CHENNAI: Mahindra Logistics aims for warehouse capacity expansion and strengthening its fleet operations in the southern and eastern markets, driven by increasing demand in FMCG, consumer segment and more appetite in the smaller cities.
The company has set a target of reaching 30 million sq.ft. warehouse capacity in the next 7- 8 years from 19 million sq.ft. at present, by adding at least 2.5 million sq.ft every year. Apart from strengthening its operations in the eight major cities, it plans to expand into tier-II cities with strong demands like Lucknow, Vizag, Coimbatore, and Tuticorin, among other places. Clients now expect the faster movement of goods to tier-II cities and smaller towns and cutting down delays, Rampraveen Swaminathan, Managing Director and Chief Executive of the company explains the strategy.
Mahindra Logistics, whose business mix consists 60% of the automobile original equipment manufacturers (OEMs) and component manufacturers, is looking to establish a new facility in Hosur, near Bengaluru, which is emerging as a hub for electric vehicle and consumer electronics manufacturing. It is scouting for places to add a second warehousing facility in Chennai and expand its existing Sriperumbudur facility.
The capacity in Chennai is expected to increase to a million sq.ft in a few years, he said, calling it an important hub owing to strong consumption in Tamil Nadu and connectivity to port and roads. Mahindra Logistics is also expanding into Guwahati, North East cities, Kolkata, among other major cities.
TO RAISE WAREHOUSE CAPACITY
It has set a target of 30 million sq.ft warehouse capacity in next 7- 8 years from 19 million sq.ft at present
To establish new facility in Hosur
Mahindra Logistics is looking to establish a new facility in Hosur, near Bengaluru, which is emerging as a hub for EV and consumer electronics manufacturing