Gateway Partners to pick up minority stake in TVS Supply Chain for $100 million

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Published: March 17, 2020 2:40:18 AM

The strategy of seamlessly integrating its unique digital capabilities with its wide physical network helps the company drive operational efficiencies and ensure cost optimisation for its clients.

While being highly customer-focused, TVS SCS has been at the forefront of using technology in the supply chain domain.While being highly customer-focused, TVS SCS has been at the forefront of using technology in the supply chain domain.

TVS Supply Chain Solutions (TVS SCS), India’s leading end-to-end supply chain management services company and part of the $8.5-billion TVS Group, on Monday announced that Singapore-based private equity firm Gateway Partners has committed to acquire a minority stake in TVS SCS for $100 million.

The investment involves both primary portion and secondary element. The deal is the second-largest private equity investment in TVS SCS after CDPQ — one of North America’s largest pension fund managers — invested $155 million in TVS SCS in 2016, a press release stated.

TVS SCS is one of the largest companies in the third party logistics and supply chain sector in India, and has been able to provide integrated solutions globally by leveraging its niche digital capabilities and strong footprint across the UK/Europe, Asia and the US. While being highly customer-focused, TVS SCS has been at the forefront of using technology in the supply chain domain.

The strategy of seamlessly integrating its unique digital capabilities with its wide physical network helps the company drive operational efficiencies and ensure cost optimisation for its clients. The company is fast adopting machine learning, artificial intelligence, internet of things (IoT), vision technology to develop new mobility solutions for its customers. The combination of providing integrated solutions and intelligent digital interventions is expected to propel TVS SCS to continue to grow and expand its footprint.

R Dinesh, managing director, TVS Supply Chain Solutions, said, “We are glad to have Gateway Partners as a strategic investor. TVS SCS has been growing significantly both in domestic and international operations — thanks to our customer-focused approach and digital capabilities that we acquired over the years. I am confident Gateway as an investment partner will add value and help TVS SCS expand its footprint and grow.”

Anand Kumar, co-founder and partner, Gateway Partners, said, “We look forward to working closely with TVS SCS and supporting its next stage of growth. As India’s largest supply chain company with a global footprint, TVS SCS is well-positioned to continue providing end-to-end solutions for international and Indian customers. Led by a world-class team and backed by a strong shareholder group, we believe the company is uniquely placed to leverage the growing global demand for value-added supply chain management services.”

TVS SCS has grown to become an Indian multinational company, providing end-to-end supply chain services to sectors like automobile, beverages, IT, healthcare, telecom, retail, FMCG and defence globally. It has presence in 14 countries — India, the US, the UK, Spain, Germany, Italy, France, Singapore, Hong Kong, Thailand, China, Australia, New Zealand and Mexico. The company forms an indispensable link between suppliers and customers from across sectors in over 50 countries and manages more than 100 blue chip customers through its 20,000-plus skilled workforce. TVS LSL manages over 10 million sqft of warehouse space in India.

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