Warehouse developer IndoSpace said on Tuesday it will increase investment in the southern state of Tamil Nadu by 41% over the next three years, to meet increasing demand for industrial parks as more companies set up bases in India.
Warehouse developers are facing a mad demand rush as companies bet on the country's economic boom and try to diversify supply chains beyond China.
India's warehousing market is expected to more than double to $37 billion by 2032, consulting firm IMARC Group estimates. As of 2023, the market was valued at $16.4 billion.
IndoSpace, which has already invested $380 million in Tamil Nadu, aims to raise it to $536 million and expects to create more than 8,000 new jobs, it said in a statement.
The jobs will be in addition to the 15,000 jobs it said would be created when it signed a 20 billion rupees ($238.3 million) pact with the Tamil Nadu government earlier this year to develop warehouses in the state.
Global companies such as Foxconn, Samsung, Hyundai Motor and Renault have manufacturing facilities in Tamil Nadu.
Vinfast, Tata Motors' Jaguar Land Rover and Ford also have announced manufacturing plans in the state.
The company did not immediately respond to Reuters' request for information on Tamil Nadu's share of the company's total investments in India.
IndoSpace has total of 15 parks in the state, with 14 of them in capital city Chennai alone, according to its website. The state has nearly 30% of its total parks across the country.
The company counts Amazon.com, Eicher Motors, Whirlpool's India unit and Reliance Industries' retail arm as its clients, its website showed.