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Mahindra Logistics jumps after warehouse deal with LOGOS

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Mahindra Logistics rose 5.99% to Rs 706.45 after the company and LOGOS announced a long-term lease agreement for 1.4 million square feet (mmsf) of warehouse facilities at the LOGOS Luhari Logistics Estate in Delhi-NCR.

LOGOS is a logistics specialist with operations across Australia, China, Singapore, Indonesia, Malaysia, Vietnam, India and New Zealand.

The transaction represents India's largest warehousing facility in a single park.

Under the agreement, LOGOS will develop three Grade-A warehouses totaling 1.4 mmsf for MLL at the LOGOS Luhari Logistics Estate.

The first 0.5 mmsf warehouse, which was completed in mid-2021, is fully operational and the other two warehouses are currently under development with delivery in late 2021 and early 2022 respectively.

The new warehouses will be an important part of MLL's pan-India network of multi-client facilities that manage the fulfillment and distribution of its clients' services within the e-commerce, consumer and engineering industries. The facilities are designed in line with MLL's sustainability standards, including liquid discharge management and renewable energy and waste management requirements and automation. MLL will employ over 2,500 employees and third-party associates across these facilities.

The estate will incorporate market leading sustainability and environmental initiatives including 20 acres of Miyawaki Forest Plantation, solar power generation and distribution for warehouse and common infrastructure energy provision. "State-of-the-art monitoring to measure warehousing air circulation, temperature, energy and water usage will also be employed within the estate in conjunction with heat mapping on the movement of trucks and people throughout the property for operational control which will influence the future design requirements of logistics estates," the company said in a statement.

LOGOS Luhari Logistics Estate is part of LOGOS India Logistics Venture which has $800 million in investment capacity to develop and own high-quality, modern logistics facilities in key logistics markets of India.

On a consolidated basis, net profit of Mahindra Logistics declined 34.58% to Rs 9.80 crore on 22.41% rise in net sales to Rs 1019.11 crore in Q2 September 2021 over Q2 September 2020.

MLL is an integrated third-party logistics (3PL) service provider, specializing in supply chain management and enterprise mobility (people transport solutions).

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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First Published: Thu, December 02 2021. 12:26 IST