Godrej, Tata Capital launch forklift finance leasing solutions

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Godrej, Tata Capital launch forklift finance leasing solutions

Godrej, Tata Capital launch forklift finance leasing solutions

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Apr 02,26

Godrej Enterprises Group and Tata Capital partner to introduce finance leasing for intralogistics equipment, enabling businesses to scale with lower upfront costs and transition to energy-efficient forklifts.

Godrej, Tata Capital launch forklift finance leasing solutions

Godrej Enterprises Group and Tata Capital have entered into a strategic partnership to accelerate India’s intralogistics transformation by introducing structured finance lease solutions—an emerging model in the forklift and material handling equipment market. The collaboration aims to finance lease assets worth Rs 1 billion over the next three years, enabling businesses to scale operations without significant upfront capital expenditure.

Across sectors such as e-commerce, pharmaceuticals, retail, logistics and manufacturing, the shift towards electric, lead-acid and lithium-ion forklifts is gaining momentum. However, higher upfront CAPEX—typically 50–60 per cent more than diesel trucks—often slows adoption. Leasing addresses this challenge by eliminating the initial cost burden, allowing enterprises to transition to energy-efficient intralogistics equipment and upgrade to application-specific solutions.

Godrej’s Material Handling Business has introduced several industry-first solutions, including indigenous lithium-ion forklifts with Indian BMS, fleet management systems, rental models and customised maintenance contracts. The addition of finance leasing—still nascent in India’s intralogistics space—aims to support faster adoption of advanced technologies.

Under the model, Tata Capital will lease Godrej forklifts to customers over three- to five-year terms with predefined buyback values. The shift from CAPEX to OPEX ensures predictable monthly outflows and offers an estimated 6 per cent cost advantage over outright purchase, while complementing existing purchase and rental options.

Anil Lingayat, Business Head, Intralogistics (Material Handling) Business, Godrej Enterprises Group, said the partnership removes upfront investment barriers by offering safety-led, Indian-engineered intralogistics equipment through OPEX-based leases, supported by lifecycle services and asset financing.

Narendra Kamath, COO – SME Finance, Tata Capital, stated that the collaboration aims to expand access to high-quality intralogistics equipment through flexible leasing models, enabling businesses to modernise operations while preserving working capital.

The financing solution aligns with national priorities under the National Logistics Policy and PM Gati Shakti, which focus on improving supply chain efficiency and reducing logistics costs. India’s logistics cost is currently estimated at around 8 per cent of GDP, indicating ongoing structural improvements.