Om Freight Forwarders Announces Major Warehousing Expansion in Raigad

Om Freight Forwarders Limited has announced a significant expansion of its logistics infrastructure through the strategic acquisition of a new warehouse facility. The company has announced an investment aimed at nearly doubling its current storage footprint to meet rising market demand.

Strategic Acquisition in Raigad

The company has acquired a new warehousing facility located at Mauje Sarade, Taluka Uran, in the Raigad district. This location is strategically vital due to its proximity to major industrial hubs and port facilities in Maharashtra.

Key Expansion Details:

Capacity Addition: Approximately 1,98,000 sq. ft. of both open and closed warehousing space.

Total Investment: Approximately ₹32 crore.

Operating Model: Unlike its existing leased locations, this new facility is purchased, representing a move toward asset ownership.

Timeline: The facility is expected to be fully operational within three months of the acquisition.

Capacity and Rationale

Prior to this acquisition, Om Freight operated with an existing capacity of approximately 2,50,000 sq. ft., which had maintained a high average utilization rate of 87% over the last 12 months. This high utilization served as a primary trigger for the expansion.

The management highlighted several strategic drivers for the investment:

Operational Efficiency: Enhances storage and logistics handling capabilities.

Network Strength: Strengthens the company's overall distribution network.

Scalability: Supports future demand growth and provides a more robust foundation for large-scale logistics operations.

Financial Structure

The ₹32 crore investment is being financed through a combination of bank term loans and internal accruals, demonstrating a balanced approach to capital allocation.

Source : Equity Bulls

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OmFreightForwarders Expansion Warehouse Raigad