Warehousing operator LP Logiscience plans acquisitions worth up to Rs 75 cr in tier II and III cities and ET Infra

NEW DELHI: Third-party logistics operator LP Logiscience plans to further expand its warehousing business to tier II and III cities and plans to spend up to Rs 75 crore in such new markets, Varun Gada, director, LP Logiscience, ET Infra said in an interaction.

LP Logiscience is part of the Liladhar Pasoo Group, which engages in logistics and supply chain management and operates multi-client facilities in warehousing centers such as Bhiwandi in Maharashtra, where it operates a Grade A warehouse.

“We would be open to anything between Rs 50 and Rs. Acquisitions worth ₹75 crore. It could be three acquisitions of Rs 15 crore each or one acquisition worth Rs 75 crore,” Gada said.

Apart from pure acquisitions, LP Logiscience is also open to mergers with strong Tier II and III players, Gada added.

“Let’s say it’s 40,000-50,000 square feet in a location like Guwahati, but if he (the operator) does a fantastic job, we’re open to it. This is our first step towards this market,” said Gada.

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LP Logiscience’s warehousing operations currently cover an area of ​​3 million square feet and have presence in Nagpur, Indore, Ahmedabad, Ankleshwar, Pathankot, Gurgaon and most recently Coimbatore.

Gada stressed that while major warehousing hubs such as Bhiwandi remain their main area of ​​focus, the growth in consumption in small Indian towns is a major factor driving the company to explore acquisition and merger opportunities.

“There is high fuel consumption in all tier II and III cities,” Gada said.

“When consumption increases, we want to get the product to the customer faster. What better way than to have a local warehouse. Instead of sourcing from Bhiwandi, I would prefer to have a warehouse in Nashik itself to serve the Nashik market,” Gada added.

LP Logiscience’s major clients include Asian Paints, UPL Ltd, Total Energies, IMCD, Pidilite Industries, Momentive Performance Material, Nivea India, among others.

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