HUL Expands Logistics with Bhiwandi Warehouse

Hindustan Unilever Limited (HUL) has made a notable investment in its logistics capabilities by leasing 5.93 lakh square feet of warehousing space in Bhiwandi, a strategic location near Mumbai, at an initial monthly rent of ₹1.54 crore. This decision reflects the growing demand for warehousing facilities in Bhiwandi, which has established itself as a pivotal hub for various companies, particularly e-commerce firms, seeking to optimise their supply chains. The area’s strategic advantages are further enhanced by the impending completion of the Mumbai-Nagpur Expressway, which is expected to bolster connectivity and drive economic growth.

The lease agreement, effective for a period of seven years, includes a rental escalation clause of 5% annually. According to property registration documents, the transaction was registered on October 7, with a security deposit equivalent to six months’ rent, highlighting the confidence HUL places in its operational expansion within the region. The stamp duty paid for this transaction amounted to ₹1.73 crore, alongside a registration fee of ₹30,000, indicating a significant financial commitment by the company to enhance its logistical footprint.

This move is not just a business decision; it aligns with the broader trend of industrial and logistics leasing across India’s top markets, which has seen a moderation in activity, recording 16.6 million square feet during the first half of 2024. Major cities like Bengaluru, Delhi-NCR, and Kolkata have accounted for nearly 58% of total space take-up, showcasing a concentrated demand for logistics facilities in metropolitan areas. While the overall new supply of industrial space has decreased by 16% to 15.5 million square feet, there remains a robust interest in third-party logistics, which constitutes 40% of leasing activity across key cities.

Sustainability is increasingly becoming a focal point in industrial leasing, with companies like HUL recognising the importance of efficient supply chain management to reduce their carbon footprint. As the demand for sustainable logistics solutions grows, HUL’s investment in a large warehousing facility reflects its commitment to optimising operations while addressing environmental concerns. This development could lead to the adoption of more sustainable practices in warehousing and distribution, ultimately benefiting both the company and the community as they navigate the complexities of modern urban infrastructure.