Saturday, July 13, 2024

Zomato Secures Largest Warehousing Deal in India, Leasing 3 Lakh Sq Ft near Bengaluru

Zomato, in one of its most substantial warehousing transactions, has finalized a seven-year lease for 3.08 lakh sq ft at Sumadhura Logistics Park near Bengaluru, as confirmed by the developer.

The built-to-suit warehousing park is developed by Bengaluru-based Sumadhura Group and represents Zomato’s largest leased warehousing space in India to date. An email query to Zomato is pending a response.

Madhusudhan G, CMD Sumadhura Group, highlighted the significance of the collaboration, stating, “This collaboration with Zomato marks a significant milestone in our journey as we work towards expanding our clientele in the logistics and warehousing space. 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 Sumadhura Group has invested an initial Rs 600 crore in the first phase of Sumadhura Logistics Park, covering 100 acres and providing 2.5 million sq ft of commercial warehouse space. The company aims to expand the total warehouse space at Sumadhura Logistics Park to 6 million sq ft in the next phase.

Warehousing demand in India, particularly in the retail sector, has witnessed significant growth, constituting 13 percent of the total demand in 2022, up from 8 percent in 2019, according to a recent CBRE report. E-commerce, FMCG, and retail sectors collectively accounted for nearly 27 percent of the total warehousing demand from 2019 to H1 2023, according to the same report.

Zomato, reporting a net profit of Rs 138 crore for the October-December period, marked its third consecutive profitable quarter, with revenue increasing by 69 percent year-on-year to Rs 3,288 crore amidst challenges faced by the broader e-commerce sector.

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