NDR INVIT Trust Management Discussions

INDUSTRY REVIEW

India Warehousing Sector: Sustained Growth and Record Absorption

Indias warehousing sector delivered a landmark performance in 2025, recording all-time high transaction volumes across the countrys eight major markets. Total leasing activity reached 72.5 million sq. ft., driven by strong demand from manufacturing, logistics and e-commerce occupiers. The sector also registered its strongest quarterly performance during October- December, underscoring its resilience amid global geopolitical uncertainties, shifting trade dynamics and supply chain realignments. Supported by robust domestic consumption, continued infrastructure investments and improving private sector capital expenditure, India remained a favourable destination for industrial and logistics expansion.

Manufacturing emerged as the largest demand driver, accounting for 47% of total leasing activity, or 34.2 million sq. ft., during the year. Key logistics hubs such as Mumbai and Delhi recorded transactions of 13.5 million sq. ft. and 12.2 million sq. ft., respectively, while Chennai, Bengaluru and Ahmedabad also witnessed healthy absorption. Demand remained firmly skewed towards modern Grade A facilities, which represented 63% of total leasing activity in 2025, up from 62% in the previous year. The share of Grade A assets in overall warehousing stock increased to 45% from 41%, reflecting the sectors continued shift towards institutional-quality infrastructure and more efficient supply chain networks.

Source: Knight Frank Research

Notes: Other Manufacturing - These include all manufacturing sectors (automobile, electronics, pharmaceuticals, etc.) except FMCG and FMCD.

Miscellaneous - These include services such as telecom, real estate, document management, agricultural warehousing and publishing.

The rapid growth of omnichannel retail and quick commerce is reshaping warehousing demand in India. As businesses strive to meet shorter delivery timelines and enhance customer experience, demand for strategically located fulfilment centres and last-mile distribution hubs continues to rise, supporting more agile and integrated supply chain networks.

Rising consumption, urbanisation and improving connectivity are driving warehousing expansion beyond metropolitan centres. Increasing demand from Tier II and Tier III cities is encouraging the development of modern logistics infrastructure, enabling occupiers to establish facilities closer to emerging consumption hubs and improve distribution efficiency.

Continued government investment in transport and logistics infrastructure is strengthening the sectors long-term growth prospects. Initiatives focused on multimodal connectivity, industrial corridors and logistics parks are enhancing supply chain efficiency, reducing transit times and creating a more integrated logistics ecosystem.

Environmental sustainability is becoming a key consideration in warehouse development and operations. The adoption of rooftop solar systems, energy-efficient technologies and green building practices is helping occupiers lower operating costs, improve resilience and align with evolving sustainability expectations.

Demand for modern Grade A facilities continues to gain momentum as occupiers prioritise operational efficiency, compliance and scalability. Higher- quality infrastructure, advanced specifications and institutional-grade standards are increasingly becoming critical requirements for manufacturers, logistics providers and organised retailers.

Indias industrial and warehousing market continues to witness strong leasing momentum, supported by sustained demand from manufacturing, logistics and e-commerce sectors. Growing occupier confidence and expanding supply chain requirements are driving healthy absorption levels across both established and emerging warehousing markets.

Despite ongoing global economic and geopolitical uncertainties, India remains one of the fastest-growing major economies, supported by resilient domestic demand and a favourable investment environment. The outlook for the warehousing sector remains positive, underpinned by expanding manufacturing activity, evolving supply chain requirements and increasing formalisation of logistics operations.

Structural growth drivers, including the China-plus-one strategy, rising consumption and the need for efficient distribution networks, are expected to sustain demand for high-quality warehousing assets. At the same time, continued investments in transport infrastructure, freight connectivity and logistics parks are strengthening the logistics ecosystem, creating significant opportunities for organised and institutional players to expand their footprint across both established and emerging markets. As occupiers increasingly prioritise efficiency, scalability and sustainability, the sector is well positioned for longterm growth and value creation.

NDR InvIT Trust, an Infrastructure Investment Trust (InvIT) sponsored by N D R Ware Housing Private Limited, is managed by NDR Invit Managers Private Limited as the Investment Manager and NDR Asset Management Private Limited as the Project Manager. As Indias first perpetual warehousing and industrial parks InvIT, the Trust manages a diversified portfolio spanning warehouses and industrial parks across multiple cities in India, serving tenants across sectors including logistics, ecommerce, engineering, automobiles, retail and FMCG. The Trust remains focused on generating stable and sustainable rental income from its existing assets while pursuing disciplined portfolio expansion to create long -term value for unitholders.

At NDR InvIT Trust, people remain central to our long-term vision and operational excellence. We are committed to cultivating a progressive and performance- driven workplace that encourages continuous learning, collaboration and professional development. Through structured capability-building programmes, transparent feedback mechanisms and employee wellness initiatives, we aim to create an environment where individuals are empowered to contribute meaningfully while advancing in their careers. Our focus on merit, accountability and mutual respect enables us to build agile teams equipped to support the Trusts evolving business objectives.

We also recognise that a diverse and inclusive workforce strengthens innovation, decision-making and organisational resilience. The Trust actively promotes equal opportunity across all levels of the organisation and strives to foster a culture where varied perspectives and experiences are welcomed. By nurturing an open and supportive work environment, we seek to enhance employee engagement, encourage leadership development and create sustainable value for all stakeholders. Our human resource philosophy is anchored in building a future-ready organisation driven by talent, integrity and shared growth.

NDR InvIT Trust and the Investment Manager has a strong internal control system to manage its operations, financial reporting and compliance requirements. The investment manager has clearly defined roles and responsibilities for all managerial positions. All the business parameters are regularly monitored, and effective steps are taken to control them. Regular internal audits are undertaken to ensure that responsibilities are executed effectively. The audit committee of the Board of Directors of Investment

Manager periodically reviews the adequacy and effectiveness of internal control systems and suggests improvements to further strengthen them.

Monthly Review Meetings are held to track performance, operational efficiency, and compliance. Comprehensive Monthly MIS reports are shared with Board Members and Independent Directors, ensuring transparency and timely decision-making. Regular internal audits further validate that responsibilities are being executed effectively.