Hindustan Unilever Ltd (HUL) has leased 5.93 lakh sq ft of warehousing space in Bhiwandi, near Mumbai, for a monthly rent of Rs 1.54 crore. The lease agreement, registered on October 7, covers a seven-year term and includes a 5 percent annual rental escalation clause, according to property registration documents accessed by Propstack.
HUL, one of India’s prominent consumer goods companies, paid a security deposit equivalent to six months’ rent. Additionally, the company paid Rs 1.73 crore in stamp duty and a Rs 30,000 registration fee for the transaction.
The leased space is expected to enhance HUL’s logistics and distribution operations for its consumer products, such as soaps, detergents, and cosmetics. Bhiwandi, a key warehousing hub, has attracted various companies, including those in the e-commerce sector, due to its strategic location. The development of the 700-km Mumbai-Nagpur Expressway is anticipated to further increase the area’s importance.
A report by CBRE India noted that the industrial and logistics leasing market in India saw a slowdown in the first half of 2024, with 16.6 million sq ft of space leased across key cities, including Bengaluru and Mumbai.
This move aligns with HUL’s broader logistics strategy as it aims to strengthen its supply chain capabilities in the region.