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Metro Brands Ltd, one of the prominent Indian footwear companies, has secured its largest warehousing space to date, leasing a purpose-built facility spanning 3.25 lakh square feet in Bhiwandi near Mumbai. The move comes as part of the company's expansion strategy, aiming to strengthen its operational capacity. The space was leased directly from RK Builders for a duration of five years.
As of September 2023, Metro Brands Ltd boasted a vast retail footprint, operating over 826 stores across 192 cities in 31 Indian states and Union territories. This recent venture aligns with the company's vision for aggressive growth and its commitment to delivering top-tier services to its clientele. Kaushal Parekh, the Chief Financial Officer of Metro Brands Ltd, emphasized the strategic importance of this move, citing its potential to enhance efficiency and cater to the escalating demands of the business.
The transaction was facilitated by Colliers India, serving as the transaction advisor. Vijaya Ganesh, Managing Director of Industrial & Logistics Services at Colliers India, highlighted the resurgence of the retail industry, driven by increased disposable income and an increasing appetite for elevated lifestyle offerings. He underscored the rapid advancement of the warehousing sector, attributed to the adoption of innovative technologies, infrastructural enhancements, and streamlined processes. RK Builders Group, the lessor in this arrangement, has a robust track record delivering over 7.5 million square feet of properties and currently having 2.5 million square feet of Grade-A warehousing under construction.
This leasing activity mirrors a broader trend of steady growth in the industrial and warehousing segment. According to a report by Colliers India, the warehousing sector witnessed a gross absorption of 25 million square feet in 2023, marking a 2% increase from the previous year. Mumbai's Bhiwandi emerged as a focal point, garnering significant attention due to its strategic positioning, stable rental market, and proximity to key urban centres in Thane and Mumbai.
Metro Brands Ltd's acquisition of this expansive warehousing space underscores its commitment to expansion and operational excellence. With strategic partnerships and facilitation by industry experts, the move reflects the dynamism and growth potential within India's retail and warehousing landscape.
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