Godrej Enterprises Group, Tata Capital Partner to Expand Intralogistics Leasing Market

Godrej Enterprises Group has entered into a partnership with Tata Capital to introduce structured finance lease solutions for intralogistics equipment, aiming to support adoption of modern material handling systems across industries.

The companies plan to finance leased assets worth ₹100 crore over the next three years, targeting sectors such as e-commerce, pharmaceuticals, retail, logistics and manufacturing.

The partnership comes as companies shift towards electric, lead-acid and lithium-ion forklifts, which typically have higher upfront costs compared to diesel alternatives. The leasing model is designed to reduce initial capital expenditure by converting it into operating expenses, enabling companies to deploy equipment without large upfront investments.

Under the arrangement, Tata Capital will lease forklifts manufactured by Godrej to customers for periods of three to five years, with predefined buyback values. The companies estimate that this model can offer around 6% cost advantage compared to outright purchases, along with predictable monthly payments.

Godrej’s material handling business has introduced products such as lithium-ion forklifts, fleet management systems and rental offerings. The addition of finance leasing is expected to complement its existing purchase and rental models.

Anil Lingayat, Business Head, Intralogistics (Material Handling) at Godrej Enterprises Group, said the partnership addresses cost barriers for companies adopting electric and specialised equipment, while ensuring lifecycle support.

Narendra Kamath, COO – SME Finance at Tata Capital, said the collaboration will expand access to equipment through flexible financing options and support companies in managing working capital.

The initiative aligns with government programmes such as the National Logistics Policy and PM Gati Shakti, which aim to improve supply chain efficiency and reduce logistics costs. Estimates suggest India’s logistics costs are around 8% of GDP.