Horizon Industrial Parks

India's warehousing market is moving rapidly from fragmented Grade B stock toward institutional Grade A facilities as occupiers prioritise compliance, efficiency, safety and scalable infrastructure. JLL expects this formalisation to accelerate through CY30, creating a structural demand tailwind for large integrated developers. Horizon is directly positioned in this shift through its Grade A+ network and high committed occupancy.

The key tailwinds are:

• Grade A stock increased from 112.5 msf in CY20 to 305.1 msf in CY25, lifting its share of total stock from 43.8% to 57.4%; JLL projects 943.6 msf by CY30, implying a 25.3% CAGR

• Grade A occupancy improved from 89.6% in CY20 to 92.4% in CY25 and is projected to reach 96.8% by CY30, while annual absorption rose to a record 45.8 msf in CY25

• Grade A rents grew at a 6.0% CAGR during CY20-CY25 and JLL expects ~6.5% CAGR during CY25-CY30, supporting rental reversion for well-located compliant assets

• Horizon had a 58.58 msf Total Network across 45 assets and 10 cities as of the RHP date; its 28.55 msf Operational Network had 93.56% committed occupancy as of May 31, 2026.

Manufacturing is becoming a larger driver of organised industrial-space demand as global supply chains diversify and India expands domestic production capacity. Government incentives, labour-cost competitiveness and improving infrastructure are encouraging occupiers to shift from self-developed facilities toward plug-and-play and built-to-suit parks. This increases demand for compliant space close to established manufacturing clusters.

The key drivers are:

• JLL expects India's manufacturing gross value added to rise from about US$544.8 bn in FY26 to more than US$1 tn by FY30, supporting long-duration industrial-space requirements

• The PLI framework covers 14 manufacturing sectors, while 100% FDI is permitted under the automatic route in manufacturing and infrastructure, including logistics

• Demand is broad-based across auto and ancillaries, engineering, electronics, white goods, FMCG and other manufacturing sectors rather than being dependent on a single end-market

• Horizon's integrated model can reduce a customer's time-to-market to roughly 6-9 months versus 24-30 months when customers independently manage land, approvals, development and vendors.

Industrial and logistics parks benefit from better highways, freight corridors, multimodal nodes and institutional capital that lower transport friction and support larger, professionally managed assets. India's infrastructure programme is improving connectivity between manufacturing hubs and consumption centres, while institutional investors continue to fund platform expansion. Horizon combines this external tailwind with a sizeable development pipeline within its existing network.

The key details are:

• Institutional investment in Indian real estate reached US$10.5 bn in CY25, up 17.9% YoY, with another US$11.4 bn of announced platform commitments expected to be deployed over the next 3-7 years

• Dedicated Freight Corridors, 35 MMLPs, Bharatmala, Sagarmala, PM Gati Shakti and ULIP are intended to improve connectivity, intermodal transfer and logistics efficiency across major industrial corridors

• Horizon has 30.03 msf of within-the-fence development potential, comprising 7.22 msf of Near-Term Deliveries and 22.81 msf of Planned Projects expected over the next four to five years

• As of May 31, 2026, 2.57 msf was pre-contracted across eight locations, providing partial demand visibility before delivery of new capacity.

The industrial and logistics sector remains sensitive to local supply-demand conditions, tenant capex cycles and the cost of land and construction. Even when national demand is healthy, oversupply in an individual micro-market can increase vacancies and constrain rent growth. Sector returns also depend on connectivity, regulatory execution and the ability of occupiers to sustain expansion through economic and trade cycles.

The key risks are:

• Micro-market oversupply: Excess new stock in specific locations can raise vacancy, extend lease-up periods and force rental concessions despite healthy national warehousing demand

• Input-cost inflation: Higher land, steel, cement, labour, utilities and financing costs can lower development yields and make new projects less economically attractive.

• Trade and demand volatility: Tariffs, supply-chain disruptions, global slowdown or changes in occupier location strategy can alter industrial and distribution requirements across regions

• Location, infrastructure and ESG: Weak connectivity, approval delays, climate risks or failure to meet sustainability requirements can reduce tenant demand and long-term asset value

Government policy is broadly supportive of formal logistics, domestic manufacturing and integrated infrastructure, which expands the addressable market for Grade A industrial parks. The benefits are indirect rather than guaranteed: they improve logistics efficiency and encourage manufacturing investment, but individual developers still depend on project approvals, market demand and timely infrastructure execution in each location.

The key policies are:

• GST and e-way bills: A unified tax structure has reduced interstate friction; the JLL report cites a 25-30% reduction in interstate transit times, supporting consolidation into larger regional warehouses

• PLI and FDI: Production Linked Incentive schemes across 14 sectors and 100% FDI under the automatic route in manufacturing and logistics infrastructure encourage new industrial capacity

• National logistics infrastructure: PM Gati Shakti, Dedicated Freight Corridors, Bharatmala, Sagarmala, ULIP and the planned 35 MMLPs strengthen multimodal connectivity and reduce logistics bottlenecks

• Make in India and manufacturing tax support: Policy measures aimed at domestic manufacturing, together with competitive corporate-tax structures for new manufacturing units, support long-term occupier demand for industrial space.