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Blackstone to invest Rs 15 bn in Allcargo unit to build warehouses in India

Allcargo's logistics division plans to build 5 million square feet of warehouses across India by 2021

Baiju Kalesh & P R Sanjai | Bloomberg  |  Mumbai 

Concor, warehouse, logistics, distributor

Group is in talks to invest Rs 15 billion ($209 million) in a venture with to build warehouses in India, people with knowledge of the matter said.

A real estate unit of the US private equity firm is considering owning 51 per cent of the venture, the people said, asking not to be identified as the discussions are private. Talks are still continuing and the contours of the deal may change, they said. Allcargo is talking with other investors as well, one of the people said.

is expanding into logistics in India to tap the growing demand for warehouses as including Amazon.com and Walmart spend billions to expand in the world's fastest-growing e-commerce market. The introduction of a nationwide tax regime has also prompted demand for large storage spaces from retailers to ensure fast, last-mile delivery of goods.

Allcargo's logistics division plans to build 5 million square feet of warehouses across India by 2021, the company said in a presentation in August. The company’s shares surged 10.4 per cent at the 3.30 pm close in Mumbai, the most in almost five years.

and Allcargo representatives declined to comment.

Ernst & Young predicts will invest $7.8 billion in warehouses in the South Asian nation by the end of 2020. The sector has seen $266 million of investment so far this year, E&Y said in a report earlier this year.

First Published: Thu, September 12 2019. 00:24 IST
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