Damco India, a subsidiary of AP Moller-Maersk, has leased a 2.43 lakh sq. ft. warehousing facility in Bhiwandi, further expanding its logistics footprint in one of India’s key warehousing hubs. The transaction was revealed through documents accessed by CRE Matrix.
Deal Highlights
The lease agreement spans five years, with a starting monthly rent of ₹47.62 lakh. The security deposit stands at ₹1.90 crore. Also, the agreement includes a three-year lock-in period, along with a 4% annual rent escalation clause.
Strategic Importance of Bhiwandi
Located on the Mumbai–Nashik highway, Bhiwandi has emerged as a critical warehousing and logistics hub. This is due to its proximity to Jawaharlal Nehru Port and key manufacturing clusters. Its connectivity and infrastructure make it a preferred location for large-scale logistics players looking to optimize supply chain efficiency.
Maersk’s Expanding Warehousing Network
The move aligns with Maersk’s aggressive expansion strategy in India. In 2022 alone, the company operationalized multiple facilities across key markets, including Pune, Kolkata, and Sikandrabad, along with additional capacity in Bhiwandi.
Additionally, AP Moller-Maersk strengthened its presence in the National Capital Region with large warehousing assets in Farrukhnagar and Dadri. These locations offer strategic access to industrial corridors, freight corridors, and key multimodal logistics infrastructure.
Integration of Damco into Maersk
Damco, once a standalone logistics brand, has now been fully integrated into the Maersk ecosystem. This consolidation reflects Maersk’s shift toward offering end-to-end supply chain solutions, combining shipping, warehousing, and inland logistics under a unified brand.
Sector Outlook: Rising Demand for Grade-A Warehousing
India’s Grade-A warehousing segment will see a 15% by 2025. The demand is largely due to the inadequacy of Grade-B and Grade-C facilities to meet modern logistics requirements.
India’s warehousing sector will reach $2.8 billion in revenues by 2025, driven by rapid growth in e-commerce, FMCG, and organized retail, along with ongoing infrastructure developments such as dedicated freight corridors.
The lease transaction highlights the growing institutionalization of India’s warehousing sector, with global players like AP Moller-Maersk doubling down on strategically located Grade-A assets. Consequently, Bhiwandi continues to solidify its position as a logistics hotspot, benefiting from strong connectivity, port access, and rising demand from large occupiers.
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Media Mentions
- The Economic Times: Maersk leases 2.43-lakh-sq-ft warehouse in Bhiwandi near Mumbai.
- Money Control: Damco India leases 2.43 lakh sq. ft. of warehousing space in Bhiwandi.
