Industry Views

Hosur - The Commercial Realty and Investment Hub

Good infrastructure, connectivity and location have helped Hosur become a booming market for manufacturing and industrial investment. Know why.
August 11, 2021
3 mins read
Hosur hub for Investments

Hitting the National Highway is the best way to enjoy a drive in Bengaluru, and escape the rising volumes of traffic. As one moves towards Electronic City, thanks to the multiple flyovers and wider roads, there is a certain respite. Apart from the fact that this route leads to the National Highway 44, the sparse volume of light motor vehicles and increasing frequency of heavy-duty trucks as you approach Hosur indicate the beginning of one of the major industrial and manufacturing hubs in southern India. Located at an elevated topography of 3000 ft, the border town of Hosur is a tale of transformation since Tamil Nadu’s first industrial estates called this home in the 1970s - all the while balancing the dreams and aspirations of an upwardly mobile white-collar workforce and a fluctuating industrial and farm workforce. Spread across in a radius of around 15-20 kilometers from Hosur, lie many industrial parks like the SIPCOT Industrial Park, Avigna Industrial Warehouse, and the like.

Interestingly enough, though Hosur actually falls under the municipality of the Tamil Nadu government, the proximity from Bengaluru often makes people mistake Hosur for being a part of Karnataka. But the difference in the manufacturing capabilities of both states makes it clear that Hosur actually takes after the development and growth model of Tamil Nadu. A small snapshot of the Tamil Nadu industrial scene is given in the image below -

Located right between Bengaluru and Chennai provides Hosur with a lot of strategic advantages - key among them being access to manpower, proficient talent pool, excellent infrastructure, and great commutability and transport options. It’s not for nothing that the Hosur Industrial Sector is one of the largest industrial complexes in India, spread across more than 1200 acres.

A casual look at some of the recent news that covered some of the major players in India that took decisive steps regarding expanding their real estate footprint would place most of the markers in Hosur. In January of 2020, Delta Electronics of Taiwan planned to invest INR 4000 crores in Krishnagiri (the district that Hosur belongs to) for setting up an electronics plant. Embassy Industrial Parks announced setting up a new base in Hosur in August the same year. Towards the end of 2020, the Tata Group announced an investment of INR 7000 crore in Hosur towards building an electronics manufacturing plant. In February 2021, Ola started the construction of a factory spanning 500 acres near Krishnagiri, while Ather Energy chose Hosur to be the base for its new INR 635 crore plant. Adding to the list is Inox Air Products, one of India’s largest manufacturers of industrial and medical gases; building an INR 150 crore plant in Hosur that will be commissioned and operational in December 2022. With the new expansion in plans, the company aims to achieve 1000 tonnes per day (TPD) of liquid medical oxygen out of the total combined capacity of 4800 TPD for all gases by 2024.

It’s not just new plans that are realized in Hosur, but existing infrastructure also gets a sizable boost. For example, the TVS manufacturing unit at the place has established a fully automated reused water vehicle wash system that has cut down water usage by 60% over the last decade. Sobha Developers are also looking to create a “mini New York'' near Hosur, which will feature flats ranging from INR 90 lakhs and above.

Latest Blogs