The company plans to introduce its transparent "open book" business model, which consists of working with global institutional investors to facilitate the placement of capital for direct investment in India's fast-growing industrial and warehouse market. Panattoni will initially focus on development in India's eight largest cities and aims to launch the first two to three projects by the end of 2023 with an initial investment of USD 200 million (€193 million). The second phase of expansion in second-tier markets will follow. The opening of the Bangalore headquarters was preceded by the opening of India's first office in Mumbai, and a Delhi branch is also planned to strengthen Panattoni's presence in major metropolitan centres.

Robert Dobrzycki, CEO and co-owner of Panattoni Europe and India, said: “Over 20 years, Panattoni has established itself as the largest developer of industrial and logistics real estate in Europe, as well as the best consistent provider of global institutional capital in this fast-growing investment property sector . I see no reason why the institutionalization and dramatic growth of the industrial and logistics markets in North America and Europe cannot be replicated within Panattoni's Indian footprint and further into other Asian countries, at a faster and larger scale in the coming years. We will make it easier for investors to access these assets and support the sustainable growth of the Indian economy and employment as we have done in the US and across Europe.”

India's aim to become a global manufacturing hub, fueled by international corporations' growing interest in "Plus-One" strategies to diversify their dependence on China and its supply chains, is expected to be a key factor along with the introduction of e-commerce, infrastructure development and regulatory reforms accelerating the development of the domestic logistics sector. This, in turn, is generating increasing investor interest in India's economic and real estate investment story.

Sandeep Chanda, Managing Director, Panattoni India, said: “Panattoni's entry into the Indian market brings with it the group's state-of-the-art design and construction technologies. Our access to global institutional capital and an extensive international tenant network will complement the strong underlying demand for modern sustainable industrial and logistics properties we are seeing from domestic Indian companies. Greater supply chain efficiency, rapid growth in e-commerce and consolidation among external logistics service providers are core market drivers that India increasingly shares with its US and European partners.”

"This year we celebrate 15 years since the establishment of the branch in the Czech Republic, therefore we consider the new addition to the Panattoni family in India to be a nice gift for the development of our entire company. I am personally pleased that the expansion into the Asian region has started in India, which, according to all indicators, clearly proves its potential and with a market size of 380 million m2 of warehouse space offers many opportunities," says Pavel Sovička, CEO of Panattoni for the Czech Republic and Slovakia.

According to a survey by the international real estate agency CBRE, activity in the area of ​​renting industrial and logistics spaces in India increased by approximately 39% year-on-year to more than 28 million. m2 in 2021 from 19 mil. m2 in 2020. The demand for new and modern logistics spaces is driven by the strong growth of online retail, as retailers and e-commerce entrepreneurs seek to expand their warehouse space. With increased activity in industries such as e-commerce and 3PL/logistics, the country's warehouse inventory is expected to reach more than 380 million by 2024, according to a JLL report. m2.