Warburg Pincus, Embassy in $250m India warehousing JV

The two parties will invest $250 million in the joint venture, called Embassy Industrial Parks, to fund land acquisition and development. There are plans to build and lease 15-20 million square feet over the next few years in Mumbai, New Delhi, Bangalore, Chennai, Pune and Ahmedabad. The facilities will provide power, water and connectivity to distribution centers along major logistical corridors and ports.

"We believe the industrial and warehousing real estate sector in India presents strong growth potential, as companies in e-commerce and other industries seek reliable developers who can work with them nationally to meet their needs for quality warehousing infrastructure," Viraj Sawhney, managing director at Warburg Pincus, said in a statement.

These industrial and warehousing spaces are tech-enabled and they target at industry verticals like third party logistics (3PL), e-commerce, FMCG, automobile ancillaries and retail. E-commerce logistics is a key theme for Warburg Pincus. In June, it invested in Ecom Express, an Indian start-up that provides last-mile delivery services for online vendors.

The private equity firm has followed a similar strategy in China, backing warehousing developer and operator e-Shang, which is looking to capitalize on the growing demand for modern logistics that is a by-product of rising e-commerce activity. In both China and India, Warburg Pincus has also invested in a number of internet and e-commerce-related businesses.

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• Topics
• Real estate
• Infrastructure
• South Asia
• Expansion
• Warburg Pincus Asia
• India
• Infrastructure
• Logistics
• Real estate