New Delhi: Real Term Logistics, a joint venture of Kishore Biyani-led Future Capital Holding (FCH) and Aeroterm Mauritius Limited (AML), is expected to invest around Rs 700 crore for setting up mega merchandising hubs and warehouses to cater to the need of its group companies.

According to sources, Real Term Logistics (RTL) will set up at least 7 mega merchandising hubs of about one million square feet and 30 smaller warehouses in major cities in next two and half years, which could be utilised by Future group companies, such as Future Logistics Solutions Limited (FLSL).

"The investment for this could be to the tune of Rs 700 crore," the sources said, however, adding that RTL will not necessarily restrict itself to building infrastructure only for the Future Group companies. RTL has been formed to provide investment and other advisory services relating to logistics, warehousing facilities, related infrastructure and warehouse management services in India.

When contacted company officials declined to comment as FCH is in the process of an IPO, for which it has already filed a DRHP with SEBI. The Future Group has been looking to synergise operations of its group companies. RTL has already got into an arrangement with FLSL to lease out infrastructure, the sources added.

FLSL has already chartered out plans to invest up to Rs 400 crore in next three years to operate additional mega merchandising hubs and warehouses as it aims to touch a topline of Rs 800 crore by 2010.

Source : PTI