is expanding into logistics in India to tap the growing demand for warehouses as companies
including Amazon.com and Walmart spend billions to expand in the world's fastest-growing e-commerce market. The introduction of a nationwide tax regime has also prompted demand for large storage spaces from retailers to ensure fast, last-mile delivery of goods.
Allcargo's logistics division plans to build 5 million square feet of warehouses across India by 2021, the company said in a presentation in August. The company’s shares surged 10.4 per cent at the 3.30 pm close in Mumbai, the most in almost five years.
and Allcargo representatives declined to comment.
Ernst & Young predicts companies
will invest $7.8 billion in warehouses in the South Asian nation by the end of 2020. The sector has seen $266 million of investment so far this year, E&Y said in a report earlier this year.