FM Logistic in India is looking to set up intra-city warehousing units across Mumbai, Delhi and Bengaluru by converting some abandoned mills into such facilities, amid an increasing demand for quick deliveries by online customers.
The French 3PL is in discussion with a closed mill owner in Mumbai, while exploring the possibility of such projects in Delhi and Bengaluru. Along with this, FM Logistic is also open to set up completely new intra-city warehousing facilities.
“In the post-COVID-19 scenario, having an intra-city warehousing facility is a must to be able to deliver the goods to the end-customer within hours of placement of an order. But, the land in the cities is costly,” said Alexandre Amine Soufiani, Managing Director, FM Logistic India.
“We are scouting for warehousing facilities inside the cities of Mumbai and Delhi to either build multi-storey warehouses which are a new concept, or to refurbish abandoned cotton mills in Mumbai within the city,” he added.
He said the company has partnered with e-commerce and other omni-channel retail companies and has to offer them multi-customer facilities with intra-city warehouses.
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 Mumbai has many closed mills and the company is thinking of partnering with owners of those mills and transforming them into intra-city warehousing.
“In Mumbai, we are in talks with one of the mill owners, we are carrying out due diligence and looking at how we can make it safety-compliant, as we do not want to compromise on the safety aspects at all,” he said.
Soufiani said there are two models, one is to take on lease a closed mill land or a sick factory unit, refurbish them with all safety measures like fire alarms and proper exit gates and use them as intra-city warehouses. The second model is to build from scratch vertically instead of horizontally to deal with the issue of land, which is both scarce and expensive.
“Besides requiring less land, a vertical warehousing facility for less gives the possibility of separation between the different customers and also has the advantage for the cold storage for pharma,” Soufiani added.