PE investments in logistics at $500 million in 2016-17

Private equity investments in logistics climbed nine per cent in 2016-17 to $501.71 million from $460.30 million a year ago. 

The logistics industry is likely to grow at 8.6 per cent annually during 2015-2020 after having grown at 9.7 per cent annually during 2010-2015. 

The goods and services tax would open up significant opportunity for the industry, said Sanjeev Krishan, leader, private equity and transaction services, PwC India. 

“The entry barriers are low in the sector. With the GST, the industry will start to see consolidation. This will increase valuations and investors want to cash in on the opportunity,” he added. Pushkar Singh, co-founder and CEO of LetsTransport, which recently raised $4 million, said the logistics industry had always been a pull market but now companies  are focussing on innovation, which would increase valuations.   An executive with a PE firm said the industry could see the entry of billion dollar firms in the next five years. PE exits in the logistics sector were close to a six year high at $125.03 million during 2016-17, according to VCCEdge.  PSS Prasad, president, Apollo LogiSolutions said the industry was growing at an exponential pace as the Centre was placing a lot of emphasis on infrastructure.