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Shri Kailash Logistics plans to invest Rs 800 crore in five warehouses over the next five years across India.
Three of these will be large warehouses over 10 lakh sq.ft each in North Chennai, Pune and Bangalore. and two will be small of about 5 lakh sq ft each.
Shri Kailash has indentified land for most of the projects to be financed by the promoters, who may also consider various options like private equity funds, raising money from the public and raising loan from the banks, said the company's Managing Director Mr S. Giridhar.
The Chennai-based company is part of the Kochi-based Rs 400-crore Sree Kailash Group, which is engaged in the manufacture of paper products and paper conversion, transportation and logistics.
The introduction of Goods and Services Tax will drive the demand for single warehouses, which could have space for cold storages, he told newspersons at the company's Oragadam logistics park, which is located about 50 km from the city.
The first phase of the 50-acre logistics park in Oragadam, which has emerged as a major automobile hub in Tamil Nadu, is to be inaugurated in the first week of May. Two clients — Nippon Express and TT Assembly India of the Toyota Tsusho group — have already started using the facility, he said.
In two years it will expand the Oragadam facility with 7 lakh sq ft of warehouse space. This includes building cold storage for agricultural produce, he said. The total investment will be over Rs 320 crore, he said.
Mr Giridhar said that the company plans to set up a warehouse in 50 acres of land near Red Hills, North Chennai, close to the Chennai-Kolkata Highway. It will cater to the fast moving consumer goods sector.
Mr Giridhar said that the company offers the space in the warehouse on lease with the payback being 7-8 years.
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