Tata Toyo Radiator Secures 2.5 L Sq Ft Warehouse in Pune for 10-Year Lease

Khed, Pune:

Tata Toyo Radiator, a joint venture between Tata AutoComp Systems and Japanese firms T RAD Co and Mitsubishi, has signed a lease agreement for a massive 250,000 sq ft warehouse in Khed, Pune. The lease is for a duration of 10 years, marking a significant expansion in the company’s supply chain infrastructure.

Key Lease Terms and Financials Rent & Costs:

The company will pay ₹90 lakh per month, which includes ₹67 lakh in rent and ₹23 lakh for tenant improvement costs.

Escalation Clause: Rent will increase by 12% after 2.5 years and continue to escalate by 12% every three years thereafter.

Lock-in Period: The agreement includes a lock-in period of 5.5 years, securing the commitment from the tenant.

Rent Commencement: The rent will commence from March 1, 2025, pending the completion of tenant improvement work by January 16, 2025.

Company Background and Ownership Structure

Establishment: Tata Toyo Radiator was founded in 1998.

Ownership: Tata AutoComp holds a 51% stake in the company, while T RAD and Mitsubishi hold 40.25% and 8.75% stakes, respectively.

Product Offering: The company manufactures high-quality heat exchangers from multi-layered aluminium, providing superior corrosion resistance and durability for both automotive and non-automotive industries.

Growth in Indian Warehousing Market

India's warehousing sector has seen rapid growth, largely fueled by the rise of ecommerce, the introduction of GST, and an increasing demand for streamlined supply chain management solutions. This deal reflects the ongoing trend of large corporations investing in efficient warehousing solutions to meet market demands.