Institutional logistics and industrial real estate in India is only a decade old. Before the Goods and Services Tax (GST) arrived in July 2017, the country’s warehousing footprint was dictated by state-level tax considerations over true supply-chain network optimisation. Moving goods across state borders carried a tax impost, so occupiers designed their network to include small facilities on either side of each border. With a single stroke of law, GST removed the reason those buildings needed to exist. Post-GST, occupiers worked on true supply-chain network optimisation based on their core business models, keeping in mind their supply side, manufacturing locations and go-to market models. Network optimisation permitted occupiers to consolidate into fewer, larger modern facilities meant for distribution efficiency over tax planning. Specifications rose to meet them, and an institutional asset class emerged.
More than ever, investors are looking to gain access to this sector
