Allcargo Group, an end-to-end logistics solution provider, opened a 100-acre warehouse in Bengaluru on Monday. According to Shashi Kiran Shetty, founder and chairman of the Allcargo Group, the company has invested ₹700–800 crore to establish the facility, which will create 5,500 jobs.
“Karnataka has a huge consumer base, and the State offers great opportunities with many B-class cities and a young and aspirational workforce,” said the chairman. Currently, the logistics company has nine warehouses across the country.
According to the company, the new facility is almost sold out and serves as a warehousing facility for e-commerce behemoths like Flipkart, Amazon, and Decathalon. Shetty stated, “We intend to expand this facility and are looking to purchase additional land around it. This will then be expanded to a 150-acre facility, paving the way for additional job opportunities.” It also plans to expand Hosur Park.
In addition to this facility, the company is working on a couple of projects in Karnataka. “There is a park in Nelamangala that is about 100 acres, and we are in the process of buying another 75 acres in Hoskote,” explained Shetty. Each will cost between ₹600-700 crore to build. The parks are expected to be operational in two years, he added.
For its latest park, Allcargo has partnered with Blackstone as its financial partner. “This is purely a lease model; what we generate from this will be deployed to build more such facilities across the country, and maybe in the future, develop such properties in other parts of the world too, depending on the opportunities,” said Shetty.
The park is equipped to bring forward the required efficiencies and productivity in logistics, including digitalization, augmented warehousing capacity, and robust physical infrastructure, said the company.
Allcargo Group is currently undergoing restructuring, “which should be completed within the next six months. After we finish restructuring, we will look into CAPEX planning,” said Shetty. Allcargo Logistics Limited is a part of the Allcargo Group, a multimodal logistics solutions company. It currently operates out of more than 300 offices and offers its services in more than 180 countries.