Mumbai, Aug 9 (PTI) Indian arm of Germany-based Rhenus Group on Tuesday said it plans to double its warehousing space to about 5 million square feet over the next three years amid rising demand for such facilities after Covid.

Besides, Rhenus Logistics India is also looking to venture into the greenfield warehousing segment by this year-end.

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The company currently has 31 warehousing facilities across the country with more than 2.4 million square feet of space, including both dedicated and multi-user facilities.

"We intend to expand our warehousing space to about 5 million square feet over the next three years. At the moment we have a long-lease model for these facilities. We are now exploring greenfield warehousing facilities also, where we will acquire land and build up the facility," Rhenus Logistics India managing director Vivek Arya told reporters here.

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The company earlier announced the launch of its two new multi-user chemical warehouses in Jamalpur (Gurugram) and Bhiwandi (Mumbai) and also its own building Rhenus Tower.

Rhenus Logistics India is a joint venture with the Western Arya Group.

Arya said that the work on the greenfield warehousing facilities will commence by the end of this year, and sounded hopeful that the first such warehouse should be ready by next year.

He declined to quantify the investment in the greenfield project but said that typically a warehousing unit built over 2 lakh square feet costs around Rs 150-200 crore.

Warehousing business accounts for 20 per cent of the company's revenue, Arya said, adding that being a high yield and high investment business, it would be much higher in terms of gross margin.

Rhenus Logistics India operates across five business verticals -- air and ocean, customs brokerage, road freight, contract logistics, and supply chain solutions.

Arya said that the company plans to take its headcount to 4,000-4,500 people, including blue collar employees and drivers in the next 3-4 years.

"We will roughly have 4,000 to 4,500 people, including blue collar employees and the drivers from 2,000-odd employees at present," he said.

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