2, March, 2024
HomeBusinessZomato Secures Largest Warehousing Deal in India: Leases 3.08 Lakh sq ft near Bengaluru

Zomato Secures Largest Warehousing Deal in India: Leases 3.08 Lakh sq ft near Bengaluru

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Zomato, a leading player in the food delivery industry, has recently finalized a significant warehousing deal near Bengaluru. The company has leased an impressive 3.08 lakh sq ft at the Sumadhura Logistics Park, making it one of its most substantial transactions in India.

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This collaboration with Bengaluru-based Sumadhura Group, a renowned developer, has resulted in a built-to-suit warehousing park, with the agreement locked in for a duration of seven years.

Sumadhura Logistics Park, spanning 100 acres and developed with an initial investment of Rs 600 crore, is a strategic move to address the rising demand for warehousing solutions in Bengaluru, particularly in East Bengaluru and surrounding areas. Madhusudhan G, CMD Sumadhura Group, expressed the significance of this collaboration, stating that it marks a milestone in their journey to expand clientele in the logistics and warehousing sector.

The first phase of Sumadhura Logistics Park offers 2.5 million sq ft of commercial warehouse space, with plans to increase the total warehouse capacity to 6 million sq ft in the next phase. This expansion aligns with the growing demand for warehousing solutions in India, driven by sectors like e-commerce, FMCG, and retail.

According to a recent report by CBRE, the retail sector has played a crucial role in the surge of warehousing demand in India, with its share increasing from 8 percent in 2019 to 13 percent in 2022. The report highlights that collective warehousing demand from e-commerce, FMCG, and retail sectors accounted for nearly 27 percent of the total demand from 2019 to H1 2023.

In the financial aspect, Zomato reported a net profit of Rs 138 crore for the October-December period, marking the third consecutive quarter of positive earnings. Despite challenges in the broader e-commerce sector due to high inflation and muted demand, Zomato’s revenue experienced a significant 69 percent year-on-year increase, reaching Rs 3,288 crore.

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This substantial warehousing deal not only strengthens Zomato’s logistical capabilities but also reflects the company’s strategic initiatives to meet the evolving demands of the Indian market.

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