The Hindu Business Line : TVS Logistics acquires UK’s Multipart Holding

Mr Suresh Krishna, Chairman, TVS Logistics Services Ltd, flanked by Mr R. Dinesh, Managing Director (right), and Mr Mike Nithavrianakis, British Deputy High Commissioner in South India, at a press conference in Chennai on Wednesday. 0Mr Chris Gateley,MD, Multipart Holding

Our Bureau

Chennai, Nov. 11 TVS Logistics Services Ltd has acquired a Rs 500-crore logistics solutions provider in the UK, Multipart Holding, , in the process increasing the company’s turnover to about Rs 1,000 crore, a year earlier than originally envisaged.

The cost of the acquisition was not disclosed. However, TVS has said it will invest Rs 125 crore over the next 18 months in Multipart Holding to expand its business.

Announcing the acquisition, Mr Suresh Krishna, Chairman, TVS Logistics, said that this is a “game changer move” for TVS Logistics. The company is now an Indian multinational provider of a comprehensive range of supply chain services with a presence in Europe, the US and Thailand. It will soon expand into Brazil and China and “get to Russia a little later.”

The acquisition of Multipart Holding, which caters to automobile industry, Defence and utility services in the UK, also allows TVS Logistics expand into new areas of business. The pace of acquisition of complementary companies will continue as TVS Logistics taps new territories, he said.

TVS Logistics, which was a “fledgling company” in 2008, has now grown to a Rs 1,000-crore company and plans to double the turnover by 2012.

In the “not too distant future TVS Logistics should do an IPO,” he said. When it does it will be “such a robust company it will be a difficult task to resist the IPO.” It is well set to meet the increasing demand for quality logistics services as the pressures on the global economy eases, he said.

Mr Chris Gateley, Managing Director, Multipart Holding, said the acquisition by TVS Logistics is a growth opportunity for Multipart, which gets the financial muscle of the TVS Company. Multipart does not simply move products like the average logistics company.

But it offers value-added services by buying and holding inventories for its customers. This helps to bring down customers’ inventory to 25-40 per cent. Inventory acquisition is a key component of growth for Multipart Holding and in the last 18 months it has been tough to raise funds.

Also, Multipart gets access to markets and customers in the Far East and the US through the TVS group company. Multipart offers value added logistics solutions for a range of industries including automobile industry, defence and utility services. It can now source components for its customers from India and other low-cost countries.

Mr R. Dinesh, Managing Director, TVS Logistics, said Multipart’s presence in the defence sector and utility services presents an opportunity for TVS Logistics to extend these business services into India and other countries. While the TVS group company has 100 per cent ownership of Multipart Holding, the UK Company will retain its identity to exploit the brand presence it has built as an end-to-end logistics services provider. Mr Gateley will continue as CEO of Multipart for at least three years.

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