Chennai-based NDR Group is scaling up its warehousing and industrial infrastructure investments, with projects worth over ₹2,000 crore under development over the next two years, according to N. Amrutesh Reddy, Managing Director of NDR Warehousing Pvt Ltd. The expansion targets rising demand from manufacturing, e-commerce, and logistics sectors.
Investment and Expansion Plans
The group currently has around 7 million sq ft (msf) under active construction across warehousing and industrial parks via its development arm, NDR Smart Spaces. This forms part of a larger 13 msf land and development pipeline that will eventually be transferred to the group’s infrastructure investment trust, NDR InvIT Trust — the first perpetual warehousing and industrial parks InvIT in India. The InvIT has an Assets Under Management (AUM) of 22.17 msf across warehouses and industrial parks spanning 17 cities in India.
Tenant Base and Revenue Growth
NDR Warehousing’s portfolio is leased to over 100 tenants including global logistics players DHL, FedEx, Maersk, and industrial firms Havells, Apollo Tyres, Amazon, and Lenovo. All leases are under long-term contracts with fixed payment streams. In FY26, rental income rose 30% year-on-year to ₹420 crore, up from ₹324 crore in the previous fiscal, Reddy told businessline.
| Metric | FY25 | FY26 | Change |
|---|---|---|---|
| Rental Income (₹ cr) | 324 | 420 | +30% |
| AUM (msf) | — | 22.17 | — |
| Under construction (msf) | — | 7 | — |
| Total pipeline (msf) | — | 13 | — |
Geographic Expansion and Industrial Parks
While NDR already has a presence in Coimbatore, Hosur, and Pune, it is entering newer markets such as Varanasi, where rising consumption and e-commerce activity are driving demand for modern warehousing. Industrial parks — where NDR leases an entire facility to a single company — represent a growing segment. Out of the total portfolio of about 22 msf, nearly 2 msf is devoted to industrial assets, with occupants from manufacturing, engineering, and pharmaceutical sectors.
IFC Funding and Future Ventures
To fund the expansion, NDR Smart Spaces is set to receive a $50 million investment from the International Finance Corporation (IFC), a member of the World Bank Group. Due diligence is in progress, and the transaction is expected to close within a month, Reddy confirmed. Beyond warehousing and industrial parks, the group is exploring opportunities in cold storage, rooftop solar projects, and social infrastructure assets such as schools, hospitals, and hospitality facilities. The strategy is to develop and own the underlying real estate while allowing specialised operators to run the facilities.
Challenges and Outlook
Land acquisition remains a key challenge, with rising land prices increasing development costs, Reddy noted. Despite this, the group’s aggressive expansion signals strong confidence in India’s logistics and industrial real estate demand. For trade executives and logistics operators, the growth of modern warehousing capacity — particularly in emerging markets like Varanasi — offers new options for supply chain consolidation and just-in-time inventory management. The IFC’s involvement also underscores the institutional quality of NDR’s assets, potentially attracting further foreign capital into India’s warehousing sector.
What to watch: The completion of the IFC investment within a month and the delivery of the 7 msf under construction over the next 12–24 months will determine how quickly NDR can capitalise on rising demand from e-commerce and manufacturing tenants.
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