Prologis Bets Big On India’s Booming Logistics Sector With A $1 Billion Investment. India’s Logistics And Warehousing Sector Is Set For A Game-Changing 2025
Prologis, the world’s largest logistics real estate company, is doubling down on India with a massive $1 billion investment over the next five to seven years. That’s twice the amount it had initially planned, as it sharpens its focus on one of the world’s fastest-growing logistics markets.
The company has already made a solid start, snapping up land worth $300 million in Bengaluru (Hoskote) and Chennai (Hosur). That covers about 300 acres, with plans to build 6 million square feet of warehousing space in the next three years.
Why India? The Market is Heating Up
Back in 2023, Prologis had earmarked $500 million for India. But things are changing fast. “India’s market potential, along with regulatory improvements and strong economic growth, has made it a prime investment destination,” says Joseph Ghazal, Prologis’ Chief Investment Officer.
India is ramping up infrastructure development and making it easier for businesses to operate, the logistics sector is evolving at a rapid pace. “The environment today is much more business-friendly and open to foreign companies. Supply chain efficiency has improved significantly, and logistics is modernizing like never before,” Ghazal adds.
Warehousing Boom and a Bet on Data Centers
Prologis isn’t just focusing on warehouses. It’s also exploring India’s fast-growing data center market, recognizing the surging demand for digital infrastructure.
Globally, Prologis operates across 20 countries, managing 1.3 billion square feet of logistics space and over 5,800 warehouses. The company has been on an acquisition spree too – last year, it bought nearly 14 million square feet of industrial real estate from Blackstone-affiliated funds for $3.1 billion in cash.
A Strong Future for India’s Industrial Real Estate
India’s logistics sector is on fire, drawing in massive global and local investments. Warehousing has even overtaken the office sector in real estate investments, accounting for 39% of total investments in 2024.
According to Colliers, institutional investments in India’s real estate sector hit a five-year high in 2024, reaching $6.5 billion – a 22% year-on-year jump. The industrial and warehousing segment saw an almost threefold surge in investments, pulling in $2.5 billion. Foreign investors are leading the charge, making up over 80% of total inflows into the segment.
India’s Logistics and Warehousing Sector Is Set for a Game-Changing 2025
By all looks of it, India’s logistics and warehousing industry is on a roll, and 2025 is shaping up to be a massive year for the sector, contributing around 13-14% to the country’s GDP. This space is attracting record-breaking private equity (PE) investments, faster adoption of cutting-edge technology, and a wave of policy support aimed at supercharging infrastructure.
The numbers are impressive, 66% of all private equity investments in the first half of 2024 went into logistics, with headline-grabbing deals like Abu Dhabi Investment Authority (ADIA) and KKR pouring $1.54 billion into Reliance Logistics & Warehouse Holdings.
Looking ahead, 2025 could outpace the 25% year-on-year (YoY) growth in industrial and logistics space absorption that we saw in 2024.
So, what’s fueling this growth?
E-commerce giants, third-party logistics (3PL) providers, manufacturing hubs, and retail players are all scrambling for top-tier warehouse spaces; but it’s not all smooth sailing. Challenges like supply chain inefficiencies, high logistics costs, and an overreliance on road transport still exist. However, with public-private partnership ramping up, infrastructure projects accelerating, and the National Logistics Policy kicking in, the industry is heading toward a much-needed efficiency boost.
Key Logistics Hubs & Warehousing Hotspots
Major logistics clusters like Delhi NCR, Mumbai, Pune, Bengaluru, and Chennai will remain the biggest beneficiaries of warehouse expansion in 2025. Land acquisition for new fulfillment centers is in full swing, and multi-modal logistics parks (MMLPs) are being fast-tracked to bring down transportation costs and streamline supply chains.
Six Game-Changing Trends in Logistics & Warehousing for 2025
1. Digital Twins Are Set to Revolutionize Warehouse Management
The concept of ‘digital twins’- essentially real-time virtual models of warehouses – is gaining serious traction. Think of it like a digital replica of a warehouse, allowing companies to track inventory, predict bottlenecks, and optimize operations before issues arise. This technology is expected to slash costs, boost efficiency, and transform warehouse management.
2. Quick Commerce & Last-Mile Logistics Are Getting Even Faster
If you thought 10-minute deliveries were fast, Q-commerce is pushing logistics firms to go even leaner and smarter. Companies are racing to set up micro-warehousing hubs in major cities to cut delivery times, while AI-driven automation is reshaping inventory tracking and demand forecasting.
3. Cold Chain Logistics Is Heating Up
The booming demand for fresh food, pharma, and temperature-sensitive products, cold chain logistics is exploding. Players like Snowman, ColdStar, and Gubba Cold Storage are investing heavily in Grade A cold storage facilities in cities like Ahmedabad, Lucknow, Coimbatore, and Patna. Automation, IoT-enabled temperature monitoring, and green refrigeration are set to make cold storage more efficient and scalable.
4. IoT, Robotics, and Blockchain Are Taking Over Warehouses
The industry is going all-in on smart tech – IoT-enabled sensors will provide real-time tracking of goods. Robots will manage inventory and automate warehouse workflows. Blockchain technology will boost transparency, security, and efficiency in logistics transactions.
This shift is becoming a necessity to stay competitive.
5. Sustainability & Green Warehousing Are the Future
With ESG (Environmental, Social, and Governance) mandates tightening, logistics companies are prioritizing sustainability like never before.
Expect to see – Warehouses powered by solar & wind energy. EV fleets replacing fuel-guzzling delivery trucks. Innovative packaging solutions that cut waste
Net-zero carbon warehousing strategies. Companies that fail to go green may struggle to attract investors and retain environmentally conscious customers.
6. The Logistics Workforce Is Evolving—More Women, More Upskilling
The logistics industry has traditionally been male-dominated, but that’s changing fast. In 2025, expect a stronger push for diversity, with more women entering roles across warehousing, supply chain management, and last-mile deliveries.
At the same time, upskilling initiatives are in full swing, with the government launching National Centres of Excellence for Skilling to train workers in tech-driven logistics roles.
The Last Bit. Great Years Ahead
Massive investments, cutting-edge technology, and strong policy backing, 2025 is shaping up to be a breakthrough year for India’s logistics sector. Companies that embrace digital transformation, sustainability, and workforce development will gain a serious edge in this rapidly evolving market.
India’s logistics and warehousing boom has been fueled by major regulatory reforms, including GST implementation, streamlined compliance rules, and massive infrastructure spending. These changes have made doing business easier and India a more attractive destination for global investors.
With demand for logistics space soaring, foreign institutional investors betting big, and industrial real estate outperforming traditional office spaces, India’s position as a critical hub in the global logistics network is stronger than ever. And Prologis is making sure it has a front-row seat.
