In India, Investments by Logistics Companies Surge

Logistics companies — both from India and globally — are actively making investment plans for the coming fiscal  year.

According to Kuwait-based Agility’s Emerging Markets Logistics Index published in February,  India, for the second consecutive year, was picked as the country with the most potential to grow as a logistics market. The report, referenced by Business Standard, surveyed more than 800 supply chain and logistics professionals. It stated that GST would be the potential game-changer and companies will have to re-gear themselves to adjust to the new tax regime. Surveyed entities also indicated that India was the leading emerging market destination for investment by their companies over the next five years.

In 2016, France’s FM Logistics entered the market in India by acquiring Pune-based Spear Logistics, and  Stephane Descarpentries, the company’s director-strategic projects and director operations Asia said, “We see a good growth potential for warehousing segment in the domestic market and would have invested even if GST was not round the corner.” The company plans to invest $50 million over next three years to strengthen its warehousing base across the country. “With the e-commerce segment growing in India, we see the need for better warehousing across country and hence this acquistion,” explained Descarpentries. In the short-term, the company plans to invest $5 million over next 8 months on ramping up the custom-built warehouses of Spear Logistics.

Logistics

Gurgaon-based e-commerce logistics firm SSN Logistics Pvt. Ltd, which owns the brand Delhivery, is in advanced talks to raise $100 million led by private equity firm The Carlyle Group with participation from China’s Fosun, according to a media report cited by VCCircle. If the deal works out, it will mark the largest funding round in the e-commerce logistics space.

 

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Posted on by Gunjan Bagla
Gunjan Bagla
California-based management consultant Gunjan Bagla runs Amritt, a consulting firm helping American companies to succeed in India. Amritt is the trusted advisor for India market research, India business development, India market entry, Global Engineering, Global Technology Scouting, India R&D and Open Innovation. Gunjan is author of "Business in 21st Century India: How to Profit Today from Tomorrow’s Most Exciting Market" (Hachette Book Group, 2008), Amazon's top rated title on the subject. He has appeared as the India Expert on BBC Television, Bloomberg TV, Fox Cable Business and has been quoted in the New York Times, the Los Angeles Times, the Hollywood Reporter and Business Week for his expertise on India.

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