India's Welspun One said on Wednesday it will invest an additional 20 billion rupees ($237.3 million) to expand its Mumbai warehouse, aiming to capitalize on strong cargo movement as more companies set up manufacturing bases in the country.
Warehouse developers such as Welspun One are seeing a surge in demand as companies invest in India's economic growth and seek to diversify supply chains beyond China.
The facility located in a special economic zone next to Jawaharlal Nehru Port - India's largest container port by throughput - will cover 4.45 million square feet after expansion.
This is roughly the size of 60 football fields and about four times larger than initially planned.
The project, which will create 5,000 jobs, follows Welspun One's investment of 7 billion rupees in the warehouse last December, with expansion now underway to meet the growing export-import demand at the Jawaharlal Nehru Port.
Strong economic growth in Asia's third-largest economy, along with steady domestic consumption, has kept cargo movement in and out of India robust.
Welspun One has 11 projects across the country, and three in the western state of Maharashtra. The company aims to manage $1 billion worth of assets by 2025-end, up from the current $854 million.
Last month, warehouse developer IndoSpace said it would increase its investments in the southern state of Tamil Nadu by 41% over the next three years to meet the strong demand.
India's warehousing market is projected to exceed $37 billion by 2032, up from $16.4 billion in 2023, according to consulting firm IMARC Group.