Bengaluru-based Sumadhura Group is planning to invest ₹2,000 crore over the next four to five years to develop around 10 million sq. ft. of Grade A industrial, warehousing and logistics parks across Bengaluru, Chennai and Hyderabad by 2030.
The expansion comes as India’s industrial and warehousing market continues to see strong demand from third-party logistics providers, manufacturing companies, e-commerce businesses and automotive players.
Sumadhura targets 10 million sq. ft. by 2030
According to Sumadhura Group Chairman and Managing Director Madhusudhan G, the company expects its industrial warehousing and logistics portfolio to reach approximately 10 million sq. ft. by 2030.
Around 40-45% of the planned space is expected to be in Bengaluru, with the remaining development spread between Chennai and Hyderabad. The ₹2,000 crore investment is expected to cover land and construction costs and will be funded through a combination of internal accruals, equity, debt and rental income generated by existing warehousing assets. Financial Express reported that Sumadhura expects roughly ₹1,000 crore to come from internal resources, with the balance raised through debt.
The announcement marks a significant expansion of a business that has historically been associated with residential and commercial real estate in South India.
Chennai becomes Sumadhura’s first major market outside Bengaluru
The first major step in this expansion is already underway in Red Hills, North Chennai.
Sumadhura has acquired 52 acres along the Chennai Peripheral Ring Road for a ₹400 crore Grade A built-to-suit industrial and logistics park.
The project is planned to provide approximately 1.2 million sq. ft. of warehousing space and is targeted for completion by December 2028. The company expects the development to create around 2,500 employment opportunities.
The project is being designed for businesses across:
- Manufacturing
- Automotive
- E-commerce
- Third-party logistics
- Distribution and supply-chain operations
Sumadhura’s own project information describes the facility as a Grade A+ built-to-suit development with seven warehouse blocks, dedicated truck circulation, weighbridge infrastructure, rooftop solar, rainwater harvesting, EV charging and multi-ISP connectivity.
Sumadhura Industrial & Logistics Park project details
Why Red Hills matters
The location of the Chennai project is a major part of the investment story.
The park sits along the Chennai Peripheral Ring Road, with connectivity to NH-32, the Outer Ring Road, the Sriperumbudur industrial belt and Kattupalli Port.
It is also positioned close to Chennai’s major port infrastructure, including Ennore Port, Kattupalli Port and Chennai Port. This gives occupiers access to both manufacturing clusters and important import-export gateways.
That combination is particularly relevant for companies whose supply chains involve multiple stages:
Manufacturing → Warehousing → Transportation → Port → Distribution
The location therefore allows Sumadhura to target more than conventional storage requirements.
Chennai’s industrial and logistics market is expanding
Sumadhura’s Chennai entry comes at a time when demand for industrial and warehousing space in the city has been strong.
According to Colliers, Chennai and Delhi NCR together accounted for more than 45% of industrial and warehousing leasing across India’s top eight cities in H1 2026. Overall demand across those eight markets reached approximately 22 million sq. ft., up 12% year-on-year. Third-party logistics companies accounted for about 30% of demand.
A separate Cushman & Wakefield analysis recorded 2.3 million sq. ft. of warehousing leasing in Chennai during H1 2026, up 10% year-on-year. More significantly, industrial leasing reached 3.8 million sq. ft., a record for any half-year in the market and 64% higher year-on-year.
CBRE also identified Chennai and Bengaluru among India’s leading industrial and logistics markets, with Delhi-NCR, Chennai and Bengaluru collectively accounting for around 60% of total leasing in H1 2026.
The different research reports use different methodologies and market definitions, so their absolute figures should not be directly combined. But they point in the same direction: industrial and logistics demand remains substantial in India’s major southern markets.
Bengaluru remains the core market
While Chennai represents Sumadhura’s geographic expansion, Bengaluru remains central to the company’s logistics strategy.
Sumadhura currently operates a 2.5 million sq. ft. Grade A+ logistics park across 90 acres in Hoskote, on the Chintamani-Hoskote Road.
The location sits within Bengaluru’s eastern industrial and logistics catchment and is connected to the highway network and Hoskote industrial area. Sumadhura describes the facility as a built-to-suit warehousing development.
The company has said the Bengaluru facility has attracted occupiers including Nippon Express, Amazon, Zepto and Zomato, among others.
Bengaluru’s broader market data also supports the focus.
JLL reported that Bengaluru’s warehousing net absorption reached 3.9 million sq. ft. in Q2 2026, with Hoskote-Devanahalli among the leading demand corridors. Grade A space accounted for roughly 60% of demand, while 3PL/logistics, consumer sectors and manufacturing were important demand drivers.
Colliers also identified Hoskote-Narsapura as the most active Bengaluru micro-market during Q1 2026, with approximately 1.4 million sq. ft. of leasing.
This helps explain why Bengaluru is expected to account for 40-45% of Sumadhura’s planned 10 million sq. ft. portfolio.
Hyderabad adds another manufacturing and logistics market
Hyderabad is the third pillar of the expansion.
The city’s industrial and logistics market has a different demand mix from Chennai and Bengaluru, with activity supported by manufacturing, engineering, pharmaceuticals, e-commerce and 3PL operators.
Cushman & Wakefield recorded 1.49 million sq. ft. of warehousing leasing in Hyderabad in H1 2026, with e-commerce, retail and 3PL companies among the key occupiers. Industrial leasing reached another 0.62 million sq. ft., more than three times the H1 2025 level.
Sumadhura has already taken steps to establish an industrial presence in Telangana.
In December 2025, the company signed an MoU with the Telangana government for a ₹600 crore investment in a 100-acre Grade A+ industrial park. The proposed development was described as including modular plug-and-play facilities, scalable manufacturing blocks and dedicated logistics zones.
This earlier Telangana commitment provides context for Hyderabad’s inclusion in Sumadhura’s wider South India industrial strategy.
India’s Grade A warehousing market is becoming more institutional
The Sumadhura expansion also reflects a broader change in India’s warehousing market.
The demand is increasingly moving toward Grade A and Grade A+ facilities that offer higher specifications, better compliance, technology infrastructure and operational efficiency.
CRE Matrix reported that India’s Grade A/A+ warehousing sector recorded 34.9 million sq. ft. of demand in H1 2026, compared with 28.7 million sq. ft. of new supply. It put the absorption-to-supply ratio at 1.2x and reported Grade A/A+ stock of approximately 451.4 million sq. ft. entering the second half of the year.
CBRE reported that 33% of new warehousing supply in H1 2026 was institutionally backed, another indication of growing institutional participation in higher-quality logistics assets.
At the same time, Cushman & Wakefield recorded 36.2 million sq. ft. of logistics and industrial leasing across the top eight cities in H1 2026, an 18% year-on-year increase. Warehousing represented 67% of that activity, while industrial leasing grew 36% year-on-year.
3PL and manufacturing are driving the demand
One of the clearest themes across the market data is the importance of 3PL and manufacturing.
Cushman & Wakefield reported that 3PL companies accounted for 34% of H1 2026 leasing across the top eight cities, while engineering and manufacturing contributed another 28%. Together, the two segments represented more than 60% of leasing activity.
CBRE similarly found that 3PL and engineering/manufacturing were the two largest demand drivers, accounting for 31% and 26%, respectively, during H1 2026.
This is important for developers because modern industrial parks are increasingly being designed around the operational requirements of these occupiers.
For a 3PL operator, for example, a warehouse needs to support:
Inbound → Storage → Inventory → Picking → Dispatch → Transportation
For manufacturers, the requirements can extend to:
Raw materials → Production → Finished goods → Warehousing → Distribution
The infrastructure therefore needs to accommodate the entire movement of goods rather than simply provide storage space.
Sumadhura’s ₹2,000 crore plan in context
There is an important distinction between the ₹2,000 crore logistics investment and Sumadhura Group’s larger real estate investment plan.
In a separate September 2026 report, Economic Times said Sumadhura plans to invest around ₹17,000 crore by March 2030 across housing, commercial development and land acquisition. The company has a planned development pipeline of around 45 million sq. ft., comprising approximately 35 million sq. ft. residential, 4 million sq. ft. office and 6 million sq. ft. warehousing.
Therefore, the ₹2,000 crore industrial and logistics expansion should be viewed as part of Sumadhura’s broader growth strategy, rather than as a separate ₹2,000 crore corporate investment on top of every other announced commitment.
The exact accounting relationship between individual project commitments and the broader ₹17,000 crore plan has not been fully detailed in the public reports reviewed here.
What the expansion means for India’s logistics ecosystem
The Sumadhura announcement comes at an interesting point for India’s supply-chain infrastructure.
Three developments are happening simultaneously:
1. More manufacturing activity
Manufacturing and engineering companies are taking a larger share of industrial space, increasing demand for facilities located close to production clusters and transport corridors.
2. 3PL networks are expanding
3PL companies remain one of the largest sources of warehouse demand, creating requirements for strategically located, scalable facilities.
3. Quality expectations are rising
Occupiers are increasingly looking for Grade A facilities with better specifications, connectivity, safety, sustainability features and operational infrastructure.
That combination creates a market where location, infrastructure quality and operational efficiency matter increasingly alongside the amount of space available.
The road to 2030
Sumadhura’s plan effectively creates a three-city industrial and logistics footprint:
| Market | Strategic role | Known development |
| Bengaluru | Existing logistics base and major warehousing market | 2.5 million sq. ft. Hoskote facility; 40-45% of planned 10 million sq. ft. portfolio expected here |
| Chennai | Manufacturing, automotive, ports and distribution | ₹400 crore, 52-acre Red Hills park; 1.2 million sq. ft.; target completion Dec. 2028 |
| Hyderabad | Manufacturing, engineering, e-commerce and regional distribution | Part of the 2030 expansion; earlier ₹600 crore Telangana industrial-park commitment |
The bigger story
Sumadhura’s ₹2,000 crore announcement is not happening in isolation.
India’s logistics real estate market is simultaneously seeing strong leasing activity, increasing Grade A supply, greater institutional participation and sustained demand from 3PL, manufacturing, e-commerce and automotive businesses.
For Sumadhura, the strategy is to take an established Bengaluru logistics platform and extend it into Chennai and Hyderabad, while continuing to build its overall industrial and warehousing portfolio toward 2030.
For the logistics industry, the development is another sign that India’s supply-chain infrastructure is moving toward larger, professionally developed and higher-specification industrial ecosystems.
And as these facilities become larger and more connected to manufacturing, ports, transportation and distribution networks, the complexity of managing the operations around them will grow as well.
The next phase of India’s logistics growth is therefore not simply about how much warehouse space gets built. It is also about how efficiently the infrastructure, inventory, transportation, documentation, finance and supply-chain data operating inside that space can be connected.
