Allcargo in talks to raise 1,000 cr to fund logistics parks foray


Mumbai-based Allcargo Logistics Ltd is looking to raise as much as 1,000 crore to fund its diversification into multi-modal logistics parks and warehouses.

The company, part of the Avvashya Group promoted by Shashi Kiran Shetty, is looking to raise funds from strategic or financial investors, including private equity investors.

It could even hive off some businesses, investment bankers aware of the plan.

Jhajjar park - The company plans to set up India’s largest multi-modal logistics park at Jhajjar in Haryana. It is also exploring the option of bringing in strategic joint venture partners to fund its logistics parks business, said bankers asking not to be named.

“The company is also open to the idea of leveraging existing assets to secure the growth capital,” said one of the bankers.

Allcargo has chalked out its growth strategy focussing on multi-modal logistics parks comprising large format warehouses, rail-linked inland container depots and private freight terminals to become a $2-billion company by 2020. It owns strategically located land parcels in Jhajjar, Bengaluru, Hyderabad, Nagpur and Nhava Sheva to support these ventures.

The firm currently runs multi-modal transport operations and container freight stations and provides project and engineering solutions.