Panattoni’s €100M Hosur Logistics Park Set to Redefine South India’s Supply Chain

Global industrial real estate developer Panattoni is reportedly making a significant move into the Indian market with a €100 million investment in a logistics park in Hosur, Tamil Nadu. The 25-acre development is expected to play a transformative role in South India’s logistics and warehousing sector, aiming to address long-standing infrastructure gaps and inefficiencies.

Panattoni’s Strategic India Debut

With a proven track record across Europe and the United States, Panattoni’s foray into India is being seen as a major milestone for the country’s industrial real estate ecosystem. Industry observers noted that the company’s entry is well-aligned with India’s broader push towards supply chain modernization, facilitated by initiatives such as the National Logistics Policy and the PM Gati Shakti programme.

Why Hosur? Location, Connectivity, and Growth Potential

Hosur, located roughly 50 kilometers from Bengaluru, was chosen for its strong connectivity and industrial surroundings. Its direct link to National Highway 44 and proximity to SIPCOT Phase 2 were among the key advantages cited. Experts highlighted the area’s affordability and future scalability as major draws for long-term investment in logistics infrastructure.

Inside the Panattoni Park Hosur I Project

The upcoming Panattoni Park, named "Hosur I", is slated to begin construction in Q3 2025 and be completed by Q2 2026. The facility will span 25 acres and provide around 5.5 lakh sq. ft. of Grade-A leasable space. Sectors such as e-commerce, third-party logistics (3PL), fast-moving consumer goods (FMCG), and manufacturing are expected to be the primary occupants. The park will include plug-and-play units, optimized dock ratios, high load-bearing capacities, and sustainability features such as solar integration and rainwater harvesting.

Driving Economic and Industrial Growth

The logistics park is expected to generate hundreds of jobs and stimulate growth in allied sectors such as transport, packaging, and worker housing. By enhancing freight efficiency and promoting digital supply chain systems, the project is anticipated to improve India’s competitiveness as a logistics hub in Asia.

Addressing Regulatory and Infrastructure Bottlenecks

Setting up a facility of this scale is not without its challenges. Panattoni reportedly faced typical hurdles like land aggregation issues and fragmented regulations. However, by engaging local partners and urging policy simplifications, the company has managed to move forward with the project. Industry stakeholders believe this highlights both the opportunities and the need for smoother processes in India’s logistics sector.

Sustainability and Future Expansion at the Core

Panattoni’s Hosur project is being positioned as a model for sustainable logistics infrastructure. Incorporating low-emission materials, energy-efficient systems, and the potential for IGBC or LEED green certification, the park reflects global ESG standards. The project’s layout also supports vertical and horizontal expansion, allowing tenants to scale operations in place—crucial for high-growth sectors.

Implications for India’s Logistics Landscape

Panattoni’s investment is being seen not just as a property development, but as a major endorsement of India’s logistics potential. It may also set the stage for increased foreign direct investment (FDI) in India’s warehousing space, which remains relatively underdeveloped despite growing demand.

Conclusion

As India gears up to become a global manufacturing and digital economy powerhouse, the development of Grade-A logistics infrastructure like Panattoni Park in Hosur is poised to be a critical enabler. Backed by sustainability, scalability, and strategic location, the project is expected to redefine industry benchmarks and accelerate supply chain modernization across the region.

Disclaimer: This news article is based on publicly available information and industry insights. Readers are advised to verify details independently before making business or investment decisions.