Eredene Capital PLC invests in logistics centres in NCR, Uttaranchal and Punjab | INRnews
The ‘hub’ will be located in the National Capital Region (NCR) to the south of Delhi, and the ‘spokes’ in the northern states of Uttaranchal and Punjab. The development on the three sites will total some 1.35 million square feet of highly automated rack-shelf warehousing, of which considerable space will be refrigerated.
Under the terms of the investment agreement, the Eredene Group will acquire a 90% stake in MJ Logistics Services Limited (“MJLSL”), the company developing and operating the new warehouses, which will also be part funded by locally raised debt of approximately £15 million. This stake will decrease to 74% as agreed milestones are met over a period of five years.
MJLSL is a warehousing and distribution company in North India with over 500,000 square feet of managed warehousing space serving approximately 15 corporate clients, including Philips, Mico-Bosch, Asian Paints, Godrej, Colgate Palmolive, Hindustan Lever, Coca Cola, ITC and Sharp.
India’s booming economy, with GDP growing at an annual rate approaching 9 per cent, is fuelling demand for modern logistics centres where manufacturers, exporters and importers can achieve significant cost-savings and efficiencies in outsourcing such activities as storage, refrigeration, inventory management, packaging and labelling, tracking and tracing, freight forwarding, distribution and transportation. There is also significant demand for cold storage facilities.
This investment is the Eredene Group’s fifth since it announced a new broadened investment strategy in June 2007. The Eredene Group has now committed to invest a total of £36.5 million in real estate projects in India, 66% of the £55.4 million it raised in 2006.
Mr Alastair King, Eredene’s Founder and Chief Executive said:
“We are confident that MJLSL will achieve further growth with its modern logistics operations designed specifically to meet rising demand for such facilities from industries around Delhi and in Northern India. Our joint venture partners have an impressive track record in warehousing and logistics. The extra land that our investment will allow MJLSL to acquire is strategically located and will provide an excellent platform for growth.
“We look forward to announcing further investments that we have in the pipeline in due course.”
Mr. Anil Arora, Managing Director of MJLSL said:
“We are very happy to be associated with the Eredene Group. The infusion of capital will enable us to develop projects in attractive strategic locations in three fast growing Northern States.”
By INRnews Correspondent