Hindustan Unilever (HUL) has leased a 600,000 sq. ft. warehousing facility in Bhiwandi, near Mumbai, for over seven years, marking one of the largest warehousing transactions in the Mumbai Metropolitan Region (MMR). The deal includes an initial monthly rent of over INR 1.5 crore, with a 5% annual increase, totaling over INR 150 crore throughout the lease. This facility will enhance HUL's logistics and distribution network, supporting demand in and around MMR. As FMCG companies focus on efficient supply chain management, this move strengthens HUL's logistics capabilities, positioning the company to better serve both urban and rural markets.
Hindustan Unilever (HUL), a leading consumer goods company, has leased a substantial warehousing facility covering approximately 600,000 square feet in Bhiwandi, near Mumbai, for a term exceeding seven years. This transaction ranks among the largest for warehousing and distribution facilities in the Mumbai Metropolitan Region (MMR) in recent years.
The company is set to pay over INR 1.5 crore in monthly rent during the first year, with an annual rent increase of 5% stipulated in the agreement. This will bring the total rental payout to more than INR 150 crore over the lease period. A security deposit equivalent to six months' rent has also been provided, and the deal was officially registered earlier this month, according to documents accessed through Propstack. An email seeking comment from Hindustan Unilever remained unanswered at the time of reporting.
This new fulfilment hub is anticipated to play a pivotal role in enhancing HUL's logistics and distribution network, enabling the company to effectively meet the demand for its products in and around the MMR, as noted by logistics experts.
The deal highlights the trend of major corporations expanding their operations in logistics hubs like Bhiwandi, as they strive to streamline operations and optimize supply chains in an evolving market. HUL operates a vast supply chain network that integrates regional fulfilment centres, distribution hubs, and modern warehousing facilities to ensure efficient product availability across urban and rural markets.
The FMCG company has concentrated on optimising its logistics by establishing warehouses near key consumption hubs such as Mumbai, Bengaluru, and Delhi, as well as in secondary markets like Bhiwandi, which serve as essential links in its distribution strategy. The demand for warehousing among FMCG companies in India has surged significantly in recent years, reflecting the growing need for efficient supply chain management.
In conclusion, the establishment of this warehousing facility underscores HUL's commitment to optimising its logistics and distribution capabilities. As demand for efficient supply chains continues to rise among FMCG companies, this strategic move positions HUL to better serve urban and rural markets, reinforcing its operational efficiency in a competitive landscape.
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