Prologis Re-Enters India with $500 Million Investment
Prologis, the globe’s largest warehouse company, has returned to India after it pulled out in 2007 as a result of tough market conditions. The company is now pumping in $500 million to tap into India’s surging economy and increasing need for modern logistics facilities. The decision is part of a wider trend of foreign investors placing bets on India’s warehousing business as firms turn away from China for supply chain diversification.
Blackstone Inc., which is another large operator, intends to increase its Indian warehouse holdings at least two times to a minimum of 100 million square feet over the next couple of years, with the possibility of floating a public issue. In contrast, Welspun One raised Rs 2,275 crore for its second warehousing fund, one of the largest such investments in the industry. Besides, IndoSpace will invest a maximum of Rs 4,500 crore in Tamil Nadu to create logistics parks for manufacturing sectors such as automobiles and electronics.
These investments reflect India’s increasing attractiveness as a logistics hub, fueled by e-commerce growth, infrastructure growth, and rising foreign investment. With Prologis returning to the market, India’s warehousing industry is set to witness substantial growth, cementing its position as a central player in global supply chains.
