Mahindra Logistics is set to come up with the third and last unit of its warehousing facilities in Luhari in Delhi-NCR region besides adding two more in Bhiwandi and Nashik in the current quarter of this fiscal, a senior company official has said. The company is now also looking beyond the major cities for enhancing its warehousing footprint in the second phase of its network expansion as it sees a surge in demand from smaller cities such as Lucknow, Patna and Guwahati, among others.
Mahindra Logistics’ warehouse services and solutions revenue spiked 57 per cent year-on-year in the June quarter. On a sequential basis, it grew by around 13-15 per cent even as the quarter-on-quarter capacity remained flat, as per the company’s Q1 earnings.
Mahindra Logistics Ltd (MLL) currently manages 17.5-million square feet of warehousing space at multiple locations. In addition, the company has already contracted another 2.5 million for multi client facilities.
MLL intends to add another around 2-million square feet of space within this fiscal, its Chief Executive Officer (CEO) Rampraveen Swaminthan said.
“We will have around another 2-million square feet of warehousing space added in the rest of this year. In the second quarter (July-September) alone, we will have the last block at Luhari coming up. This apart, we also have two facilities coming up in Bhiwandi and Nashik,” Mahindra Logistics Ltd Managing Director and Chief Executive Officer Rampraveen Swaminathan told PTI.
The company had last year announced it was setting up three Grade-A warehouses in 1.4 million square feet of leased space in Logos Luhari Logistics Estate in Delhi-NCR.
Of these three built-to-suit units, two were to be operational in 2021, while the third unit was slated for early 2022.
In addition to this, Swaminthan said, the construction work for establishing warehousing units in Patna, Lucknow and Guwahati is going on at present.
MLL is also looking at cities such as Bhubaneswar and Vijayawada for expansion of its operations, Swaminathan said, and emphasized that the company will now start expanding its network into smaller spoke locations.
“In the future, the network has to go out to smaller cities from big cities,” he stressed.
