KOLKATA: Caparo Group has entered into a joint venture agreement with a supply chain management company Procam Logistics of India. The Caparo Group will hold about 60 % of the total JV equity and Procam Logistics, the balance 40 %.
Christened as Caparo Procam Infrastructure, the JV firm will add one million sq feet of additional storage space and other value added services. The JV aims to create warehousing infrastructure as well as offer management & allied services to various industry sectors like auto, retail, rail and heavy engineering, the company's mediastatement stated.
Elaborating further, Caparo India chairman Angad Paul said, Caparo's existing land bank in and around the auto and manufacturing hubs of Chennai, Bawal, Rudrapur, Jamshedpur, Sanand, Dewas, Pune will be available to the JV for development of state-of-the-art warehousing and infrastructure facilities. These facilities would be offered both as an exclusive and multi user facilities for design, development and management of sustainable supply chain solutions across the industry spectrum.
Incidentally, the logistics infrastructure in India is undergoing an overhaul with corporate houses increasingly preferring such facilities as opposed to the traditional godowns and sheds.
Industry analysts suggest a CAGR of 16% in the demand for warehousing primarily from sectors like engineering because of changing demographics, imminent introduction of tax rationalisation measures like GST and need for leaner supply chains.
"Caparo Procam Infrastructure will bring to the table, Caparo and Procam's domain expertise in the auto industry and in the supply chain do-main respectively. This places the JV as a reliable warehouse solution partner for clients," said Mr T G Ramalingam, managing director of Procam Logistics.