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FM Logistic to invest USD 150 million in India for warehouses

Business Finance

Press Trust of India  |  New Delhi 

France-based FM Logistic Friday said it plans to invest USD 150 million (a little over Rs 1,000 crore) over the next five years to set up new warehouses in India.

This amount will be used to focus on multi-client warehouses, the company said.

CEO Jean-Christophe Machet said: "I am impressed by the dynamics of India, and planning to make strategic investments here to support long-term growth.

"We are confident about our growth and development so we decided at the board level to invest this significant amount of USD 150 million for next five years to develop our own facilities."

The company plans to expand to five cities including four metropolitan cities, he added.

When asked how will the funds be arranged, he said the company is in the process of negotiating with local and international finance partners for funding and will also use its own equity.

In 2016, the company entered India through the acquisition of Pune-based Spear Logistics.

"We see a huge untapped potential in India....The GST reform provides a huge opportunity. Thanks to the new positive policies in India, our operations have become even more streamlined and efficient," the CEO said.

The company expects a very strong double-digit growth in India in the next fiscal, he added.

"FM Logistic plans to strengthen its position in India by delivering on its post GST strategy of focusing on developing multi-client warehouses in the most important Indian Economic Zones," Machet said.

The opening of the company's first multi-client warehouse in Mumbai (with extension in progress) will be followed by another in Delhi NCR, which is expected to commence operations next month, the company said.

It has also acquired 31 acre land in Jhajjar, near Gurugram.

"With these new projects we aim to create 500 jobs in next 12 months," it said.

FM Logistic specialises in warehousing, transportation and co-packing.

FM Logistic also announced appointment of Alexandre Amine Soufiani as its new Managing Director of India operations.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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First Published: Fri, March 15 2019. 16:35 IST