Mahindra Logistics leases 6.53 sq ft warehouse near Mumbai for 5 years: Report

Mahindra Logistics, a third-party logistics and integrated supply chain company, has leased more than 6,53,000 sq ft of warehousing space at Shakti Logistics Park in Bhiwandi near Mumbai for five years, according to an Economic Times report.

The company will pay a rent of ₹11.28 crore in the first year. The agreement has a clause to increase the rent by 4.5% every 12 months, the report added.

The company has already paid a security deposit equal to three months' rent of over ₹2.82 crore to the property owner, RKJ Shakti Logistics Park LLP, the report further said.

While the deal has already been concluded and registered, it will be effective from April as the agreement includes a rent-free period of 120 days starting from December 1, 2022.

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According to the report, the deal was registered on December 27 and the agreement provides Mahindra Logistics exclusive rights over a parking area of nearly 1,00,000 sq ft, showed documents accessed through CRE Matrix, a real estate data analytics firm.

Mahindra Logistics is an integrated logistics and mobility solutions provider. It serves more than 400 corporate clients in industries such as automotive, engineering, consumer goods, pharmaceuticals, telecom, commodities and ecommerce.

The company manages more than 17 million sq ft of warehousing space under its supply chain management vertical. These include a mix of built-to-suit, dedicated, and multi-user warehouses that help in serving over 21,000 pin codes across 500 locations.

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For the half year ended September, it had reported revenue of ₹2,526 crore as compared to ₹1,916 crore a year earlier. Net profit was ₹25 crore against ₹8 crore in the year-earlier period, the report further added.

Bhiwandi, in the last few years, has emerged as the country's one of the most prominent logistics and warehousing hub given its proximity to areas including Mumbai, Thane, Navi Mumbai and the entire metropolitan region.