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Home » Business » Ancon, HMDA launch Hyderabad’s first logistics park

Ancon, HMDA launch Hyderabad’s first logistics park

Facility will cater to pharmaceuticals, e-commerce and brown good sectors

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By Y V Phani Raj  |  Published: 12th Oct 2019  12:01 am Updated: 11th Oct 2019  11:18 pm

The Ancon-HMDA logistics park, which was launched at Bongulur in Hyderabad on Friday.

Hyderabad: Ancon Group in partnership with Hyderabad Metropolitan Development

Authority (HMDA) has opened Hyderabad’s first Logistics Park at Bongulur, Mangalapally,
Hyderabad on Friday.

The Logistics Park, which has been formally inaugurated by Telangana Industries Minister K T
Rama Rao, spans 1.2 lakh sq ft Grade A warehousing space with truck parking and other
amenities. The integrated Logistics Park will comprise of two phases with large-format Grade-A
warehouses, truck parking space and co-located workspaces.

Rajashekar Vodela, managing director, Ancon Constructions told Telangana Today, “The total
outlay of the project will be Rs 40 crore. We have invested Rs 25 crore to create 1.2 lakh sq ft
warehousing space, truck parking, sewage treatment plant, power substation and other
infrastructure in the first phase. We will be adding 1.5 lakh sq ft of warehousing space and
automobile repair centre with a fresh investment of Rs 15 crore in the second phase, which will
be completed in the next eight months. We have got 22 acres for this project and we are
optimally utilising the available land. As a part of the agreement with HMDA, we will paying
them 5 per cent of the topline earned by the Logistics Park from next year onwards.”

He added, “The Logistics Park will largely be used by pharmaceuticals, e-commerce and brown
goods (electronics and household appliances) sector. The warehouse facility can handle 3,000-
4,000 tonnes of turnaround capacity. We have created docks to ensure faster turnaround at
the facility. We will utilise the synergies of airways and railway lines. We plan to have at least
four such parks in Hyderabad, covering Bombay, Nagpur and Vijayawada highways, which
will integrate to act as a one larger hub. We could look at Kompally and Patancheru for future
parks. ”

First PPP project

The project touted to be the country’s first Logistics Park, implemented under public private
partnership route, will have secured boundaries, parking space for 250 trucks, and amenities
such as dormitory, clinic, pharmacy, automobile repair centre, convenience store and a
restaurant.

The first phase of Grade-A warehouse has 1.2-meter-high plinth and multiple docking yards on
all sides for loading and un-loading and cross-docking operations. The pre-engineered metal
building with 12m Eave height facilitates high racking space. The roofing and walls are
insulated with turbo-ventilators to create ambient temperatures and create efficient storage
space. The facility is equipped with fire protection systems and a sewage treatment plant, apart
from the power back-up facilities. The floors are designed with high strength concrete and
quality vacuum de-watering for movement of heavy loads and forklifts.

The logistics park is creating 800 and 1,500 indirect jobs. Of this, 60 per cent will be skilled and
40 per cent will be unskilled. Domestic logistics and supply chain partner Udaan has already
signed as the first customer at the Park.

National plans
He added, “We see a huge potential in the logistics industry with the increase in domestic
consumption, rising exports and surging container volumes. We have invested our two
decades of construction experience and now ventured into the Logistics Park sector with
HMDA Ancon Logistics Park being the first one in the row. Over the next five years, Ancon is
aiming to develop 8-10 Logistics Parks comprising close to two million square feet of space
spanning the cities of Hyderabad, Bengaluru, Visakhapatnam, Pune, Nagpur, Surat and
Gurugram at an overall investment of close to Rs 400 crores. In Madhya Pradesh, we are
evaluating both Indore and Bhopal.”
The company plans to create a 2 million sq ft warehouse space in the next five years. Ancon
will look at financing the projects through debt-equity route.

The logistics cost come at around 14 per cent of country’s GDP which is way higher than some
of the other developed and developing countries. Warehousing is a significant factor in
controlling the efficiency of the supply chain and forms around 15 to 35 per cent of the logistics
cost.

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