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This week: India's logistics market hits record 37M sqft leasing, KKR plans major investment expansion, Siemens India replicates parent's 'ONE Tech Company' strategy, and much more..

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Brookfield’s acquisition of Ecoworld Tech Park in Bengaluru is the largest office transaction in India to date.

Supply chains are shifting. Geopolitical tensions and disruptions during the pandemic changed the playbook for companies worldwide, and near-shoring for direct customer and production source access as well as securing government incentives and reducing tariff barriers are becoming the norm. With India becoming a global manufacturing hub and a strong domestic market, its logistics sector reveals the scale at which this change is starting to happen.

Let’s start by taking a look at recent numbers in the logistics real estate sector. According to CBRE, the market reached a new all-time high for the top 8 cities Delhi-NCR, Bengaluru, Mumbai, Hyderabad, Chennai, Pune, Kolkata, and Ahmedabad from January throughout September 2025:

The composition of tenants reveals an important shift: Third Party Logistics (3PL) providers accounted for 40% of the leasing activity in the last quarter, followed by e-commerce (18%) and engineering and manufacturing businesses (15%).

This indicates a growing demand to improve supply chains and delivery times for domestic and international customers alike, and the trend towards 3PLs complements continued strong demand from direct owner-operators. Domestic operators accounted for 68% of quarterly leasing and EMEA-based companies 14%, further confirming this domestic focus.

To put this in perspective, Germany alone reached a take-up of 4.3 million sqm (around 46 million sqft) in the same period this year. However, international investments continue to increase and the comparison to European markets show the vast potential that exists:

These developments highlight both opportunities and constraints in India's evolving logistics sector. Grade A capacity remains limited despite strong demand, potentially requiring longer lead times for owner-operators. However, new developments are accelerating, 3PL infrastructure is expanding, and India's robust e-commerce ecosystem and technology platforms offer distinct advantages for companies looking to tap into the local market.

Sources: Fortune India, BNP Paribas, The Economic Times

KKR is one of the world’s largest private equity (PE) firms and plans to increase its investments in India. The move confirms an ongoing trend in PE, with KKR following competitors such as Brookfield or Blackstone, as well as pension funds, in dramatically increasing their investments in India over the coming years.

KKR has invested around USD 13 billion since entering India in 2008 and intends to increase its positions especially in the key sectors real estate, infrastructure, private credit, insurance, and manufacturing. Manufacturing in particular is seen as a future market driven by China+1 strategies and diversifying supply chains. To deepen its presence, KKR also plans to partner with domestic insurers, leveraging its global insurance expertise. Target Assets Under Management (AUM) were not disclosed.

Brookfield's recent performance illustrates why PE firms are bullish on India:

With Indian REITs expected to double their capacity to INR 19.7 lakh crore (around EUR 220 billion) by 2030, many more such deals are likely.

Pension funds are also scaling up significantly. Canada Pension Plan (CPP) Investment, one of Canada’s largest pension funds, just tripled its net assets in India to USD 22 billion in under 5 years and intends to continue investing especially in real assets: infrastructure, real estate, and energy.

The accelerating flow of institutional capital, from both PE firms and pension funds, reinforces India's appeal as a maturing market with strong long-term fundamentals. Given the positive returns and patient capital horizons these investors employ, this trend will likely accelerate. For European businesses weighing investments in India, such institutional validation offers meaningful reassurance.

Sources: ConstructionWorld, Times of India, The Economic Times, Business Standard

Siemens has been active in India when Werner von Siemens and his brothers laid the groundwork for a telegraph line from London to Calcutta (see Curiosity Corner for more details) in 1867. Since the establishment of its Indian entity in 1922, the German technology company has transformed many times and is now following its parent company’s playbook to become “ONE Tech Company”, a strategic program to transform the company into a more integrated and customer-focused technology provider.

Siemens India mirrors its parent company's integrated approach and offers a broad range of solutions. From smart infrastructure (i.e. power systems) and mobility solutions (i.e. trains, signalling systems etc.) to smart manufacturing, Siemens India has been a diverse business since its full establishment in 1922. The recent spinoff of Siemens Energy India (which got listed on the Indian stock exchange, see prior issues of India Rising) sharpened focus on these core services and improved capital efficiency.

The numbers speak for themselves:

Following the demerger, Siemens India now operates 25 manufacturing sites in the country with two are under construction, and a number of Global Capability Centres (GCCs). The company hires 1,000-1,500 employees annually and is executing major projects both in infrastructure and mobility. It is therefore both contributing to and profiting substantially from India's ongoing transformation.

The energy business divestment was notable given India's ambitious capacity programs, but Siemens India remains well positioned to capture significant infrastructure and mobility investments. These sectors are foundational to India's growth trajectory and represent compelling entry opportunities for European companies seeking to establish themselves in the market.

Sources: Fortune India

The government of Karnataka is inviting for this year’s Bengaluru Tech Summit in the “Silicon Valley of India”.

Find more details about the conference and its special program here.

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This week: From London to Calcutta in 28 minutes - The Indo-European Telegraph Line

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