Tata Toyo Radiator, a leading player in the automotive components sector, has recently signed a 10-year lease agreement for a massive warehouse space in Pune’s Khed industrial hub. The agreement, covering over 250,000 square feet of space, highlights the increasing demand for warehousing facilities in India due to the growth of ecommerce and evolving supply chain needs.
The lease agreement includes details such as Tata Toyo Radiator initially paying a monthly rent of Rs 67 lakh, with an additional Rs 23 lakh allocated for tenant improvements. The total monthly cost amounts to Rs 90 lakh, with a structured rent escalation plan in place. The rent will increase by 12% after the first 2.5 years and every three years thereafter, ensuring stability for both the tenant and property owner.
Tata Toyo Radiator, established in 1998, specializes in manufacturing heat exchangers for automotive and non-automotive applications. The company, a joint venture between Tata AutoComp Systems, T RAD Co., and Mitsubishi, offers heat exchangers made from multi-layered aluminum for superior corrosion resistance and durability.
The growth of India’s warehousing sector is driven by factors such as the ecommerce boom, supply chain evolution, and GST implementation. With the surge in online shopping and companies optimizing their supply chains, efficient warehousing solutions have become essential. According to a study by JLL India and Miebach Consulting, the Indian logistics sector is expected to witness significant transformation, with around 1.2 billion square feet of warehouse space in demand by 2027.
Industrial hubs like Pune are expected to see continued growth in warehouse leasing activity, thanks to factors like rising ecommerce sales, technological advancements, and industrial expansion. As companies look to expand their logistics and supply chain capabilities, the demand for warehouse space is expected to increase across major cities in India.
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