Welspun One Logistics Parks (WOLP), an integrated fund and development management platform, has announced a build-to-suit (BTS) lease agreement with Montra Electric (from TIVOLT), the 4-wheeler electric vehicle manufacturer of the Chennai-based Murugappa Group.
Under the partnership, Welspun One will construct a BTS facility, encompassing Montra Electric’s (from TIVOLT) retail experience centre and a dedicated assembly space tailored for four-wheeler small commercial EVs.
Located within the Welspun One logistics and warehousing park in Chinnambedu, Chennai, on National Highway 16, the unit is projected to commence operations by the second quarter of 2024.
WOLP’s warehousing project is part of a ₹2,500-crore investment MoU signed by Welspun One and the Tamil Nadu Government in November 2021. WOLP is a warehousing platform of the $2.3-billion global conglomerate Welspun World - a multinational with a presence in areas such as line pipes, home textiles, infrastructure, advanced textiles, and flooring solutions.
The cost of the BTS development is ₹80 crore. This is WOLP’s first project in the EV sector. Montra Electric (from TIVOLT) will begin operations in the warehouse by the second quarter of 2024, Anshul Singhal, Managing Director, Welspun One, told businessline.
The BTS unit is designed to handle 50,000 vehicles per annum at peak capacity. The unit will start with 15,000 vehicles per annum, and would touch 50,000 per annum within three-four years, based on market demand, he added.
Montra Electric (from TIVOLT) is one of the clients in the 118.84-acre park with a built-up area of 23.3 lakh sq ft. The facility is customised to meet Montra Electric’s (from TIVOLT) requirements, ensuring exceptional accessibility and specialised finished goods storage solutions, among other features, says a release.
A release quoting Singhal said, “This project exemplifies our dedication to providing tailored solutions that meet the unique needs of our clients. Our asset-light and investment-friendly approach aligns with Montra Electric’s (from TIVOLT) vision. This collaboration underscores our mission to transform the logistics landscape, drive innovation, and support the future of mobility.”
A senior member from Montra Electric (from TIVOLT) said, “Welspun One has adeptly addressed the company’s unique power supply needs, a crucial prerequisite for EV manufacturing. We are at the cusp of reshaping the electric vehicle sector, and establishing pioneering benchmarks within the industry.”