Logistics

India remains attractive growth story: Eredene Capital

T.E. Raja Simhan Chennai | Updated on August 19, 2011

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India's logistics sector continues to be attractive for global investors, says the London-based Eredene Capital PLC, which has seen the value of its investment in India go up by 14 per cent last year. “India remains attractive growth story,” it said.

Eredene is a specialist investor in Indian infrastructure with a focus on ports, logistics and transportation. It has 11 investments, including container handling, port services, and logistics and warehousing, in India. Of this six are generating revenue, according to the company's 2010-11 annual report. The group reported a profit for the year of £1.9 million.

India's economy maintained its strong growth, although high inflation remained a concern. The Indian Government has set ambitious targets for more than $1 trillion to be invested in infrastructure over the next five-year period, 2012-2017 — more than double the amount invested in the previous five-year period, the annual report said.

Vital for development

Major infrastructure investment is vital for India's development, and Eredene is, therefore, operating in a critical sector which will almost certainly experience rapid growth. With its current projects, Eredene is well positioned to earn attractive and sustainable revenues and to achieve significant capital returns.

Investment in logistics in India is projected to grow annually at 10 per cent. Logistics costs in India are 13-14 per cent of GDP compared to 8-9 per cent in developed economies. India's logistics market achieved revenues of $82.1 billion in 2010 and is expected to reach revenues of $90 billion in 2011. The logistics industry is forecast to generate revenues of $200 billion by 2020, the annual report said.

Published on August 19, 2011

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