Bengaluru-based Sumadhura Group created the built-to-suit warehousing park, and the sale has been sealed for seven years.

Business

Zomato leases massive 3 lakh sq ft warehousing space in Bengaluru

Published on February 8, 2024

Zomato: Bengaluru-based Sumadhura Group created the built-to-suit warehousing park, and the contract has been sealed for seven years.

In a significant move, Zomato has secured a lease for 3.08 lakh sq ft of warehousing space at Sumadhura Logistics Park near Bengaluru. The details of this substantial transaction were shared by the developer of the park.

Partnership with Sumadhura Group

The built-to-suit warehousing park, developed by Bengaluru-based Sumadhura Group, has sealed the deal with Zomato for a duration of seven years. This marks one of the largest warehousing spaces leased by Zomato in India.

Expansion Strategy

Madhusudhan G, CMD of Sumadhura Group, highlighted the strategic significance of this collaboration, emphasizing the increasing demand for warehousing solutions in Bengaluru, particularly in East Bengaluru and its surrounding areas.

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Investment and Growth Plans

The Sumadhura Group has invested Rs 600 crore in the initial phase of the Sumadhura Logistics Park, covering 100 acres and offering 2.5 million sq ft of commercial warehouse space.

The company aims to further expand the total warehouse space at the park to 6 million sq ft in the upcoming phase.

Retail Driving Warehousing Demand

Retail has emerged as a significant driver of warehousing demand in India, with its share increasing from 8 percent in 2019 to 13 percent in 2022.

According to a recent report by CBRE, the collective demand from e-commerce, FMCG, and retail sectors accounted for nearly 27 percent of the total warehousing demand from 2019 to H1 2023.

Zomato’s Financial Performance

Zomato reported a net profit of Rs 138 crore for the October-December period, marking the third consecutive quarter of positive earnings for the food aggregator.

Despite challenges faced by the broader e-commerce sector due to high inflation and muted demand, Zomato recorded a significant 69 percent year-on-year increase in revenue, reaching Rs 3,288 crore.