Industrial Parks or Standalone Sheds: Which One Powers Your Business Best?

• Standalone Sheds: Standalone sheds are individual storage facilities tailored to meet the specific needs of a single business. These facilities provide greater flexibility and operational control but lack the shared amenities available in industrial parks.

Industrial parks

Pros:

1. Scalability: Designed for businesses to expand seamlessly, industrial parks provide scalable spaces, making them ideal for long-term growth without the need for relocation.
2. Shared Infrastructure & Safety: Industrial parks provide a safe and efficient operational environment with 24/7 security, CCTV surveillance, fire alarm systems, and real-time monitoring. They feature shared resources such as internal roads, electricity with backup, stormwater drainage, and sewage treatment plants, reducing operational and setup costs. Additionally, facilities like driver rest areas, on-site utility zones, and proximity to hospitals and fire stations enhance functionality and workforce welfare.
3. Technology-Enabled Operations: Many new parks, offer advanced features like IoT-enabled facilities, AI-based monitoring systems, and smart warehousing solutions to optimize efficiency and safety.
4. Sustainability Features: Parks integrate eco-friendly practices, such as solar-powered infrastructure, EV charging stations, and rainwater harvesting systems, aligning with global environmental standards.
5. Flexible and Ready-to-Use Spaces: Industrial parks offer customizable solutions, including ready-to-use facilities and built-to-suit options, enabling businesses to tailor spaces to their specific needs. The plug-and-play model ensures quick setup, minimizing downtime and accelerating operations.
6. Networking Opportunities: The co-location of industries fosters collaboration, partnerships, and innovation. Many park developers have started providing platforms such as festival celebrations, conducting cricket matches etc. to foster cultural awareness and strengthen bonds among employees of the specific parks.
7. Manpower Availability: Industrial parks are typically situated near clusters of skilled and semi-skilled labour, ensuring workforce availability. Some parks also tie-up with the local skill development institutes.

Cons:

1. Limited Customization: Standardized facilities may not meet niche operational needs.
2. Congestion: High density of businesses can lead to resource competition and traffic bottlenecks.

Standalone Warehouses

Pros:

1. Customization: Facilities can be designed specifically for the company’s requirements, providing operational flexibility.
2. For Small Business: Standalone warehouses offer a nurturing ground for smaller companies, enabling them to build their presence and refine operations at a manageable scale before expanding further.
3. Operational Control / Privacy: The single-tenant nature of standalone warehouses allows businesses to have full control over their operations, optimizing workflows and supply chains to suit their specific needs.

Cons:

1. Higher Costs: The absence of shared infrastructure can increase setup and operational expenses. (One time expenses such as STP set-up / ETP set-up)
2. Isolation: Limited opportunities for networking and collaborations with other businesses.

Sectors That Benefit

• Industrial Parks: Manufacturing, Automotive, Electronics thrive in industrial parks due to shared resources, connectivity, and the potential for collaboration.
• Standalone Warehouses: E-commerce, retail, and distribution on companies that require specific storage conditions and operational autonomy.

Examples of Industrial Parks Near Chennai, Tamil Nadu

1. Mahindra World City, Chennai: An integrated business hub hosting industries from IT/ITeS to Automotive and Apparel manufacturing.
2. Oragadam Industrial & Logistics Park : South Asia’s largest automobile hub promoted by the Government of Tamil Nadu, catering to industries like automobile manufacturing, auto ancillary, auto components, R&D centers, 3PL services, electronics, energy, aerospace, and defence.
3. Private Industrial Parks : There are a host of Private Industrial Parks by prominent pan-India developers such as Indospace, Horizon, Capitaland- FirstSpace, Casagrand Industrial, ESR, Greenbase, House of Hiranandani, Pragati, etc.