Godrej, Tata Capital partner to boost intralogistics leasing in India

Godrej Enterprises Group and Tata Capital have entered into a strategic partnership to accelerate India’s intralogistics transformation by introducing structured finance lease solutions for material handling equipment. The collaboration aims to help businesses scale operations without large upfront capital expenditure and plans to finance lease assets worth ₹100 crore over the next three years.

The partnership introduces CAPEX-light, OPEX-aligned leasing solutions to support the adoption of modern intralogistics equipment across high-growth sectors. Industries such as e-commerce, pharmaceuticals, retail, logistics, and manufacturing are rapidly shifting to electric, lead-acid and lithium-ion forklifts. However, higher upfront costs, typically 50–60% more than diesel trucks, often slow adoption. The leasing model removes this barrier, enabling enterprises to transition to energy-efficient equipment and upgrade to application-specific solutions.

Godrej Enterprises Group’s Material Handling Business has introduced several industry-first solutions, including indigenous lithium-ion forklifts with Indian battery management systems, fleet management systems, rental models, and customised maintenance contracts. The addition of finance leasing, which is still at a nascent stage in India’s intralogistics sector, is expected to help customers adopt new technologies and scale operations more efficiently.

Under the model, Tata Capital will lease Godrej forklifts to customers over a period of three to five years with predefined buyback values. The shift from CAPEX to OPEX provides predictable monthly outflows and offers an estimated 6% cost advantage compared to outright purchase, while complementing Godrej’s existing purchase and rental options.

Anil Lingayat, Business Head, Intralogistics (Material Handling) Business, Godrej Enterprises Group, said the partnership addresses the challenge of high upfront investment as companies move towards electric and specialised equipment. He added that the collaboration combines lifecycle service support from Godrej with financing capabilities from Tata Capital, allowing customers to focus on growth while improving long-term supply chain productivity.

Narendra Kamath, COO - SME Finance, Tata Capital, said the company’s equipment financing and leasing solutions are designed to help businesses access assets through flexible models. He added that the partnership aims to expand access to high-quality intralogistics equipment, support OPEX-based operations, and help companies modernise while preserving working capital.

The financing solution aligns with national initiatives such as the National Logistics Policy and PM Gati Shakti, which aim to improve supply chain efficiency and reduce logistics costs. Recent assessments estimate India’s logistics cost at around 8% of GDP, reflecting ongoing structural improvements across the sector.