Welspun One Logistics Parks to Build Custom Facility for Montra Electric (formerly TIVOLT)

Welspun One Logistics Parks (WOLP), a comprehensive fund and development management platform, has unveiled a significant build-to-suit (BTS) lease agreement with Montra Electric, formerly known as TIVOLT. Montra Electric, a notable 4-wheeler electric vehicle manufacturer under the esteemed Murugappa Group based in Chennai, will be the beneficiary of this arrangement.

In this collaboration, Welspun One will be responsible for constructing a customized BTS facility, encompassing Montra Electric's retail experience center and a dedicated assembly space specially designed for small commercial electric vehicles (EVs) with four wheels.

This forthcoming facility will find its home within the Welspun One logistics and warehousing park situated in Chinnambedu, Chennai, strategically positioned along National Highway 16. It is anticipated that this unit will commence its operations by the second quarter of 2024.

WOLP's warehousing project is an integral part of a Memorandum of Understanding (MoU) that entails a substantial investment of ₹2,500 crore, a collaboration between Welspun One and the Tamil Nadu Government, initially sealed in November 2021. It is worth noting that WOLP operates as a warehousing platform within the $2.3-billion global conglomerate Welspun World, known for its presence in diverse sectors, including line pipes, home textiles, infrastructure, advanced textiles, and flooring solutions.

The cost allocated for the development of this BTS facility amounts to ₹80 crore, marking WOLP's inaugural venture into the electric vehicle sector. As confirmed by Anshul Singhal, Managing Director of Welspun One, Montra Electric is poised to initiate operations within the warehouse by the second quarter of 2024.

The BTS unit has been meticulously designed to accommodate a peak capacity of 50,000 vehicles per annum. It will initially commence operations with 15,000 vehicles per annum, with the potential to scale up to 50,000 per annum within a span of three to four years, contingent on market demand.

Montra Electric is among the esteemed clients within the 118.84-acre park, featuring an expansive built-up area spanning 23.3 lakh sq ft. The facility has been tailored to meet Montra Electric's specific requirements, ensuring unparalleled accessibility and specialized solutions for the storage of finished goods, among various other features.

Anshul Singhal emphasized the project's alignment with the company's commitment to delivering tailored solutions that cater to the unique needs of their clients. He emphasized their asset-light and investment-friendly approach, which harmonizes with Montra Electric's vision, highlighting their mission to revolutionize the logistics landscape, drive innovation, and support the future of mobility.

A representative from Montra Electric expressed their appreciation for Welspun One's adept handling of their distinctive power supply requirements, a critical prerequisite for EV manufacturing. This collaboration is positioned to play a pivotal role in reshaping the electric vehicle sector and setting pioneering benchmarks within the industry.

HBL