented Flipkart India in the transaction & presented the following case study:
Having established its presence all over the country, TVS ILP formalised its plans to establish a modern and state of the art logistics park in Hosur, Tamil Nadu with a plot size of 30 acres & estimated built up area of ~0.7 million sq. ft. that is constructed & operational. Tata Consulting Engineers was roped in by the developer to carefully plan the entire project and scheduled its delivery in four phases.
- The project was to be delivered within a stringent set of timelines of 120 days so as to meet the client’s peak season business needs.
- The project witnessed un-seasonal rainfall that added to execution challenges.
- While the demand for quality facilities in the country are at an all-time high, there is hardly any infrastructure for speedy delivery of projects both in urban & rural setups.
- The logistics industry is currently undergoing its biggest transformation with the entry of big players who have the ability to deliver results in record time.
- The Indian market for warehouse automation is projected to grow at a CAGR of 10-12% & is expected to touch USD 3.49 Billion by 2020.
- The sector is likely to witness the inflow of more institutional funding and formal sources of capital along with the entry of national level/credible players.
- The widespread deployment of Internet of Things (IoT) will revolutionize operations by creating smart warehouses/facilities that improve supply chain efficiencies.
- Smaller players are consolidating their operations while larger players are expanding their reach across key hubs & zones.
- With the government giving an aggressive push for industrial corridors, the requirements for warehouses across major highways & rail networks in the country will only increase.
Planning, Implementation & Execution
The company launched a meticulous plan that involved all stages i.e. from material procurement to deployment of the workforce and also creating pre-fabricated structures to complete the tasks in record time. The project was undertaken in four different stages:
Phase –I began with the acquisition of the land in the month of April 2017
- Construction of the first 0.26 million sq. ft. started in August 2017
- Within a record period of six months, the complex block went live in February 2018
Phase – II
Encouraged by the successful & timely completion of Phase-1, the work on Phase II – 0.15 million sq. ft. area began swiftly & commenced in January-2018
- The complex was handed over for fit-out in May 2018
- Within a month of fit-out, the complex went live in June 2018
The third phase of the project commenced in Feb 2018 with work on the balance 0.15 million sq. ft. shortly after.
- It was handed over for fit-out in June 2018
- Within a month the complex went live in July 2018
Work on the final phase of 0.09 million sq. ft started in March 2018 and got completed by 30th September 2018. Currently the facility is operational.
While the construction & fabrication works were going ahead with full steam, the project team ensured that the development of non-related activities was running unhindered & met the respective deadlines. All facilities such as PA Systems, office blocks, canteens, CCTV’s, dormitories for drivers & toilet facilities for the staffers were constructed using the pre-cast wall/concrete slabs, pre-engineered building structures.
With high-quality materials used in construction, TVS ILP also ensured that the project was completed & run with a minimum environmental footprint supportive of the ecosystem in every possible way. The logistics park has been designed in a manner that ensures maximum availability & utilization of sunlight, free movement of the workforce and employee safety.
The Project has had an immediate impact on 4 parameters after an immediate qualitative assessment:
- People & Lives
- Real Estate
- Fiscal Expenditures helping to create a Local Economy
- Taxes to the state