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September 16, 2019

Kolkata and its suburbs top warehousing hub now

Kolkata and its suburbs top warehousing hub now

The zone comprising Kolkata and its suburbs is fast emerging as one of the major warehousing and logistics markets in India.

Deals worth Rs 500 to 700 crore are already in different stages of discussions or are being inked. Kolkata and the suburbs took up warehousing space to the tune of 3.5 million square feet in 2018.

GST, better connectivity to other eastern and north-eastern States, higher penetration of e-commerce and a better ‘hub and spoke’ model have been some of the reasons which have made companies look at the eastern region.


Some of the areas that are fast turning out to be hotspots include those along the National Highway 2 (Delhi Road) and National Highway 6 (Bombay Road). Some 500 acres of land across villages along the Delhi Road and Bombay Road are under negotiations.

Nearly, 80 to 90 per cent of the upcoming Grade A and Grade B warehousing stock are along the NH6 and NH2 and areas adjoining them.

Locational advantage

The areas along Delhi Road, Old Delhi Road and Bombay Road, covering the districts of Howrah and Hooghly, are 30 to 40km from the metropolis, Kolkata.

Apart from proximity to a city, these places are well-connected to the north Indian states on one side and the eastern and north-eastern ones on the other.

Depending on the success of the existing projects, more would be looked into in districts like Bardhaman, other places in Hooghly and so on.

Companies investing heavily

Though land prices have jumped up because of the Locational advantages, warehousing companies and warehousing investment funds are buying up space. They are also spending additionally for construction. These prove the tremendous potential of this region.

The major customers who have come in include FMCG players, and e-commerce companies such as Flipkart and Amazon. This apart, a host of warehousing companies, like Mahindra Logistics and others, are also taking up space or across upcoming logistics parks.

Research reports point to a bright future in the warehousing sector

According to a report by a leading property research consultancy, the sudden surge in demand for warehousing space in Kolkata over 2017 led to a massive 191 per cent year on-year growth in total leasing, making it the highest across the top eight cities in India.

Another report by a leading real estate consultant has stated in a 2018 report that in between 2018 and 2020 there will be Rs 4,300 crore of investments in warehousing and logistics in Bangla.

Major warehousing clusters, and their locations 

Dankuni and suburbs: Durgapur Expressway and Old Delhi Road (NH-19 [Old NH-2])
National Highway-16 (Old NH-6): Chamrail, Dhulagarh, Sankrail, Uluberia
Taratala-Maheshtala: Hide Road, Taratala Road, Garden Reach Road
Madhyamgram-Barasat: Madhyamgram, Barasat, Agarpara, Ganganagar

Source: The Hindu BusinessLine