Newshour Press

The Blackstone Group Inc. is looking to invest Rs 1500 Crore in India, according to reports. The American asset management and private equity firm is considering to partner with Allcargo Logistics, India’s leader in third-party logistics. People with knowledge of this matter revealed that since talks are still going on with the Manhattan-headquartered company, Allcargo is discussing with other investors as well.

Blackstone Group’s expansion in India’s logistics market is the result of huge demands for warehouses in the country. BG may own 51% stake in the Indian company, as per the reports.

In the past couple of decades, India has emerged as an attractive market for warehouse business with some of the world’s leading players such as Kohlberg Kravis Roberts (KKR), Amazon, Pincus, and Walmart are investing billions in the market. In 2019, Indian warehouse market has witnessed more than 26 crore of investment. It is also expected that by the end of the next year, foreign companies’ investment will reach about 8 billion.

Indian government’s nationwide tax system has also been instrumental in growing demand for large storage spaces in order to ensure fast and smooth delivery of goods in various cities of India.

In the midst of all these speculations and reports, spokespersons of both companies (Blackstone and Allcargo) have declined to comment on the matter.

Allcargo Logistics Ltd is the country’s biggest corporation in its field. Founded in 1993, the Mumbai-based company has bettered its turnover to INR 6046 in March 2019. It is also planning to build a large number of warehouses on approx. 5 million square feet of land all across the country by 2021. In share market also, Allcargo has performed better lately.

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