DP World Expands Chennai Business Park Major Growth Initiative

09 May, 2024

DP World Expands Chennai Business Park: Major Growth Initiative

Dubai-based logistics giant DP World is expanding its Integrated Chennai Business Park (ICBP) by an additional one million square feet, a significant move aimed at bolstering its presence in India's thriving market. Situated approximately 30 km north of Chennai, this expansion adds to the already operational six lakh square feet within the facility. Ranjit Ray, VP of Economic Zones for the Middle East, North Africa, and Subcontinent at DP World, revealed plans for another one million square feet in the second phase by 2027-28.

Tamil Nadu, chosen for its status as the country's second-largest economy and a major industrialized state, proves to be an ideal location for the Free Trade Warehouse Zone (FTWZ), with Chennai serving as a pivotal connecting hub for Southeast Asia and Australia. The Chennai facility, operational since October last year, is poised to cater to the entire east coast.

With a total investment of Rs 1,700 crore, DP World is constructing three FTWZs in Chennai, Kochi, and Mumbai. The Chennai site, constituting 40%-45% of the investment, aims for a 75% occupancy rate by year-end, serving diverse sectors from automotive and electronics to FMCG and defense.

The FTWZ model offers customers duty deferment options, facilitating seamless import-export operations while providing value-added services such as packaging and kitting, further enhancing its appeal to businesses across sectors.