Mirae Asset Management, First Domestic Asset Manager to Invest in Indian Logistics Business

Considering Additional Investment in Major Indian Assets Including Infrastructure with Large Logistics Center Portfolio in Mumbai, India

[Asia Economy Reporter Kwangho Lee] Mirae Asset Global Investments' India subsidiary announced on the 6th that it will invest in a large logistics center located in Mumbai, India. Recently, the logistics business in India has been recognized as a highly growing sector, and this is the first time that a local subsidiary of a foreign asset management company operating in India has directly invested.

The logistics center, in which Mirae Asset Global Investments is investing approximately 21 billion KRW, is a large-scale facility of about 28,000m² completed in 2022, located in the Bhiwandi area, which is gaining attention as a logistics hub within Mumbai, India. Bhiwandi has advantageous geopolitical characteristics connecting Mumbai with major cities, and currently hosts logistics centers of global major companies such as Samsung, Amazon, BMW, and Maersk.

Mirae Asset Global Investments will lease the logistics center to Rhenus, a German global logistics company. Rhenus is a logistics specialist conglomerate owning more than 30 logistics centers across India.

Starting with this investment, Mirae Asset plans to expand its logistics business investments in major hubs in India such as Mumbai. According to Invest India, a government agency under the Indian Department of Industrial Policy responsible for investment attraction, demand for logistics centers is rapidly increasing due to the fast growth of the e-commerce market and increased logistics driven by high economic growth in India. However, since 90% of the Indian logistics market is operated by small-scale logistics companies and there is a lack of infrastructure, high growth potential is expected in the future.

A representative of Mirae Asset Global Investments' India subsidiary stated, “Mirae Asset plans to actively invest in logistics centers, data centers, and other assets with high future growth potential in line with India’s high economic growth rate and the government’s active infrastructure investment.” He added, “The India subsidiary, composed of professionals who best understand the local market, is thoroughly reviewing key assets within India.”

Meanwhile, Mirae Asset Global Investments established its India subsidiary in 2006. After the financial crisis, most global asset management companies withdrew from the Indian market or converted to joint ventures, but Mirae Asset has continued active investment based on India’s growth potential and currently operates as the only independent foreign capital asset manager in India. As of the end of November 2022, the India subsidiary’s assets under management (AUM) stood at 21 trillion KRW, ranking 9th among asset managers in India.

This content was produced with the assistance of AI translation services.