The Hindu Business Line : TVS Logistics forms joint venture with two Thai cos

(From left) Mr Nash Purswani, Director, TVS Logistics SIAM Ltd; Mr R. Dinesh, Executive Director, TV Sundram Iyengar & Sons Ltd and Director, TVS Logistics SIAM; and Mr Kamnoon Srethbhakdi, Director, TVS Logistics SIAM; at a press conference in Chennai on Tuesday. — Bijoy Ghosh

Chennai , June 14

TVS Logistics Services Ltd has entered the Thailand market by forming a joint venture — TVS Logistics SIAM Ltd — with Thai Martin Trading Co Ltd and Tyvin International Co Ltd.

The total equity investment in the joint venture would be $400,000. The Rs 90-crore TVS Logistics would have a 55 per cent stake in the new firm withthe rest held by the two Thai firms, according to Mr R. Dinesh, Executive Director, T V Sundaram Iyengar & Sons Ltd., and Director in the new joint venture firm.

TVS Logistics SIAM would provide clients all necessary support, including manpower for handling complete sourcing of raw materials and parts. It will also facilitate procurement of goods worth Rs 200 crore by Indian companies in its first year of operations and aims to double this figure in the next couple of years. The joint venture firm is likely to have Rs 20-crore logistics services turnover in the first full year of operations.

Thailand would be a gateway to tap the Asean countries. With a one-stop-shop solution for logistics services and sourcing needs, TVS Logistics SIAM would become an extended arm of Indian and Thailand companies for their complete supply chain needs, he said.

According to Mr Dinesh, the joint venture firm will work on improving the efficiency of clients in inbound and outbound logistics and warehousing. The firm will initially work with four companies for providing logistics services. TVS Logistics would provide expertise and select manpower (sent from India), and partners would do marketing, enable better asset infrastructure and recruit people locally. For a year, an Indian would be a CEO, and in future a Thai will lead the company, he said.

"We see scope for cost saving for the Thai industry through effective supply chain solutions," he said.

TVS Logistics plans to enter the US and China, and a decision on this will be taken in six months. The company is also planning foray into Germany through a joint venture partner, Mr Dinesh said. "We will announce something on the German foray in a month," he said.

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