The Indian arm of private equity firm KKR, Kohlberg Kravis Roberts India, and Goldman Sachs have invested R269 crore (approximately $53 million) in third-party logistics service providers TVS Logistics Services. KKR alone invested R242.4 crore (approximately $47 million) for a significant minority stake.
Goldman Sachs and TVS Capital had made investments of R100 crore each in 2008. Goldman Sachs has made a fresh investment of $6 million (a little over R26 crore) along with KKR, taking its total investments in the company to a little over R126 crore.
This is the second time TVS Logistics has successfully received private equity funding. After these investments, the promoters of TVS Logistics continue to hold a majority stake, a company official said.
R Dinesh, managing director, TVS Logistics Services, said, ?We have decided to go for the second round of funding because we see the market potential and opportunity for us to expand globally. The additional investment will allow TVS Logistics to continue its expansion both through acquisitions and organic growth. Besides growing with our existing customer base, we also look forward to our private equity investors Goldman Sachs and KKR helping us expand our capabilities and geographic footprint.?
S Ravichandran, executive director, TVS Logistics Services, said, ?Within the Indian logistics sector, we focus on the auto and discrete manufacturing sectors. These industries are experiencing rapid growth driven by both domestic and export demand and currently have relatively low third-party logistics penetration compared to their global peers.?
?This investment is in line with our on-going strategy to partner with strong promoter groups and management teams in a sector which builds on and benefits from the Indian industrial up tick. Logistics consolidation in an otherwise fragmented industry and best in class supply chain management are clear areas where KKR, partnering with TVS Logistics, can add a lot of value,? said Sanjay Nayar, a member of KKR and head of KKR India.
?TVS Logistics has demonstrated a strong track record of delivering just-in-time capabilities to highly demanding customers,? added Heramb Hajarnavis, director of KKR India.
Sanjeev Mehra, an MD at Goldman Sachs and a director at TVS Logistics Services, said, ?Since our initial investment in 2008, TVS Logistics has demonstrated strong growth and successfully expanded across the globe, acquiring new commercial capabilities and establishing footprints in key geographies to extend its reach throughout North America, Europe and Asia. Goldman Sachs? additional investment in this second round of funding further verifies and symbolises our conviction in the company?s strong growth prospects.?