Why Chennai is the most crucial junction for industrial warehouses?

Chennai, the capital of Tamil Nadu, is a major seaport city on the southeastern coast of India. The ever-expanding industrial clusters have substantiated its commercial growth. And subsequently, the most influential industrial parks in Chennai have elaborated the reach of this city nationwide. 

A brief history of Industrial expansion in Chennai

Chennai has been a hub for industrial activity since the late 19th century. The city’s port and proximity to raw materials made it an attractive destination for factories and warehouses. 

  • Guindy, the gateway to Chennai, was India’s first Industrial estate (1958).
  • Tamil Nadu Industrial Development Corporation/ TIDCO (1965) orchestrated the urban infrastructural landscape.
  • The State Industries Promotion Corporation of Tamil Nadu Ltd (SIPCOT) brought industrial expansion in 1971, leading to an influx of investors.
  • The telecom revolution that began in Chennai was initiated by the Sterling group. 

The present era saw a Global Investors’ meet in 2015 and 2019, roping investments from the UK, USA, Japan, Korea, and China. 

State policies that assisted the industrial growth in Chennai

The Government of Tamil Nadu formulated an ambitious plan for developing industries in the state in the late 1970s. This plan, popularly known as the “Golden Triangle Plan”, envisaged the creation of a corridor of industrial growth between Chennai – Coimbatore – Madurai. As part of this plan, several industries were set up in and around Chennai.

This corridor-based development continued with Chennai-Bengaluru Industrial Corridor (CBIC) and Chennai-Kanyakumari Industrial Corridor (CKIC), formulating an integrated manufacturing cluster. 

Other policies like exemption from stamp duty for setting up industries, preferential treatment for power and water supply to industries, etc., have made Chennai an attractive destination for setting up industries, which led to a further boost in warehousing companies in Chennai.

The Special Economic Zones (SEZ) have harboured various MSMEs while promoting startup culture.

Economic growth in Chennai

The city has seen tremendous economic growth in recent years,. Major driving forces to this growth are automotive, electronics & hardware, medical tourism, and IT-ITeS industries. Manufacturing and financial services have anchored the steady economy. Meanwhile, textiles, apparel, and petrochemicals have augmented local employment; thus propelling high demand for warehousing in Chennai.

Industrial landscape of Chennai

Chennai is a crucial junction for industrial warehouses because of its sweeping landscape.

  • It comprises prominent sea ports such as Chennai Port, Ennore, and Kattupalli Port. The potential of large shipments facilitated the demand for warehousing services in Chennai
  • These four principal industrial zones offer the most efficient industrial clusters with prominent warehousing companies:
  1. North Chennai: The vast land extent and open spaces facilitate extensive Industrial Parks in North Chennai. This zone hosts the best warehouse service providers in Chennai, where Red Hills has emerged as the most sought-after area.
  2. West Chennai: This zone is best for manufacturing automotive, electronics hardware, engineering companies, wind turbines, etc.
  3. South West Chennai: Also known as the Oregadam cluster, the main focus of this zone is on automotive and wind energy.
  4. South Chennai: This zone is prominent in stimulating E-commerce, manufacturing, and trade & transport to the rest of Tamil Nadu and Kerala.
  • Chennai presents easy and continuous access to essential services such as power, water, healthcare, road and physical infrastructure, and accessibility to Chennai International Airport. 
  • Chennai has nodal connectivity to the rest of South India, thus enhancing its industrial growth.
  • This cost-effective city has welcomed businesses of various spectrums. 
  • Chennai has several villages with a large supply of workforce possessing a variety of skills. 

Karanodai, Thatchoor and Red Hills are some of the most resourceful manpower hubs in Chennai, trained in warehousing operations. Moreover, the cost of employment in this city is way lesser than most, thus benefitting MSMEs.

Red Hills- an emerging cluster in Chennai

As seen above, North Chennai is the primary zone for the warehousing industry. Among these, Red Hills is quickly becoming one of the most popular areas, offering efficient warehouse for rent in Chennai

Open spaces and large land extent have allowed many developers to introduce large-scale industrial parks. 

This area is well-connected to crucial infrastructure such as–

  • Fire station, electric substation, Police station
  • Industrial Hub & Manpower hub
  • Hospitals and top-rated hotels
  • Swift access to the airport and local transport

The upcoming Phase-II of Chennai Metro Rail shall extend line 4 with Red Hills as one of the stations. This enhanced connectivity will drive more new-age entrepreneurs to establish their businesses in this locality. 

Hiranandani Industrial Parks is the newest addition to this thriving locale while presenting versatile warehousing solutions for your business. Give your venture the apt address to accomplish significant milestones!


Q1: How long does it take to reach the nearest airport from Red Hills?

A: Chennai Airport is at a distance of 41 Km from RedHills, Chennai. 

Q2: What are the factors to assess in an industrial cluster?

A: Here are a few parameters to look out for in a suitable cluster–

  • Industrial hubs within a convenient radius
  • Connectivity 
  • Nearby manpower hubs
  • Local transport arrangement
  • Healthcare and security facilities
  • Regional civic authorities
  • Other competition in the same industry
  • Continuous electricity & water supply

Q3: Are the warehouse affordable?

A: Chennai is the most cost-effective industrial city, where setting up your warehouse does not affect your long-term finances. Leasing spaces is the best option if you are starting out.