GIC-ESR JV to acquire Indian logistics assets for Rs.45bn
The logistics market is expected to expand at a CAGR of ~14.14% during the 2022 – 2027 period, says a ResearchAndMarkets report on 25 Jan 2023.
It was valued at Rs14.08 trillion in 2021, said the “Logistics Service Market in India 2022-2027” report.
The Government of Singapore Investment Corporation (GIC), Singapore’s sovereign wealth fund, and ESR Group Limited have announced a strategic alliance to form a joint venture to acquire income-producing core industrial and logistics assets for Rs.45 billion in India, says the report.
In a study conducted by NITI Aayog in collaboration with Rocky Mountain Institute (RMI) and RMI India, it was estimated that the movement of goods will increase to 15.6 trillion tons/km by 2050. To support this, the government is making efforts to improve India’s logistics system by introducing policies and programs such as Atmanirbhar Bharat. These will enhance technological and digital operations in the logistics supply chain.
Several companies shrunk their product mix to allocate the warehouse spaces to the essential products available in their portfolio as the production of these essentials increased significantly during the pandemic, according to the report.
Various large manufacturing companies felt that the construction of small warehouses at multiple locations is a more viable option than keeping in large regional warehouses. Since the onslaught of COVID-19, consumers have been shopping online in large numbers, particularly for groceries.
In 2021, the demand for online grocery shopping portals surged by up to 80%, but their operational capacity was reduced by half.
The report featured:
Ashok Leyland Limited
Blue Dart Express Limited
Container Corporation of India Limited
Gati Limited
Mahindra Logistics Limited
Transport Corporation of India Limited
Agarwal Packers and Movers Limited
DHL Express (India) Private Limited
DTDC Express Limited. fiinews.com
