US private equity group BLACKSTONE has signed an agreement with Indian logistics provider Gateway Rail Freight to acquire a 37.5% stake in it, in an effort to tap into the growing Indian market.

The US firm will invest $64m (RS300 crore) in the Indian company, which is a subsidiary of Gateway Distriparks.

GatewayRail said the money will be used to develop new terminals, deploy additional trains and road trailers, expand capacity at existing terminals and strengthen last mile connectivity.

The company said it will issue convertible preference shares that will entitle Blackstone to acquire as much as 49.9% in it.

GatewayRail operates 17 trains and 235 road trailers from terminals at Garhi Harsaru, Gurgaon near Delhi in NCR, Ludhiana in Punjab and Navi Mumbai.