Logistics park developer TVS Industrial & Logistics Parks (TVS ILP) has announced that it plans to expand its portfolio from 10 million square feet (square feet) across 19 facilities in 11 Indian cities to 20 million square feet in 41 cities by 2027 with $75-85 million annual spending.

The storage provider plans to achieve this by developing a storage facility close to the consumption and demand center in every 400 kilometers of the length and width of the country, as informed by TVS ILP's chief operating officer Manikandan Ramachandran.

Sitting in the TVS ILP Hosur Park II Phase 1 space leased to Indian electric two-wheeler manufacturer Ather Energy, he said: "Over the next few years, annual spending would be around $75-85 million per year and we plan to be a 20 million square metre platform with contracted revenue of $750 million. Management is evaluating various options for future growth capital. TVS ILP has seen consistent year-over-year growth of 30 percent."

TVS ILP has a broad customer portfolio with manufacturing taking up 38 percent of its operations, automotive and auto ancillary 27 percent, e-commerce 22 percent, Third Party Logistics (3PL) six percent, and Fast Moving Consumer Goods/Durables (FMCG/D) 5 percent.

Meanwhile, Ramachandran stressed that their focus will be on storage and storage rather than production in the future.

Back to Ather and Hosur Park II Phase 1, which also houses TVS Supply Chain Solutions (TVS SCS) and Flipkart. The Bengaluru-based EV startup occupies a combined space of 6 lakh sq ft in TVS ILP's Hosur Park II Phase 1 and 2, leased for 15 years.

"But," Ramachandran said, "Ather's operational and storage requirements continued to increase, and it required more space beyond Phase 1. And that resulted in TVS ILP's Hosur Park II Phase 2 with 4.8 lakh sq ft of space."

TVS ILP acquired the land near Phase 1 in 2021, which was accompanied by many terrain challenges and design changes due to space constraints.

"The facility was built and delivered in a record time of 108 days due to our operational capabilities and so Ather has been able to meet its December 2022 vehicle delivery target," Ramachandran said.

With storage for 2,000 finished EVs, TVS ILP is now gearing up to double this capacity with a new level-up.

TVS ILP acquired the land near Phase 1 in 2021, which was accompanied by many terrain challenges and design changes due to space constraints.

"The facility was built and delivered in a record time of 108 days due to our operational capabilities and so Ather has been able to meet its December 2022 vehicle delivery target," Ramachandran said.

"For example," as Ramachandran puts it, "the Indian states of Odisha and Jharkhand come with many complications in terms of acquiring land. In such cases, we turn to the state government for country. While building the facilities, we can't blame our customers, but they often have to change their requirements, both due to business needs and market conditions."

However, Ramachandran wants to mention them more as opportunities that can showcase TVS ILP's expertise and help customers meet market requirements in a time-bound, efficient and business-ready manner.

So, TVS ILP believes it is firmly on the ground with its business fundamentals as they will expand by doubling its storage portfolio and quadrupling its presence in Indian cities.