“Co-Working” Catches on in India

Co-working, a concept where individuals or startups share a common workplace environment, is slowly catching on across prime property markets in India. Across the country, co-working space of 0.73 million sq ft was tenanted last year.

“Though still nascent, this category could prove to be a disrupter as bigger co-working players such as WeWork enter India and more such facilities pop up across cities,” said Ramesh Nair, CEO of JLL India.

With 9,600 seats available at co-working facilities across the country, Mumbai records the highest absorption nationally, followed by Delhi-NCR, Kolkata, Bangalore, Chennai, Pune and Hyderabad, reports the Economic Times.

Inside an Office

Sumit Lakhani, CMO at Awfis Space Solutions said, “Companies can make savings of up to 20-30% by working in a co-working space.” The firm’s clientele includes small and medium-sized enterprises, start-ups, freelance professionals, consultants, and corporations.

May 30, 2017   No Comments

Warehousing Sector Surges in India

In anticipation of the national Goods and Services Tax roll-out in July, warehousing facilities will increase by 18 percent to 132.5 million sq ft, and this sector is likely to see investments of about $700 million, according to industry experts

Delhi-NCR had the maximum warehousing stock in 2016 at 29.3 million sq ft, followed by the Mumbai Metropolitan Region, Bangalore, Pune, Chennai  Kolkata, Hyderabad, and Ahmedabad.

A warehouse

Ramesh Nair, CEO, JLL India, told BusinessLine that in 2016, the Grade A and B warehousing stock touched 111.9 million sq ft from 96.8 million sq ft in 2015, and that the GST roll out will “up-grade warehousing infrastructure.”

According to Nair, Pune and Chennai lead the way in Grade A and B warehouse rentals due to their proximity to manufacturing hubs, and local market dynamics.

 

May 30, 2017   No Comments

Herbal Supplements Market to Grow at 6.29% Annually

Pune, India-based Sandler Research forecasts that the global herbal supplements market will grow at a CAGR of 6.29% during the period 2016-2020. The report says that the drivers facilitating this growth are the growing awareness of the benefits of dietary supplements especially among women, and the increase of herbal supplements among adults.

Key players in this market are: Gaia Herbs, Herb Pharm, Nature’s Bounty, Nutraceutical, and Rainbow Light Nutritional Systems. Other well-known vendors are: Arizona Natural Products, Arkhopharma, Bio-Botanica, Blackmores, i-Health, Megafood, New Chapter, Pharma Nord APS, Pharmavite, Ricola USA, Solgar, and Sundown Nutrition.

Herbal Supplements

PR Newswire reports that the demand for herbal supplements is fueled by the increase in healthcare expenses globally due to the rising prices of drugs, medical devices, and hospital care. In 2015, Europe  dominated the global herbal supplements market with a market share of around 45%. The growing number of e-commerce and retail stores, coupled with a rise in the older population, is expected to boost growth in the herbal supplements market in Europe during the forecast period.

April 28, 2017   No Comments

Israel Aerospace Industries Inks 3 Deals in India

Israel Aerospace Industries, (IAI) the nation’s largest aerospace and defense firm, signed three cooperation agreements with Indian companies at the Aero India exhibition held last month in Bangalore.

The agreement between IAI and India’s Bangalore-based Dynamatic Technologies Limited calls for the Israeli company to transfer technology and production capabilities to Dynamatic that will enable the production of local mini UAV systems for Indian end-users.

Israel-India flag

Separately, IAI said its Golan Industries Division, signed a memorandum of understanding with  Taneja Aerospace & Aviation Ltd., based in India’s southern state of Tamil Nadu, to cooperate in the development, production, marketing and sale of civil and military aircraft crashworthy-seats.

IAI also signed a memorandum of understanding to set up a joint venture with India’s Pune-based Kalyani Strategic Systems Ltd., the defense arm of Kalyani Group. As part of the accord, IAI and Kalyani will together aim to expand their activities in the Indian defense market and to build, market and manufacture air defense systems and ground-to-ground and ground-to-sea munitions, reports the Times of Israel.

March 25, 2017   No Comments

Global Finance Firms to Add Office Space in India

Even as they downsize their retail operations worldwide, Barclays Plc, Credit Suisse Group AG, Standard Chartered Plc and Citigroup Inc., are among global financial firms looking to add office space in India.

Barclay Technologies Center India Ltd, an offshore unit of the London-based financial services firm, is planning to add 100,000 sq. ft in Pune, 90 miles east of Mumbai, where it currently operates. At Panchshil Realty Ltd’s IT parks in Pune, approximately 35% of the total space is occupied by the captive technology businesses of Deutsche Bank AG, MasterCard Inc. and Credit Suisse, while Swiss bank UBS leased around 400,000 sq. ft at K Raheja Corp.’s IT park at Navi Mumbai.

Inside an Office

“Captive banking, financial services and insurance clients, which were outsourcing earlier, prefer to do the work themselves, given the cost optimization. Instead of paying third-party operators, it’s better to have your own offshore unit,” said Gautam Saraf, managing director (Mumbai region), of global property consultant Cushman and Wakefield.

Mike Holland, chief executive officer of Embassy Office Parks, Bangalore said, “The BFSI industry is a strong demand driver, especially in Pune and Bangalore. We are also doing transactions in Chennai and Hyderabad in that segment.”

March 22, 2017   No Comments