Welspun Promoters Exploring Stake Sale in Warehousing Firm Welspun One

2024-12-26 02:15:17

Goenka Family in Talks to Sell Stake in Warehousing Firm Welspun One

The Goenka family, promoters of the textiles-to-infrastructure conglomerate Welspun Group, is reportedly exploring options to dilute or possibly fully exit its stake in the warehousing and logistics firm Welspun One, according to sources familiar with the matter.

Welspun One, which manages several warehousing assets in key Indian markets and operates alternative investment funds, is looking to raise additional capital to grow its assets under management (AUM) to $1 billion by 2026.

Stake Sale Discussions

“The promoters are engaged in direct negotiations with overseas investors, including some from Japan, without involving banks. They are considering diluting their stake and may also evaluate a complete exit from the Welspun One platform at the general partner (GP) level, depending on the discussions,” said a source.

Moneycontrol has contacted Welspun Group and Welspun One for comments, and the story will be updated upon receiving a response.

Growth and Operations

Founded around five years ago with its first warehousing project in Bhiwandi near Mumbai, Welspun One now boasts 16 million square feet of grade-A warehousing space across regions including the Mumbai Metropolitan Region (MMR), the National Capital Region (NCR), Bengaluru, and Lucknow. It has raised two funds to date, partially exiting assets financed by its inaugural $100 million fund.

The company recently highlighted the increasing demand in India’s e-commerce and quick commerce segments as key drivers of growth in the warehousing sector, alongside the inflow of new investments.

Future Expansion Plans

To scale its operations, Welspun One aims to raise ₹4,000 crore to double its current grade-A warehousing portfolio to approximately 32 million square feet by 2028. A pipeline of 8 million square feet across various markets is already in development, according to a company statement.

The firm recently launched the World Trade Center (WTC) in Thane under a licensing agreement with the World Trade Centers Association. This ₹800 crore project, located in Wagle Estate, includes an urban distribution center, retail spaces, and offices, covering a total of 1 million square feet.

Opportunities in the Warehousing Market

India’s warehousing sector continues to experience significant growth, driven by demand from manufacturing, e-commerce, quick commerce, and third-party logistics players. A report by Colliers noted a 17% year-on-year rise in demand for industrial and warehousing space during the January-September period.

Recent high-profile transactions in the sector include a ₹13,000 crore investment by the Abu Dhabi Investment Authority (ADIA) and KKR into Reliance Retail Ventures’ warehousing assets, and Blackstone’s Horizon Industrial Park committing ₹782 crore to modernize warehouses operated by the Central Warehousing Corporation.

Additionally, IndoSpace recently sold 2.5 million square feet of warehousing space to Alta Capital, the Indian partner of Singapore-based Hillhouse Investments, for approximately $100 million.

As Welspun One accelerates its expansion and explores strategic opportunities, it is poised to further solidify its position in India’s rapidly growing warehousing and logistics sector.