MUMBAI: Allcargo Logistics is mulling to monetise its dormant land bank by building warehouses and selling or leasing them out while taking the advantage of growing need of bigger, more efficient logistics facilities in the Country and exploit lower lending rates in setting up such infrastructure.
The company is in talks with two global companies to sell upto 25% stake in this new venture, Allcargo Logistics and Industrial Park, Chairman Shashi Kiran Shetty said recently.
The initial agreement will be signed within two months, he added. The company aims to invest Rs 3,000 crore in the next
4-5 years in setting up 15 million square feet of warehousing space. It will include Inland Container Depots, Private Freight Terminals apart from build-to-suit warehouses, customised to the needs of customers that buy or lease the facilities.
“Our land bank is now assuming great strategic importance for our business going forward. Because one of the most important requirements from the industry is A-grade warehouses.
Also conducive factors are the rollout of the Goods and Services Tax (GST), the ecommerce growth, the consumption boom and the overall growth in the economy,” said Shetty.
Allcargo Logistics already has over the last seven years, amassed a land bank of 450 acres which would accommodate 6 million square feet of warehouses. The land is spread across Jhajjar (Haryana), Nagpur (Maharashtra), Indore (Madhya Pradesh), Bengaluru, Hosur (Karnataka), Hyderabad (Telangana), Goa and Nhava Sheva in Mumbai.
Logistics parks will be set up in these land parcels over the next 12-24 months, said Shetty.
The company is also looking to buy additional land in Bhiwandi, Pune (Maharashtra) Coimbatore and Chennai (Tamil Nadu), Kolkata (West Bengal) and Guwahati (Assam).
