ESR Group has revealed its acquisition of 57 acres of land in Cuttack, Odisha. Their ambitious plan involves investing approximately Rs 360 crore to transform this land into a cutting-edge logistics park. ESR, a prominent asset management company with a strong presence in the Asia Pacific region, shared that this development has the potential to encompass a vast 1.2 million square feet.
The ESR Cuttack Logistics Park is poised to play a crucial role in supporting the growth of e-commerce, retail, and third-party logistics (3PL) services. Abhijit Malkani, the CEO of ESR India, emphasized the increasing online and retail consumer base in Odisha as a driving force behind this expansion. Notably, the facility will incorporate green building features, ensuring it offers top-tier logistical solutions.
The initial acquisition for the logistics park included one fully operational building, which is currently leased to one of India’s largest e-commerce companies. ESR is actively working on constructing a second building, with plans to accommodate a total of six buildings on the site. The entry into the Odisha market marks a strategic move for ESR, as large, scalable development sites are relatively scarce in the eastern part of India.
The demand for logistics facilities in Odisha has surged due to robust economic growth, with the Gross State Domestic Product (GSDP) consistently growing at an annual rate of 7.9% over the past decade (excluding the pandemic-affected year 2020-21). Factors such as rising income levels, increased purchasing power, and expanded digital penetration have further fueled this growth. Various sectors, including 3PLs, e-commerce, retail, consumer goods, durables, paints, chemicals, automobiles, and ancillaries, are driving the demand for warehousing facilities.
As of June 30, 2023, ESR boasts a development work-in-progress portfolio valued at USD 13 billion. ESR India, a subsidiary of ESR Group, specializes in industrial and logistics real estate development and management, with assets under management (AUM) totaling approximately USD 1.6 billion.