TVS Industrial & Logistics Parks (TVS ILP) has entered into a ₹200 crore memorandum of understanding (MoU) with the Karnataka government to establish industrial and logistics parks within the state. The planned investment will facilitate the construction of technology-enabled logistics and industrial parks, thereby enhancing the company’s current portfolio of 14 such parks located throughout South India.
This development occurs at a time when India’s industrial and logistics real estate sector is experiencing consistent growth. According to Savills India, leasing activity increased by 15.6% year-on-year, reaching 18.5 million sq ft in the January-March quarter of 2026. Manufacturing has remained the primary demand driver, representing 35% of total absorption at 6.5 million sq ft, an increase from 30% the previous year.
Third-party logistics (3PL) providers accounted for 23%, while fast-moving consumer goods (FMCG) and consumer durables made up 14%. During the quarter, tier-I cities represented 79% of total leasing, whereas tier-II and tier-III cities contributed 21%, indicating a wider geographic expansion of demand. On the supply front, new completions surged by 39% year-on-year to 22.1 million sq ft, with tier-I cities comprising 84% of the new additions.
Pune has emerged as the second-largest market, capturing a 24% share of total absorption, followed by Delhi-NCR and Mumbai. Srinivas N, managing director of industrial and logistics at Savills India, stated that demand continues to be bolstered by manufacturing growth, supply chain diversification, and capacity expansion across various sectors.
