Allcargo Logistics’ two demerged units to invest over ₹1,000 crore on expansion.

Allcargo Logistics’ group is planning over ₹1,000 crore of investments by its recently demerged subsidiaries Allcargo Terminals and TransIndia Real Estate, both of which will also be listed on the bourses.

The listing of the two entities is expected in a month, pending approval from the stock exchanges and SEBI

The $2.5-billion group recently concluded a demerger that was done with a view to unlock value and also bring greater focus to existing lines of business. After the demerger, the parent entity Allcargo Logistics will have the less-than-container-load (LCL) business, in which it is a market leader, express logistics under Gati and Contract Logistics. TransIndia Real Estate will comprise the annuity generating businesses such as logistics parks and other real estate assets.

Allcargo Terminals houses the container freight stations, inland container depots and the first project to be implemented post the demerger will be on a 100-acre logistics park coming up on land in Farrukhnagar acquired from RIL SEZ. The total investment in this is around ₹600 crore, including the cost of land acquisition, and ₹250 crore that will be spent on developing CFSs and ICDs, Founder and Chairman of Allcargo Logistics Shashi Kiran Shetty told businessline.

The project, which is likely to be operational in two years, will be connected to the Delhi-Mumbai dedicated freight corridor, through Haryana Orbital Rail Corp, in which it has a 10 per cent stake. The project will have a total container handling capacity of 250,000 TEUs.

HBL