Jabil Secures 10-Year Lease for Pune Warehouse, Expands Apple Supply Chain in India
Mumbai: US-based Jabil, a key supplier to Apple, has leased more than 410,000 sq ft of warehousing space in Pune for a 10-year term. This significant lease signals a deeper commitment to Jabil's manufacturing and supply chain operations in India. The transaction has been structured as a fresh lease, with KVR Industrial Park acting as the sub-lessor, while the Maharashtra Industrial Development Corporation (MIDC) is the landlord.
The space leased by subsidiary Jabil Circuit India is located in the Ranjangaon MIDC belt, one of Pune's key industrial hubs hosting several multinationals. Under the agreement, Jabil will pay a monthly rental of over ₹94.84 lakh for a total chargeable area of about 413,287 sq ft. Additionally, Jabil has placed a security deposit of around ₹5.39 crore, as shown by the registration documents accessed through the realty data analytics platform Propstack.
Industry experts believe that the long tenure of the lease underlines Jabil's intent to establish a stable, long-term operational base in the region. This move comes amid growing demand from global OEM clients and supply chain diversification towards India. Last year, ET reported that with Apple stepping up efforts to diversify manufacturing beyond China, supplier Jabil is preparing to expand AirPods enclosure production in India via a second planned facility. Jabil currently manufactures plastic casings for Apple's earphones at its Pune plants.
The transaction reflects the broader trend of global manufacturing firms expanding their presence in India. This is driven by supply chain diversification strategies, rising domestic consumption, and policy support for local manufacturing. India's favorable business environment, skilled workforce, and strategic location make it an attractive destination for companies looking to reduce their dependence on a single manufacturing hub.
Jabil's move to lease a large warehousing space in Pune is a strategic decision that aligns with the company's long-term growth plans. It not only strengthens Jabil's supply chain but also positions the company to better serve its global clients, particularly Apple. The lease agreement is expected to facilitate smoother operations and enhance Jabil's ability to meet increasing demand from its clients.
In addition to the operational benefits, the lease also contributes to the economic development of the region. The Ranjangaon MIDC belt is a thriving industrial area that has attracted investments from various sectors. Jabil's presence is likely to create more job opportunities and boost the local economy, further reinforcing India's position as a key player in the global manufacturing landscape.
As global companies continue to explore opportunities in India, the country's industrial infrastructure and supportive policies are playing a crucial role. The Maharashtra Industrial Development Corporation (MIDC) has been instrumental in facilitating such investments, providing the necessary infrastructure and support to attract and retain businesses. Jabil's 10-year lease in Pune is a testament to the confidence that international companies have in India's growth potential and the stability of its business environment.
In conclusion, Jabil's long-term lease in Pune is a significant step in the company's strategy to expand its operations in India. It underscores the growing importance of India in the global manufacturing and supply chain landscape, and highlights the country's potential to become a major hub for advanced manufacturing and logistics.
