Come Southwards and you will be mesmerized by the abundant possibilities of expanding your business horizons and make a mark for yourself in this fast developing business hub. In our tryst to capture and explore the essence of southern superstars, this second in series blog talks about Tamil Nadu’s reign in the industrial landscape and how the proposition of smart logistics parks only means greater opportunities, greater expanse and greater promises…

Let’s talk about the many progressive projects that are in the pipeline.… V.O. Chidambaranar Port, the economic engine of South Tamil Nadu, has proposed the setting up of Multimodal Logistics Park due to its advantages such as excellent Rail-road connectivity, proximity to Main Sea Route, all weather operational conditions, and geographic position to link Eastern coast with the Western coast. The current landscapes of manufacturing hubs are located mainly in the secondary hinterland i.e., Coimbatore, Tiruppur, Salem, Erode, Pollachi, Karur, Rajapalayam, Madurai, etc. This Multimodal Logistics Park aims to facilitate infrastructure for enabling seamless multimodal freight transfer, and specialized storage solutions, such as cold storage, warehouses equipped with mechanized material handling and intermodal transfer terminals for containers, bulk and break-bulk cargo. Further, the MMLP would be offering value-added services such as Customs clearance, bonded storage yards, quarantine zones, testing facilities, warehousing management services, post-manufacturing activities such as kitting and final assembly, grading, sorting, labelling, packaging etc.

In order to select the optimal locations for setting up a logistics park, the Port has tentatively identified Coimbatore, Madurai and Tuticorin as the three potential locations for establishing the Multimodal Logistics Park in an area of about 100 acres. Setting up of Multimodal Logistics Park would aid in reduction of logistics cost of cargo, reduction in pollution and congestion caused by cargo trucks movement and reduction in warehousing cost, driven by lower rentals in logistics parks situated outside the city limits.

In another development, recent research by Knight Frank highlighted that the Coimbatore industrial and warehousing market recorded 0.1 mn sqm (1.2 mn sqft) of space absorption in FY 2021, a 31% YoY growth. E-commerce sector was the primary driver of this demand. Located at the centre of the Southern Peninsula, Coimbatore provides quick access to west and south Tamil Nadu, north Kerala and south Karnataka including Bengaluru. This has incentivized many 3PL companies and e-commerce players to set up warehouses in Coimbatore to cater to a larger base of consumers from a single location.

Southern locations such as Pollachi, Chettipalayam, Malumichampatty, Palladam and Walayar constitute the Pollachi + Palladam–Cochin Frontier Road warehousing cluster, and it caters to the warehousing requirement of 3PLs, e–commerce players and FMCG / FMCD companies. This cluster gives easy access to the consumption market within Coimbatore city as well as in Kochi from the adjacent state of Kerala. In recent years, with the increase in e-commerce sector activity in the Coimbatore warehousing market, most transaction activity is concentrated in the Pollachi + Palladam – Cochin Frontier Road cluster. In FY 2021, this cluster accounted for 99% of the total transaction activity.

The close proximity with the textile hub Tiruppur even accentuates Coimbatore’s rising dominance as the Southern Logistics Superstar.

Augmenting future & fortunes

With its inherent USPs and experience in providing its esteemed clientele new age infrastructure alongside an impeccable service, Steelion has been a frontrunner in developing coming of age smart logistics parks in the southern parts of the country, which are backed by advanced technology and sustainability. Our upcoming logistics park in Angamaly, Kerala is a testimony to our promise & our delivery, which is a gateway to the southern business hubs of the country such as Karnataka, Kerala and Tamil Nadu.

COVID-19 pandemic has offered tremendous opportunities to companies to bring their technical prowess to fore and deliver beyond the expected promises. The year 2021 has not only changed the business landscape in totality, it has also provided newer avenues of opportunities to companies to explore and move beyond the conventional. Buoyed by a tremendous growth wave waiting to be tapped, Steelion is here to offer you the most promising futuristic logistics parks which are at par with global standards and are also eco-compliant – the DUAL advantages that Steelion envisions to DELIVER always!

The launch of Mission GatiShakti is only going to bring fortunes for companies who are looking to set up base and expand their horizons in the Southern markets. The industrial & economic vibrancy that we are currently witnessing in the country, it wouldn’t be exaggerating to put this filmy monologue here, “Itni shiddat se maine tumhe paane ki koshish ki hai … ki har zarre ne mujhe tumse milane ki saazish ki hai” (I wished so fervently to have you …. That the whole universe has conspired to make it come true). So, what are you waiting for… be a part of this growth extravaganza by collaborating with a trusted new-age construction player.

Sources: PIB, Knight Frank