Restaurant aggregator and online food delivery company, Zomato, and its online grocery delivery platform, Blinkit, have entered into an agreement with Sumadhura Group to lease ~3,08,300 sq ft space at Sumadhura Logistics Park in Hoskote, Bengaluru.
This marks Zomato’s largest warehousing lease in Bengaluru, indicating the company’s commitment to grow the Blinkit business further.
The transaction emphasises a quick turnaround, state-of-the-art facilities, and cold storage zones. The said deal is for a tenure of seven years and is expected to start soon.
Sumadhura Logistics Park prioritises Grade A+ specifications, accessibility, security, modern amenities, and sustainable features for warehousing and industrial tenants. The park’s appeal is evident from its high standards of functional performance with dedicated food delivery players like Zomato already securing deals, establishing Sumadhura Logistics Park as a key player in the evolving landscape of industrial and warehousing sector in the Bengaluru region.
One of the key conduits in the country, serving as a gateway to southern India, Bengaluru, has rapidly evolved into a dynamic epicenter for warehousing and logistics. With its strategic location, booming industries, and a forward-looking approach to infrastructure development, the city has become a pivotal hub for storage, distribution, and supply chain management. Research by various international property consultants reveals that demand for both warehousing and industrial space in Bengaluru is expected to be 15-20 million sq ft by the end of this year. With the Bengaluru warehouse market catching momentum and newer demand trends, the city has become an attractive investment destination, further opening promising opportunities for institutional investors.
Sensing the opportunities, Bangalore-based builder Sumadhura Infracon is currently developing 2.5 million sq ft of warehousing space with a total investment of Rs 600 crore in the first phase, out of which 2.2 million sq ft is already developed and ready to be leased. Looking at the burgeoning demand, Sumadhura is planning to expand the total development to 6 million sq ft and is in the process of acquiring 150 acres of land on Hoskote-Chintamani Road.
Fuelled by the ongoing rise of digital commerce, logistics facilities across all of tier I, II and III are considered hot spots. This is particularly true in India, which is ranked as the world’s 8th largest e-commerce market. The pandemic further put the spotlight on e-commerce, same-day or next-day delivery, and the need to diversify supply chains. India’s e-grocery market gained substantially from demand created by the consequent lockdowns, shut-ins, and restrictions, thus making shopping for groceries online commonplace. All of these has been pushing the demand for warehousing and logistics.
The growing market demand has prompted e-commerce brands to strengthen their hyperlocal networks — collaborating with local manufacturers, shopkeepers and logistics vendors to procure, ship and fulfil orders as fast as possible. For hyperlocal deliveries, speed is the core essence, where customers expect their deliveries within a few hours, if not minutes. Be it ordering food from nearby restaurants or calling up the neighborhood grocery shop to deliver the monthly kitchen essentials, or some spur of the moment buy.
According to data provided by homegrown consulting firm RedSeer, the online grocery market is set to touch a whopping US$24 billion by 2025.