Business Companies 12 Sep 2019 Blackstone plans Rs ...

Blackstone plans Rs 1.5,000 crore investment in Allcargo unit

DECCAN CHRONICLE. | BAIJU KALESH & PR SANJAI
Published Sep 12, 2019, 1:09 am IST
Updated Sep 12, 2019, 1:09 am IST
EY predicts companies will invest $7.8 billion in warehouses in India by the end of 2020.
 The introduction of the GST has also prompted demand for large storage spaces from retailers to ensure fast, last-mile delivery of goods.
  The introduction of the GST has also prompted demand for large storage spaces from retailers to ensure fast, last-mile delivery of goods.

Blackstone Group Inc. is in talks to invest Rs 1,500 crore ($209 million) in a venture with Allcargo Logistics Ltd. 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. Allcargo is talking with other investors as well, one of the people said.

 

Blackstone is expanding into logistics in India to tap the growing demand for warehouses as companies, including Amazon.com Inc and Walmart Inc, spend billions to expand in the world’s fastest-growing e-commerce market. The introduction of the GST 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 firm said in a presentation in August. Its shares surged 10.4 per cent on the BSE.

EY predicts companies will invest $7.8 billion in warehouses in India by the end of 2020.

    —Bloomberg

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