FM Logistic India plans to add 40 lakh sq feet of warehousing space under its operations over the next three years and aims to log 35 per cent growth year-on-year during this period, a top company executive has said.
Pune-based FM Logistic India, which is part of the contract logistics provider FM Logistic, had last year announced setting up of a 31-acre multi-client logistics facility at an investment of USD 30 million, which is expected to be completed by this year end. This project is part of the company''s plans to invest USD 150 million in the next five years in setting up warehouses in India, announced in March last year. The french 3PL (third party logistics) player forayed into the domestic market after acquiring Pune-based warehousing firm, Spear Logistics in 2016.
"Currently we have 55 lakh sqft of warehousing space under operations. We plan to have another 40 lakh sq ft over the next three years. So by the end of three years, FM logistic India will have (about) 1-crore sq ft of warehousing space under operations," Alexandre Amine Soufiani, managing Director, FM Logistic India told PTI. He said the company plans to invest in setting up its own warehouses in Mumbai (10 lakh sq ft) and Bengaluru (7 lakh sq ft), by the end of next year, adding the Jhajjar warehousing facility will be the first owned warehouse by FM Logistic in India and it will be completed by December this year.
The FM Logistic India has presence in over 90 locations and it provides warehousing and distribution logistics services for the FMCG, retail, automotive, e-commerce, engineering, telecom, pharma and other sectors. Soufiani said that the company is looking to grow at 35 per cent year-on-year over the next three years, adding segments such as e-commerce, retail, food and pharma together accounting for 30 per cent in the overall growth.
Earlier, FM Logistic, which announced its results for the 2019-20 financial year on Tuesday, said in a statement that "FM Logistic India posted revenue growth of more than 15 per cent during 2019-20, despite the market slowdown in the national economy, with the automotive industry being particularly hard hit by falling consumption."
"The main impetus for this growth has come from e-commerce as a result of two significant contract wins. A leading e-commerce clothing company in India, has contracted FM Logistic to handle around 80,000 orders per day," it said. The second company, a leading furniture retailer, has appointed FM Logistic to handle all its online customer orders for Western India.
Another contract signed in 2019-20 with a lighting giant and under the terms of this contract, the company has responsibility for the entire logistics chain of this international group, from customs clearance for imported products to industrial and retail customer deliveries, it said in the statement.
Nevertheless, the logistics service provider continued to invest and win new customers during the year as well as during the lockdown. It strengthened its market positions, especially among food, omni-channel, e-commerce and pharma customers, FM Logistic said in the statement. "It also pursued its strategy of developing state-of-the-art multi-client facilities (MCFs)in the most important Indian Economic Zones, where two sites are in operation (Mumbai and Delhi), and another is under construction at Jhajjar, Haryana," it said.
FM Logistic has already stated that the Jhajjar facility, which will provide cutting-edge warehousing, handling, value-added and omni-channel services to customers is aimed at addressing the needs of its clients in the northern region as it enjoys strategic access to the Kundali, Manesar and Palwal expressways for faster connectivity to all major consumption centres in the region.
The new warehouse will have a storage capacity of 1,00,000 pallet positions and provide a dedicated area for co-packing and other value-added services. Furnished with safety and security features, the warehouse will offer cost efficient, quality storage and handling services.