M&M to set up warehouses

Mahindra Logistics, a part of IT-to-tractor conglomerate Mahindra & Mahindra, has chalked out aggressive cargo logistics plans to cash in on the retail boom in the country.

The company has lined up investments worth Rs 400 crore in the next 3 years for setting up greenfield warehouses across the country. Out of this, it has already invested Rs 100 crore in rolling out 10 warehouses across the country, industry sources said.

The company is planning customised cold and dry warehouses and fruits and vegetable processing centres for corporates in major cities, including Mumbai, Pune, Bangalore, Hyderabad, Chennai, Kochi and Kolkata.

With two warehouses already operational, it is planning to convert interim warehouses taken on lease into greenfield facilities depending on client requirements such as material handling, storage, packing and so on.

To infuse tech-enabled services, vehicle deployment and global best practices in logistic solutions, Mahindra Logistics is also planning a JV with international companies. It is talking to various global firms in this regard, sources said.

Sanjay Sinha, chief executive, said, "We will provide state-of-the-art process systems along with efficient logistics infrastructure such as warehousing, customised vehicle deployment and appropriate tech-enabled processes to our clients".

The company can build a greenfield warehouse within 6 to 8 months of acquiring the necessary land. The interim warehouses can be converted into greenfield facilities in a shorter time in any part of the country, Sinha added.

Mahindra Logistics is already providing logistics services to retail majors such Pantaloon, Aditya Birla Retail and others. It has a 60,000 sq feet distribution centre at Aditya Birla Retail's Pune outlet, sources said.

Sinha said the company would provide logistics solutions to both domestic and multinationals as it has competencies in metros as well as the rural areas.

"We can go along with retail companies in category 'C' towns at a short notice. We are already operating with retail firms in smaller towns such as Kozhikode and Mysore. Having said that, if global players prefer to confine to metros, we will cater to them as well," he emphasized.

"In the last one year, Mahindra Logistics has been making major preparations to enter the growing corporate retail industry in India. The basic processes of in-bound, warehousing management and out-bound activities required in retailing have a lot of convergence with automotive industry, since both sectors need similar expertise in systems, domain knowledge and skill sets. Mahindra Logistics intend to offer international logistics to our customers who already utilize our domestic services," Sinha said.