Meanwhile, other local companies are all making a beeline to develop free trade economic zones (FTWZs) with a possible logistics support services set up as well. They include, Modern India, Arshiya International, Balaji Infra Project, Fab City SPV, Chennai-based Jafza Business Park and Chiplun Infrastructures Private Ltd.

SEZs are seen as a high growth segment in India, having attracted a lot of interest among corporates, with 513 formal approvals, of which notifications have been issued for 250 SEZs. The retail segment is booming too, and the industry, estimated to be $364 bn in size, is growing at the rate of 50% per annum.

Modern India Ltd, developer of surplus mill land who refurbished mill premises at Mahalaxmi in Mumbai and named it Modern Center, is planning to develop over 100 acres of free trade warehousing zone (FTWZ) in Panvel in Navi Mumbai in order to carry out operations of logistics support services to the retail sector and SEZs, said Vijay Kumar Jatia, chairman, Modern India Ltd.

According to Jatia, "Panvel is a close viscinity to the upcoming new Navi Mumbai airport as well as Jawaharlal Nehru Port Trust (JNPT) and railway. We are planning to invest Rs 1,000 crore in acquiring and developing over 300 acres of land which will also include other public utilities such as a mini township, residential colony, office complex, medical aid, entertainment zones apart from low-cost housing, among others. The company has subscribed to 51% equity shares of Modern India Free Trade Warehousing Pvt Ltd, a SPV to carry on the business of the same in Raigad district."

HCC Real Estate Company, the real estate arm of construction major Hindustan Construction, which is in the process of acquiring land in various part of India including Thane in Mumbai, Panvel, Nasik, Nagpur, Kolhapur for developing townships, feels that developing logistics support services as part of townships, FTWZs project is a good idea. Rajgopal Nogja, president, HCC Real Estate said, "Providing logistics support services through FTWZ is very imperative to cater to the retail sector as well as SEZs. However, for the moment, we are not looking at developing FTWZ. We may evaluate plans in the near future. But, nothing for the moment."