JLL facilitates the setting up of India’s largest toy manufacturing plant in Hosur
The plant is expected to generate employment to the tune of 6000 in the next 3 to 4 years
Mumbai, 19 May 2021: JLL today announced the facilitation of India’s largest toy manufacturing facility at Hosur, in Tamil Nadu. Micro Plastics India Ltd, a leading Indian manufacturer has leased a 7,00,000 sq ft-built facility in Hosur for the setting of India’s largest toy manufacturing plant with an investment of INR 500 crore. The plant is expected to generate employment to the tune of 6000 in the next 3 to 4 years.
The Indian built space sector has shown increased demand in the last few years. There has been increased inclination by manufacturers (especially, light manufacturing clients) to opt for built spaces (ready built spaces or built–to–suit spaces). The demand has led to the built manufacturing space witnessing ending the year 2021 at 18 million sq ft. Demand for built spaces has gained strength since 2020 with the absorption of 11.5 million sq ft till the first half of Calendar Year (CY21) in the top eight metro cities. The key benefit of opting for built space is the compressed timeline and faster commencement of operations for the manufacturer, which otherwise can be a lengthier process.
Their affinity towards ready-built and built-to-suit leased spaces is due to the facilitation of faster commencement of operations, savings on CAPEX as these conform to an asset-light business model, and so on
“Game-changing Government initiatives and cleverly placed incentives to attract investments have increased India’s competitive position in the global manufacturing landscape. In addition, the growth of the overall logistics network and large-scale infrastructure development from the perspective of facilitating trade and movement of goods have been the catalysts of progress for manufacturing, speeding up penetration into smaller cities like Hosur. As such, Hosur is fast emerging as one of the prominent destinations of choice for the manufacturing sector. The market also has the major advantage of the availability of skilled manpower. Positive and encouraging Government policies that help industries grow have also helped this belt progress. We are going to witness more demand for built spaces in manufacturing,” said Sanjay Bajaj, MD, Logistics & Industrial, India JLL and MD, Pune, JLL.
“Over 60% of built space transactions, size as large as 300,000 sq. ft., are from the ready-built spaces, and the remaining 40% of built-space transactions belong to the build-to-suit space,” he added.
Due to the twin advantage of the industry-friendly policy, speed of approvals and compliances of Tamil Nadu, and its proximity to Bengaluru, Hosur has successfully attracted investments in the recent past and has established itself as a hub for many EV and other manufacturing companies that get the advantage of setting up industrial units in Tamil Nadu while retaining their Head Offices in Bengaluru.
Vijendra Babu N, Managing Director, Micro Plastics Ltd said, “It is a great opportunity for the country to become one of the biggest manufacturing hubs in Asia. With this investment in Hosur, we will be able to provide employment to over 6000 people in this micro-market. We witness a growth of 300% in the coming 3 to 4 years.”
Sector Specific micro-clusters for segments such as toy making, among others, have opened new sectoral investments in the industrial hub of Hosur.
Hosur’s list of advantage include:
- Ease of land acquisition - making it an attractive investment hub for developers to set up industrial and logistics parks, providing an ecosystem for the end-users
- Lower cost of land and attractive land valuations from SIPCOT, making it an attractive destination for end-users to set up their industrial plants
- Lower cost of labour compared to Karnataka
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $19.4 billion, operations in over 80 countries and a global workforce of more than 100,000 as of March 31, 2022. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.