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Everstone, GLP To Invest $500 Mn In India’s Logistics Sector

Everstone, GLP To Invest $500 Mn In India’s Logistics Sector

GLP entered the India market in September with an investment in real estate

Both Everstone and GLP will reportedly invest $250 Mn each

Ecommerce, retail pushing logistics to $215 Bn industry in India in two years

South East Asia and India-focused private equity firm Everstone is set invest $500 Mn (INR 3,577.5 Cr)  in the logistics sector along with global logistics company GLP.

The investment will focus on different sectors, including express-delivery, smart trucks, telematics and automation/robotics, the company said.

GLP entered the India market in September this year through a joint venture with Everstone-backed industrial real estate firm IndoSpace. IndoSpace has over $2 Bn (INR 14,307 Cr) in assets under management and has plans to build out a pipeline of approximately 120 Mn sq ft of modern logistics infrastructure.

Demand for logistics facilities in India is driven by economic expansion, growth in organized retail and ecommerce and the modernization of India’s supply chain, underpinned by favorable government policies, such as the Goods and Services Tax and the ‘Make in India’ initiative, Everstone said.

The new partnership will leverage GLP’s expertise in pioneering modern logistics ecosystems and Everstone’s large and growing network through its private equity, infrastructure and real estate portfolio.

Both Everstone and GLP will reportedly bring in $250 Mn (INR 1,790.83 Cr) to the deal.

India’s Logistics Sector Booms

Venture capital firms and investors are looking at the logistics sector with renewed interest this year as India’s retail consumption continues to grow.

In November, reports said that that SoftBank, through its Vision Fund, may invest an estimated $350 Mn (INR 2,507.36 Cr) as fresh capital in Gurugram-based ecommerce logistics company Delhivery. If finalized, the funding will push Delhivery into the unicorn club.

The government’s Economic Survey 2017-18 revealed that the country’s logistics industry, which is worth around $160 Bn, is likely to touch $215 Bn in the next two years with the implementation of GST, growing at a CAGR of 10.5%

Here are a few statistics about India’s logistics industry:

  • According to a report by investment bank Avendus Capital, the logistics tech market is expected to surge to $9.6 Bn by 2020
  • The World Bank’s 2016 Logistics Performance Index shows that India jumped to 35th rank in 2016 from 54th rank in 2014, in terms of overall logistics performance
  • The industry is expected to touch $307 Bn by 2020
  • Inc42 DataLabs revealed that the sector recorded 27 deals worth $475.83 Mn (INR 3,402.85 Cr)in 2017