Shri Kailash to invest Rs 320 cr in logistics parks

Business Standard

Shri Kailash Logistics Limited (SKLL), the new vertical of Kochi-based Sree Kailas Group, is planning to set up a 50-acre logistics park in close proximity to the the Chennai-Kolkata highway, primarily to cater to FMCG companies. It is also contemplating setting up similar parks in Coimbatore, Bangalore, Pune and Kochi.

Speaking to Business Standard, Rajkumar, managing director of SKLL, said that the company had planned an investment of Rs 320 crore in expanding its logistics business.

The company, which has already completed 325,000 sft of warehousing space at Oragadam near Chennai, will make the investment to expand its warehousing business under its ‘Logicity’ brand by adding another 700,000 sft, he said.

The company has recently completed Phase-I of its first logistics park at Orgadam with a modern warehouse, and a 25,000-sft commercial complex. The new facility was inaugurated by K Rosiah, governor of Tamil Nadu.

Around 250,000 sft area has already been leased out to leading multinational automobile companies like Nippon Express India and Toyato Tsusho. Negotiations are on to lease out a third warehouse which is nearing completion, he added.

To further cater to the growing demand, the company is embarking on the Phase-II of this park on 49 acre with a total of 1 million sft of warehousing space. This includes temperature-controlled warehouses, 100,000 sft of cold storage and 100,000 sft of custom-bonded warehouse, container yard and knowledge and training centre.

In the Orgadam logistics park, the company has provided common infrastructure facilities like spacious roads for diagonal movements of 40-feet containers, uninterrupted power supply, IT and communication connectivity, high-end round-the-clock security, water supply, drainage network and landscaped greenery and gardens.

The park is strategically located on the Vandalur-Wallajabad six-lane highway with connectivity to the Chennai-Bangalore highway (NH4). All the major automobile companies, including Renault Nissan, Daimler, BMW, Ford and Hyundai, are within easy reach.

Sree Kailas Group is engaged in the manufacture of paper products and paper conversion, transportation and development of logistics parks, real estate and construction. The group is expecting a combined turnover of Rs 400 crore in the current financial year.