Food delivery startup Zomato has signed a lease agreement for a 300,000-sq ft built-to-suit warehouse that will come up in Bengaluru’s Sumadhura Logistics Park.
It will be Zomato’s largest built-to-suit warehousing space in the country. The company reported a third consecutive quarter of increase in cash balance as well as profit.
“This collaboration with Zomato marks a significant milestone in our journey as we work towards expanding our clientele in the logistics and warehousing space,” said Madhusudhan G, chairman and managing director of Sumadhura Group, which owns Sumadhura Logistics Park.
Sumadhura has invested INR 600 crore in the first phase of the logistics park, which will cover 100 acres, offering 2.5 million sq ft of commercial warehousing space.
The company aims to increase the total warehouse space at Sumadhura Logistics Park to 6 million sq ft in the next phase.
The project offers warehousing solutions in Bengaluru and the surrounding areas. It marks Sumadhura Group’s entry into the ever-expanding logistics sector. The facility targets industries such as e-commerce, pharmaceuticals, manufacturing, automobile, logistics, FMCG, retail and electronics.
“Riding on the increasing contribution of the manufacturing sector to the country’s GDP and a booming economy, these sectors are looking at expanding their offerings,” said Madhusudhan G. “This is a strategic move for our group, driven by the increasing demand for warehousing solutions in Bengaluru, particularly in East Bengaluru and surrounding areas.”
The Indian industrial and logistic segment is undergoing transformative changes due to the implementation of existing government programmes and projects such as ‘Make in India’, ‘Gati Shakti’, multi-modal logistics parks (MMLP), production-linked incentive (PLI) schemes, etc., which are also expected to continue to provide a fillip to the industrial and warehousing ecosystems in the country.
In 2024, warehouses are set to draw substantial investor capital due to rising demand from manufacturers and third-party logistics (3PL) companies.
Cushman and Wakefield has projected the leasing of grade A warehouses across the top 8 cities in the country to top 50 million sq ft in 2024, crossing 2023’s estimate of 45–50 million sq ft.
In the third quarter, Zomato’s profit after tax increased by four times to INR 138 crore while its revenue from operations went up by around 69% to INR 3,228 crore.
