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Manufacturing Destinations of India:

A Real Estate Overview


July 2014

Foreword
In this white paper, we illustrate the trends
in the growth of the manufacturing sector in
India. We then proceed to recommend growth
opportunities for manufacturing occupiers in
the coming years. The sectors considered for the
study include pharmaceuticals/biotechnology,
automobiles, heavy engineering, fast-moving
consumer goods (FMCG), electronics and
communications & aviation. These sectors
have been chosen as major manufacturing
areas because of their contribution to the
manufacturing sector in India.

2 Manufacturing Destinations of India: A Real Estate Overview

Overview of the Manufacturing Sector in India


Evolution and Growth of the Sector

Prominent Manufacturing Clusters

India was hardly an industrialised country at the time of gaining


independence, and the first step India took was to recognise the
manufacturing sector as a very important instrument for the countrys
economic growth. In every five-year plan, the country continued to
grow the manufacturing sector whilst encouraging and incentivising
the private sector in the mid-cap and small-cap realms. Progressively,
India strengthened its manufacturing sector further under a mixed
economy from 1947 to 1991, and under a liberalised economy since
then.

Manufacturing clusters have developed along major infrastructure corridors.


These are specific areas developed for inter-regional industrial growth,
including the development of manufacturing areas and clusters along the
corridor. These corridors provide infrastructure such as roads, power and
other utility services to facilitate the growth of manufacturing industries
and regional economic development. Industrial development in India is
scattered and can be divided into four zonesnorth, south, east and west.
The chart below shows the major industrial states and cities in each zone.

Indias manufacturing exporters have played a key role in


promoting the sectors prowess to consumers across the world.
Manufacturing exports have always been a major contributor to
Indias total merchandise exports. The main export markets for Indian
manufacturing goods are the United States and Western Europe.
Within Western Europe, Germany and the United Kingdom are two
most important export markets.

MANUFACTURING ZONES IN INDIA


North Zone West Zone
Delhi (NCR)/Gurgaon, Kanpur, Mumbai, Pune, Bhiwadi, Jaipur,
Lucknow, Chandigarh and Indore Ahmedabad, Vadodara and Panaji
East Zone South Zone
Kolkata, Guwahati, Patna and Hyderabad, Visakhapatnam,
Jamshedpur Bangalore, Chennai and Coimbatore

Indias Manufacturing
Footprint
DELHI/ NCR

Automobiles
Fast Moving Consumer Goods (FMCG)
Heavy Industries

Life Sciences (Pharma and Bio-technology)


Automobiles
Fast Moving Consumer Goods (FMCG
KOLKATA

AHMEDABAD

Automobiles
Fast Moving Consumer Goods (FMCG)
Heavy Industries
Automobiles
Fast Moving Consumer Goods (FMCG)
Heavy Industries

HYDERABAD

BANGALORE

Life Sciences (Pharma and Bio-technology)


Automobiles
Electronics and Communication
Aerospace

Life Sciences (Pharma and Bio-technology)

MUMBAI
PUNE

CHENNAI

Life Sciences (Pharma and Bio-technology)

Automobiles
Fast Moving Consumer Goods (FMCG)
Heavy Industries

Manufacturing Destinations of India: A Real Estate Overview 3

Key Facts about Major Manufacturing Industries

ELECTRONICS AND
TELECOMMUNICATIONS
According to the Department of Electronics and
Information Technology, the current size of the
electronic manufacturing industry is USD 70 billion
and is aimed for USD400 billion by 2020, which
means the industry must increase by more than
five times over the next seven years.

LIFE SCIENCES

(Pharmaceuticals and Biotechnology)

Philips | Sony | Havells


LG | Samsung

The United Nations Industrial Development


Organization (UNIDO) recognises India as one
of the top-ranking countries among developing
countries in terms of the production and
distribution of pharmaceuticals.
According to the Department of Pharmaceuticals,
the pharmaceutical industry in India is the worlds
3rd largest in terms of volume and 14th in terms
of value.
According to a recent report by Ernst & Young
(E&Y), the biotechnology sector in India is
expected to achieve revenue of USD 11.6 billion
by 2017, growing at a compound annual growth
rate (CAGR) of 22%.
Biocon | Dr Reddys Laboratories | Cipla
Sun Pharmaceutical | Cadila Healthcare

4 Manufacturing Destinations of India: A Real Estate Overview

AUTOMOBILES
The production of passenger vehicles in India
was recorded at 3.23 million in 20122013 and
is expected to grow at a CAGR of 13% during
20122021, according to data published by the
Automotive Component Manufacturers Association
(ACMA) of India.
Ford | Ashok Leyland | Renault Nissan
Maruti Udyog | Tata Motors

HEAVY ENGINEERING
The engineering industry is the largest segment of
all industrial sectors in India, accounting for 3% of
Indias GDP and offering employment to more than
4 million skilled and semiskilled workers.
The Department of Heavy Industry (DHI), as its
vision for 2020, plans that the Indian machine tools
industry should secure a domestic market share of
67% by 2020.
Joseph Cyril Bamford (JCB) | Sany | Alfa Laval |
Bharat Heavy Electricals Limited (BHEL) | LeeBoy

AEROSPACE
India is fast becoming a major global aerospace
consumer market, aided by a combination of
increasing defence spending, booming commercial
aviation market and rising technological
and manufacturing capabilities among local
companies.
According to the Investment Commission of India
(ICI), investment opportunities of USD 110 billion
are envisaged up to 2020, with USD 80 billion in
new aircraft and USD 30 billion in the development
of airport infrastructure.

FMCG

Fast Moving Consumer Goods

Hindustan Aeronautics Limited (HAL)


UTC Aerospace Systems | Tyco Electronics
Dynamatic Technologies | StarragHeckert

The FMCG sector in India is the fourth largest


sector in the economy. It is also called the
consumer packaged goods sector. According to
the Confederation of Indian Industry (CII), the
FMCG sector in India had a market size in excess
of USD 13.1 billion as of 2012.
P&G | Indian Tobacco Company (ITC) | PepsiCo
Coca-Cola | Amway

Manufacturing Destinations of India: A Real Estate Overview 5

AHMEDABAD

Vadu

NH- 8

AN

RD

Balva

Aluva
1

Nardipur
LR

DI
-N
AN
DA
S
KA

Pansar

MA
NS
AKA
LO

Nandasan

Ambavpura
Indrad
KADI KADI
INDUSTRIAL AREA
Nani
Karan Nagar
Kadi Part

Chhatral

Dhamasana
KALOL
INDUSTRIAL AREA

Lunasan

D
JR

M
VA

Vamaj

Sonipur

Sector 26

Lekawada

KALOL

NH- 8C

Shiholi Moti

GANDHINAGAR

Ambika
Nagar

Fire Station

Bhalthi

Shertha

Indroda

Infocity Nature Park

Juna Koba

Khodiyar

Valad

CHANDKHEDA Sughad

Gota

Santej

NH- 947

SANAND
INDUSTRIAL
AREA
Chharodi

BOPAL

Hotel The Westend


Vadilal
Sarabhai Hospital

Vejalpur

SANAND
Sarkhej
Gam

Singarva
Sab

ar mati Riv

er

CHANGODAR

Visalpur
AH
ME
D AB
AD

CHANGODAR
INDUSTRIAL AREA
Morasar

Narayana Hrudalaya

Kankaria Rakhial ODHAV


Lake
Amraiwadi
Electric Sub
Station
Fire Station
Vastral
Chandola
Lake
Fire Station
NH- 228

SH- 2

AH

ASLALI

ED
VATVA
AB
INDUSTRIAL AREA AD-V

AD

Badodara

ASLALI
INDUSTRIAL AREA

OD

AR

AE

XP

Barejadi

Jetalpur

NH- 8

Modaj

Kanij

BAREJA

Mahemdavad

BAVLA
Chandisar

Juval
Rupavati

Kujad

NAROLGAM

A-

DHOL
K

BAVLA
INDUSTRIAL AREA

GIDC Vatwa

Evergreen Hotel

NH- 8A

Sabarmati

NARODA
INDUSTRIAL AREA
SARDAR VALLABHBHAI PATEL
INTL.
AIRPORT
THALTEJ
NARODA
Saijpur
NARANPURA
Bogha
Fire Station
Civil Hospital
Nikol
Ginger Hotels
Comfort Inn
Bodakdev
President BAPUNAGAR

Kaneti

NH- 947

NH- 59

SH- 71

Fire Station

Unali

NH- 228

Navagam

Kerala

KHEDA

Kalikund

DHOLKA

L
HO

Radhu
Vatrak River

-DHOLKA RD

BAGODARA

KHEDA
INDUSTRIAL AREA
Matar

Sandhana

NH- 8

Khadiyarapura
Heranj

BAGODRA
INDUSTRIAL AREA

Vaso

Ambareli

G
BA

Koth

Ramol

AAR
D

BAGODRA

W
AH

ED

-KH

KA

Rampur

Sahij
NH- 8A
7

Dabhoda

Shantigram
Dantali

Thol Bird
Sanctuary

NH- 8

Urjanagar 1

Moti Bhoyan

AN

M
TA
VA

Deva

Gundi

Trambovad

VATAMAN

Gada

MAP NOT TO SCALE. Designed and published by JLL.


Jones Lang LaSalle Property Consultants (India) Pvt Ltd 2014. All rights reserved.
A

6 Manufacturing Destinations of India: A Real Estate Overview

Ahmedabad
Population

Density

City Rank

Temperature

6.3 million

12,000/sq km

Seventh

Max 32.3 C
Min 27.4 C

Ahmedabad has been the major hub for the pharmaceutical industry
in India for a long time with the presence of large players such as
Zydus, Intas and Claris. However, after the inauguration of the Tata
Motors plant for the manufacturing of the Nano in 2010, it emerged
as a major manufacturing destination in the automobile, engineering
and FMCG sectors as well. Some of the major players that have
forayed in the market since then include Ford Motors, Bosch, Hitachi
Hi-rail, Colgate Palmolive and Gardner Denver, to name a few.
Excellent infrastructure, including the availability of natural gas,
reliable power and excellent road connectivity, has been the major
advantage for Ahmedabad as a manufacturing destination.
Several manufacturing companies such as the Adani Group, Reliance
Industries, the Nirma Group of Industries, Arvind Mills, Claris
Lifesciences, Cadila Pharmaceuticals, Shell, Vadilal Industries, Rasna,
Bosch Rexroth, Stork and Rollepaal, are present in Ahmedabad.

MAJOR MANUFACTURING OCCUPIERS


Occupier

Occupier Type

Area
(Acres)

Location

Tata Motors

Automobiles

1,250

Sanand

Ford Motors

Automobiles

450

Sanand

Gardner Denver

Engineering

4.8

Changodar

Inbisco

FMCG

21

Sanand

ALSTOM Bharat
Forge

Engineering

60

Sanand

Teva

Pharma

50

Sanand

Nestle

FMCG

80

Sanand

Colgate Palmolive

FMCG

25

Sanand

Oerliekon

Engineering

25

Sanand

Ahmedabad has well-developed infrastructure, which is conducive


to the growth of manufacturing industries. The submarkets are well
connected by road, rail and air transport system with the rest of the
country and other parts of the state.

Source: Research and REIS, JLL

MANUFACTURING CORRIDORS
Manufacturing Corridor

Major Industries

Major Locations

Land Value
(INR per sq ft)

Monthly Rent
(INR per sq ft per month)

State Highway 17
(SH 17) (Sanand
Viramgam Highway)

Automobiles
Engineering

Sanand GIDC

200550

1830

NH 8A
(AhmedabadRajkot
Highway)

Pharmaceuticals
Biotechnology

ChangodarBagodra

350700

1828

NH 8 (Ahmedabad
Vadodara Highway)

FMCG

AslaliKheda

300550

1015

SH 41
(Mehsana Road)

Engineering
Metal

Mehsana

350700

1422

Strong/marginal decline

Stable

Marginal/strong increase

12-Month
Demand Outlook

Source: Research and REIS, JLL

Manufacturing Destinations of India: A Real Estate Overview 7

BANGALORE

NH- 18

Lakkireddipalli

Puttaparthi

KADIRI

Pavagada

PENUKONDA
NH- 205

SH- 87

RAYACHOTI

Galiveedu

Nallacheruvu

HIRIYUR

Chinnamandem

Madakasira

Kadirihalli

Amadagur
SH- 96

Rolla

NH- 18

HINDUPUR

Bagepalli
Sira
NH- 4

MADHUGIRI

KURABALA KOTA

Gauribidanur

NH- 205

MADANAPALLE

Dhiburahalli
Koratagere

Gownipalli

SH- 9

TU

NH- 205

SH- 5

Huliyar
VASANTHANARASAPURA
INDUSTRIAL AREA
U
MK

Chiknayakanhlli

SH- 82

CHIKKABALLAPUR

RR

Fire Station

CHINTAMANI

OA

Sidlaghatta

PUNGANUR

TUMKUR

Srinivaspur

Fire Station

NH- 206

DODDABALLAPUR

DABASPETE

TIPTUR
Turuvekere

KUNIGAL
Belluru Yadiyur

SH- 85 Jayamahal Palace Hotel


Sagar Hospital

Koppa
Melukote

RE

SO

MY

D
OA

SH- 17

MANDYA

NH- 209

Electric Sub
Station

4
NH- 219

NH- 234

Pedduru
Reserve Forest

VANIYAMBADI
HO

NH- 219

SU

Alangayam

RO

Kanakapura

Denkanikottai

KRISHNAGIRI

Fire Station

TIRUPATTUR

Krishnaraja
Sagara Reservoir
Golden
Landmark

Ambur

Kuppam

NH- 44

Kelamangalam

Koundinya
Wildlife
Sanctuary

AD

Neraluru
6

Palamaner
NH- 4

KOLAR GOLD FIELDS

The Leela
Palace

HSR
KUMBALGODU
Layout ELECTRONICS CITY
INDUSTRIAL AREA
Fire Station
BOMMASANDRA
BIDADI
INDUSTRIAL AREA
INDUSTRIAL
JIGANI
ATTIBELE
AREA
INDUSTRIAL
INDUSTRIAL AREA
AREA
HAROHALLI
Electric Sub
RAMANAGARA INDUSTRIAL
Station
Anekal HOSUR
AREA

Nagamangala

Krishnarajpet

NH- 234

SH- 96
DODDABALLAPUR
INDUSTRIAL AREA
VEMAGAL
DABASPETE
INDUSTRIAL AREA MULBAGAL
Kempegowda
INDUSTRIAL AREA
AERO SEZ
HARDWARE PARK
NARSAPURA
INDUSTRIAL
Kolar
HOSKOTE
Vidyaranyapura
INDUSTRIAL AREA AREA
NH- 48
PEENYA
Koshy's Hospital
MALUR
INDUSTRIAL AREA
Electric Sub
Fire Station
Station
Belatur INDUSTRIAL AREA
BANGALORE INTL. AIRPORT
Vaidehi Hospital
Magadi
Ginger Hotel

Channarayapattana

NH- 44

Thumakunta

NH- 234

Gurram Konda

Srirangapatna

Malavalli

Marandahalli
SH- 17

JSS Hospital

MYSORE

Lalitha Mahal
Palace Hotel

Palacode

NH- 209

NH- 66

NH- 212

Kollegal

NANJANGUD

Kambainallur

Billgundala

Electric Sub
Station

Fire Station

Hanur

DHARMAPURI

Chakkuru
Male Mahadeshwarabetta

HARUR

Mangala

Hura

Uthangarai

CHAMARAJANAGARA

Pappireddipatti

Stanley
Reservoir

Kalrayan
Hill Forest

Mecheri

GUNDLUPET

METTUR

NH- 7

Yercaud

Lower Kalrayan
Hill Forest

Kongadai

NH- 209

Jalakandapuram

MAP NOT TO SCALE. Designed and published by JLL.


Jones Lang LaSalle Property Consultants (India) Pvt Ltd 2014. All rights reserved.
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8 Manufacturing Destinations of India: A Real Estate Overview

SALEM

Vazhapadi
NH- 68

Bangalore
Population

Density

City Rank

Temperature

8.4 million

11,470/sq km

Fifth

Max 38.9 C
Min 10.6 C

Bangalore, the state capital of Karnataka, is strategically located in


South India. After Indias independence, during 1950s to 1960s, major
public sector heavy industries such as BHEL, Bharat Earth Movers
Limited (BEML), Hindustan Machine Tools (HMT) and Indian Telephone
Industries (ITI), as well as knowledge-based production facilities such as
HAL started their operations in Bangalore.
During the 1980s1990s period, Bangalore evolved as a favourite
destination for IT and IT-enabled services (ITeS).
The steady rise of Bangalore as a global manufacturing hub is supported
by the presence of leading education and research institutions; a large
number of large-scale and knowledge-based public sector industries and
small-scale industries; a highly proficient English-speaking and relatively
economically large labour pool; and a stable and liberal socio-political
environment.
At present, the government is developing more industrial areas in and
around Bangalore to attract investments. In the recent past, Bangalore
emerged as a favourite destination for the automotive industry.

MAJOR MANUFACTURING OCCUPIERS


Occupier

Occupier Type

Area
(Acres)

Location

Volvo

Automobiles

122

Old Madras Road


(OMR)

LM Wind
Power

Engineering

40

Tumkur Road

Honda

Automobiles

96

Narasapura

Scania

Automobiles

35

Narasapura

Mahindra
Aerospace

Aerospace

25

Narasapura

Biocon

Pharmaceuticals

90

Bommasandra

Toyota
Kirloskar

Automobiles

432

Bidadi

Bosch India

Automobiles

97

Bidadi
Source: Research and REIS, JLL

MANUFACTURING CORRIDORS
Manufacturing
Corridor

Major Industries

Major Locations

Land Value
(INR per sq ft)

Monthly Rent
(INR per sq ft per month)

Tumkur Road

Pharmaceuticals/biotechnology
Engineering

Peenya

1,6002,100

2530

Dabaspet

200300

1114

Hoskote

400500

1416

OMR

Engineering
Automobiles
Pharmaceuticals
Electrical and electronics

Whitefield

2,4002,800

2530

Narasapura

250350

1620

Hosur Road

Pharmaceuticals/Biotechnology
Engineering

BommasandraJigani

9001,000

1824

Attibele

600700

1620

Mysore Road

Automobilesandauto
components
FMCG

Bidadi

250350

1822

Kumbalgodu

700900

1822

Bellary Road

Aerospace
Electronics and hardware

Aerospace SEZ,
Hardware Park

400

N/A

Strong/marginal decline

Stable

Marginal/strong increase

12-Month
Demand Outlook

Source: Research and REIS, JLL

Manufacturing Destinations of India: A Real Estate Overview 9

CHENNAI

SRIKALAHASTI

Sri Venkateswara
National Park

Sriharikota

SULLURUPETA
Bandarupalli
NH- 205

Venadu

Renigunta

TIRUPATI
NH- 18A

Tiruchanur

Tada

Kambakkam
Reserve Forest

NH- 205

Pulicat
Lake

Chinnapandur

Ramapuram

Sricity
Nagiri Hills
Reserve Forest

S.B.R.Puram
Electric Sub
Station
Fire Station

PUTTUR

Palem
Forest

NH- 5

Sathyavedu

Narayanavanam

SA
TH

GUMMIDIPUNDI
INDUSTRIAL AREA

YA
VE

DU

Nagalapuram

Agaram

SH- 51

TIR

UP
AT
H

Nallattur

IR

Minjur

Poondi

Ennore

NH- 205
4

CHITTOOR

Fire Station

RD

Poondi Lake

THIRUTHANI

THRIVALLUR
SHOLINGHUR

Kilpakkam

SH- 57

Thakkolam
Nemili

Ammoor
Kaveripakkam
Lake

Sri Ramchandra

NH- 45

SH- 121

AST

SH- 116

Puthali

CHEYYAR

Ukkal

Kolavai Lake

UTHIR

SH- 118A

AMER

Sengadu

Maiyur

Sirudavoor

UR R

Kolambakkam

Thirukkazhukundram
SH- 58

NH- 45

Peranamallur

Madurantakam
Lake

VANDAVASI
Ponnur
Reserved
Forest

Nemmeli
Karumbakkam

CHENGALPATTU

Perunagar
7

6
Vivanta by Taj - Fisherman's Cove

RD

Kelambakkam

MARAIMALAI
NAGAR

Mamandur

Mambakkam

Mambakkam

MARAIMALAI NAGAR
INDUSTRIAL AREA

Walajabad

SH- 5

Sholinganallur

OMR

Vedekkal
ORAGADAM
INDUSTRIAL AREA

Mecheri
Mazhayur

Tambaram

EAS
T CO

Thenneri

NH- 4

KANCHIPURAM

BAY OF
BENGAL

Porur Hospital

Hindu Mission Hospital

Mangadu

Vembi

George
Town

ITC Grand Chola


Mappedu
Chembarambakkam
Fortis Malar Hospital
Radisson Blu Hotel
Lake
IRUNGATTUKOTTAI
Guindy Adyar
CHENNAI
INDUSTRIAL AREA
The Trident VHS Hospital
INTERNATIONAL
Electric
SRIPERUMBUDUR
Sub Station
AIRPORT VELACHERY
SRIPERUMBUDUR
Chromepet
INDUSTRIAL AREA

Meenakshi Medical
College Hospital
& Research Institute

Perumbulipakkam

Palar River

NH- 205

Ambattur
Mogappair

Parvathy Hospital

NH- 46

ARCOT

Madhavaram

Madurantakam

Ammanambakkam

MAP NOT TO SCALE. Designed and published by JLL.


Jones Lang LaSalle Property Consultants (India) Pvt Ltd 2014. All rights reserved.
A

Kunnathur

Periayakattupakkam

MEIYUR

Nethapakkam

Desur

10 Manufacturing Destinations of India: A Real Estate Overview

OMR

Tiruvottiyur

NH- 4

Perambakkam
Banavaram

Puzhal
Lake

AVADI
Electric Sub
Station

Venmanambudur

Fire Station

ARAKKONAM

Pulicat

Ponneri

Forest

NAGARI

Pothatturpettai

GUMMIDIPOONDI

RD

THERVOY KANDIGAL SH- 52


INDUSTRIAL AREA
Kavaraipettai
Senneri Peria Puliyur

Pallipattu

Melapattu

Chennai
Population

Density

City Rank

Temperature

8.6 million

11,000/sq km

Fourth

Max 45 C
Min 32.8 C

Chennai is the fourth most populous metropolitan area in India. The citys
economy has a broad industrial base, spanning the automobile, computer,
technology, hardware manufacturing, financial services and health-care
industries. Chennai is Indias second largest exporter of software, IT and
ITeS. The city, accounting for 60% of the countrys automotive exports, is
rightly coined the Detroit of Asia.
Chennais economic development has been closely tied to its port and
transport infrastructure, which is considered as the best infrastructure in
India. The city is served by two major portsChennai Port and Ennore
Port. Chennai Port is Indias second busiest container hub, handling
general industrial cargos and automobiles, among others. The Ennore Port
handles cargossuch as coal, ore and bulkand break bulk cargos.
The major industrial locations of Sriperumbudur and Oragadam receive
investment from major MNCs, such as Renault Nissan, Daimler and
Yamaha.

MAJOR MANUFACTURING OCCUPIERS


Occupier

Occupier Type

Area
(Acres)

Location

Renault Nissan

Automobiles

1000

Oragadam

Daimler

Automobiles

400

Oragadam

Yamaha

Automobiles

400

Oragadam

Ashok Leyland
Nissan

Automobiles

Multiple

Multiple

Royal Enfield

Automobiles

50

Oragadam

Michelin

Automobiles

300

Thervoy Kandigai

Philips Carbon

Automobiles

80

Thervoy Kandigai

Amway

FMCG

50

Nilakkottai
Source: Research and REIS, JLL

The availability of cheap government-subsidised land in and around


Chennai is limited, and the government is acquiring additional land to meet the growing demand. Leading private developers such as
Ascendas and Mahindra World City have also made investments to create manufacturing zones around Chennai.
MANUFACTURING CORRIDORS
Manufacturing Corridor

Major Industries

Major Locations

Land Value
(INR per sq ft)

Monthly Rent
(INR per sq ft per month)

Sriperumbudur
(NH 4)

Automobiles
FMCG
Light engineering
Electronics and hardware

Irungattukottai

8001,050

2230

Sriperumbudur

450550

2026

Oragadam

Automobiles
Electronics and hardware

Oragadam

350550

2025

Grand Southern
Trunk Road
(NH 45)

Automobiles
Textiles
FMCG

Marai Malai Nagar

8001,050

1822

Grand Northern
Trunk Road
(NH 45)

Automobiles
FMCG
Heavy engineering

Thervoy Kandigai

100300

1822

Gummidipoondi

150250

1820

Strong/marginal decline

Stable

Marginal/strong increase

12-Month
Demand Outlook

Source: Research and REIS, JLL

Manufacturing Destinations of India: A Real Estate Overview 11

DELHI NCR

KARNAL
Sushant
City

Rahra

NH- 1

DEOBAND

Bakdoli

Yam
una
Riv
er

NH- 58

Chhapar

SH- 82

Gharaunda

Assandh

Charthaval

Jhinjhana

MUZAFFARNAGAR
SH- 12

Shamli

SAFIDON
SH- 14

Dhatrath
2

PANIPAT

Urlana Kalan

SH- 14

JIND

Huda

NH- 71A

JANSATH

KANDHLA
BUDHANA

Samalkha

Nidani

Shahpur

PANIPAT
INDUSTRIAL AREA

Khatauli

Kirthal

NH- 71

Mundlana

NH- 1
NH- 58

Rithal

Gorar

NH- 10
HISA

R RD

Mokhra

ROHTAK
INDUSTRIAL AREA

SONIPAT

Daulcha

Kharkhoda

NH- 58

Narela
Bawana

NH- 1

Sampla

Electric Sub
Station

NH- 10
NH- 71

BAHADURGARH

SH- 22
SH- 20

Army Base
Electric Sub Hospital
Station

JHAJJAR

Daola

Dwarka

Badli

IGI INTERNATIONAL AIRPORT

GURGAON
MANESAR

Kosli

Guraora

MANESAR
INDUSTRIAL AREA

Electric Sub
Station

NH- 24
The Oberoi
Fire Station
Indraprastha
Apollo

Khuspura

Crown Plaza

DHARUHERA
INDUSTRIAL AREA

Khaleta

Asola
Wild Life
Sanctuary

NOIDA

DHARUHERA

Electric Sub
Station

Gulothi

DADRI

Fire Station

NH- 235

SIKANDRABAD
INDUSTRIAL AREA

Greater
Noida

SIKANDRABAD

NH- 2

NH- 91

FARIDABAD
Gautam
Buddha Nagar

BULANDSHAHR

6
NH- 91

Makanpur

Sohna

KHURJA

U RD

TAUR

NH- 71B

REWARI

Badarpur

Bilaspur

NH- 71

SH- 24

Chhapraula

NOIDA & NH- 91


GREATER NOIDA
INDUSTRIAL AREA

Ballabhgarh

SH- 13

Pataudi

Electric Sub
Station

FARIDABAD
INDUSTRIAL AREA

NH- 8
6

SH- 57

NEW DELHI

G.B.Pant

Vasant Kunj

Chandpur

HAPUR

Pilkhuwa

GHAZIABAD

Shahdara

Hotel Trident

Dhanirwas

Kharkhauda

Muradnagar
GHAZIABAD
INDUSTRIAL AREA

Fire Station

BAHADURGARH
INDUSTRIAL AREA

NH- 235

Modinagar

NH- 10

Kabulpur

SH- 78

Jahidpur

SONIPAT
INDUSTRIAL AREA

ROHTAK

NH- 119

MEERUT

SH- 20

MEERUT
INDUSTRIAL AREA

Ashok
Nagar

NH- 71A

Daurala

HTA
-RO
ANA
GOH

Lakhan
Majra

SH- 82

BARAUT

BY
PA
SS

Ganaur
er
Riv
una
Yam

K RD

Julana
3

SARDHANA

Bamnauli

GOHANA

AW
AN

Banwasa

Birampur

BHIWADI

NH- 71B

Kaseru
Mandhan
7

Palwal

BAWAL
INDUSTRIAL AREA

Nuh

Pisawa

PALWAL
INDUSTRIAL AREA

Bawal
NEEMRANA
SH- 52
INDUSTRIAL AREA
Shahjahanpur

Jewar

Dehana

Jattari

AURANGABAD
Kalanjar

NEEMRANA

Hasanpur

NH- 8

Badkli

na
mu
Ya

Tijara

HODAL

r
ve
Ri

SH- 13

Mundawar

Punhana

Kosi Kalan

Pahari

P
NA EX
YAMU

SH- 44

SH- 14

MAP NOT TO SCALE. Designed and published by JLL.


Jones Lang LaSalle Property Consultants (India) Pvt Ltd 2014. All rights reserved.

Arni

NH- 2

FIROZPUR
JHIRKA

Khair
Bajna

12 Manufacturing Destinations of India: A Real Estate Overview

Mahdaura

Delhi NCR
Population

Density

CityRank

Temperature

16.3 million

11,297/sq km

Second

Max 31.4 C
Min 18.8 C

The manufacturing sector plays a vital role in the economic


development of the National Capital Region (NCR). The region has
a wide variety of industrial products, including high-value and hightechnology goods. The manufacturing submarkets of the NCR region
are regulated under the development norms of a few nodal authorities,
which include the Department of Industries, the Delhi Development
Authority (DDA), Delhi State Industrial Development Corporation
(DSIDC), Haryana Urban Development Authority (HUDA), Rajasthan
State Industrial Development and Investment Corporation (RIICO) and
Uttar Pradesh State Industrial Development Corporation (UPSIDC).

MAJOR MANUFACTURING OCCUPIERS


Occupier

Occupier Type

Area
(Acres)

Location

Maruti Suzuki

Automotive

600

Manesar

Ranbaxy Laboratories

Pharmaceuticals

9.1

Gurgaon

Honda

Automotive

52

Manesar

Escorts Group

Engineering
Conglomerate

250

Faridabad

Nestle India Limited

FMCG

Samalkha,
Haryana

GSK Consumer

Consumer
Health Care

140

Sonipat

The development of the industrial clusters and their supporting


infrastructure is undertaken by these nodal authorities or by a few
cooperative societies.

Source: Research and REIS, JLL

Several manufacturing companies such as Maruti Suzuki, Ranbaxy


Laboratories, Escorts Group, Honda, GSK Consumer and Nestl India are present in the NCR.

NCR has been able to attract sizable investment from multinational companies, large business houses, foreign investors, nonresident Indians
and small-scale entrepreneurs. NCR is an investor-friendly region and offers a rich reservoir of skilled, motivated and relatively low-cost workers,
with good infrastructure and harmonious industrial relations.
MANUFACTURING CORRIDORS
Manufacturing Corridor

Major Industries

Major Locations

Land Value
(INR per sq ft)

Monthly Rent
(INR per sq ft per month)

NH 1

FMCG
Metal
Food processing

Panipat and Sonipat

4501,150

1420

NH 2

Automobiles
Heavy machinery
Metal

Faridabad

1,1004,500

2040

Palwal

3501,000

1520

NH 8

Automotive
Textiles

Manesar and Daruhera

9001,800

1730

Neemrana

7001,400

1624

NH 10

Food processing
Metal

Bhadurgarh and Rohtak

7001,850

1725

NH 24

Chemicals
Food processing
FMCG

Ghaziabad

5501,850

1525

Ghaziabad

5501,850

1525

NH 58

Chemicals
Food processing
FMCG
Metal

Meerut

5501,147

1520

Strong/marginal decline

Stable

Marginal/strong increase

12-Month
Demand Outlook

Source: Research and REIS, JLL

Manufacturing Destinations of India: A Real Estate Overview 13

HYDERABAD
1

Armoor

VEMULAWADA

YA
RA
NA

KAMAREDDY

D
HE
NK

Palwancha
Domakonda

RD

Aurad

Jangapally

Nittur

Singapuram

Hippalgaon

Karanja
Reservoir

Rajoli

MU

MB

AI

Chitaguppa

SH- 15

SIDDIPET
WADDEPALLE
Rahamatnagar

Chegunta
Ramasagar

Chandoor

Nyalkal

KOLUKONDA Ghanpur

SH- 6
Singur Dam
Reservoir

ZAHEERABAD
INDUSTRIAL AREA

Shivampet

NH- 9

Marpally

Chandankheri
Chincholi

SANGAREDDY

RAJAPET

KALLAKAL
INDUSTRIAL AREA
MEDCHAL
INDUSTRIAL AREA

Munipalli

ZAHEERABAD

NH- 202

SH- 1

NH- 7

HW

KAMALAPUR

Koheda

SH- 13

Sirkatnalli

NH- 9

RAMAYAMPET

Alladurg

BIDAR

Kanji

NH- 218

Dubbak

Nizampet

BHALKI

MUSTABAD

YELLAREDDY

Nizamsagar
Lake

Jamkhandi

Kondapalakala

Sircilla

Banswada
Wajrakhandi

KARIMNAGAR

SH- 11

Bichkunda

SH- 217

Deoni

Choppadandi
Vattimalla

YACHARAM

SH- 15

Poodur

Sirikonda

VARNI

Markhel

Rudrangi
NH- 7

Deoulwadi

UDGIR

Maddulapalli
SH- 10

NIZAMABAD

Sangam

Atmakur

JAGTIAL

Bheemgal

BODHAN
DEGLOOR

NH- 16

Athmakur

SH- 25

Jalkot

KORUTLA

NH- 16

Mukhed

AHMADPUR

Kundalwadi

DUNDIGAL

Gudur

Jangaon

KOLUKONDA

Aler

GENOME VALLEY

ISNAPUR
NH- 202
KONPALLY
INDUSTRIAL AREA
INDUSTRIAL AREA
PASHAMYLARAM PATANCHERU
BHUVANAGIRI
INDUSTRIAL AREA INDUSTRIAL AREA Fire
Fire Station
Prime Hospital
Station
Electric
CHERLAPALLY
KUKATPALLY
Sub Station
INDUSTRIAL AREA
Shankarpalli Hotel Minerva Grand

Chennur

Tirumalagiri

Atmakur(m)

SECUNDERABAD

NC

KU

Taj Krishna Hotel


Kamineni Hospital
Osman
AUTONAGAR
Sagar
INDUSTRIAL AREA
Himayat
HAYATHNAGAR
Fire Station
Sagar Lake

Vikarabad

RA

HA

Kalgi

Dharur

RD

INDUSTRIAL AREA
SHAMSHABAD
SINGHINAGAR
INDUSTRIAL AREA INDUSTRIAL AREA
Novotel
NH- 9
RAJIV GANDHI
ADIBATLA
INTERNATIONAL AIRPORT Electric INDUSTRIAL AREA

Tandur

Navandgi

SH- 10

Pargi

Malkhed

KOTHUR
INDUSTRIAL AREA

I RD

G
PAR

Chittapur

Sub Station

NH- 7

Ghattuppal

YADGIR

NH- 167

iver
aR
Bhim

Patherched

RAICHUR

NALGONDA
Marrigudem

Yacharam

Mudigonda

Thirumalagiri

Nagarjuna
Sagar

Nizamabad

Bijnapalli

Nagarjuna
Sagar
7

NH- 7

Khanapur

NH- 167

Marriguda

Kalwakurthy

Devarkadra
Komreddypally

DEVARSUGUR

Sirvar
8

Amangal

JEDCHERLA
INDUSTRIAL AREA

Ullesugar

Krishna
River

Makrekal

MAHBUBNAGAR

NARAYANPET

Narketpalli

Mohammadabad

Gurmatkal

Shapelly

Shivannaguda

Kosigi

NH- 150

Dharmaram

Manchal

FAROOQNAGAR

HUSNABAD

Valigonda

MACHERLA

Srisailamgudem
Lakshmapur

WANPARTI

Jurala
Reservoir

GADWAL

Krishna Veldhurthy
River

Balmur

Sriramnagar

RAYAVARAM

NH- 7
Srisailam Dam
Reservoir

MAP NOT TO SCALE. Designed and published by JLL.


Shabad
Jones Lang LaSalle Property Consultants (India) Pvt Ltd 2014. All rights reserved.
A

14 Manufacturing Destinations of India: A Real Estate Overview

Dindi River

Pentlavelli
Srisailam Dam

Nandi Kot Kur


Reserve Forest
C

Guttalachenupenta

Komarolu

SRISAILAM

Hyderabad
Population

Density

City Rank

Temperature

7.7 million

18,480/sq km

Sixth

Max 32.0 C
Min 20.2 C

Hyderabad is a diversified economic zone with varied industries,


including life sciences, FMCG and automobiles. During the
1950s1960s period, most of the Indian premier public enterprises
were established in Hyderabad, giving an edge to the traditional
manufacturing and bringing in technological advancements.
The Andhra Pradesh Government, through its New Industrial Policy,
aptly titled Industrial Investment Promotion Policy (IIPP) 20102015,
places major emphasis on the creation of quality infrastructure;
promotion of manufacturing investment zones and industrial corridors;
and special focus on micro-sized, small-sized and medium-sized
enterprises (MSMEs).
The city has greatly benefitted from setting up world-class
infrastructure providing connectivity to the areas nearby, promoting
industrial corridors along the national highways connecting to Nagpur,
Bangalore, Mumbai and Vijayawada.

MAJOR MANUFACTURING OCCUPIERS


Occupier

Occupier Type

Area
(Acres)

Location

Tata Advanced
Systems

Aerospace

50

Adibatla

P&G

FMCG

170

Kothur

AugustaWestland

Aerospace

10

Shamshabad

Mahindra and
Mahindra

Automobiles

100

Zaheerabad

Alexandria Biotech
Park

Biotechnology

300

Shamirpet

ICICI Knowledge
Park

Biotechnology

200

Shamirpet

Piramal Healthcare

Pharmaceuticals

10

Medak
Source: Research and REIS, JLL

The new policy is a good sign for Hyderabad, as more industries


would provide a perfect balance to the IT boom in Hyderabad, where IT is still the dominant industry. Manufacturing would greatly strengthen and
take advantage of the world-class infrastructure developed by the government and would provide employment and opportunities to a larger base
of the economy.
MANUFACTURING CORRIDORS
Manufacturing Corridor

Major Industries

Major Locations

Land Value
(INR per sq ft)

Monthly Rent
(INR per sq ft per month)

Nagpur Highway,
Karimnagar Highway

Pharmaceuticals/
biotechnology

Medchal, Genome Valley,


Kallakal, Kompally

350450

1016

Mumbai Highway

Automobiles
Food processing

Patancheru,
Pashamylaram, Isnapur,
Zaheerabad

370550

915

Bangalore Highway,
Shamshabad

FMCG
Pharmaceuticals
Aerospace

Shamshabad Airport,
Adibatla, Kothur,
Thimmapur, Jadcherla,
Srisailam Highway

200750

1017

Vijayawada Highway

Automobiles
Textiles

Autonagar, Sanghi Nagar,


Hayathnagar, Cherlapally

250500

1218

Strong/marginal decline

Stable

Marginal/strong increase

12-Month
Demand Outlook

Source: Research and REIS, JLL

Manufacturing Destinations of India: A Real Estate Overview 15

Raghunathpur

KOLKATA

Hooghly
River

NH- 2
AP
RG

DHANIAKHALI

Gayeshpur
KALYANI
INDUSTRIAL AREA

EX
PY

Shrirampur

SH- 6

Hansnan

Kumrul

Bansberia

Keshabpur

Nabagram

UR

Srikrishnapur

KALYANI

DU

KANCHRAPARA

Bandel

Bhandarhati

SH- 13

SH- 1

HOOGHLY-CHINSURAH

Dharampur
Harishpur

CHANDANNAGAR

LY
AN
KA

SH- 2

Daluigacha
Haripal

Gopinathpur

Champdani

SINGUR

Ichapur

Parbbatipur

SH- 15

Baidyabati

Atpur

AND
GR

Begampur

XP

DOMJUR
LILUAH

Andul

UL R

The Floatel
Hotel

B.M. Birla Heart


Research Centre

MAHESHTALA
BUDGE
BUDGE

RAJARHAT
GOPALPUR
NEW TOWN
Rajarhat
Newtown

Hyatt Regency
Nilratan Sarkar Medical
College and Hospital
The Oberoi Grand
Fire Station
ITC Sonar
Kenilworth Hotel

Sealdah
R.S.

BALLYGUNGE
Kalighat

Dhakuria

BEHALA

Nangi

NETAJI SUBHASH
CHANDRA BOSE
INTERNATIONAL
AIRPORT

SALF
LAKE CITY

KOLKATA

D
Acharya Jagadish
NH- 117
Chandra Bose Indian
SSKM
Botanic Garden
Hospital
Fire Station

Fire Station

ULUBERIA

PY

ULUBERIA
INDUSTRIAL AREA

AND

EX

Balarampota

NA

Alpur

Howrah
R.S.

KO

SOUTH
DUMDUM

HOWRAH

SANKRAIL

Panchla
NATIONAL HIGHWAY 6
INDUSTRIAL AREA

DUM DUM

Electric
Sub Station

ALAMPUR
INDUSTRIAL AREA

BAGNAN

NORTH
DUMDUM
Noapara

DHULAGARI
INDUSTRIAL AREA

NH- 6

UTTARPARA
KOTRUNG

SH- 15

Amta

Madhyamgram

Electric
Sub Station

Dhulagori

BARASAT

Panihati

Dankuni

JAGATBALLAVPUR

KHARDAHA

Mirpur

IE

RD

Rishra

N
LYA

NK

SH- 2

DANKUNI
INDUSTRIAL AREA

NH- 34

KA

Titagarh

TRU

UDAINARAYANPUR

Kashtasangara

NH- 2

Masat

Shankarhati

KALYANI
EXPRESSWAY
INDUSTRIAL AREA

BARRACKPORE

Sheakhala
Bhimpur

Jangipara

Sankarpur

IE

NATIONAL HIGHWAY-2
INDUSTRIAL AREA

BHATPARA

Beraberi

XP

Tarkeshwar

Electric
Sub Station

Bhagabanpur

JOKA
INDUSTRIAL AREA
Naktala

GARIA

Electric
Sub Station

SH- 15

Raipur

Hatgachha

SH- 1

Raghabpur

Hooghly
River

Joarkole

BARUIPUR

Julpia
Subuddhipur

JOKA

Amarpur

NH- 117

SHYAMPUR

MAP NOT TO SCALE. Designed and published by JLL. Falta


Jones Lang LaSalle Property Consultants (India) Pvt Ltd 2014. All rights reserved.

16 Manufacturing Destinations of India: A Real Estate Overview

Sahebpur

Bishnupur
DIAMOND
HARBOUR ROAD
INDUSTRIAL AREA

RAJPUR
SONARPUR

Fatepur

Dhamua
C

Kolkata
Population

Density

City Rank

Temperature

14.1 million

24,000/sq km

Third

Max 31.7 C
Min 22.2 C

Kolkata, including its metropolitan area, is the third most populous


city in India and the main commercial and financial hub of the
eastern and north-eastern part of the country. Developments such
as the huge leather complex that has been set up at Bantala and
the export-processing zone that has been built in Falta, have paved
the way toward the city being an industrial hub. In addition, industrial
estates in Kalyani, Taratala, Dankuni, Kasba and Howrah, with
specialised sectors such as the countrys first toy park and a gem
and jewellery park, are spread throughout the metropolitan area.
Kolkatas economic development has a close relationship to its port
and transport infrastructure. There are two distinct dock systema
river port at Kolkata with 28 berths and a deep water port at Haldia
with 12 berths. Kolkata port handles containers and industrial cargo
while Haldia Port handles bulk cargos such as coal, ore and oil.
The proposed draft of an industrial development policy aims to
leverage the core competence and the states rich mineral base for
the promotion of manufacturing such as engineering, chemicals,
petrochemicals and its downstream industries, along with the
introduction of the latest technology and foreign direct investment
(FDI). Sunrise and high-tech industries will be promoted through
policy and business process reform to create ease in doing business
by the creation of a single window system for industrial start-ups. By
doing this, the government will take a giant step toward growth.

MAJOR MANUFACTURING OCCUPIERS


Occupier

Occupier Type

Area
(Acres)

Location

Cadbury, PepsiCo, Rollick,


and others. (Sudharas
Food Park)

Food processing

100

Dhulagari

Elkos, Seiko, among


others. (Poly Park)

Poly processing

60

Dhulagari

Jute Mills (Reliance,


Auckland, Alliance,
Weaverly, among others)

Jute industries

400

Multiple

Coca Cola

Food processing

20

Dankuni

Himadri Chemicals

Chemicals

40

Multiple

Jayashree Textiles (Aditya


Birla)

Cotton

30

Rishra

Britannia Industries

FMCG

10

Taratala

Century Ply

Plywood

35

Multiple

Eveready

Battery plant

12

Multiple

Keshoram Industries

Cotton

20

Khidirpur

Source: Research and REIS, JLL

MANUFACTURING CORRIDORS
Manufacturing Corridor

Major Industries

Major Locations

Land Value
(INR per sq ft)

Monthly Rent
(INR per sq ft per month)

FMCG
Warehousing
Polythene
Ferro-alloys

Dhulagari and Alampur

350500

1418

NH 6

Uluberia

150200

1014

NH 2

FMCG
Ferro-alloys

Dankuni

250300

1317

Diamond Harbour Road

Polythene
Manufacturing
FMCG

Joka

1,4001,900

2025

Sirakol

200250

8-20

Kalyani Expressway

Chemicals
Light engineering

Kalyani

200300

8-12

Strong/marginal decline

Stable

Marginal/strong increase

12-Month
Demand Outlook

Source: Research and REIS, JLL

Manufacturing Destinations of India: A Real Estate Overview 17

MUMBAI
Vaitarna
River

Bhinar
Chandansar

VA
JR

ES

NH- 8

VIRAR

Akaloli

HW
AR

Umbar Pada
Nandade

IR

Vatar

Dhaniv

NALA SOPARA
2

VASAI

Sai Nagar

NH- 3

Angaon

Vasai West

Padgha

Poman

Khadawali

NAVGHAR

MIRA
BHAYANDAR

NH- 8
Ulhas River

Varsava

Dongri

BHIWANDI

Uttan

Gorai

Borivali

Mulund
West
Vihar
Lake

Goregaon
East

Versova

Juhu
CHHATRAPATI SHIVAJI
INTERNATIONAL AIRPORT
Grand Hyatt
NH- 8

Kolegaon

BADLAPUR

Ghansoli

Thane Creek

Kopar
Khairane TTC
MIDC

TALOJE
INDUSTRIAL
AREA MIDC

Fire Station

Vashi

MUMBAI
Trident

Electric Sub
Station

Sanpada

Fire Station

Taloje

NAVI
MUMBAI

Chembur

Dadar

Kalamboli

Parel

Panvel
Creek

Electric Sub
Station

Byculla

Sir JJ Group of Hospitals

Gharapuri
Village

Panvel
Ulwe

SH- 54
NH- 4B

JNP

TR

Electric Sub
Station

Shedung

JNPT

Manama Hotel

Fort

RD

Jasai

The Taj Mahal

NH- 4B

Jawaharlal
Nehru Port
Trust Township

Colaba

PATALGANGA
MIDC

JNPT
WAREHOUSING
AREA

Chowk

RASAYANI
Karnala Bird
Sanctuary

E
NE

PU

AI-

Koproli

XP

Karanja

Morbe Dam

MB

Uran

NH- 4

Chinchavan

MU

INHS Ashwini Hospital

SH- 54

JNPT

PANVEL
WAREHOUSING
AREA
NH- 17

Kalbadevi
Back Bay
Hotel Marine Plaza

Koproli

Seawoods

Tata Memorial Hospital

Worli

Electric Sub
Station

Airoli

NH- 3

Sakinaka

Mahim

AMBARNATH

Mumbra

MAROL
INDUSTRIAL AREA
Andheri
East

THANE
INDUSTRIAL AREA

Sonar pada

Fire Station

Bhandup
West

Bandra West

DOMBIVLI

Dighe

Powai
Lake

River
Ulhas

Kalwa

Tulsi
Lake

Malad West

Mukund
Nagar

ULHASNAGAR

Thane
West
WAGLE
INDUSTRIAL AREA

URAN RD

Electric Sub
Station

NH- 222

KALYAN

Sanjay Gandhi
National Park

Kandivali
Fire Station
East

Titwala

Ambivli

NH- 3

Kandivali
West

River
Ulhas

Sai Nagar
Dahisar
East

BHIWANDI
WAREHOUSING
AREA

Gokul Nagar

NH- 17
8

MAP NOT TO SCALE. Designed and published by JLL.


Jones Lang LaSalle Property Consultants (India) Pvt Ltd 2014. All rights reserved.
A

18 Manufacturing Destinations of India: A Real Estate Overview

Revas
C

Mumbai
Population

Density

City Rank

Temperature

18.4 million

22,937/sq km

First

Max 33 C
Min 16 C

The manufacturing activity in Mumbai region is now primarily


concentrated in the MIDC areas of Thane, the Thane-Belapur belt
[Kalwa, Airoli and Trans-Thane Creek (TTC)], Taloja, Patalganga and
Ambernath, and the non-MIDC areas of Patalganga, Khopoli and
Pen, among others. Most of these areas are the first MIDCs that were
developed in the early 1960s to promote chemical, engineering and
other auxiliary industrial units.
The Thane-Belapur belt houses large-sized companies such as
Mukund Steel, BASF, Siemens, RPG Life Sciences, Reliance Life
Sciences and Nycomed. The areas of Taloja and Patalganga have more
of the chemical, pharmaceutical and food product companies, such as
Kelloggs, Aditya Birla, Asahi Glass, Kingfisher, Reliance Industries and
Cipla. Some of these areas were considered out-of-town locations for
the industries to survive.

MAJOR MANUFACTURING OCCUPIERS


Occupier

Occupier Type

Area
(Acres)

Location

Petronas

Lubricants

24

Patalganga

Cipla (three units)

Pharmaceuticals

40

Patalganga

Ruchi Soya

Food processing

40

Patalganga

Aditya Birla Nuvo

Spatiality carbon

50

Patalganga

Bombay Dyeing

Polyester

30

Patalganga

United Breweries

FMCG

25

Taloja

Hindustan Copper

Metal and engineering

20

Taloja

Kelloggs

Food processing

60

Taloja

Lubrizol

Chemicals

22

Turbhe

As the cities of Thane, Mumbai and Navi Mumbai developed, some of


these areas changed into real estate developments.

Source: Research and REIS, JLL

However, the state industry body, MIDC, has been proactive and is in the process of acquiring more land parcels in Patalganga, Ambernath and
other surrounding areas.
MANUFACTURING CORRIDORS
Manufacturing Corridor

Major Industries

Mahape

Chemical
Pharmaceuticals
Electronics

Thane Industrial areas


I and II

Pharmaceuticals
Steel

Taloja MIDC

Chemicals
Textile
Pharmaceuticals
Electronics

Strong/marginal decline

Stable

Major Locations

Land Value
(INR per sq ft)

Monthly Rent
(INR per sq ft per month)

Turbhe MIDC, Ghansoli


MIDC, Rabale MIDC, Airoli

2,000-2,700

4050

Patalganga
Addl. Patalganga

5501,100

2225

Tarapur MIDC Dombivali

1,0001,800

2230

Ambernath, Murbad,
Badlapur, Kalyan-Bhiwandi

1,0001,400

1822

Taloja MIDC

1,3502,050

2225

Marginal/strong increase

12-Month
Demand Outlook

Source: Research and REIS, JLL

Manufacturing Destinations of India: A Real Estate Overview 19

PUNE

NARAYANGAON
AMBEGAON

Kanhoor

Ranjani
NH- 50

Salgaon
Chinchodi
Chas
Kaman Dam

Nighoj

Lakhangaon

SUPA
INDUSTRIAL AREA

PETH
Savindane

Kadus
Bhama
Askhed Dam

Rajgurunagar

Wakalwadi
KHED
INDUSTRIAL
AREA

NH- 50

NH- 4
3

Tardobachiwadi

Kharabwadi CHAKAN
INDUSTRIAL AREA

TALEGAON

TALEGAON
INDUSTRIAL AREA

KURULI
INDUSTRIAL AREA

Transport
Nagar

HINJEWADI
INDUSTRIAL AREA

Wakad

Electric Sub
Station
4

NH- 4

Lohegaon
PUNE INTL. AIRPORT
Aundh

LAVALE
PIRANGUT
INDUSTRIAL AREA

Nhavare

Hotel Aurora Towers


Noble Hospital
Gurudwara
Hadapsar
Command Hospital
NH- 9
Fire Station Electric Sub
Phursungi
Station Beverly
Hills
NANDED
Fire Station

Pargaon

-Mutha
Riv er
ula
M

Electric Sub
Station

SOLAPUR ROAD
INDUSTRIAL AREA

Bavdhan

URULI
KANCHAN

MUMB

AI HW

Bh
im
aR
ive
r

Kedagaon
Patas
NH- 9

Wadaki

Khadakvasla
Lake

SANASVADI
INDUSTRIAL AREA

Wagholi

Wadgaon
Sheri

Ambegaon
Khurd

Nimone

NAGAR ROAD
INDUSTRIAL AREA

Le Meridien

KOTHRUD

Chinchni
Dam

Amble

UR R

TALEGAON
DHAMDHERE

NH- 50

Pirangut

RAP

APATI

Fire Station

Khadki

SHIK

Koyali

PIMPRI ALANDI
CHINCHWAD

PCMC
INDUSTRIAL AREA

Ranjangaon

Bahul
KAN

Chimbali

RANJANGAON
INDUSTRIAL AREA

Mukhai
CHA

Dehu

SHIRUR

Lakhewadi

SHIRUR-SANGAVI RD

Parner

Chincholi

KURKUMBH
INDUSTRIAL AREA 5

KURKUMBH
Ramnagar

SH- 65

SASWAD

NH- 4

Karhati

Mandhar

Barhanpur

IRU

R-

Bhatghar
Dam

Mudhale

SH

SHIRWAL
INDUSTRIAL AREA

BHOR

Walhe

Nira Devghar
Dam

Shivatkar
Bhade Gaon

NH- 4

Balvadi

Khandala

Pimpalwadi

Lonand
LONAND
INDUSTRIAL AREA

Dhom Lake

BARAMATI
INDUSTRIAL AREA

Veer Dam

KESURDI
INDUSTRIAL AREA

JEJURI
INDUSTRIAL
AREA

SA
TA
RA

Electric Sub
Station

Chandgude
Wadi

Jejuri

RD

Manekhadi

SANGAVI

Malthan

PHALTAN

PHALTAN
INDUSTRIAL AREA

Eksar

WAI

Malavadi

MAHABALESHWAR
SHIRGAON

Asangaon
SH-published
58
MAP NOT TO SCALE. Designed and
by JLL.

Tathavada

KUDAL

Jones Lang LaSalle Property Consultants (India) Pvt Ltd 2014. All rights reserved.
A

20 Manufacturing Destinations of India: A Real Estate Overview

Pune
Population

Density

City Rank

Temperature

5.0 million

7,113/sq km

Eighth

Max 42.3 C
Min 31.59 C

Pune has been the favourite industrial destination since the


inception of the Pimpri-Chinchwad Municipal Corporation (PCMC)
in the 1960s.

MAJOR MANUFACTURING OCCUPIERS


Occupier

Occupier Type

Area
(Acres)

Location

Volkswagen

Automobiles

600

Chakan

Mahindra & Mahindra

Automobiles

750

Chakan

Bridgestone

Automobiles

200

Chakan

DaimlerChrysler

Automobiles

100

Chakan

Sany India

Heavy
Engineering

100

Chakan

Bajaj Auto

Automobiles

250

Chakan

Fiat

Automobiles

220

Ranjangaon

Joseph Cyril Bamford (JCB)

Heavy
Engineering

110

Talegaon

General Motors

Automobiles

300

Talegaon

John Deere

Automobiles

112

Sanaswadi

Furthermore, the Maharashtra Industrial Development Corporation


(MIDC) stimulated the growth of industries in Pune by acquiring
land and providing the requisite infrastructure.
Talegaon and Chakan are home to automotive giants such as
Volkswagen, Mercedes Benz, Mahindra &Mahindra and General
Motors, whereas Ranjangaon hosts all kinds of industries, such
as automotive, white goods, jewellery, paints, food products and
chemicals. The growth was aptly supported by trained manpower
supplied by the various local and international educational
institutions, the low cost of real estate and their proximity to the
business capital of Mumbai and the port. As a result, the city has
established itself as one of the most preferred locations in India for
industrial development.

Source: Research and REIS, JLL

MANUFACTURING CORRIDORS
Manufacturing Corridor

Major Industries

Major Locations

Land Value
(INR per sq ft)

Monthly Rent
(INR per sq ft per month)

Chakan

Automobiles
Heavy engineering

Chakan Phase I, II, III and


IV, Kuruli, Nanekarwadi,
Kharabwadi and Nighoje,
among others

450800

2530

Talegaon

Automobiles
Heavy engineering

Talegaon MIDC

400600

2528

Nagar Road

Automobiles
FMCG
Electronics
Chemicals
Heavy engineering

Lonikand, Phulgaon,
Sanaswadi

300500

2227

Ranjangaon

Automobiles
FMCG
Electronics

Ranjangaon MIDC

350450

2226

Shirwal

Heavy engineering
Chemicals
Food processing

Shirwal, Kesurdi, Khandala,


Lonand

150300

2025

Strong/marginal decline

Stable

Marginal/strong increase

12-Month
Demand Outlook

Source: Research and REIS, JLL

Manufacturing Destinations of India: A Real Estate Overview 21

Indias Advantages and


Growth Opportunities

largely driven by low-cost and skilled labour force, adequate land


laws and the reasonable cost of capital. India is increasingly adopting
a global approach to become a strategic player on the international
platform.

The Indian manufacturing sector has registered moderate growth in


the past, even in times when the global economy was going through
a major slowdown. The country places high priority on infrastructure
development, thus offering high growth opportunities for a wide range
of manufacturing industries and a wide range of untapped opportunities
in other sectors. The entry of foreign manufacturing companies with
technology-based orientation is helping India create a core and
contemporary manufacturing sector fed by ancillary manufacturers that
rely on simple technical skills.

The Government of India has announced a national manufacturing


policy with the objective of enhancing the share of manufacturing in
GDP to 25% within a decade and creating 100 million jobs. It also
seeks to empower rural youth by imparting necessary skill sets to make
them employable. Sustainable development is integral to the spirit
of the policy, and technological value addition in manufacturing has
received special focus.

Low Labour Costs

investment restrictions in retail, civil aviation and television


broadcasting as well as embarking on
a fiscal improvement path by lowering
unproductive subsidies in an effort to
restore waning investor
confidence.

To achieve the desired growth rate for the manufacturing sector, it is


also necessary to have a high growth rate for the countrys exports.
Low Real Estate Costs
Considering this, the Department of Commerce has come up with a
Occupiers seeking to buy land and construct their own facilities can find strategy on doubling Indias exports to accelerate the rate of growth
numerous opportunities in India. Land values are generally low in India. of manufacturing exports and reach a level of USD 534 billion by
20162017.
Manufacturing sector rents are also affordable compared to Sydney,
Melbourne, Brisbane, Shanghai, Beijing, Guangzhou and Shenzhen.
The government has also taken steps such as easing foreign
The cost competitiveness of labour is the key driver for the
manufacturing sector in India. The cost of labour for manufacturing
sector is cheaper when compared to other countries such as Japan,
the United States, the United Kingdom, Poland, Korea, Australia,
Germany, Brazil and Taiwan. This continues to transform the Indian
manufacturing industry with respect to creating a competitive advantage
in manufacturing. In addition, rising manufacturing wages in China
are likely to bring new entrants to India, and the country expected to
become a destination for manufacturing.
Favourable Policy
India is largely moving toward high-end
manufacturing, with the government announcing
multiple reforms and policies
in the sector. The Indian
manufacturing industry is

22 Manufacturing Destinations of India: A Real Estate Overview

Authors
Srinivasa Reddy NS
Assistant Vice President, Research and REIS
srinivasa.reddy@ap.jll.com
+91 80 4031 4833
Srinivasa Reddy joined Jones Lang LaSalle in March 2008. Based out of Bangalore, he contributes to research
deliverables on office, retail and residential real estate markets in India. He is also responsible for working on bespoke
projects. His expertise lies in the fields of analytical market research, econometric modelling and forecasting.
Srinivasa holds a masters degree in economics and has more than eight years of industry research and business
consulting experience.
Shreyas Saoji
Assistant Manager, Research and REIS
shreyas.saoji@ap.jll.com
+91 22 6620 7575
Shreyas Saoji joined the Jones Lang LaSalle Research team in 2011. Based out of Mumbai, he contributes to bespoke
research assignments and research covering office, retail and residential asset classes. He also contributes to the
operations of the Real Estate Intelligence Service (REIS), the flagship quarterly offering by Jones Lang LaSalle
Research.
Shreyas holds a bachelors degree in architecture and a masters degree in Infrastructure Planning and Management
and has over four years of experience in the field of real estate research.
Praveen Pinto
Assistant Vice President, Industrial Transactions
praveen.pinto@ap.jll.com
+91 80 3999 9100
Praveen Pinto joined Jones Lang LaSalle in April 2008. Based out of Bangalore, Praveen currently leads the industrial
transaction management practice in Bangalore. He has expertise in business location consulting, feasibility studies,
market research and industrial transactions for various domestic and international firms looking at setting up industrial
operations in South India.
Praveen holds a masters degree in finance and has six years of real estate consulting and transaction experience.
Chandranath Dey
Assistant Vice President, Head Industrial Consulting
chandranath.dey@ap.jll.com
+91 79 4015 0021
Chandranath Dey joined JLL in May 2006. Based in Ahmedabad, Chandranath leads the industrial consulting business
in India. He has expertise in the formulation of business plans, business location advisories and site selection studies
for some of the largest Fortune 500 companies. He also manages techno-financial feasibility studies for large-scale
industrial & logistic parks.

For research enquiries,


please contact:

For business enquiries,


please contact:

Ashutosh Limaye
Head, Research and REIS
+91 22 3985 1319
Ashutosh.Limaye@ap.jll.com

Srinivas N
Head, Industrial Transactions
+91 984 544 5495
Srinivas.N@ap.jll.com

Nirav Kothary
Head, Industrial Services
+91 972 775 8027
Nirav.Kothary@ap.jll.com

Manufacturing Destinations of India: A Real Estate Overview 23

About JLL
JLL (NYSE: JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased
value by owning, occupying and investing in real estate. With annual fee revenue of $4 billion, JLL has more than 200 corporate offices and
operates in 75 countries worldwide. On behalf of its clients, the firm provides management and real estate outsourcing services for a property
portfolio of 3 billion square feet and completed $99 billion in sales, acquisitions and finance transactions in 2013. Its investment management
business, LaSalle Investment Management, has $48.0 billion of real estate assets under management.
JLL has over 50 years of experience in Asia Pacific, with over 27,500 employees operating in 80 offices in 15 countries across the region. The
firm was named Best Property Consultancy in seven Asia Pacific countries at the International Property Awards Asia Pacific 2014, and won nine
Asia Pacific awards in the Euromoney Real Estate Awards 2013. www.jll.com/asiapacific
About JLL India
JLL is Indias premier and largest professional services firm specializing in real estate. With an extensive geographic footprint across 11 cities
(Ahmedabad, Delhi, Mumbai, Bangalore, Pune, Chennai, Hyderabad, Kolkata, Kochi, Chandigarh and Coimbatore) and a staff strength of over
6800, the firm provides investors,
developers, local corporates and multinational companies with a comprehensive range of services including research, analytics, consultancy,
transactions, project and development services, integrated facility management, property and asset management, sustainability, industrial, capital
markets, residential, hotels, health care, senior living, education and retail advisory. The firm was named the Best Property Consultancy in India
at the International Property Awards Asia Pacific 2014-15. For further information, please visit www.joneslanglasalle.co.in
JLL India Offices
Ahmedabad
+91 79 40150000

Chennai
tel +91 44 42993000

Gurgaon
tel +91 124 4605000

Kolkata
tel +91 33 22273294

Bangalore
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Mumbai
tel +91 22 66207575

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tel +91 172 3047651

Delhi
tel +91 11 33141000

Kochi
tel +91 484 3018652

Pune
tel +91 20 40196100

Jones Lang LaSalle Property Consultants (India) Pvt Ltd 2014. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or
warranty is made to the accuracy thereof.

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