Delhi NCR: A Strategic Location for Logistics Parks
Introduction
Choosing the right location is a key decision when establishing industrial and logistics parks. It’s crucial for businesses to be market-driven and respond swiftly to the demands of their consumer base. Having a vantage location that is equipped with critical infrastructure enables easier business-to-consumer connect. This not only results in speedy deliveries but also cuts down transportation costs. One such prime location that stands out in North India is the National Capital Region (NCR), encompassing Delhi and its satellite cities.
Delhi NCR area is an ideal location for the development of logistics parks and fulfilment centers, considering factors such as infrastructure development, consumption areas in the vicinity, and the region’s growth in terms of skilled labour, road connectivity, and availability of large land parcels.
Why Delhi NCR?
a. Infrastructure Development:The region thrives on exceptional connectivity facilitated by an extensive network of prominent highways such as the National Highway 1 (NH1), National Highway 2 (NH2), National Highway 8 (NH8) and the Yamuna Expressway. The dedicated freight corridors, such as the Western Dedicated Freight Corridor and the Eastern Dedicated Freight Corridor, further bolster efficient transportation of goods. Moreover, the expansion of the Delhi Metro, connecting major cities like Delhi, Noida, and Gurgaon, has greatly enhanced accessibility within the region. Alongside, the modernization of airports such as Indira Gandhi International Airport and the construction of new ones like Jewar International Airport have played a pivotal role in elevating air connectivity, ushering in new opportunities for businesses and travelers alike. The Eastern Dedicated Freight Corridor, Delhi Mumbai Industrial Corridor, etc. will also facilitate rapid transport of goods and last-mile connectivity to consumption points.
These infrastructure advancements ensure seamless transportation of goods and materials, benefiting both manufacturers and logistics providers operating in the region.
b. Thriving Industries: The Delhi NCR region is home to a diverse range of industries. Proximity to suppliers and customers reduces transportation costs and time-to-market, giving businesses a competitive edge. Gurugram Industrial Cluster encompasses IT and ITES, automobile manufacturing, pharmaceuticals, textiles, and garment manufacturing industries. It serves as the headquarters of many of India’s largest companies and is home to many start-ups and Fortune 500 companies.
Bilaspur near Gurugram has also evolved into a warehousing hub; a preferred choice for organisations like Delhivery, Amazon, Ecom express, Flipkart, etc. The excellent transport connectivity in Gurugram-Bilaspur area combined with industry-friendly policies and infrastructure have propelled this region as a premier industrial hub. Horizon Industrial Parks offers Grade A facilities and infrastructure at its 2 parks at Bilaspur. The park is strategically located at Pathreri in Bilaspur, Gurugram, off Bilaspur Tauru Road.
Okhla Industrial Area is known for housing a mix of industries such as pharmaceuticals, electronics, packaging, garments, and plastics. It is a significant industrial hub within the Delhi NCR region. While Ghaziabad Industrial Area has an industrial area that houses industries such as electrical goods, automotive components, plastics, textiles, and metal works. It is a major industrial hub within the Delhi NCR region.
c. Skilled Labour and Education: Availability of a skilled workforce is critical in location selection for industrial parks. Delhi NCR is well-equipped with numerous educational institutions, including renowned universities, technical institutes, and management schools. These institutions produce a pool of talented graduates with the necessary skills to meet industrial demands. Delhi’s literacy rate reads 88.7 per cent, according to a report based on a National Statistical Office survey1. Industries are able to tap into this skilled labour force, ensuring a talent pool for various roles, from production and engineering to research and development.
d. Road Connectivity: Delhi NCR boasts an extensive road network, comprising well-maintained highways and expressways connecting major industrial hubs and cities within the region. The Delhi-Mumbai Industrial Corridor (DMIC) and the Eastern Peripheral Expressway further enhance connectivity. These road infrastructure developments enable efficient transportation of goods and facilitate seamless supply chain management for businesses.
With 260+ acres of land at Horizon Parks, strategically connecting to major National Highways, inter alia, NH 8, NH 352, NH 44, as well as the western peripheral expressway and KMP expressway.
e. Last-Mile Delivery: Delhi NCR is experiencing significant developments in last-mile delivery. With the rise of e-commerce and increasing demand for efficient logistics services, companies are focusing on optimizing their last-mile operations.
In fact, according to a Savills outlook report 2023 2, the E-commerce and retail sectors will continue to drive warehousing demand in NCR with supply and absorption of more than 9.0 million sq. ft in 2023 alone. The presence of multiple logistics providers, warehouses, and distribution centers in and around the region ensures swift and reliable last-mile delivery.
The Savills outlook report 2023 mentions,Sohna (Southeast) and Sonipat (North) as the emerging micro-markets in Delhi NCR that will significantly contribute to supply and absorption of warehousing. Furthermore, parks closer to the city in Bilaspur, Farukhnagar, and Zindpur are going to significantly change the region’s socio economic paradigm.
Horizon Urban Logistics Park Delhi II ideally located for e-commerce companies and businesses looking for a strategic base for their operations that need close access to the city. The park is in proximity to the residential and commercial belts of North and West Delhi.
Conclusion
Strategic location of industrial and logistics parks is vital for the long-term success and growth of businesses operating in these parks. NCR, a rural-urban location with access to thriving populations in Delhi, Haryana, Uttar Pradesh and Rajasthan is an ideal choice for the development of industrial parks and fulfilment centers.
Horizon Industrial Parks provides an optimal environment in NCR for businesses to flourish and contributes to the region’s industrial growth.
We have established six Grade A industrial parks in NCR at Delhi, Bilaspur and Farukhnagar across 260 acres, with a development potential of 7 MSFT. We invite you toF to any of these parks to experience the superior infrastructure and facilities management services.
Citations:
- https://www.savillsim.com/documents/savills-im—outlook-2023-global-real-estate-investment.pdf
- https://indianexpress.com/article/education/literacy-day-at-96-2-pc-kerala-tops-literacy-rate-chart-andhra-pradesh-worst-performer-at-66-4-pc-6587548
