Moneycontrol
Get App
you are here: HomeNewsBusiness
Last Updated : Sep 12, 2019 09:34 PM IST | Source: Moneycontrol.com

Blackstone Group to invest Rs 1,500 cr to build warehouses in India: Report

So far this year, the sector has already seen an investment of $266 million.

Moneycontrol News @moneycontrolcom
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Blackstone Group is looking to invest Rs 1,500 crore ($209 million) to build warehouses in India in partnership with the country's largest logistics provider in the private sector, Allcargo, reported Bloomberg.

As per sources in the report, talks are on with other investors as well. But as of now, the realty unit of the US-based asset management company might own a majority stake in the venture at 51 percent.

India has become an attractive location for warehousing business as e-commerce companies like Amazon and Walmart are spending billions to expand in the market. Ernst & Young LLP had predicted in its report that companies will invest $7.8 billion in warehouses in South Asian countries alone by the end of 2020. So far this year, the sector has already seen an investment of $266 million.

Close

Easing this expansion in the storage spaces is the nationwide tax regime in the form of goods and service tax (GST). Retailers and especially e-retailers want to ensure fast delivery and want to invest in warehouses that directly impact their business.

EY also points out that apart from the emergence of an organized retail sector, warehousing in India is driven by increasing international trade with more private and foreign investments in infrastructure, growing manufacturing, and rising domestic consumption.

The company plans to have 5 million square feet of warehouses across India by 2021 as part of its logistics division plan, pointed out the report.

Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.
First Published on Sep 12, 2019 09:34 pm
Loading...
Sections
Follow us on
Available On
PCI DSS Compliant