ESR Group has acquired 38 acres with development potential of 1 million sq ft in Sanand and will spend approximately Rs 400 crore for construction and development. It will be ESR’s second investment in Gujarat, the first being Jalisana, a 37 hectare project. The site is close to the Sanand Gujarat Industrial Development Corporation (GIDC), which is currently home to 25 multinational and 300 domestic companies from various sectors including automotive, car accessories, FMCG, machinery, plastics, packaging, electronics and a growing electrical appliances market is vehicle construction. Proximity to Ahmedabad city center makes it an ideal warehouse location for e-commerce and 3PL businesses.
The EV market in India is expected to grow at a CAGR of 90% this decade. Rising fuel prices, stricter emission laws and the negative effects of climate change are some of the factors that encourage automotive companies, start-ups and financial investors to invest in electromobility solutions. In addition, favorable policies under the National Electric Mobility Mission Plan (NEMMP) and government incentives are also supporting large-scale adoption of electric vehicles.
In line with this development, Ahmedabad is gradually becoming a conducive location for electric vehicle manufacturing, supported by advanced policies and the existing automotive ecosystem, and this park in Sanand’s main industrial belt will enable companies to expand their presence in the region with a world-class sustainable to expand infrastructure. Major auto companies have expanded their EV production in the state, newer EV startups are considering building their facilities, and ancillary units like battery pack manufacturing and assembly are growing to support increased demand from manufacturers. This project aims to create a focused space for established and emerging EV manufacturing and ancillary units to expand their presence in Ahmedabad and capitalize on this thriving ecosystem. In addition, this location has excellent port connections to facilitate component import and export and has access to the Port of Kandla, India’s largest container port and is well connected to the ports of Mundra, Dahej, Jafrabad, Pipavav and Hazira. The location also benefits from its connectivity to Ahmedabad International Airport, Vadodara International Airport and the national and state highway network. Upcoming infrastructure developments such as the Delhi-Mumbai Industrial Corridor (DMIC) and the Western Dedicated Freight Corridor (DFC) will further improve Sanand’s connectivity and reduce logistics costs.
Abhijit Malkani, CEO of ESR India, stated, “Gujarat is attracting one of the highest FDI investments in India and is currently being transformed into an EV battery manufacturing and assembly hub. The availability of world-class infrastructure in a strategic location like Sanand is critical to the region’s industrial growth and will increase its electric vehicle manufacturing capacity.”
This park will be integrated into the “ESR Smart Mobile App” to improve the customer experience and ensure digital parking management. ESR India Parks are IGBC (Indian Green Building Council) rated Platinum and Gold, with energy and water efficient designs to reduce environmental impact and operational costs for customers.
ESR India, part of ESR Group, is a leading developer and manager of industrial and logistics real estate with approximately US$1.7 billion in assets under management and over 2.2 million sqm GFA.