Godrej Storage Solutions to Open Second Unit Near Chennai.

Godrej Storage Solutions, a division of Godrej & Boyce Manufacturing Co Ltd, is set to establish a second facility near Chennai. This new plant will manufacture components for storage systems used in warehouses and shop floors, including pallet-racking and shelving solutions.

Currently, the annual production capacity of the company's Ambattur plant is 90,000 tonnes, with an expected output of 67,000 tonnes, or nearly 75% of capacity, this year. “We are okay with this situation for another 18 months and have started making plans for another plant in or around Chennai,” said Vikas Choudaha, Executive Vice President and Business Head of Godrej Storage Solutions.

To match the capacity of the Ambattur plant, an investment of ₹350-400 crore, plus land costs, will be required. Chennai is preferred for its port access, Choudaha added.

The company focuses on intralogistics, which involves the storage, movement, and handling of goods within premises. Third-party logistics is a significant sector for Godrej Storage Solutions, with major customers like TVS Supply Chain Solutions and DHL. “We provide the storage systems for them while they are the solutions providers,” Choudaha explained.

The company aims to achieve ₹1,000-plus crore revenue this fiscal year and ₹1,500-1,600 crore in the next three years, including ₹500 crore from exports. Last fiscal year saw flat growth due to unfavorable steel prices. Nearly 50% of the revenue comes from consumer-driven industries such as retail, e-commerce, FMCG, F&B, and consumer durables.

Choudaha noted that the domestic industry is expected to grow by 8-10%, and Godrej Storage Solutions plans to align with this growth. There are also promising opportunities in global markets like West Asia, Asia Pacific, and Australia, with many clients adopting a China-plus strategy and considering India as an option.

HBL