Mahindra Group’s logistics and supply chain services arm, Mahindra Logistics Ltd, has picked up over 4.75 lakh sq ft of warehousing space in Howrah district near Kolkata through a long-term lease, marking one of the largest fresh logistics lease transactions in eastern India in recent years.
The company has entered into a fresh lease agreement for a warehouse located in the village of Subharara in Howrah. The lease commenced from April 1, 2025, for a tenure of 9 years and 9 months.
The monthly rent for the leased space is Rs 97.72 lakh, translating to Rs 20.60 per sq ft per month. The agreement also includes a security deposit of Rs 2.93 crore and provides for a 4% annual rent escalation throughout the lease term, showed documents accessed through Propstack, a real estate data analytics platform.
The newly leased warehouse is part of Mahindra Logistics’ continued strategy to expand its pan-India footprint across key consumption and manufacturing hubs. The facility in Howrah will enhance the company’s ability to service clients across West Bengal, Jharkhand, Odisha , and the Northeast, regions witnessing a steady uptick in e-commerce, FMCG, and industrial distribution activity.
Kolkata and the surrounding Howrah belt have been emerging as important logistics clusters due to their connectivity to the National Highway network, Haldia Port, and the eastern freight corridors, along with the region’s growing consumption base.
The new facility is expected to strengthen Mahindra Logistics’ regional operations by providing modern, scalable warehousing infrastructure to meet increasing demand from multiple sectors.
According to industry analysts, eastern India is gradually gaining prominence in the country’s warehousing landscape as occupiers seek to diversify their networks beyond traditional hubs such as Mumbai, Pune, Bengaluru, and Delhi-NCR. The shift is driven by rising industrial investments, improving road infrastructure, and the increasing need for faster last-mile delivery in emerging consumption markets.
Leasing activity in the Kolkata region has accelerated over the past few quarters with several third-party logistics and manufacturing companies committing to long-term agreements in Grade A facilities. The trend underscores the growing formalisation of the warehousing sector and the preference for institutional landlords offering compliant, efficient spaces.
With this transaction, Mahindra Logistics continues to consolidate its leadership position in India’s organised warehousing market, supported by rising demand for integrated logistics and supply chain solutions from both domestic and global enterprises.