Blackstone Group is planning to invest Rs 1,500 crore ($209 million) to build warehouses in India. The company will do this in partnership with Allcargo, the country’s largest logistics provider in the private sector.
According to a report in Bloomberg, 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.
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.
According to EY, 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.
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