TVS Logistics Services Ltd, a leading third party logistics service provider, has acquired a Tata group company, Drive India Enterprises Solutions Ltd (Diesl). Without disclosing the deal size, R Dinesh, Managing Director of TVS Logistics Services, said Tata Opportunities Fund has agreed to invest up to ₹250 crore in TVS Logistics to fund the buy. He also refused to declare the equity stake that Tata Opportunities Fund would have.

Addressing media persons here today, Dinesh said the two companies TVS LSL and Diesl have complementary strengths across sectors and geographies. With over 90 per cent of its business coming from the automotive sector, TVS LSL is strong in automotive. However, it has diversified to have a play in non-automotive sectors such as beverages, IT, healthcare, telecom and defence too, whereas Diesl is strong in sectors such as consumer durables, FMCG (fast moving consumer goods), retail and technology.

Further, TVS LSL has a strong footprint in southern and western India. With over 6.5 million sq.ft of warehousing space, Diesl has a strong distribution network in North and East India. “Given their strengths and cross-selling opportunities, the deal would have a multiplier effect on the company’s performance,” he said.

14th acquisition

For TVS LSL, which grew inorganically all through, this is the 14{+t}{+h} acquisition. It offers complete logistics solutions, specialising in warehousing, distribution, transportation and in-plant logistic services. It controls over three million square feet of warehouse space in India. “We have been acquiring companies in Europe, the US and Asia to add to our ability, which helped us grow our business in Asia and emerge a leading player in the region,” Dinesh said. The company’s global revenue stands at ₹3,000 crore. Diesl has a turnover of ₹1,000 crore. “As a combined force, we expect our turnover to cross a billion dollars soon,” he added.

KRS Jamwal, Executive Director of Tata Industries and Director of Diesl, said the deal will result in greater synergy, which will be highly rewarding to all stakeholders in the business.

Padmanabh Sinha, Managing Partner of the Tata Opportunities Fund’s advisory team in India, said with this transaction, the Fund continues its strategy of investing into key companies in various segments.

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