Mahindra Logistics (MLL), one of India's largest Third-Party Logistics (3PL) solution providers and LOGOS, a leading Asia Pacific logistics specialist, have announced a long-term lease agreement for 1.4 million square feet (mmsf) of warehouse facilities at the LOGOS Luhari Logistics Estate in DelhiNCR. The transaction represents India's largest warehousing facility in a single park.
Under the agreement, LOGOS will develop three Grade-A warehouses totaling 1.4 mmsf for MLL at the LOGOS Luhari Logistics Estate. The first 0.5mmsf warehouse, which was completed in mid-2021, is fully operational and the other two warehouses are currently under development with delivery in late 2021 and early 2022 respectively.
The new warehouses will be an important part of MLL's Pan-India network of multi-client facilities that manage the fulfillment 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. MLL will employ over 2,500 employees and third-party associates across these facilities.
In line with both LOGOS' and MLL's commitment to sustainability, 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. 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 which will influence the future design requirements of logistics estates.
Mehul Shah, CEO of LOGOS' Indian business 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 which involves using offsite precast, fabrication and preassembly for building and external development components. This, in conjunction with our strong local network and regional expertise, has enabled us to deliver the first facility within rigorous timelines, despite the challenges of the global pandemic."
Mr. Rampraveen Swaminathan, Managing Director and CEO, Mahindra Logistics Limited, said: "Continuing our efforts in growing our warehousing business, we are delighted to announce the launch of Luhari Warehousing Facilities in partnership with LOGOS. Our focus remains on providing integrated, customized solutions for inbound and fulfillment 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."
Mr. Anshuman Magazine, Chairman & CEO - India, South East Asia, Middle East & Africa, CBRE said, "We take immense pride in being an integral part of India's sunrise sector. Warehouse space take-up is expected to cross 32 million sf in 2021, boosted significantly by accelerated digitalization, 3PL and e-commerce players, improved sentiments in other sectors such as engineering/manufacturing, retail, FMCG, and pharmaceuticals."
LOGOS Luhari Logistics Estate is part of LOGOS India Logistics Venture which has US$800 million in investment capacity to develop and own high-quality, modern logistics facilities in key logistics markets of India.
Shares of Mahindra Logistics Limited was last trading in BSE at Rs. 666.55 as compared to the previous close of Rs. 649.40. The total number of shares traded during the day was 12315 in over 859 trades.
The stock hit an intraday high of Rs. 689.50 and intraday low of 648.75. The net turnover during the day was Rs. 8220448.00.