Patel Integrated Logistics enters into loan agreement with SIDBI for its warehouse expansion drive

July 01, 2017: Patel Integrated Logistics Limited (PILL) has tied up with Small Industries Development Bank of India (SIDBI) for procuring an initial amount of Rs 50 million to set up a warehouse facility in Bangalore, Karnataka. The Mumbai-based logistics major will be building the warehouse on 2.20 acres of land acquired from Karnataka Industrial Areas Development Board (KIADB) on a long-term lease of 99 years.

As part of a massive warehouse expansion drive on a Pan India basis, PILL will be setting up warehouses along key market connect points in India like Ambala, Mumbai, Pune, Indore, Chennai, Ahmedabad, Gurgaon etc. Talks are in advanced stages to purchase land and enter into long-term associations with plug and play warehouses in Gujarat, Indore and Chennai equipped with plug and play facilities. The company has envisaged an investment of Rs. 50-60 crore for building the warehouses which will be operated on outright purchase on ownership basis or leases of more than 30 years or more.

“We are exploring various options for raising funds for the warehouse expansion drive. The company is in active consideration to secure loans from banks and may also utilize its internal accruals for setting up warehouse facilities on a Pan India basis”, said Mahesh Fogla, chief financial officer, PILL.

PILL is in firm plans to operationalize 3-4 warehouses before April 2018.