Tamil Nadu’s warehousing sector is undergoing a transformative phase, drawing major interest from real estate developers and corporates alike. With surging demand for storage and logistics infrastructure, the state is fast becoming a hotbed for investment in the warehousing and industrial space.
While Chennai remains a stronghold, the momentum is now spreading to tier-2 and tier-3 cities, prompting the Tamil Nadu government to announce a dedicated Warehousing Policy. This move aims to boost infrastructure development and attract long-term investment across the state.
Chennai-based DRA has marked its entry into Grade A warehousing with a flagship project in Mappedu—a strategic logistics hub near the upcoming dry port and well-connected to the Chennai–Bangalore Industrial Corridor. “Our 12-acre project will deliver 3 lakh sq.ft of high-grade warehousing space with an investment of ₹100 crore,” said Ranjeeth Rathod, Managing Director, DRA. “We are targeting 1.5 million sq.ft of warehousing space in Chennai by 2028.”
Adding to the industry buzz, a long-established Chennai-based corporate group is venturing into the warehousing business, capitalising on rising demand—particularly in the Sriperumbudur electronics manufacturing belt. A senior executive revealed the move is backed by ownership of strategic land parcels and increasing inbound inquiries, though the company awaits necessary approvals before making a formal announcement.
“Many established corporate houses are now exploring the logistics and industrial park development space, especially as Tamil Nadu has historically been a strong manufacturing hub,” noted Jerry Kingsley, Head – Value and Risk Advisory, India, and City Lead – Capital Markets, Chennai at Colliers.
Colliers India’s Vimal Nadar, National Director and Head – Research, added that Grade A industrial and warehousing spaces are gaining strong traction in locations such as Chennai, Hosur, Krishnagiri, Dharmapuri, Thoothukudi, and Coimbatore. “Since 2021, Chennai alone has seen nearly 20 million sq.ft of leasing activity, led by 3PL and engineering companies. Notably, Q1 2025 saw Grade A space absorption of 2 million sq.ft—almost three times that of the previous quarter.”
Leading warehousing players such as TVS ILP have observed a clear shift from conventional storage facilities to modern, compliance-led infrastructure.
“There’s a marked increase in demand for plug-and-play setups with automation capabilities, especially from EV and electronics sectors,” said Arul Murugan, Head – Projects, TVS ILP. He also noted the decentralisation trend, as brands seek proximity to emerging consumption centres in tier-2 and tier-3 towns.
TVS ILP has been instrumental in shaping the state’s warehousing map, with eight industrial and logistics parks spanning 7 million sq.ft across key locations like Chennai, Hosur, Coimbatore, and Madurai. “Our three facilities in Hosur alone offer 2.8 million sq.ft of space, serving clients in the automotive and electronics sectors. In Chennai, our hubs in Oragadam, Sriperumbudur, Kancheepuram, and Red Hills cater to both industrial and urban markets,” Murugan said.
Coimbatore and Madurai, he added, are fast becoming critical nodes for FMCG and quick commerce distribution.
With strategic investments, proactive government support, and growing demand from key sectors, Tamil Nadu is fast solidifying its position as a warehousing powerhouse in India.
