Yuzhan picks up 550K sq ft of warehousing space at monthly rental of ₹26-28 a sq ft.
Bengaluru | Mumbai: Yuzhan Technology, part of Taiwan’s Foxconn Group, has leased about 550,000 sq ft of warehousing space at ESR Industrial Park in Oragadam on the outskirts of Chennai amid a sharp rise in exports of Apple iPhones from India, a per- son familiar with the matter said. The warehouse facility is one of the largest in India for Foxconn among three contract manufacturers and exporters of iPhones from the country. The company will pay monthly rental of ₹26-28 per sq ft for a period of 10 years, said the person cited above. The investment underscores Fox- conn’s commitment to scaling its operations in response to growing demand for Apple products manufactured in India. The new facility will help Foxconn optimise its supply chain and logistical capabilities to support expanding export activity.
The person cited above said the company has acquired 320,000 sqft of dry access and signed a letter of intent (LOI) for the remaining 230,000 sq ft. “The dry access space has already been allocated to them, and they have begun trans- porting their machinery. As for the remaining 230,000 sq ft, the building is still under construction, and discussions are underway regarding the occupation timelines,” the person said.
ESR Industrial Park is spread across 100 acres with the potential for 2.2 million sq ft of leasable space for both warehouse and industrial use. The current clientele includes Cubic, Siemens, A2MAC1, New Century Sofa, and Checkpoint.
Foxconn and ESR did not respond to ET’s email queries. Foxconn, the world’s largest contract electronics maker, has been expanding its manufacturing facilities in India, particularly in the southern part of the country. In addition to its existing iPhone assembly unit in Tamil Nadu, the company is looking to double its workforce and investment in India by 2024. Through its Indian investments, Fox- conn aims to leverage the country’s favourable business environment and tap ne into growing demand for electronics in the region. V. Lee, Foxconn’s representative in India, said in a LinkedIn post last year that the company was “aiming for another doubling of employment, FDI (foreign direct investment), and business size in India” in 2024, coinciding with Prime Minister Narendra Modi’s birthday which falls on September 17. Separately, Foxconn plans to invest Rs 1,600 crore to build a campus in Kancheepuram district, near Chennai. This will be separate from its current sprawling campus near Chennai, where Foxconn assembles Apple iPhones employing around 40,000 people.
Co said to have acquired 320k sq ft of dry access and signed letter of Intent for th remaining 230K sq ft.
In August, Karnataka announced that Foxconn would be investing $600 million in two projects to make casing components for iPhones and chip-making equipment. Apple’s iPhone exports from India have surged nearly fourfold on a yearly basis, exceeding $5 billion in FY23, led by increased production by its suppliers.
According to Colliers, industrial and warehousing leasing activity in the top five cities remained buoyant in the March quarter at 7 million sq ft.
Source- The Economic Times
