Real estate services and investment major ESR Group plans to set up a one-million sq. ft. warehousing logistics park in Sanand, Gujarat with an investment of over Rs 400 crore.

The company has acquired a 38-acre land parcel, close to Sanand, Gujarat Industrial Development Corporation (GIDC) for the new project, which is expected to be completed in the next three years. The project will be geared towards creating a focused space for established and emerging electric vehicles (EV) manufacturing and ancillary units to expand their presence in Ahmedabad, and will also leverage the availability of grade-A infrastructure to enhance its EV manufacturing capacity. The company’s first investment was a 37-acre project in Jalisana, for which infrastructure is now ready.

Gujarat, which attracts one of the highest foreign direct investments (FDI) in India, is evolving into a EV-related battery manufacturing and assembly centre. Additionally, the proposed project will benefit from the port connectivity to facilitate the import and export of components, and access to Kandla port, as well as proximity to Mundra, Dahej, Jafrabad, Pipavav and Hazira ports. It also has access to Ahmedabad's international airport, Vadodara international airport, and national and state highway networks.

Adding to the slew of advantages, the development will be supported by the Delhi-Mumbai Industrial Corridor (DMIC) and Western Dedicated Freight Corridor (DFC), which is expected to reduce logistics costs. Also, with Ahmedabad city centre in close proximity, it is expected to attract firms operating in e-commerce and third-party logistics (3PL) segments. Sanand Gujarat Industrial Development Corporation (GIDC) currently houses multinationals and 300 domestic companies which serve the automobile, auto ancillaries, FMCG, engineering, plastics, and electronics sectors, and is a growing market for EV manufacturing.