Companies

Mahindra Logistics upbeat on warehouse, logistics; to add 1.5-2 m sq ft per annum

V Rishi Kumar Hyderabad | Updated on November 05, 2020

Launches 7.5 lakh sq ft capacity in Hyderabad, Chennai

Mahindra Logistics Ltd (MLL), a leading third-party logistics (3PL) solution providers, is upbeat on the coutry’s growing flexi warehousing and logistics business. It plans to add about 1.5 million sq.ft to 2 m.sq.ft capacity per annum to its existing capacity of 16 million sq.ft.

The ₹3,470-crore turnover company of the diversified Mahindra Group is looking at a strong double-digit growth over the next few years and hopes to be a ₹10,000-crore company by FY26.

The company added more than 7.5 lakh sq. ft area to its existing ‘Built-To-Suit’ warehousing capacity in Hyderabad and Chennai. The facilities have been developed to provide flexible and scalable fulfillment and integrated distribution solutions.

Phase 1 of these sites are focussing on integrated solutions for e-commerce, consumer and engineering industries. In addition to this, with the anticipation of strong demand during the forthcoming festive season, MLL has set up nearly 10 lakh sq. ft. of flex warehousing solutions for supporting customers in anticipation of the upcoming festival season.

Large spaces

Rampraveen Swaminathan, Managing Director and CEO, Mahindra Logistics Limited, said, “Continuing our efforts in growing the non- Mahindra business, MLL continues to expand its warehousing capacity and is focused on tapping the huge potential in warehousing spaces across all regions. With the launch of these large spaces, we look forward to continued business growth from existing as well as potential customers from all regions.”

“A considerable space is catering to large Pharma companies during the pandemic. MLL is gearing itself with a massive last-mile delivery roadmap to cater to the highly-anticipated Covid vaccine for its pharma clients across India. As a partner for many pharma companies, the company expects to play a role in the vaccine supply chain offering storage cum last mile delivery for our clientele,” he said.

The company has an asset light model and focusses on offering its range of flexi warehousing and customised technology enabled solutions that span across the supply chain and people transport operations.

The warehouse and logistics business has been doing well and is poised for significant growth in the years to come. MLL serves over 350 corporate customers across various industries like automobile, engineering, consumer goods and e-commerce.

The company has an active fleet of over 17,000 vehicles and handles over 40,000 to 50,00 trips a month. In addition, it has a fleet of over 7,000 cars and sedans which have been deployed.

Outlining the potential, he said: “The organised Grade A warehouse and logistics sector is poised for significant growth in the $ 200 billion business. The post-Covid consumption industry has seen a robust demand and we believe this is one area which will continue to to grow much faster along with e-commerce business in the country.”

Referring to Mahindra’s Farm equipment manufacturing facility at Zaheerabad near here, he said “the company is setting up a large warehouse which will not only support Mahindra tractor facility but also offer solutions to third parties. This is part of its effort to offer value-added solutions on e-commerce, consumer and engineering verticals.”

Published on November 05, 2020

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