Home / Industry / Infrastructure /  ESR to invest 550 cr in two industrial parks in Chennai

BENGALURU: ESR India, an industrial and logistics real estate platform, has inked an agreement with the Tamil Nadu government to launch two industrial parks for a potential investment of 550 crore.

The parks are located in Kancheepuram and Krishnagiri districts and will be completed during the next five years. Once fully operational, the two projects have the potential to create over 4,400 jobs.

The memorandum of understanding (MoU), which was signed at the Investment Conclave 2021 conference on Wednesday, will facilitate ESR India’s proposed investment at the Kancheepuram and Krishnagiri industrial parks by helping to streamline land acquisition, approvals, clearances, and administrative processes as per existing policies, rules, and regulations of the state government.

“…The government of Tamil Nadu has been very supportive in encouraging industrial developments in the state by creating a favourable business climate for industrial players. The MoU will see ESR invest 550 crore to develop industrial parks in Tamil Nadu, offering 1,800 direct and 2,600 indirect job opportunities in the facility," said Abhijit Malkani, CEO and country head, ESR India.

“Our goals are aligned with the vision of the Tamil Nadu government, to create avenues to increase business and trade inclusion opportunities, and employment towards garnering better economic growth in the region," he added.

ESR India is currently present across nine cities and 15 locations spanning 18 million sq ft.

In April, the Asia Pacific-focused logistics real estate firm said it has leased 108,000 sq. ft. industrial real estate at its Chennai industrial park to CUBIC, a Denmark-based firm in the electromechanical sector. This would be CUBIC’s first manufacturing facility in India.

Warburg Pincus-funded ESR has a 36-acre industrial and logistics park in Oragadam, near Chennai. In December, Singapore’s sovereign wealth fund GIC Pte Ltd and ESR Cayman Ltd formed a joint venture (JV) to develop and buy industrial and logistics assets worth $750 million in India, where a booming online retail industry has stoked demand for warehouses.

In March, ESR said it will develop an industrial and logistics facility at Chakan, near Pune, with an investment of 330 crore. The facility will serve as a hub for light manufacturing and logistics operations in the western region.

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