Mumbai, Dec 1 (PTI) Third-party logistics company Mahindra Logistics Ltd (MLL) and Asia-Pacific logistics specialist LOGOS on Wednesday announced a long-term lease agreement to set up 1.4 million square feet (mmsf) warehouse facilities in Delhi-NCR, with one such facility already functional.
The transaction represents the country’s largest warehousing facility in a single park, both the companies said in a statement.
Under the pact, LOGOS will develop three Grade-A warehouses, totalling 1.4 mmsf at the LOGOS Luhari Logistics Estate in Delhi-NCR, Mahindra Logistics Ltd (MLL) said in a statement.
The first such facility spread in 0.5 mmsf space is already fully functional, after it was completed in July this year, it added.
The other two warehouses are currently under development with delivery in late-2021 and early-2022, respectively, it added.
The company said it plans to employ over 2,500 people and third-party associates across these facilities.
The transaction represents India’s largest warehousing facility in a single park, it said.
LOGOS Luhari Logistics Estate is part of LOGOS India Logistics Venture which has USD 800 million in investment capacity to develop and own high-quality, modern logistics facilities in key logistics markets of India, according to the statement.
MLL said the new warehouses will be an important part of its pan-India network of multi-client facilities that manage the fulfilment and distribution of its clients’ services within the e-commerce, consumer and engineering industries.
The facilities are designed in line with MLL’s sustainability standards, including liquid discharge management and renewable energy and waste management requirements and state-of-the-art automation, the company said.
Rampraveen Swaminathan, managing director and CEO of Mahindra Logistics, said, “Our focus remains on providing integrated, customised solutions for inbound and fulfilment and the warehousing network is a key element. We look forward to continued business growth from existing as well as potential customers from all regions. These new facilities set a benchmark in terms of sustainability.” MLL looks forward to continued business growth from existing as well as potential customers from all regions, he added.
According to the statement, the Estate will incorporate market-leading sustainability and environmental initiatives, including 20 acres of Miyawaki Forest Plantation, solar power generation and distribution for warehouse and common infrastructure energy provision, In line with both LOGOS’ and MLL’s commitment to sustainability.
State-of-the-art monitoring to measure warehousing air circulation, temperature, energy and water usage will also be employed within the Estate in conjunction with heat mapping on the movement of trucks and people throughout the property for operational control, it said.
“We are pleased to have partnered with MLL, one of fastest-growing integrated logistics companies in India, to support their significant growth in this region.
We will be delivering MLL’s three warehouses using lean construction, a process that involves using off-site precast, fabrication and preassembly for building and external development components,” Mehul Shah, CEO of LOGOS’ Indian business, said.
This, in conjunction with the company’s strong local network and regional expertise, has enabled it to deliver the first facility within rigorous timelines, despite the challenges of the global pandemic, Shah added.
Anshuman Magazine, chairman and CEO (India, South East Asia, Middle East and Africa) at CBRE, said, “The warehouse space take-up is expected to cross 32 million sq ft in 2021, boosted significantly by accelerated digitalisation, 3PL (third-party logistics) and e-commerce players, and improved sentiments in other sectors, such as engineering/ manufacturing, retail, FMCG and pharmaceuticals.” PTI SID IAS HRS hrs
