Mahindra Logistics expanding base in Telangana

Sees potential to create pharma-centric warehouses in Telangana and pan-India

Hyderabad: Mahindra Logistics Ltd (MLL), a third-party logistics (3PL) solution provider, added 4 lakh sq ft multi-user warehouse capacity at Patancheru catering to consumer, e-commerce, pharma and other core sectors, to its existing ‘Built-To-Suit’ capacity in Hyderabad. The facility will employ around 400 people.

The company sees further growth opportunities in Telangana. As part of its growth plans, the company is developing additional Grade A warehousing infrastructure in Zaheerabad to cater to captive and contract manufacturing sector needs, which will begin operations by the end of FY21. In the first phase, it will add about 1 lakh sq ft followed by further capacity expansion in the next two phases.

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MLL has created an overall capacity of 1 million sq ft in Telangana so far catering to a variety of sectors. Mahindra Group has a tractor factory in Zaheerabad and has also been involved in automotive components in the State.

The company which has also added over 3.5 lakh sq ft capacity in Chennai, did not disclose the investments in both the cities. In addition to this, MLL has set up nearly 10 lakh sq ft of flex warehousing solutions for supporting customers.

The company has set a goal to become a Rs 10,000 crore company by FY26 through its pan-India operations, and is going to add 1.5-2 million sq ft per year of warehousing space, in line with its growth operations.

Telangana potential

Rampraveen Swaminathan, MD and CEO, Mahindra Logistics Limited, said, the State is an important market and has large road network (28,000km), connectivity to all major national highways and good international air connectivity.

Telangana has become a key hub for southern markets and has over the years emerged as an electronics cluster with 250 companies operating across the State. The State has long-term prospects in the logistics sector and currently contributes about 5-10 per cent of the national business.

Pharma sector

A considerable size of the new spaces created in the State and India is also catering to large pharma companies during the pandemic. MLL is also gearing up with a last-mile delivery roadmap to cater to the highly anticipated Covid vaccine for its pharma clients across India.

Swaminathan said, “We have strategically created warehouses across the major pharmaceutical clusters across India including Hyderabad, and pockets of Maharashtra, Gujarat and Himachal Pradesh. We today operate at least 8-10 pharma-dedicated warehouses. We have created temperature-controlled facilities. Telangana has developed an ecosystem for integrated development and this will open up new opportunities, including the upcoming Hyderabad Pharma City.”

Pharma remains one of the top sectors for Mahindra Logistics, more so in the Covid scenario, along with food, groceries, electronics and e-commerce. Farm sector is also showing promise in the warehousing space.

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